Text: HF550            Text: HF552
Complete Bill History


House File 551

HOUSE FILE BY HUNTER, T. TAYLOR, KEARNS, and MURPHY A BILL FOR 1 An Act increasing certain penalties for employers willfully 2 misclassifying employees for unemployment compensation 3 contribution purposes. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2439YH (2) 84 je/rj PAG LIN 1 1 Section 1. Section 96.14, subsection 2, paragraph e, Code 1 2 2011, is amended to read as follows: 1 3 e. (1) If the department finds that any employer has 1 4 willfully failed to pay any contribution or part thereof when 1 5 required by this chapter and the rules of the department, 1 6 with intent to defraud the department, then such employer 1 7 shall in addition to such contribution or part thereof, pay 1 8 a contribution equal to fifty percent of the amount of such 1 9 contribution or part thereof, as the case may be. 1 10 (2) If the department finds that such a failure to pay by an 1 11 employer involves the misclassification of an employee's wages 1 12 on a federal 1099 record, for any subsequent finding by the 1 13 department of such a failure to pay by that employer involving 1 14 the misclassification of an employee's wages on a federal 1099 1 15 record, the additional contribution required by subparagraph 1 16 (1) shall instead equal one hundred percent of the amount the 1 17 employer failed to pay due to misclassification. 1 18 EXPLANATION 1 19 This bill provides that if the department of workforce 1 20 development finds that an employer willfully failed to pay any 1 21 contribution for state unemployment compensation with intent 1 22 to defraud the department, and that the failure to pay by the 1 23 employer involved the misclassification of an employee's wages 1 24 on a federal 1099 record, for any subsequent finding by the 1 25 department of such a failure to pay by that employer involving 1 26 the misclassification of an employee's wages on a federal 1099 1 27 record, the additional contribution penalty required by Code 1 28 section 96.14(2)(e) shall equal 100 percent of the amount the 1 29 employer failed to pay due to misclassification. Current law 1 30 provides that such an additional contribution penalty equals 50 1 31 percent of the amount the employer failed to pay. LSB 2439YH (2) 84 je/rj
Text: HF550            Text: HF552 Complete Bill History