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
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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.
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