Reporting zero hours
When should you report zero hours for an employee who has received wages? The following are the most common reasons for reporting wages and zero hours:
Report any payments you made to an employee to adjust the wages that you reported in a previous quarter.
Report any bonuses you paid an employee for hours worked in a previous quarter.
Cafeteria plan / 401K plan
Report the amount you paid to cover the cost of a benefit plan that ensures continued enrollment if no hours were worked during the quarter.
Report the wages you paid a commercial fisherman for hours worked in a previous quarter.
Report any commissions you paid an employee for hours worked in a previous quarter.
Report the amount you paid an author or artist for the use, display or performance of previously created artistic or intellectual works.
Report the amount of severance pay you paid an employee following his or her end of employment. A settlement is an amount paid for a negotiated settlement for termination or violation of an employment contract.
Sick leave payout
Report the amount you paid an employee for sick leave if no hours were worked during the quarter.
Report any tips or gratuities you paid an employee for hours worked in a previous quarter.
Zero hours are appropriate if the only type of wages paid are similar to those listed above. You may be asked to explain why you reported zero hours. Failure to provide the reason (if requested) may result in a penalty.
If you have any questions, please contact either the tax account management center or the Employer Accounts Unit at 1-360-902-9650.