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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 96.4, subsection 4, unnumbered paragraph 2 1 1, Code 1995, is amended to read as follows: 2 2 The individual has been paid wages for insured work during 2 3 the individual's base periodin an amount at least one and2 4one-quarter times the wages paid to the individual during that2 5quarter of the individual's base period in which the2 6individual's wages were highest; provided that the individual 2 7 has been paid wages for insured work totaling at least three 2 8 and five-tenths percent of the statewide average annual wage 2 9 for insured work, computed for the preceding calendar year if 2 10 the individual's benefit year begins on or after the first 2 11 full week in July and computed for the second preceding 2 12 calendar year if the individual's benefit year begins before 2 13 the first full week in July, in that calendar quarter in the 2 14 individual's base period in which the individual's wages were 2 15 highest, and the individual has been paid wages for insured 2 16 work totaling at least one-half of the amount of wages 2 17 required under this subsection in the calendar quarter of the 2 18 base period in which the individual's wages were highest, in a 2 19 calendar quarter in the individual's base period other than 2 20 the calendar quarter in which the individual's wages were 2 21 highest. The calendar quarter wage requirements shall be 2 22 rounded to the nearest multiple of ten dollars. 2 23 Sec. 3. Section 96.5, subsection 1, paragraph i, Code 2 24 Supplement 1995, is amended to read as follows: 2 25 i. The individual is unemployed as a result of the 2 26 individual's employer selling or otherwise transferring a 2 27 clearly segregable and identifiable part of the employer's 2 28 business or enterprise to another employer which does not make 2 29 an offer of suitable work to the individual as provided under 2 30 subsection 3; however. However, if the individual does 2 31 accept, and works in and is paid wages for, suitable work with 2 32 the acquiring employer, theacquiring employer immediately2 33becomes chargeable for thebenefits paid which are based on 2 34 the wages paid by the transferring employer shall be charged 2 35 to the unemployment compensation fund provided that the 3 1 acquiring employer has not received, or will not receive, a 3 2 partial transfer of experience under the provisions of section 3 3 96.7, subsection 2, paragraph "b". Relief of charges under 3 4 this paragraph applies to both contributory and reimbursable 3 5 employers, notwithstanding section 96.8, subsection 5. 3 6 Sec. 4. Section 96.11, subsection 5, Code 1995, is amended 3 7 by striking the subsection. 3 8 Sec. 5. Section 96.11, subsection 6, Code 1995, is amended 3 9 to read as follows: 3 10 6. EMPLOYMENT STABILIZATION. The commissioner, with the 3 11 advice and aid ofthe advisory council, and throughthe 3 12 appropriate bureaus of the division, shall take all 3 13 appropriate steps to reduce and prevent unemployment; to 3 14 encourage and assist in the adoption of practical methods of 3 15 vocational training, retraining and vocational guidance; to 3 16 investigate, recommend, advise, and assist in the 3 17 establishment and operation, by municipalities, counties, 3 18 school districts, and the state, of reserves for public works 3 19 to be used in times of business depression and unemployment; 3 20 to promote there-employmentreemployment of unemployed 3 21 workers throughout the state in every other way that may be 3 22 feasible; and to these ends to carry on and publish the 3 23 results of investigations and research studies. 3 24 Sec. 6. Section 96.13, subsection 3, paragraph a, 3 25 unnumbered paragraph 1, Code 1995, is amended to read as 3 26 follows: 3 27 There is created in the state treasury a special fund to be 3 28 known as the special employment security contingency fund. 3 29 All interest, fines, and penalties, regardless of when they 3 30 become payable, collectedfrom employersunder section 96.14 3 31 and section 96.16, subsection 4, shall be paid into the fund. 3 32 The moneys shall not be expended or available for expenditure 3 33 in any manner which would permit their substitution for 3 34 federal funds which would in the absence of the moneys be 3 35 available to finance expenditures for the administration of 4 1 the department. However, the moneys may be used as a 4 2 revolving fund to cover expenditures for which federal funds 4 3 have been duly requested but not yet received, subject to the 4 4 charging of the expenditures against the funds when received. 4 5 The moneys may be used for the payment of costs of 4 6 administration which are found not to have been properly and 4 7 validly chargeable against federal grants or other funds, 4 8 received for the department. The moneys in the fund are 4 9 specifically made available to replace, within a reasonable 4 10 time, any moneys received by this state in the form of grants 4 11 from the federal government for administrative expenses which 4 12 because of any action or contingency have been expended for 4 13 purposes other than, or in excess of, those necessary for the 4 14 proper administration of the department. All moneys in the 4 15 fund shall be deposited, administered, and disbursed in the 4 16 same manner and under the same conditions and requirements as 4 17 are provided by law for other special funds in the state 4 18 treasury. Interest earned upon moneys in the fund shall be 4 19 deposited in and credited to the fund. 4 20 Sec. 7. Section 96.16, subsection 4, Code 1995, is amended 4 21 to read as follows: 4 22 4. MISREPRESENTATION. An individual who, by reason of the 4 23 nondisclosure or misrepresentationby the individual or by4 24anotherof a material fact, has receivedany sum asan amount 4 25 of benefits under this chapter while any conditions for the 4 26 receipt of benefitsimposed by this chapterwere not fulfilled 4 27in the individual's case, or while the individual was4 28disqualified from receiving benefits, shall, in the discretion 4 29 of the divisionof job service, either be liable to have the 4 30sumamount deducted from any future benefits payable to the 4 31 individualunder this chapteror shall be liable to repay to 4 32 the division for the unemployment compensation fund,a suman 4 33 amount equal to the amountsoreceived by the individual. If 4 34 the individual fails to repay the overpayment in full within 4 35 ninety days from the date the overpayment becomes final, or 5 1 within ninety days after the date of sentencing in a 5 2 prosecution concerning the overpayment, the individual shall 5 3 also pay a penalty equal to thirty percent of the overpayment 5 4 amount. If the individual repays the overpayment within 5 5 ninety days, section 96.5, subsection 8, shall not apply 5 6 unless the individual had an overpayment which occurred in 5 7 five or more weeks or the individual had a prior overpayment 5 8 for nondisclosure or misrepresentation. If the division seeks 5 9 to recover the amount of the benefits or penalty by having the 5 10 individualpay torepay the divisiona sum equal to that5 11amount, the division may file a lien with the county recorder 5 12 in favor of the state on the individual's property and rights 5 13 to property, whether real or personal. The amount of the lien 5 14 shall be collected in a manner similar to the provisions for 5 15 the collection of past-due contributions in section 96.14, 5 16 subsection 3. All penalties on overpayments of benefits 5 17 collected under this chapter shall be deposited in the special 5 18 employment security fund created pursuant to section 96.13, 5 19 subsection 3. 5 20 Sec. 8. Section 96.19, subsection 18, paragraph a, Code 5 21 Supplement 1995, is amended by adding the following new 5 22 subparagraph: 5 23 NEW SUBPARAGRAPH. (9) A member of a limited liability 5 24 company. For such a member, the term "employment" shall not 5 25 include any portion of such service that is performed in lieu 5 26 of making a contribution of cash or property to acquire a 5 27 membership interest in the limited liability company. 5 28 Sec. 9. Section 96.19, subsection 18, paragraph f, Code 5 29 Supplement 1995, is amended to read as follows: 5 30 f. (1) Services performed by an individual for wages 5 31 shall be deemed to be employment subject to this chapter 5 32 unless and until it is shown to the satisfaction of the 5 33 divisionof job servicethat such individual has been and will 5 34 continue to be free from control or direction over the 5 35 performance of such services, both under the individual's 6 1 contract of service and in fact. 6 2 (2) Services performed by an individual for two or more 6 3 employing units shall be deemed to be employment to each 6 4 employing unit for which the services are performed. However, 6 5 an individual who concurrently performs services as a 6 6 corporate officer for two or more related corporations and who 6 7 is paid through a common paymaster that is one of the related 6 8 corporations may, at the discretion of such related 6 9 corporations, be considered to be in the employment of only 6 10 the common paymaster. 6 11 Sec. 10. Section 96.19, subsection 41, Code Supplement 6 12 1995, is amended by adding the following new paragraph: 6 13 NEW PARAGRAPH. e. Any portion of the remuneration to a 6 14 member of a limited liability company based on a membership 6 15 interest in the company provided that the remuneration is 6 16 allocated among members, and among classes of members, in 6 17 proportion to their respective investments in the company. If 6 18 the amount of remuneration attributable to a membership 6 19 interest cannot be determined, the entire amount of 6 20 remuneration shall be deemed to be based on services 6 21 performed. 6 22 Sec. 11. EFFECTIVE AND APPLICABILITY DATE. Section 1 of 6 23 this Act takes effect on January 1, 1997, and is applicable to 6 24 unemployment compensation benefits paid on or after that date. 6 25 Sec. 12. APPLICABILITY PROVISION. Any overpayments to an 6 26 individual due to nondisclosure or misrepresentation pursuant 6 27 to section 96.16, subsection 4, that occurred prior to the 6 28 effective date of the amendment to section 96.16, subsection 6 29 4, in this Act, shall constitute a prior overpayment for 6 30 nondisclosure or misrepresentation as provided in the 6 31 amendment to section 96.16, subsection 4, as provided in this 6 32 Act. 6 33 SF 2341 6 34 ec/cc/26
Text: SF02340 Text: SF02342 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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