Bill Text: IA HF41 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act increasing certain penalties for employers willfully misclassifying employees for unemployment compensation contribution purposes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-12-31 - END OF 2013 ACTIONS [HF41 Detail]
Download: Iowa-2013-HF41-Introduced.html
House
File
41
-
Introduced
HOUSE
FILE
41
BY
HUNTER
A
BILL
FOR
An
Act
increasing
certain
penalties
for
employers
willfully
1
misclassifying
employees
for
unemployment
compensation
2
contribution
purposes.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
96.14,
subsection
2,
paragraph
e,
Code
1
2013,
is
amended
to
read
as
follows:
2
e.
(1)
If
the
department
finds
that
any
employer
has
3
willfully
failed
to
pay
any
contribution
or
part
thereof
when
4
required
by
this
chapter
and
the
rules
of
the
department,
5
with
intent
to
defraud
the
department,
then
such
employer
6
shall
in
addition
to
such
contribution
or
part
thereof,
pay
7
a
contribution
equal
to
fifty
percent
of
the
amount
of
such
8
contribution
or
part
thereof,
as
the
case
may
be.
9
(2)
If
the
department
finds
that
such
a
failure
to
pay
by
an
10
employer
involves
the
misclassification
of
an
employee’s
wages
11
on
a
federal
1099
record,
for
any
subsequent
finding
by
the
12
department
of
such
a
failure
to
pay
by
that
employer
involving
13
the
misclassification
of
an
employee’s
wages
on
a
federal
1099
14
record,
the
additional
contribution
required
by
subparagraph
15
(1)
shall
instead
equal
one
hundred
percent
of
the
amount
the
16
employer
failed
to
pay
due
to
misclassification.
17
EXPLANATION
18
This
bill
provides
that
if
the
department
of
workforce
19
development
finds
that
an
employer
willfully
failed
to
pay
any
20
contribution
for
state
unemployment
compensation
with
intent
21
to
defraud
the
department,
and
that
the
failure
to
pay
by
the
22
employer
involved
the
misclassification
of
an
employee’s
wages
23
on
a
federal
1099
record,
for
any
subsequent
finding
by
the
24
department
of
such
a
failure
to
pay
by
that
employer
involving
25
the
misclassification
of
an
employee’s
wages
on
a
federal
1099
26
record,
the
additional
contribution
penalty
required
by
Code
27
section
96.14(2)(e)
shall
equal
100
percent
of
the
amount
the
28
employer
failed
to
pay
due
to
misclassification.
Current
law
29
provides
that
such
an
additional
contribution
penalty
equals
50
30
percent
of
the
amount
the
employer
failed
to
pay.
31
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