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PAG LIN 1 1 Section 1. Section 96.3, Code Supplement 1995, is amended 1 2 by adding the following new subsection: 1 3 NEW SUBSECTION. 10. VOLUNTARY INCOME TAX WITHHOLDING. 1 4 All payments of benefits made after December 31, 1996, are 1 5 subject to the following: 1 6 a. An individual filing a new application for benefits 1 7 shall, at the time of filing the application, be advised of 1 8 the following: 1 9 (1) Benefits paid under this chapter are subject to 1 10 federal and state income tax. 1 11 (2) Legal requirements exist pertaining to estimated tax 1 12 payments. 1 13 (3) The individual may elect to have federal income tax 1 14 deducted and withheld from the individual's payment of 1 15 benefits at the amount specified in the Internal Revenue Code 1 16 as defined in section 422.3. 1 17 (4) The individual may elect to have Iowa state income tax 1 18 deducted and withheld from the individual's payment of 1 19 benefits at the rate of five percent. 1 20 (5) The individual shall be permitted to change the 1 21 individual's previously elected withholding status. 1 22 b. Amounts deducted and withheld from benefits shall 1 23 remain in the unemployment compensation fund until transferred 1 24 to the appropriate taxing authority as a payment of income 1 25 tax. 1 26 c. The commissioner shall follow all procedures specified 1 27 by the United States department of labor, the federal internal 1 28 revenue service, and the department of revenue and finance 1 29 pertaining to the deducting and withholding of income tax. 1 30 d. Amounts shall be deducted and withheld under this 1 31 subsection only after amounts are deducted and withheld for 1 32 any overpayment of benefits, child support obligations, and 1 33 any other amounts authorized to be deducted and withheld under 1 34 federal or state law. 1 35 Sec. 2. Section 96.5, subsection 1, paragraph i, Code 2 1 Supplement 1995, is amended to read as follows: 2 2 i. The individual is unemployed as a result of the 2 3 individual's employer selling or otherwise transferring a 2 4 clearly segregable and identifiable part of the employer's 2 5 business or enterprise to another employer which does not make 2 6 an offer of suitable work to the individual as provided under 2 7 subsection 3; however. However, if the individual does 2 8 accept, and works in and is paid wages for, suitable work with 2 9 the acquiring employer, theacquiring employer immediately2 10becomes chargeable for thebenefits paid which are based on 2 11 the wages paid by the transferring employer shall be charged 2 12 to the unemployment compensation fund provided that the 2 13 acquiring employer has not received, or will not receive, a 2 14 partial transfer of experience under the provisions of section 2 15 96.7, subsection 2, paragraph "b". Relief of charges under 2 16 this paragraph applies to both contributory and reimbursable 2 17 employers, notwithstanding section 96.8, subsection 5. 2 18 Sec. 3. Section 96.7, subsection 2, paragraph e, Code 2 19 Supplement 1995, is amended to read as follows: 2 20 e. The division shall fix the contribution rate for each 2 21 employer and notify the employer of the rate by regular mail 2 22 to the last known address of the employer. An employer may 2 23 appeal to the division for a revision of the contribution rate 2 24 within thirty days from the date of the notice to the 2 25 employer. After providing an opportunity for a hearing, the 2 26 division may affirm, set aside, or modify its former 2 27 determination and may grant the employer a new contribution 2 28 rate. The division shall notify the employer of its decision 2 29 by regular mail. Judicial review of action of the division 2 30 may be sought pursuant to chapter 17A. 2 31 If an employer's account has been charged with benefits as 2 32 the result of a decision allowing benefits and the decision is 2 33 reversed, the employer may appeal, within thirty days from the 2 34 date of the next contribution rate notice, for a recomputation 2 35 of the rate. If contributions become due at a disputed 3 1 contribution rate prior to the employer receiving a decision 3 2 reversing benefits, the employer shall pay the contributions 3 3 at the disputed rate but shall be eligible for a refund 3 4 pursuant to section 96.14, subsection 5. If a base period 3 5 employer's account has been charged with benefits paid to an 3 6 employee at a time when the employee was employed by the base 3 7 period employer in the same employment as in the base period, 3 8 the employer may appeal, within thirty days from the date of 3 9 the first notice of the employer's contribution rate which is 3 10 based on the charges, for a recomputation of the rate. 3 11 Sec. 4. Section 96.7, subsection 7, paragraph e, Code 3 12 Supplement 1995, is amended to read as follows: 3 13 e. Ifanthe entire enterprise or business of a 3 14 reimbursablegovernmentgovernmental entity is sold or 3 15 otherwise transferred to a subsequent employing unit and the 3 16successoracquiring employing unit continues to operate the 3 17 enterprise or business, thesuccessoracquiring employing unit 3 18 shall assume the position of the reimbursablegovernment3 19 governmental entity with respect to the reimbursable 3 20governmentgovernmental entity's liability to pay the division 3 21 for reimbursable benefits based on the governmental entity's 3 22 payrolland reimbursable benefitsto the same extent as if no 3 23 change in the ownership or control of the enterprise or 3 24 business had occurred, whether or not thesuccessor employer3 25 acquiring employing unit elected or elects, or was or is 3 26 eligible to elect, to become a reimbursable employer with 3 27 respect to theemployer'sacquiring employing unit's own 3 28 payroll prior to or after thesale or transferacquisition of 3 29 the governmental entity's enterprise or business. 3 30 Sec. 5. Section 96.7, subsection 8, paragraph b, 3 31 subparagraph (6), Code Supplement 1995, is amended to read as 3 32 follows: 3 33 (6) Ifanthe entire enterprise or business of a 3 34 reimbursable nonprofit organization is sold or otherwise 3 35 transferred to a subsequent employing unit and thesuccessor4 1 acquiring employing unit continues to operate the enterprise 4 2 or business, thesuccessoracquiring employing unit shall 4 3 assume the position of the reimbursable nonprofit organization 4 4 with respect to the nonprofit organization's liability to pay 4 5 the division for reimbursable benefits based on the nonprofit 4 6 organization's payrolland reimbursable benefitsto the same 4 7 extent as if no change in the ownership or control of the 4 8 enterprise or business had occurred, whether or not the 4 9successor employeracquiring employing unit elected or elects, 4 10 or was or is eligible to elect, to become a reimbursable 4 11 employer with respect to theemployer'sacquiring employing 4 12 unit's own payroll prior to or after thesale or transfer4 13 acquisition of the nonprofit organization's enterprise or 4 14 business. 4 15 Sec. 6. Section 96.11, subsection 5, Code 1995, is amended 4 16 by striking the subsection. 4 17 Sec. 7. Section 96.11, subsection 6, Code 1995, is amended 4 18 to read as follows: 4 19 6. EMPLOYMENT STABILIZATION. The commissioner, with the 4 20 advice and aid ofthe advisory council, and throughthe 4 21 appropriate bureaus of the division, shall take all 4 22 appropriate steps to reduce and prevent unemployment; to 4 23 encourage and assist in the adoption of practical methods of 4 24 vocational training, retraining and vocational guidance; to 4 25 investigate, recommend, advise, and assist in the 4 26 establishment and operation, by municipalities, counties, 4 27 school districts, and the state, of reserves for public works 4 28 to be used in times of business depression and unemployment; 4 29 to promote there-employmentreemployment of unemployed 4 30 workers throughout the state in every other way that may be 4 31 feasible; and to these ends to carry on and publish the 4 32 results of investigations and research studies. 4 33 Sec. 8. Section 96.14, subsection 5, Code 1995, is amended 4 34 to read as follows: 4 35 5. REFUNDS, COMPROMISES AND SETTLEMENTS. If the division 5 1 of job service finds that an employer has paid contributions, 5 2orinterest on contributions, or penalties, which have been 5 3 erroneously paid orwhich have been paidif the employer has 5 4 overpaid contributions because the employer's contribution 5 5 rate was subsequently reduced pursuant to section 96.7, 5 6 subsection 2, paragraph "e", solely due to benefits initially 5 7 charged against but later removed from an employer's account, 5 8 and the employer has filed an application foradjustment5 9 refund, the division shallmake an adjustment, compromise, or5 10settlement, and, at the employer's option, shall either refund5 11the payments or treat the payments as voluntary contributions5 12with no limitation on the payments' effects on the employer's5 13contribution raterefund the erroneous payment or overpayment. 5 14 Refunds so made shall be charged to the fund to which the 5 15 collections have been credited, and shall be paid to the 5 16claimantemployer without interest. A claim for refund shall 5 17 be made within three years from the date of payment. For like 5 18 cause,adjustmentsrefunds, compromises,or refundsand 5 19 settlements may be made by the division on its own initiative 5 20 within three years of the date of the payment or assessment. 5 21 If the division finds that the contribution that has been 5 22 assessed against an employer is of doubtful collectibility or 5 23 may not be collected in full, the division may institute a 5 24 proceeding in the district court in the county in which the 5 25 employer against which the tax is levied is located, 5 26 requesting authority to compromise the contribution. Notice 5 27 of the filing of an application shall be given to the 5 28 interested parties as the court may prescribe. The court upon 5 29 hearing may authorize the division to compromise and settle 5 30 its claim for the contribution and shall fix the amount to be 5 31 received by the division in full settlement of the claim and 5 32 shall authorize the release of the division's lien for the 5 33 contribution. 5 34 Sec. 9. Section 96.19, subsection 18, paragraph a, Code 5 35 Supplement 1995, is amended by adding the following new 6 1 subparagraph: 6 2 NEW SUBPARAGRAPH. (9) A member of a limited liability 6 3 company. For such a member, the term "employment" shall not 6 4 include any portion of such service that is performed in lieu 6 5 of making a contribution of cash or property to acquire a 6 6 membership interest in the limited liability company. 6 7 Sec. 10. Section 96.19, subsection 18, paragraph f, Code 6 8 Supplement 1995, is amended to read as follows: 6 9 f. (1) Services performed by an individual for wages 6 10 shall be deemed to be employment subject to this chapter 6 11 unless and until it is shown to the satisfaction of the 6 12 divisionof job servicethat such individual has been and will 6 13 continue to be free from control or direction over the 6 14 performance of such services, both under the individual's 6 15 contract of service and in fact. 6 16 (2) Services performed by an individual for two or more 6 17 employing units shall be deemed to be employment to each 6 18 employing unit for which the services are performed. However, 6 19 an individual who concurrently performs services as a 6 20 corporate officer for two or more related corporations and who 6 21 is paid through a common paymaster that is one of the related 6 22 corporations may, at the discretion of such related 6 23 corporations, be considered to be in the employment of only 6 24 the common paymaster. 6 25 Sec. 11. Section 96.19, subsection 41, Code Supplement 6 26 1995, is amended by adding the following new paragraph: 6 27 NEW PARAGRAPH. e. Any portion of the remuneration to a 6 28 member of a limited liability company based on a membership 6 29 interest in the company provided that the remuneration is 6 30 allocated among members, and among classes of members, in 6 31 proportion to their respective investments in the company. If 6 32 the amount of remuneration attributable to a membership 6 33 interest cannot be determined, the entire amount of 6 34 remuneration shall be deemed to be based on services 6 35 performed. 7 1 Sec. 12. EFFECTIVE AND APPLICABILITY DATE. The section of 7 2 this Act which amends section 96.3 by enacting a new 7 3 subsection 10, takes effect on January 1, 1997, and is 7 4 applicable to unemployment compensation benefits paid on or 7 5 after that date. 7 6 HF 2229 7 7 ec/pk/25
Text: HF02228 Text: HF02230 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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