The State Senate has unanimously passed Senate Bill 6524, which would ease the penalty for businesses that fail to pay their unemployment insurance (UI) tax in a timely manner.

The bill's sponsor, Sen. Curtis King, R-Yakima, said reducing that burden will help small businesses that are struggling to survive.

"Businesses that are delinquent in their UI payments are charged a penalty which is currently two-tenths of 1 percent above the highest rate on the scale, which is 5.4 percent," King said. "Even if your rate is the lowest on the 40-point scale, one delinquency will jack your rate up to 5.6 percent as a penalty. That's counterproductive to encouraging the growth of businesses in Washington."

SB 6524 would also allow business owners who enter into an approved agency-deferred payment contract within 30 days of notification of delinquency to deduct one-half of 1 percent from the delinquent tax rate.

The bill faces a public hearing in the House Commerce and Labor Committee next Tuesday, Feb. 23.