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