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