Text: HSB00505 Text: HSB00507 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 97A.8, subsection 1, paragraph i, Code 1 2 1997, is amended to read as follows: 1 3 i. (1) Notwithstanding paragraph "g" or other provisions 1 4 of this chapter, beginning January 1, 1995, for federal income 1 5 tax purposes, and beginning January 1, 1999, for state income 1 6 tax purposes, member contributions required under paragraph 1 7 "f" or "h" which are picked up by the department shall be 1 8 considered employer contributions for federal and state income 1 9 tax purposes, and the department shall pick up the member 1 10 contributions to be made under paragraph "f" or "h" by its 1 11 employees. The department shall pick up these contributions 1 12 by reducing the salary of each of its employees covered by 1 13 this chapter by the amount which each employee is required to 1 14 contribute under paragraph "f" or "h" and shall certify the 1 15 amount picked up in lieu of the member contributions to the 1 16 department of revenue and finance. The department of revenue 1 17 and finance shall forward the amount of the contributions 1 18 picked up to the board of trustees for recording and deposit 1 19 in the pension accumulation fund. 1 20 (2) Member contributions picked up by the department under 1 21 subparagraph (1) shall be treated as employer contributions 1 22 for federal and state income tax purposes only and for all 1 23 other purposes of this chapterand the laws of this state1 24 shall be treated as employee contributions and deemed part of 1 25 the employee's earnable compensation or salary. 1 26 Sec. 2. Section 97B.11A, Code 1997, is amended to read as 1 27 follows: 1 28 97B.11A PICKUP OF EMPLOYEE CONTRIBUTIONS. 1 29 1. Notwithstanding section 97B.11 or other provisions of 1 30 this chapter, beginning January 1, 1995, for federal income 1 31 tax purposes, and beginning January 1, 1999, for state income 1 32 tax purposes, member contributions required under section 1 33 97B.11 which are picked up by the employer shall be considered 1 34 employer contributions for federal and state income tax 1 35 purposes, and each employer shall pick up the member 2 1 contributions to be made under section 97B.11 by its 2 2 employees. Each employer shall pick up these contributions by 2 3 reducing the salary of each of its employees covered by this 2 4 chapter by the amount which each employee is required to 2 5 contribute under section 97B.11 and shall pay the amount 2 6 picked up in lieu of the member contributions as provided in 2 7 section 97B.14. 2 8 2. Member contributions picked up by each employer under 2 9 subsection 1 shall be treated as employer contributions for 2 10 federal and state income tax purposes only and for all other 2 11 purposes of this chapterand the laws of this stateshall be 2 12 treated as employee contributions and deemed part of the 2 13 employee's wages or salary. 2 14 Sec. 3. Section 294.10A, Code 1997, is amended to read as 2 15 follows: 2 16 294.10A PICKUP OF TEACHER ASSESSMENTS. 2 17 1. Notwithstanding section 294.9 or other provisions of 2 18 this chapter, for federal income tax purposes beginning 2 19 January 1 following the submission by a board of trustees of 2 20 an application to the federal internal revenue service 2 21 requesting qualification of a plan in accordance with the 2 22 requirements of the Internal Revenue Code, as defined in 2 23 section 422.3, and for state income tax purposes beginning 2 24 January 1, 1999, or January 1 following an application for 2 25 qualification, whichever is later, teacher assessments 2 26 required under section 294.9 which are picked up by an 2 27 employing school district shall be considered employer 2 28 contributions for federal and state income tax purposes, and 2 29 each employing school district establishing a pension and 2 30 annuity retirement system pursuant to this chapter shall pick 2 31 up the teacher assessments to be made under section 294.9 by 2 32 its employees commencing on theJanuary 1 following an2 33application for qualificationapplicable date on which the 2 34 assessments shall be considered employer contributions for 2 35 income tax purposes under this subsection. Each employing 3 1 school district shall pick up these teacher assessments by 3 2 reducing the salary of each of the teachers covered by this 3 3 chapter by the amount which each teacher is required to 3 4 contribute through assessments under section 294.9 and shall 3 5 pay to the board of trustees the amount picked up in lieu of 3 6 the teacher assessments for recording and deposit in the fund. 3 7 2. Teacher assessments picked up by each employing school 3 8 district under subsection 1 shall be treated as employer 3 9 contributions for federal and state income tax purposes only 3 10 and for all other purposes of this chapterand the laws of3 11this stateshall be treated as teacher assessments and deemed 3 12 part of the teacher's wages or salary. 3 13 Sec. 4. Section 411.8, subsection 1, paragraph i, Code 3 14 1997, is amended to read as follows: 3 15 i. (1) Notwithstanding paragraph "g" or other provisions 3 16 of this chapter, beginning January 1, 1995, for federal income 3 17 tax purposes, and beginning January 1, 1999, for state income 3 18 tax purposes, member contributions required under paragraph 3 19 "f" or "h" which are picked up by the city shall be considered 3 20 employer contributions for federal and state income tax 3 21 purposes, and each city shall pick up the member contributions 3 22 to be made under paragraph "f" or "h" by its employees. Each 3 23 city shall pick up these contributions by reducing the salary 3 24 of each of its employees covered by this chapter by the amount 3 25 which each employee is required to contribute under paragraph 3 26 "f" or "h" and shall pay the amount picked up in lieu of the 3 27 member contributions to the board of trustees for recording 3 28 and deposit in the fund. 3 29 (2) Member contributions picked up by each city under 3 30 subparagraph (1) shall be treated as employer contributions 3 31 for federal and state income tax purposes only and for all 3 32 other purposes of this chapterand the laws of this state3 33 shall be treated as employee contributions and deemed part of 3 34 the employee's earnable compensation or salary. 3 35 Sec. 5. Section 422.7, subsections 29 through 31, Code 4 1 Supplement 1997, are amended by striking the subsections. 4 2 Sec. 6. EFFECTIVE AND APPLICABILITY DATE. This Act takes 4 3 effect January 1, 1999, and applies to tax years beginning on 4 4 or after January 1, 1999. 4 5 EXPLANATION 4 6 This bill provides that, beginning January 1, 1999, a 4 7 member's contribution under the public safety peace officers' 4 8 retirement, accident, and disability system, the Iowa public 4 9 employees' retirement system, and the statewide fire and 4 10 police retirement system are considered employer 4 11 contributions, and not part of the employee's salary, for 4 12 state income tax purposes. Current law provides, as of 4 13 January 1, 1995, that these contributions for these systems 4 14 are considered employer contributions for federal income tax 4 15 purposes only. 4 16 The bill also provides that member contributions to a 4 17 pension and annuity retirement system for teachers established 4 18 pursuant to chapter 294 are considered employer contributions 4 19 for state income tax purposes, beginning January 1, 1999, or 4 20 on the January 1 following submission of an application for 4 21 qualification to the internal revenue service, whichever is 4 22 later. 4 23 This bill takes effect January 1, 1999, and applies to tax 4 24 years beginning on or after that date. 4 25 LSB 3571HC 77 4 26 ec/sc/14
Text: HSB00505 Text: HSB00507 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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