Senate File 182

                                       SENATE FILE       
                                       BY  KREIMAN


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the calculation of employers' contributions to
  2    the unemployment compensation fund.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2143XS 80
  5 kk/sh/8

PAG LIN

  1  1    Section 1.  Section 96.7, subsection 2, Code 2003, is
  1  2 amended by adding the following new paragraph:
  1  3    NEW PARAGRAPH.  g.  After the contribution rate has been
  1  4 calculated pursuant to this subsection, an employer may reduce
  1  5 the amount of taxable wages to be multiplied by the
  1  6 contribution rate each quarter by the amount of net additional
  1  7 taxable wages if all of the following requirements have been
  1  8 met:
  1  9    (1)  The employer is not a government entity, nonprofit
  1 10 organization, or Indian tribe.
  1 11    (2)  The employer has continuously operated in this state,
  1 12 or is a successor employer who has operated in combination
  1 13 with the predecessor employer in this state, for more than ten
  1 14 periods of four consecutive calendar quarters preceding the
  1 15 contribution date.
  1 16    (3)  All of the employer's due and owing contributions have
  1 17 been paid.
  1 18    For the purposes of this paragraph, "net additional taxable
  1 19 wages" means the amount of taxable wages paid in the quarter
  1 20 for which the contribution in the current rate year is being
  1 21 calculated which exceeds those taxable wages paid in the
  1 22 corresponding quarter of the previous rate year.
  1 23                           EXPLANATION
  1 24    This bill provides for a reduction in the amount of certain
  1 25 employer's contributions to the unemployment compensation
  1 26 fund.  If an employer is not a government entity, nonprofit
  1 27 organization, or an Indian tribe, and the employer has
  1 28 continuously operated in this state, including a successor
  1 29 employer, for more than 10 years, and if the employer is not
  1 30 currently delinquent on past contributions, then before an
  1 31 employer multiplies the employer's contribution rate by the
  1 32 amount of taxable wages for any quarter, the employer may
  1 33 first reduce the taxable wages.  The amount of the reduction
  1 34 would equal the amount of taxable wages paid in the current
  1 35 quarter which exceeds the amount of taxable wages paid in the
  2  1 corresponding quarter in the last rate year.
  2  2 LSB 2143XS 80
  2  3 kk/sh/8