HCS/SCS/SB 922 - This act modifies how penalties are assessed for failure to file quarterly wage reports on time with the Division of Employment Security. For employers in general, a late report currently results in an assessment of the employer's contributions and interest payable, and a 10% penalty is assessed. Currently, the Division of Employment Security may terminate an organization's election to make payments in lieu of contributions (reimbursable status) for late reports or payments, and the employer is assigned a contribution rate.

Pursuant to this act, the penalty for late reports shall be equal to the greater of $100 or 10% of the contributions for each month the failure continues, but not to exceed $200 or 20% in the aggregate, and a reimbursable employer does not lose such status. This act changes the number of days under which the employer may be charged interest for a late report from 15 to 30 days after notification.

This act also requires an employer to report quarterly wage information on magnetic tape or diskette to the Division if the employer is required to report W-2 copy A information on magnetic tape to the Social Security Administration.

Additionally, this act states that money credited to the State in the federal Unemployment Trust Fund for fiscal years 1999, 2000 and 2001, shall be used solely for administration of the employment compensation program.

Current law excludes from employment security provisions services performed in the delivery or distribution of newspapers, including delivery or distribution to any point for subsequent delivery or distribution. This act limits the delivery exclusion to persons under 18 years of age, and does not include subsequent delivery or distribution. Also excluded under this act are services performed in the sale of magazines or newspapers where the individual keeps profits from such sales.

This act has an effective date of January 1, 1999.
MARGARET J. TOALSON