Text: H05646                            Text: H05648
Text: H05600 - H05699                   Text: H Index
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House Amendment 5647

Amendment Text

PAG LIN
  1  1    Amend House File 2229, as passed by the House, as
  1  2 follows:
  1  3    #1.  Page 1, by inserting before line 1 the
  1  4 following:
  1  5    "Sec.    .  Section 96.3, Code Supplement 1995, is
  1  6 amended by adding the following new subsection:
  1  7    NEW SUBSECTION.  10.  VOLUNTARY INCOME TAX
  1  8 WITHHOLDING.
  1  9    All payments of benefits made after December 31,
  1 10 1996, are subject to the following:
  1 11    a.  An individual filing a new application for
  1 12 benefits shall, at the time of filing the application,
  1 13 be advised of the following:
  1 14    (1)  Benefits paid under this chapter are subject
  1 15 to federal and state income tax.
  1 16    (2)  Legal requirements exist pertaining to
  1 17 estimated tax payments.
  1 18    (3)  The individual may elect to have federal
  1 19 income tax deducted and withheld from the individual's
  1 20 payment of benefits at the amount specified in the
  1 21 Internal Revenue Code as defined in section 422.3.
  1 22    (4)  The individual may elect to have Iowa state
  1 23 income tax deducted and withheld from the individual's
  1 24 payment of benefits at the rate of five percent.
  1 25    (5)  The individual shall be permitted to change
  1 26 the individual's previously elected withholding
  1 27 status.
  1 28    b.  Amounts deducted and withheld from benefits
  1 29 shall remain in the unemployment compensation fund
  1 30 until transferred to the appropriate taxing authority
  1 31 as a payment of income tax.
  1 32    c.  The commissioner shall follow all procedures
  1 33 specified by the United States department of labor,
  1 34 the federal internal revenue service, and the
  1 35 department of revenue and finance pertaining to the
  1 36 deducting and withholding of income tax.
  1 37    d.  Amounts shall be deducted and withheld under
  1 38 this subsection only after amounts are deducted and
  1 39 withheld for any overpayment of benefits, child
  1 40 support obligations, and any other amounts authorized
  1 41 to be deducted and withheld under federal or state
  1 42 law.
  1 43    Sec.    .  Section 96.5, subsection 1, paragraph i,
  1 44 Code Supplement 1995, is amended to read as follows:
  1 45    i.  The individual is unemployed as a result of the
  1 46 individual's employer selling or otherwise
  1 47 transferring a clearly segregable and identifiable
  1 48 part of the employer's business or enterprise to
  1 49 another employer which does not make an offer of
  1 50 suitable work to the individual as provided under
  2  1 subsection 3; however.  However, if the individual
  2  2 does accept, and works in and is paid wages for,
  2  3 suitable work with the acquiring employer, the
  2  4 acquiring employer immediately becomes chargeable for
  2  5 the benefits paid which are based on the wages paid by
  2  6 the transferring employer shall be charged to the
  2  7 unemployment compensation fund provided that the
  2  8 acquiring employer has not received, or will not
  2  9 receive, a partial transfer of experience under the
  2 10 provisions of section 96.7, subsection 2, paragraph
  2 11 "b".  Relief of charges under this paragraph applies
  2 12 to both contributory and reimbursable employers,
  2 13 notwithstanding section 96.8, subsection 5."
  2 14    #2.  Page 2, by inserting after line 32 the
  2 15 following:
  2 16    "Sec.    .  Section 96.11, subsection 5, Code 1995,
  2 17 is amended by striking the subsection.
  2 18    Sec.    .  Section 96.11, subsection 6, Code 1995,
  2 19 is amended to read as follows:
  2 20    6.  EMPLOYMENT STABILIZATION.  The commissioner,
  2 21 with the advice and aid of the advisory council, and
  2 22 through the appropriate bureaus of the division, shall
  2 23 take all appropriate steps to reduce and prevent
  2 24 unemployment; to encourage and assist in the adoption
  2 25 of practical methods of vocational training,
  2 26 retraining and vocational guidance; to investigate,
  2 27 recommend, advise, and assist in the establishment and
  2 28 operation, by municipalities, counties, school
  2 29 districts, and the state, of reserves for public works
  2 30 to be used in times of business depression and
  2 31 unemployment; to promote the re-employment
  2 32 reemployment of unemployed workers throughout the
  2 33 state in every other way that may be feasible; and to
  2 34 these ends to carry on and publish the results of
  2 35 investigations and research studies."
  2 36    #3.  Page 3, by inserting after line 33 the
  2 37 following:
  2 38    "Sec.    .  Section 96.19, subsection 18, paragraph
  2 39 a, Code Supplement 1995, is amended by adding the
  2 40 following new subparagraph:
  2 41    NEW SUBPARAGRAPH.  (9)  A member of a limited
  2 42 liability company.  For such a member, the term
  2 43 "employment" shall not include any portion of such
  2 44 service that is performed in lieu of making a
  2 45 contribution of cash or property to acquire a
  2 46 membership interest in the limited liability company.
  2 47    Sec.    .  Section 96.19, subsection 18, paragraph
  2 48 f, Code Supplement 1995, is amended to read as
  2 49 follows:
  2 50    f.  (1)  Services performed by an individual for
  3  1 wages shall be deemed to be employment subject to this
  3  2 chapter unless and until it is shown to the
  3  3 satisfaction of the division of job service that such
  3  4 individual has been and will continue to be free from
  3  5 control or direction over the performance of such
  3  6 services, both under the individual's contract of
  3  7 service and in fact.
  3  8    (2)  Services performed by an individual for two or
  3  9 more employing units shall be deemed to be employment
  3 10 to each employing unit for which the services are
  3 11 performed.  However, an individual who concurrently
  3 12 performs services as a corporate officer for two or
  3 13 more related corporations and who is paid through a
  3 14 common paymaster that is one of the related
  3 15 corporations may, at the discretion of such related
  3 16 corporations, be considered to be in the employment of
  3 17 only the common paymaster.
  3 18    Sec.    .  Section 96.19, subsection 41, Code
  3 19 Supplement 1995, is amended by adding the following
  3 20 new paragraph:
  3 21    NEW PARAGRAPH.  e.  Any portion of the remuneration
  3 22 to a member of a limited liability company based on a
  3 23 membership interest in the company provided that the
  3 24 remuneration is allocated among members, and among
  3 25 classes of members, in proportion to their respective
  3 26 investments in the company.  If the amount of
  3 27 remuneration attributable to a membership interest
  3 28 cannot be determined, the entire amount of
  3 29 remuneration shall be deemed to be based on services
  3 30 performed.
  3 31    Sec.    .  EFFECTIVE AND APPLICABILITY DATE.  The
  3 32 section of this Act which amends section 96.3 by
  3 33 enacting a new subsection 10, takes effect on January
  3 34 1, 1997, and is applicable to unemployment
  3 35 compensation benefits paid on or after that date."
  3 36    #4.  Title page, by striking lines 1 through 3 and
  3 37 inserting the following:  "An Act relating to the
  3 38 components of the unemployment insurance system
  3 39 concerning the job service advisory council, voluntary
  3 40 income tax withholding from unemployment benefits,
  3 41 relieving certain employers from certain unemployment
  3 42 insurance charges, employer contributions and
  3 43 liability for unemployment insurance benefits
  3 44 regarding successor employers, definitions of
  3 45 employment and wages for members of limited liability
  3 46 companies, and unemployment insurance tax liability
  3 47 for corporate officers, and providing an effective and
  3 48 applicability date."
  3 49    #5.  By renumbering as necessary.  
  3 50 HF 2229S
  4  1 ec/cc/26
     

Text: H05646                            Text: H05648
Text: H05600 - H05699                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index

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