51.48.055 - Termination, dissolution, or abandonment of business -- Personal liability for unpaid premiums. - Washington Statutes

Termination, dissolution, or abandonment of business — Personal liability for unpaid premiums.

(1) Upon termination, dissolution, or abandonment of a corporate or limited liability company business, any officer, member, manager, or other person having control or supervision of payment and/or reporting of industrial insurance, or who is charged with the responsibility for the filing of returns, is personally liable for any unpaid premiums and interest and penalties on those premiums if such officer or other person willfully fails to pay or to cause to be paid any premiums due the department under chapter 51.16 RCW.

     For purposes of this subsection "willfully fails to pay or to cause to be paid" means that the failure was the result of an intentional, conscious, and voluntary course of action.

     (2) The officer, member, manager, or other person is liable only for premiums that became due during the period he or she had the control, supervision, responsibility, or duty to act for the corporation described in subsection (1) of this section, plus interest and penalties on those premiums.

     (3) The officer, member, manager, or other person is not liable if that person is not exempt from mandatory coverage under RCW 51.12.020 and was directed not to pay the employer's premiums by someone who is exempt.

     (4) The officer, member, manager, or other person is not liable if all of the assets of the corporation or limited liability company have been applied to its debts through bankruptcy or receivership.

     (5) Any person having been issued a notice of assessment under this section is entitled to the appeal procedures under RCW 51.48.131.

     (6) This section does not relieve the corporation or limited liability company of its liabilities under Title 51 RCW or otherwise impair other tax collection remedies afforded by law.

     (7) Collection authority and procedures prescribed in this chapter apply to collections under this section.

[2004 c 243 § 3.]

Notes: Adoption of rules -- 2004 c 243: See note following RCW 51.08.177.