HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON GOVERNMENT OVERSIGHT BILL BY CHAIRPERSON HAGENOW)

A BILL FOR

An Act relating to tax rates for employers with inactive accounts under the state unemployment compensation law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 96.8, subsection 4, Code 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  If a subject employer with an inactive account pays wages within twelve quarters of the end of the last quarter in which the employer paid wages, the employer shall receive a contribution rate based upon the experience of the reactivated account.
EXPLANATION
   This bill provides that an employer subject to the state unemployment compensation law who has an inactive account and who pays wages within 12 quarters of the end of the last quarter in which the employer paid wages must receive a contribution rate for the employer’s unemployment compensation tax based upon the experience of the employer’s reactivated account.