HOUSE FILE 2104

BY  COMMITTEE ON LABOR

(SUCCESSOR TO HF 2012)

A BILL FOR

An Act reducing the years of experience used to calculate an employer’s contribution rate for unemployment insurance.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 96.7, subsection 2, paragraph c, subparagraph (3), Code 2011, is amended to read as follows:
   (3)  Thereafter, the employer’s contribution rate shall be determined in accordance with paragraph “d”, except that the employer’s average annual taxable payroll and benefit ratio may be computed, as determined by the department, for less than five
 
three periods of four consecutive calendar quarters immediately preceding the computation date.
    Sec. 2.  Section 96.7, subsection 2, paragraph d, subparagraph (2), unnumbered paragraph 3, Code 2011, is amended to read as follows:
   “Benefit ratio” means a number computed to six decimal places on July 1 of each year obtained by dividing the average of all benefits charged to an employer during the five
 
three periods of four consecutive calendar quarters immediately preceding the computation date by the employer’s average annual taxable payroll.
    Sec. 3.  Section 96.19, subsection 2, Code 2011, is amended to read as follows:
   2.  “Average annual taxable payroll” means the average of the total amount of taxable wages paid by an employer for insured work during the five
 
three periods of four consecutive calendar quarters immediately preceding the computation date.
EXPLANATION
   This bill reduces the years of experience used to calculate the benefit ratio for an employer’s contribution rate for unemployment insurance from five to three.