CHAPTER 22
EMPLOYER RECORDS AND REPORTS
[Prior to 9/24/86, Employment Security [370] Ch 2]
[Prior to 3/12/97, Job Service Division [345] Ch 2]
871—22.1(96) Records to be kept by the employer.
	22.1(1) Each employing unit having employment performed for it shall maintain records to show the information hereinafter indicated. Such records shall be kept in such form and manner that it will be possible from an inspection thereof to obtain the facts necessary to determine what remuneration was made by the employing unit and what remuneration is reportable to the department. Such records shall be open to inspection and be subject to be copied by the department and its authorized representatives at any reasonable time. Such records shall be kept for a period of five years after the calendar year in which the remuneration to which they relate was paid or, if not paid, was due.
	22.1(2) Such records shall show with respect to each employee, unless the department has ruled that the particular service does not constitute employment:
	a. 	Name of worker.
	b. 	Social security account number.
	c. 	Date on which employee was hired, rehired, or returned to work after a temporary layoff, and the date separated from work and the reason therefor.
	d. 	Scheduled hours except for workers without a fixed schedule of hours, such as those working outside of the employer’s establishment in such a manner that the employer has no definite knowledge of their working hours.
	e. 	Total wages paid for employment in each period and the date of payment. For all pay periods ending in each quarter show separately: money wages, the cash value of other remuneration such as any special payment for services such as wages in lieu of notice, bonuses, gifts, prizes, and the nature of payments such as accounts paid to employees as allowance or reimbursement for traveling and other business expenses, and the amounts of such expenditures actually incurred and accounted for by the employees.
	f. 	The state or states in which the services are performed; and if any of such services are performed outside of this state and are not incidental to the service within the state, the base of operations (or if there is no base of operations then the place from which such services are directed or controlled) and the residence (by state), and the name of the county in Iowa in which services were performed.
	g. 	When the pay period covers services performed both in covered employment and in excluded work, show the hours and wages for covered employment under the Iowa employment security law, hereinafter referred to as the “Act,” and also show hours and wages for excluded work.
	h. 	The physical work site at which each employee worked during each pay period which includes the twelfth of each month. If an employee worked at more than one work site, the work site at which the majority of the work was performed should be the one of record.
	22.1(3) Such payroll records may be preserved by the employer in an electronic format, provided the employer is willing to provide access to such records as may be required by the department.
	22.1(4) Maintenance of records by out-of-state employing units. Any employing unit having its principal place of business outside of Iowa shall maintain payroll records in this state with respect to wages paid to employees who perform some service in this state; provided, however, that an out-of-state employing unit may, with the approval of the department, maintain such payroll records outside the state upon its understanding that it will, when requested so to do, furnish the department with a true and correct copy of such payroll records. Failure to maintain said records in Iowa as required may result in estimated reports and payroll listings being made by the department. See 871—subrule 23.59(2).
This rule is intended to implement Iowa Code section 96.11(6)“a.”
[ARC 3116C, IAB 6/7/17, effective 7/12/17]
871—22.2(96) Reports. Each employing unit shall make such reports at such times as the department may require and shall comply with the instructions issued by the department pertaining to the preparation and return of such report.
This rule is intended to implement Iowa Code section 96.11(1).
[ARC 3248C, IAB 8/2/17, effective 9/6/17]
871—22.3(96) Filing of Employer’s Contribution and Payroll Report, 65-5300 and Employer’s Payroll Continuation Sheet, 60-0103.
	22.3(1) Each employer shall, by the due date, electronically submit contribution and payroll for each quarter listing wages paid with respect to all the employer’s business maintained within this state computed in accordance with the Iowa Code and these rules.
	22.3(2) Rescinded IAB 8/2/17, effective 9/6/17.
	22.3(3) A copy of each such report shall be preserved by each such employer for a period of at least five years from the end of the calendar year in which the report was due.
	22.3(4) Employer to file report even when no payroll. Every qualified or subject employer is required to send in an Employer’s Contribution and Payroll Report, Form 65-5300, each quarter. Even though an employer finds that for some particular quarter no contributions are due, or they have no employees during the period covered, a report must be filed with the department.
	22.3(5) Combined reports, leased employees, and concurrently employed individuals.
	a. 	Consolidated or combined reports of parent and subsidiary corporations or other employing units, whether or not the employing units are related, shall not be allowed.
	b. 	Employees of parent and subsidiary corporations or other employing units, whether or not they are related, shall be reported on the quarterly reports of the employing unit for which the services are performed regardless of which employing unit actually issues the employees’ paychecks.
	c. 	Leased employees:
	(1)	Except as described in subparagraphs (2), (3), (4), and (5) below, individuals leased from an employee leasing company, by the client of the employee leasing company, shall be considered to be employed by the client and shall be reported on the quarterly reports of the client, at the contribution rate of the client, unless and until it is shown to the satisfaction of the department that the individuals are and will continue to be under the exclusive direction and control of the employee leasing company, both under a written contract and in fact.
In order for a contract to be considered evidence that individuals are the employees of the employee leasing company it shall:
	1.	Specify the service to be performed by the individuals, on behalf of the employee leasing company, for the client.
	2.	Specify the fee the client must pay for this service. The fee must be large enough to cover the actual cost of the individuals’ wages and fringe benefits plus provide a reasonable profit on the service performed for the client.
	3.	Specify that the employee leasing company has the exclusive right to determine the number of individuals needed to provide the service for the client and to direct and control the individuals in the performance of the service.
	4.	Specify that the employee leasing company has the exclusive right to hire, fire, discipline, and reassign any of the individuals to another position or to another client without the consent of the client.
	(2)	If an individual is leased to fill a temporary need from a company whose business is primarily to provide workers to fill temporary needs, the individual shall be considered to be the employee of the leasing company as long as a written contract is in place.
	(3)	If an individual is a truck driver leased from a company that leases truck tractors with drivers to trucking companies, the individual shall be considered to be the employee of the leasing company unless and until it is shown to the satisfaction of the department that the trucking company has the exclusive right to hire, fire, discipline, reassign, and direct and control the services performed by the individual, both under a written contract and in fact.
	(4)	If an individual leased from an employee leasing company is a corporate officer of the client, the individual shall always be considered the employee of the client and not the employee of the leasing company.
	(5)	If an individual leased from an employee leasing company holds an exempt relationship, as defined in Iowa Code section 96.19(18)“g”(5), with the client, the individual shall not be considered to be an employee of either the client or the leasing company unless an election to cover the individual has been filed and approved in accordance with Iowa Code section 96.8(3)“b.”
	d. 	Concurrently employed individuals.
	(1)	Except as described in subparagraph (2) below, individuals who perform services concurrently for more than one employing unit, whether or not the employing units are related, shall be considered as working for each of the employing units and shall be reported on the quarterly reports of each of the employing units. Each of the employing units shall be required to pay contributions on the wages attributable to that employing unit up to the taxable wage base limit for each calendar year.
	(2)	An individual who concurrently performs services as a corporate officer for two or more related corporations and who is paid through a common paymaster that is one of the related corporations may be treated as working for only the common paymaster at the discretion of the related corporations.
	22.3(6) Each Form 65-5300, Employer’s Contribution & Payroll Report, shall include:
	a. 	The social security number, name (last name first), and total wages paid to each employee during the calendar quarter. All corrections to previous reports must be submitted on Form 68-0061, Employer’s Wage Adjustment Report. All employees’ wages will be reported by the reporting unit under which the work was performed. See rules 871—23.3(96) through 871—23.6(96).
	b. 	The sum of the total and taxable wages paid to all employees during the calendar quarter. If reported electronically, the sum of the total and taxable wages will be computed for the employer. The electronic system will compute the taxable wages for each employee. If the employer is claiming taxable wages reported to another state, the amount claimed and the state that the wages were reported to will be listed.
	c. 	The amount of contribution due for the calendar quarter. If the report is filed electronically, the system will compute and enter the contribution due.
	d. 	The amount of interest due, if any, for the calendar quarter. If the report is filed electronically, the system will compute and enter the interest due.
	e. 	The amount of penalty due, if any, for the calendar quarter. If the report is filed electronically, the system will compute and enter any penalty due.
	f. 	The total amount of contribution, interest and penalty due for the calendar quarter. If the report is filed electronically, the system will compute and enter the total amount due.
	g. 	Rescinded IAB 5/5/10, effective 6/9/10.
	h. 	The amount of net remittance due for the calendar quarter; however, if the amount of net remittance due is less than $1, the employer need not submit payment. If the report is filed electronically, the system will compute and enter the net remittance due.
	i. 	The total number of employees listed on the report. If the report is filed electronically, the system will compute and enter the total number of employees on the report.
	j. 	The amount of extraordinary pay which was paid to the employees during the calendar quarter for each reporting unit.
	k. 	The total number of employees paid wages during the pay periods which include the twelfth day of each month of the calendar quarter for each reporting unit.
	l. 	The number of the county in which the reporting unit is located if only one business activity is conducted at only one worksite during the calendar quarter; however, if the same business activity is conducted at more than one worksite or if different business activities are conducted at one or more worksites, the employer shall also be required to complete and return the Form 65-5519, Multiple Worksite Report, which shall include for each worksite the total number of employees paid wages during the pay periods which include the twelfth day of each month of the calendar quarter and the total wages paid during the calendar quarter. The system will compute and enter taxable wages if the report is filed electronically.
	(1)	The total number of employees paid wages during the pay periods which include the twelfth day of each month of the calendar quarter for all worksites as reported on the Form 65-5519, Multiple Worksite Report, should equal the total number of employees reported for that month on the Form 65-5300, Employer’s Contribution & Payroll Report.
	(2)	The total wages paid to all employees at all worksites as reported on the Form 65-5519, Multiple Worksite Report, should equal the total wages reported on the Form 65-5300, Employer’s Contribution & Payroll Report.
	(3)	It could be possible for wages to be reported for a worksite without corresponding employment being reported in any of the months during the quarter because wages paid are reportable for the full 13-week period in the calendar quarter, while employment is reportable on the Form 65-5300, Employer’s Contribution & Payroll Report, when such employment occurs during the pay periods which include the twelfth day of any month in the calendar quarter.
	m. 	The reason (seasonal change, labor dispute, layoff, recall, worksite opening, or worksite closing) for the increase or decrease in total employment during the calendar quarter.
	n. 	Rescinded IAB 3/5/03, effective 4/9/03.
	o. 	The signature, written or electronic, of the owner, responsible officer, or authorized agent of the employer certifying that the information given is true and correct to the best of the signer’s knowledge and belief, the date the report was submitted and the telephone number.
	p. 	Such other schedules or reports as may be required, duly completed in all substantial respects on such forms and in accordance with such instructions as the department may provide or approve.
This rule is intended to implement Iowa Code sections 96.7, 96.11(6), 96.11(11) and 96.19(17).
[ARC 8711B, IAB 5/5/10, effective 6/9/10; ARC 3248C, IAB 8/2/17, effective 9/6/17]
871—22.4(96) Reporting of earnings data by secure file transfer.
	22.4(1) The employer may submit an electronic file in lieu of Form 65-5300, Employer’s Contribution & Payroll Report. Authorization for this reporting method will be given if the employer meets the specification requirements to be compatible with the department’s computer capabilities. Such specifications will be furnished upon request.
	22.4(2) The electronic file submitted will contain all of the employer information, wage information, and labor market information required when filing using the Form 65-5300, Employer’s Contribution & Payroll Report. If this method of filing is selected, all wages must be filed using this method. The report will not be considered filed until all worksite reporting units have filed. All corrections to previous reports submitted to the department must be listed and submitted on Form 68-0061, Employer’s Wage Adjustment Report.
	22.4(3) The director shall annually designate the number of wage lines per report that will require the report be filed electronically.
This rule is intended to implement Iowa Code section 96.11(6)“a.”
[ARC 8711B, IAB 5/5/10, effective 6/9/10]
871—22.5(96) Filing of quarterly report forms by newly subject or covered employers. Any employing unit which becomes an employer subject to this chapter within any calendar quarter other than by a voluntary election of the employing unit shall file reports for each calendar quarter on Form 65-5300, Employer’s Contribution and Payroll Report. Reports shall include all wages paid during the current quarter as well as separate quarterly reports for wages paid in prior quarters of the same calendar year. The first quarterly reports of that employer shall be due on the last day of the calendar month following the close of the calendar quarter in which the employing unit becomes subject to the Code and shall be considered delinquent if not submitted and paid by that date. Any employer filing a voluntary election for coverage must begin filing reports in the quarter the employer’s election is effective.
This rule is intended to implement Iowa Code sections 96.7(1), 96.14(1), 96.14(2) and 96.8(3).
871—22.6(96) Employer changing status, address or name required to file report. Any employer who terminates business for any reason whatsoever, or transfers or sells all or a substantial part of the assets of the organization, trade or business to another, or changes the trade name of such business or address thereof shall, within ten days after such termination, transfer, or change of name or address, give notice to the department of that fact. The employer shall set forth in such notice the former name and address of the business, the new name, telephone number and address, the name of any new owner, and the employer’s own name, telephone number and present address. Such notification shall be submitted electronically.
This rule is intended to implement Iowa Code sections 96.11 and 96.8(4).
[ARC 3247C, IAB 8/2/17, effective 9/6/17]
871—22.7(96) Exempt employing units and exempt employment.
	22.7(1) Any employing unit having workers performing services for it which it considers exempt from this Act shall file a Form 68-0192, Questionnaire for Determining Status of Workers, along with supporting exhibits and documents (i.e., contract, statements from employer and claimant) so that a decision can be made as to whether or not such service is in fact exempt from the provisions of this Act.
	22.7(2) Any employing unit which has established its status as an organization exempt under this Act or that certain employment performed for it is not subject to contributions shall immediately notify the department of any changes in the character of its organization, the purposes and manner of its operation or the changed manner in which employment theretofore determined to be exempt by the department is performed.
	22.7(3) Whenever an employing unit claims that any employment is not employment under this Act, the burden shall be on the employer to prove the exemption claimed.
This rule is intended to implement Iowa Code section 96.19(18)“f.”
871—22.8(96) Subject employers.
	22.8(1) Requesting determination of status. Whenever an employing unit is in doubt as to whether or not an individual is an employee, or is engaged in employment subject to the Act, the employing unit shall submit a statement of all relevant facts to the department for a determination as to the status under the Act of such individual or employment on Form 68-0192, Questionnaire for Determining Status of Workers, information for use in obtaining a ruling from the department as to whether or not a worker is an employee for the purposes of the Act.
	22.8(2) Notification of status. The department shall maintain a separate account for each employer and shall notify the employer by mailing a Form 65-5308, Notice of Employer Status and Liability, to the last-known address. This notice will advise the employer of:
	a. 	The effective subjectivity date.
	b. 	The date of the determination (last day of quarter in which subjectivity occurred). See rule 871—22.5(96).
	c. 	The assigned industry code.
	d. 	The section of the law under which the employer was found liable.
	e. 	The federal identification number (if available).
	f. 	The workforce development unemployment insurance account number.
	g. 	The contribution rate for that year and preceding four years, if applicable.
	h. 	Whether the account was established new, reestablished or placed on an inactive status.
	22.8(3) For the specific procedure and requirements for perfecting an appeal of an employer liability determination see rules 871—23.52(96) to 871—23.56(96).
This rule is intended to implement Iowa Code section 96.7(4).
871—22.9(96) Employing units required to file report to determine liability.
	22.9(1) Each employing unit engaged in doing business in the state of Iowa January 1, 1936, or after, shall file a report to determine liability with the department on a form supplied by the department, Form 60-0126, Report to Determine Liability, setting forth the names and addresses of the owners of the business, or if a corporation, association, or joint stock company or limited liability company, the names and addresses of its officers or members. Each employing unit must show its principal place of business, the nature of its business, the number of individuals whom it customarily hires to perform services for it, the place or places where such services are performed, the time when such business was begun, the number of weeks in the year for which it is customary to operate such business and such other information as may be required by such form.
	22.9(2) Each employing unit which shall hereafter begin business in the state of Iowa in any manner whatsoever whether by succession to a business already being operated, by starting a new business, or otherwise, shall, within 30 days after beginning such business, inform the department of that fact, request the forms referred to in 22.9(1) and make and file the report required of all employing units by said rule.
This rule is intended to implement Iowa Code section 96.11(1).
871—22.10(96) Report of a Partnership on Change in Partners.
	22.10(1) Change in partnership. In any case in which a partnership consisting of two or more partners adds to or deletes a partner or partners and is not required by the Internal Revenue Service to obtain a new federal identification number after such addition or deletion of partner or partners, the partnership shall notify the department of such change by filing a Form 68-0234, Report of a Partnership on Change in Partners, within ten days from the date the change occurred. The department will subsequently correct the partnership account to reflect this change.
	22.10(2) Reporting requirement. If, after the change in partners, the partnership is required to obtain a new federal identification number by the Internal Revenue Service, or if there has been a change of ownership as described in Iowa Code section 96.19(18)“b” or a change of ownership as described in rule 871—23.28(96), then the old partnership shall notify the department by filing Form 60-0111, Employer’s Notice of Change, within ten days from the date the change occurred. The new partnership shall notify the department by filing Form 60-0126, Report to Determine Liability, within ten days from the date the change occurred.
This rule is intended to implement Iowa Code section 96.11(6).
871—22.11(96) Employer account.
	22.11(1) The department shall maintain one account for each employer (or single legal entity). An employer who has more than one establishment or business shall be considered to be one employing unit entitled to one account and a single experience rate. If an establishment or business owned by an employer is a separate legal entity in its own right (i.e., a subsidiary corporation), it will be considered to be a separate employer and must have an experience rate based on its own experience. When an already covered employer acquires another establishment or business, the employer will have a separate account number with a separate experience rate for the acquired business only if that business retains its character as a separate legal entity. If the acquired business is merged with that of the employer so that they become a single legal entity under the law, the successor is not entitled to separate rates for each establishment or business.
	22.11(2) Each employer shall report all wages paid and pay all contributions into the unemployment account maintained by the department. The title of the employer’s account shall be the name of the individual, partnership, corporation, association or other organization constituting the employing unit, and may contain the trade name used by the employing unit. Where the employing unit is a fiduciary agent or legal representative, the title of the account shall be the name of the fiduciary or legal representative and the official title.
	22.11(3) Each employer’s account shall be assigned a number and, unless the system of numbering accounts is changed, the number identifying an employer’s account shall not be changed.
	22.11(4) Establishment defined. As used in this rule, “establishment” means an economic unit, generally at a single physical location, where business is conducted, or where services or industrial operations are performed, or from which employees are dispatched.
This rule is intended to implement Iowa Code sections 96.7(2)“a”(1) and 96.19(17).
[ARC 8711B, IAB 5/5/10, effective 6/9/10]
871—22.12(96) Reporting units. Any employer having two or more separate establishments will file those establishments as separate reporting units. Additionally at the employer’s discretion, the employer may establish reporting units to report according to function within the business. When filing a Form 65-5300, Employer’s Contribution & Payroll Report, by paper, all reporting units will be listed on a separate page and will all be submitted together. When filing a Form 65-5300, Employer’s Contribution & Payroll Report, by electronic means, the individual reporting units may be filed separately by the reporting units when authorized but the complete account report is not submitted until all reporting units are completed. Maintaining current status for the reporting units will be the employer’s responsibility. If any reporting units are deleted or added, the department shall be notified within ten working days from the date of change.
This rule is intended to implement Iowa Code sections 96.7(2)“a” and 96.19(6).
[ARC 8711B, IAB 5/5/10, effective 6/9/10]
871—22.13(96) Procedure to be followed by an employer wishing to have an active reporting unit coded for notice of claim for unemployment benefit mailing.
	22.13(1) Any employing unit reporting under an assigned account and having one or more reporting units in the state of Iowa may request in writing or electronically the assignment of a reporting unit number which will be assigned for the specific purpose of mailing Form 65-5317, Notice of Claim Filing, to the reporting unit so that responsible personnel at that location can make a timely protest on Form 65-5317 if the employment separation was for a disqualifiable reason. Those accounts so wishing may request in writing that all unemployment insurance material other than Form 65-5317, Notice of Claim Filing, be sent to the home office or regional accounting office. All such requests must be from a responsible financial or operating officer of the firm and shall indicate:
	a. 	Full trade name and address of each location to be coded.
	b. 	The full employer name and address of the home office or financial office where all unemployment insurance material other than Form 65-5317 is to be sent.
	22.13(2) It will be permissible to accept this information over the telephone by qualified personnel of the field audit section providing the employer makes known all of the above requested information and the person receiving this information notes the date it was received, the time it was received, who telephoned the information to the department, and the name and telephone number of a responsible party that can be contacted if further verification is needed with respect to the location coding procedure. Field audit section personnel receiving this classified information by telephone will accordingly note this and make it a matter of permanent record.
This rule is intended to implement Iowa Code section 96.6(2).
[ARC 8711B, IAB 5/5/10, effective 6/9/10]
871—22.14(96) Notification by employer of employee’s rights. Each employer shall post and maintain in places readily accessible to individuals in its employ printed notices or posters, Form 60-0160, informing employees of their potential rights to benefits under the employment security law and providing general instructions as to what the employees shall do and where the employees shall go to obtain these benefits. Copies of these printed notices or posters may be obtained from the department, upon request, without cost to the employer.
This rule is intended to implement Iowa Code section 96.11(2).
871—22.15(96) 940 certification.
	22.15(1) Upon request, the department shall furnish to the Internal Revenue Service a certification of an employer’s account for a particular year. Certification requests may be on an individual basis or may be part of a bulk yearly certification. Such certification will include the employer’s state account number, yearly taxable payroll, contribution rate, contributions paid prior to January 31 of the next succeeding year, and the date and amount of contributions after January 31 of the next succeeding year.
	22.15(2) In addition to the information certified in subrule 22.15(1), yearly certification shall include:
	a. 	Employers who filed a federal unemployment tax return (Form 940) that did not file with the department.
	b. 	Employers who filed returns with the department but not with the Internal Revenue Service except governmental employers and employers that department records indicate to be 501(c)(3) nonprofit organizations.
This rule is intended to implement Iowa Code sections 96.11(1) and 96.11(6)“c”(2).
871—22.16(96)  Electronic transmittal of contribution payments.
	22.16(1)  An employing unit or person acting on behalf of one or more employing units must transmit payment of contributions to the department electronically.
	22.16(2)  Once an employing unit transmits payment of contributions to the department electronically, the employing unit must submit all subsequent payments of contributions to the department electronically.
This rule is intended to implement Iowa Code sections 96.7(1) and 96.14(2).
[ARC 3247C, IAB 8/2/17, effective 9/6/17]
871—22.17(96) Procedures of field auditors.
	22.17(1) Field auditors are to provide a cost-effective method of promoting employers’ understanding of employer rights and responsibilities under Iowa unemployment insurance laws.
	22.17(2) The department, through duly appointed field auditors, may examine an employer’s records at any time, subject to the limitations of 871—22.1(96), to determine compliance with Iowa Code chapter 96.
	22.17(3) The department has enforcement authority. An employer, when requested to produce records by an auditor, must make the records available within and at a reasonable time to the auditor. If an employer does not comply with the auditor’s request to produce records, a subpoena duces tecum may be served on the employer to appear before the auditor with the records in accordance with Iowa Code section 96.11, subsections 8 and 9.
	22.17(4) The department, through duly appointed field auditors, may perform a systematic audit of an employer’s records as authorized by Iowa Code section 96.11, subsection 7, and as mandated by the United States Department of Labor. In addition to the provisions of subrules 22.17(1) to 22.17(3), the following provisions apply to systematic audits:
	a. 	The employer is to be given reasonable notice of the intent to audit, and a preaudit interview is to be conducted with the employer or a designated representative.
	b. 	The records required, if maintained, may include individual pay records, Internal Revenue Service Forms W-2 and 1099, cash disbursement journal, check register, chart of accounts, general ledger, balance sheet, profit and loss statement, federal and state tax returns and other records to the extent they relate to possible hidden or misclassified wages.
	c. 	To verify the existence of the business, the auditor may require a visit to the business premises or to see other evidence of legitimate business activity.
	d. 	To verify the correct business entity is listed on department files, the auditor may examine various employer business licenses, legal documents or other tax returns.
	e. 	To verify the reporting of all workers reportable to the department under Iowa Code chapter 96, questionable entries will be investigated and documented. Under rule 871—22.7(96) if the employer disagrees with the audit decision on coverage of a worker, the auditor may require the employer to complete Form 68-0192, Job Service Questionnaire For Determining Status of Workers. In any disputed case, the auditor is to be granted access to records as necessary to determine the remuneration paid for any given calendar quarter.
	f. 	To verify proper employer posting to department reports, a detailed audit of check stubs, weekly time cards, or other maintained source documents will be made and documented for at least one worker for at least one quarter. The detailed audit may be more comprehensive at the discretion of the auditor or if discrepancies are found.
	g. 	Employer records will be compared and reconciled to amounts reported to the department on contribution and payroll reports and audit findings documented.
	h. 	Discrepancies will be resolved or explained, and report adjustments prepared as necessary.
	i. 	The audit will cover four calendar quarters; however, if material errors are found, the audit may be expanded to cover prior or subsequent years subject to limitations of subrule 22.1(1). The auditor will review and correct similar errors in a minimum of a year prior to and after the audited year.
	j. 	Additional amounts due will be calculated and collected, including applicable interest and penalties, or an explanation will be given. The employer may be required to submit a payment plan.
	k. 	When the audit is completed, the audit will be discussed with the employer or a representative designated by the employer. The employer will be furnished copies of any wage adjustments, supplemental reports or delinquent reports prepared by the auditor. An audit report with all worksheets, adjustments and reports will be retained by Iowa workforce development.
	22.17(5) There are several other reasons department representatives may make employer contacts and demands under authority of this rule. Any of these activities may be expanded into a systematic compliance audit as described in subrule 22.17(4) upon approval of the duly authorized representative of the department.
	a. 	An auditor may request to examine business records to determine the date employment began and the date the employing unit became subject to Iowa Code chapter 96.
	(1)	To determine if an employing unit is to be a covered employer and if an individual, or class of individuals, are employees whose remuneration would be subject to contributions, the auditor will examine employment contracts and related documents.
	(2)	If it is determined that the employing unit is to be a covered employer, the auditor will examine legal documents such as leases, purchase contracts, partnership agreements, articles of incorporation, limited liability operating agreements and stock records to determine ownership of the business, to establish responsibility for filing reports and paying contributions, and to assist in the determination of the unemployment insurance tax rate.
	(3)	If liability is determined, the payroll/remuneration records may be examined to establish the correct amount of covered wages and the period to which they belong. Reports will be completed and the correct amount of contribution, penalty and interest due will be computed and collection action will be initiated.
	b. 	When an unemployment insurance claim is filed, an auditor may request to examine the records of an employer to establish the claimant’s rights to benefits under Iowa Code chapter 96. Form 68-0192, Job Insurance Questionnaire For Determining Status of Workers, and supporting documents may be required in contested cases. If the department determines that the claimant is an employee, the records will be examined to determine the correct amount of wages paid to the claimant and the period to which the wages apply.
	c. 	When an employer fails or refuses to file a report, the auditor may examine the records to determine the correct amount of wages that should be reported, prepare the report, compute and collect contributions, penalty, and interest due. Should records not be made available, the auditor may estimate the wages paid and amounts due pursuant to 871—subrule 23.59(2).
	d. 	When an employer is delinquent in paying contributions due, the auditor may examine records including cash accounts, accounts receivable, real and personal property accounts, accounts payable, notes payable, installment contracts and mortgages payable to determine the employer’s equity in the assets on which a lien may be filed and judgment obtained.
	22.17(6) When a temporary writ of injunction has been filed by the department, pursuant to Iowa Code section 96.16, against an employer because of the employer’s failure or refusal to file a required report or to pay assessed contributions, penalty, and interest, a field auditor shall have the right to inspect the enjoined business premises during reasonable hours and interview any interested parties having knowledge of or being involved with the enjoined employer to ensure that such enjoined employer and all of the employer’s agents, servants, employees, and assigns are observing the conditions of the temporary writ of injunction.
This rule is intended to implement Iowa Code sections 96.7(1), 96.7(3), 96.8(1), 96.11(1), 96.11(6)“a,”96.11(7), 96.14, 96.16 and 96.20(3).
[ARC 8711B, IAB 5/5/10, effective 6/9/10]
871—22.18(96) Agents and other practitioners or firms representing employers in unemployment insurance matters.
	22.18(1) An agent, tax practitioner, accounting firm, attorney or any other firm or individual that represents or intervenes on behalf of an employer in any unemployment insurance matter shall have on file with the department:
	a. 	A power of attorney, or
	b. 	A letter of authorization from the employer, or
	c. 	An electronic designation of authority from the employer.
	22.18(2) The foregoing documents shall contain the following information:
	a. 	Employer’s full legal name, address and account number.
	b. 	Employer doing business as (DBA) or trade name if any.
	c. 	Legal name, address, telephone number and federal employer identification number (FEIN) of the agent or firm representing the employer.
	d. 	Employer’s E-mail address.
	e. 	Address of the designated agent.
	f. 	Roles that the agent or firm is authorized to perform for the employer.
	g. 	Signature of the employer.
	22.18(3) Rescinded IAB 3/5/03, effective 4/9/03.
This rule is intended to implement Iowa Code section 96.11(7).
[ARC 8711B, IAB 5/5/10, effective 6/9/10]
[Filed 10/28/75, Notice 9/22/75—published 11/17/75, effective 12/23/75]
[Filed 12/9/76, Notice 11/3/76—published 12/29/76, effective 2/2/77]
[Filed 9/30/77, Notice 8/24/77—published 10/19/77, effective 11/23/77]
[Filed 5/24/78, Notice 4/5/78—published 6/14/78, effective 7/19/78]
[Filed 8/17/78, Notice 6/28/78—published 9/6/78, effective 10/11/78]
[Filed 12/22/78, Notice 11/15/78—published 1/10/79, effective 2/14/79]
[Filed 2/12/80, Notice 10/31/79—published 3/5/80, effective 4/9/80]
[Filed 12/28/81, Notice 11/11/81—published 1/20/82, effective 2/25/82]
[Filed 2/10/84, Notice 8/31/83—published 2/29/84, effective 4/5/84]
[Filed 7/11/86, Notice 5/7/86—published 7/30/86, effective 9/3/86]
[Filed emergency 9/5/86—published 9/24/86, effective 9/5/86]
[Filed emergency 6/12/87—published 7/1/87, effective 7/1/87]
[Filed 7/24/87, Notice 6/3/87—published 8/12/87, effective 9/16/87]
[Filed 9/4/87, Notice 7/11/87—published 9/23/87, effective 10/28/87]
[Filed 2/3/89, Notice 12/28/88—published 2/22/89, effective 3/29/89]
[Filed 6/23/89, Notice 5/17/89—published 7/12/89, effective 8/16/89]
[Filed 9/29/89, Notice 8/23/89—published 10/18/89, effective 11/22/89]
[Filed 6/22/90, Notice 5/16/90—published 7/11/90, effective 8/15/90]
[Filed 10/23/92, Notice 9/16/92—published 11/11/92, effective 12/16/92]
[Filed 11/16/94, Notice 9/14/94—published 12/7/94, effective 1/11/95]
[Filed 8/22/96, Notice 7/17/96—published 9/11/96, effective 10/16/96]
[Transferred from 345—Ch 2 to 871—Ch 22 IAC Supplement 3/12/97]
[Filed 1/20/99, Notice 12/16/98—published 2/10/99, effective 3/17/99]
[Filed 2/12/03, Notice 1/8/03—published 3/5/03, effective 4/9/03]
[Filed ARC 8711B (Notice ARC 8583B, IAB 3/10/10), IAB 5/5/10, effective 6/9/10]
[Filed ARC 3116C (Notice ARC 3028C, IAB 4/12/17), IAB 6/7/17, effective 7/12/17]
[Filed ARC 3247C (Notice ARC 3070C, IAB 5/24/17), IAB 8/2/17, effective 9/6/17]
[Filed ARC 3248C (Notice ARC 3114C, IAB 6/7/17), IAB 8/2/17, effective 9/6/17]