Common audit findings
Businesses who hire reportable employees without a registered Employment Security Department (ESD) account. In the state of Washington, every business with employees must register and report wages for unemployment insurance taxes.
Businesses inappropriately identifying their workers as casual, temporary labor or as independent contractors when they should be reported as employees. We apply the employment tests in RCW 50.04.140 and RCW 50.04.145 to determine whether a worker should be considered an employee. We also review elements of RCW 50.04.245 because it is frequently misinterpreted.
Businesses reporting some, but not all, reportable employee hours of work.
Businesses reporting some, but not all, of an employee’s reportable wages.
State Unemployment Tax Act (SUTA) dumping
Businesses suspected of non-compliance with state's predecessor/successor laws.