House File 2589 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON LABOR

                                       (SUCCESSOR TO HSB 604)


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

                                      A BILL FOR

  1 An Act relating to unemployment insurance tax penalties, and
  2    providing an effective date.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5470HV 82
  5 ak/rj/8

PAG LIN



  1  1    Section 1.  Section 96.14, subsection 2, paragraph d, Code
  1  2 Supplement 2007, is amended to read as follows:
  1  3    d.  A penalty shall not be less than ten dollars for the
  1  4 first delinquent report or the first insufficient report not
  1  5 made sufficient within thirty days after a request to do so.
  1  6 The penalty shall not be less than twenty=five dollars for the
  1  7 second delinquent or insufficient report, and not less than
  1  8 fifty thirty=five dollars for each delinquent or insufficient
  1  9 report thereafter, until four consecutive calendar quarters of
  1 10 reports are timely and sufficiently filed.  Interest,
  1 11 penalties, and cost shall be collected by the department in
  1 12 the same manner as provided by this chapter for contributions.
  1 13    Sec. 2.  Section 96.14, subsection 2, Code Supplement 2007,
  1 14 is amended by adding the following new paragraph:
  1 15    NEW PARAGRAPH.  ee.  If any tendered payment of any amount
  1 16 due in the form of a check, draft, or money order is not
  1 17 honored when presented to a financial institution, any costs
  1 18 assessed to the department by the financial institution and a
  1 19 fee of thirty dollars shall be assessed to the employer.
  1 20    Sec. 3.  Section 96.14, Code Supplement 2007, is amended by
  1 21 adding the following new subsection:
  1 22    NEW SUBSECTION.  17.  EMPLOYER SUBPOENA COST AND PENALTY.
  1 23 An employer who is served with a subpoena pursuant to section
  1 24 96.11, subsection 7, for the investigation of an employer
  1 25 liability issue, to complete audits, to secure reports, or to
  1 26 assess contributions shall pay all costs associated with the
  1 27 subpoena, including service fees and court costs.  The
  1 28 department shall penalize an employer in the amount of two
  1 29 hundred fifty dollars if that employer refused to honor a
  1 30 subpoena or negligently failed to honor a subpoena.  The cost
  1 31 of the subpoena and any penalty shall be collected in the
  1 32 manner provided in section 96.14, subsection 3.
  1 33    Sec. 4.  EFFECTIVE DATE.  This Act takes effect January 1,
  1 34 2009.
  1 35                           EXPLANATION
  2  1    This bill relates to the unemployment insurance tax law and
  2  2 creates a $35 penalty for each delinquent or insufficient wage
  2  3 report from an employer.  The bill mandates a $30 fee and
  2  4 costs to be paid by an employer who tenders a faulty
  2  5 unemployment contribution payment to the department of
  2  6 workforce development.
  2  7    An employer who is served with a subpoena pursuant to Code
  2  8 section 96.11, subsection 7, relating to administration of the
  2  9 unemployment insurance law, is responsible for paying all
  2 10 service fee and court costs associated with the subpoena.
  2 11 Refusal or negligent failure to honor the subpoena shall
  2 12 result in a penalty of $250 by the department.
  2 13    The bill takes effect on January 1, 2009.
  2 14 LSB 5470HV 82
  2 15 ak/rj/8