Chapter 4
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worked, if a daily record of actual hours is kept for
each worker. You must report all of your salaried
workers using the same method (either assumed
or actual hours), even if they work part-time.
You must keep a record of the date each worker
begins and ends employment. If you are using the 160-
hour rule, you may report 8 hours per day for new or
terminated workers who work a partial month at the
beginning or end of their employment. No reduction
to reportable hours can be made for vacation, holiday
or sick leave when using the 160-hour rule.
Piece workers. If an employee’s pay is based on
completing tasks that are measured by the pound,
ton, acre, unit, foot or other method, you must
report actual hours worked.
Optional “elective” coverages. If your business
provides optional coverage for an owner (sole
proprietor, partner, exempt LLC member or
manager, or corporate ofcer), you may report
either 480 hours per quarter or actual hours, if a
daily record of actual hours is kept. If you have
optional coverage for other exempt workers, you
must follow the reporting rules for salary, hourly,
commission or piecework, as applicable.
Volunteers, student volunteers and unpaid
students. Businesses and nonprots who elect
coverage for their volunteers, student volunteers or
unpaid students with optional (elective) coverage
may choose to report 100 hours per qualifying
volunteer per calendar year, or actual hours.
Splitting Worker Hours
The worker hours of any one employee may be
divided for reporting purposes between two or
more assigned basic risk classications. This may
be done only when accurate records of actual
hours worked, supported by original timecard or
time-book entries, document the division of duties.
You may not divide a worker’s hours between a
“basic” classication and a “standard exception”
classication, or between two standard exception
classes. Standard exceptions are clerical ofce
(class 4904), auto/truck/camper/trailer/mobile
home/motorcycle and pleasure craft sales
personnel (class 6301), outside sales (class 6303),
LLC members/manager (class 7100), and
corporate ofcers (class 7101).
If you do not keep accurate records of divided
worker hours, all of a worker’s hours must be
reported in the highest rated classication in which
the worker has duties. Estimates or percentages are
not acceptable documentation for splitting hours.
Employers may reduce premium costs in cases where
dividing a worker’s hours between risk classications
is allowable. If you are unsure if a division is allowed
for a particular situation, please contact the Employer
Services Help Line at 360-902-4817.
If You Fail to File Your
Reports or Pay Premiums
If you fail to le a quarterly report, L&I will
estimate the premiums due based on the best
information we have available and we will take
steps to collect the premiums owed.
We also assess penalties on delinquent accounts.
The longer the account is delinquent, the greater
the penalt y.
The minimum penalty is $10. You must submit
a report even if you report no hours/units. A
late report indicating “no hours/units” will be
assessed a $10 penalty.
Interest will be assessed on all delinquent
accounts at a rate of 1% per month on the
premium owed. We count the number of calendar
days elapsed since the due date including the date
we receive the report or payment.
Other penalties may be assessed for non-payment of
premiums, misrepresentations, excessive deductions
from employees, failure to keep adequate timesheets
and payroll records or other violations.
Taxi, Limousine, or Cabulance rms that fail to le
or pay workers’ compensation premiums to L&I
can have their for-hire certicates suspended and
eventually revoked by the Department of Licensing.