H.F. 551 Section 1. Section 96.14, subsection 2, paragraph e, Code 1 2011, is amended to read as follows: 2 e. (1) If the department finds that any employer has 3 willfully failed to pay any contribution or part thereof when 4 required by this chapter and the rules of the department, 5 with intent to defraud the department, then such employer 6 shall in addition to such contribution or part thereof, pay 7 a contribution equal to fifty percent of the amount of such 8 contribution or part thereof, as the case may be. 9 (2) If the department finds that such a failure to pay by an 10 employer involves the misclassification of an employee’s wages 11 on a federal 1099 record, for any subsequent finding by the 12 department of such a failure to pay by that employer involving 13 the misclassification of an employee’s wages on a federal 1099 14 record, the additional contribution required by subparagraph 15 (1) shall instead equal one hundred percent of the amount the 16 employer failed to pay due to misclassification. 17 EXPLANATION 18 This bill provides that if the department of workforce 19 development finds that an employer willfully failed to pay any 20 contribution for state unemployment compensation with intent 21 to defraud the department, and that the failure to pay by the 22 employer involved the misclassification of an employee’s wages 23 on a federal 1099 record, for any subsequent finding by the 24 department of such a failure to pay by that employer involving 25 the misclassification of an employee’s wages on a federal 1099 26 record, the additional contribution penalty required by Code 27 section 96.14(2)(e) shall equal 100 percent of the amount the 28 employer failed to pay due to misclassification. Current law 29 provides that such an additional contribution penalty equals 50 30 percent of the amount the employer failed to pay. 31 -1- LSB 2439YH (2) 84 je/rj 1/ 1