Bill Text: IA HF72 | 2015-2016 | 86th General Assembly | Introduced

Iowa House Bill 72 (Prior Session Legislation)

Introduced

Bill Title: A bill for an act increasing certain penalties for employers willfully misclassifying employees for unemployment compensation contribution purposes.

Sponsorship: Partisan Bill (Democrat 17)

Status: (Introduced - Dead) 2015-01-22 - Subcommittee, Jorgensen, Forristall, and Kearns. H.J. 143. [HF72 Detail]

Download: Iowa-2015-HF72-Introduced.html

House File 72 - Introduced




                                 HOUSE FILE       
                                 BY  HUNTER, KELLEY, STAED,
                                     McCONKEY, HALL,
                                     HANSON, GASKILL,
                                     KEARNS, T. TAYLOR,
                                     SMITH, ANDERSON,
                                     ABDUL=SAMAD, MASCHER,
                                     WESSEL=KROESCHELL,
                                     OLDSON, PRICHARD, and
                                     STECKMAN

                                      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 1276YH (3) 86
    je/rj

PAG LIN



  1  1    Section 1.  Section 96.14, subsection 2, paragraph e, Code
  1  2 2015, 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 The inclusion of this explanation does not constitute agreement with
  1 20 the explanation's substance by the members of the general assembly.
  1 21    This bill provides that if the department of workforce
  1 22 development finds that an employer willfully failed to pay any
  1 23 contribution for state unemployment compensation with intent
  1 24 to defraud the department, and that the failure to pay by the
  1 25 employer involved the misclassification of an employee's wages
  1 26 on a federal 1099 record, for any subsequent finding by the
  1 27 department of such a failure to pay by that employer involving
  1 28 the misclassification of an employee's wages on a federal 1099
  1 29 record, the additional contribution penalty required by Code
  1 30 section 96.14(2)(e) shall equal 100 percent of the amount the
  1 31 employer failed to pay due to misclassification.  Current law
  1 32 provides that such an additional contribution penalty equals 50
  1 33 percent of the amount the employer failed to pay.
       LSB 1276YH (3) 86
       je/rj