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House File 176 - IntroducedA Bill ForAn Act 1increasing certain penalties for employers willfully
2misclassifying employees for unemployment compensation
3contribution purposes.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 96.14, subsection 2, paragraph e, Code
22021, is amended to read as follows:
3e. (1) If the department finds that any employer has
4willfully failed to pay any contribution or part thereof when
5required by this chapter and the rules of the department,
6with intent to defraud the department, then such employer
7shall in addition to such contribution or part thereof, pay
8a contribution equal to fifty percent of the amount of such
9contribution or part thereof, as the case may be.
10(2) If the department finds that such a failure to pay by an
11employer involves the misclassification of an employee’s wages
12on a federal 1099 record, for any subsequent finding by the
13department of such a failure to pay by that employer involving
14the misclassification of an employee’s wages on a federal 1099
15record, the additional contribution required by subparagraph
16(1) shall instead equal one hundred percent of the amount the
17employer failed to pay due to misclassification.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21This bill provides that if the department of workforce
22development finds that an employer willfully failed to pay any
23contribution for state unemployment compensation with intent
24to defraud the department, and that the failure to pay by the
25employer involved the misclassification of an employee’s wages
26on a federal 1099 record, for any subsequent finding by the
27department of such a failure to pay by that employer involving
28the misclassification of an employee’s wages on a federal 1099
29record, the additional contribution penalty required by Code
30section 96.14(2)(e) shall equal 100 percent of the amount the
31employer failed to pay due to misclassification. Current law
32provides that such an additional contribution penalty equals 50
33percent of the amount the employer failed to pay.
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2misclassifying employees for unemployment compensation
3contribution purposes.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 96.14, subsection 2, paragraph e, Code
22021, is amended to read as follows:
3e. (1) If the department finds that any employer has
4willfully failed to pay any contribution or part thereof when
5required by this chapter and the rules of the department,
6with intent to defraud the department, then such employer
7shall in addition to such contribution or part thereof, pay
8a contribution equal to fifty percent of the amount of such
9contribution or part thereof, as the case may be.
10(2) If the department finds that such a failure to pay by an
11employer involves the misclassification of an employee’s wages
12on a federal 1099 record, for any subsequent finding by the
13department of such a failure to pay by that employer involving
14the misclassification of an employee’s wages on a federal 1099
15record, the additional contribution required by subparagraph
16(1) shall instead equal one hundred percent of the amount the
17employer failed to pay due to misclassification.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21This bill provides that if the department of workforce
22development finds that an employer willfully failed to pay any
23contribution for state unemployment compensation with intent
24to defraud the department, and that the failure to pay by the
25employer involved the misclassification of an employee’s wages
26on a federal 1099 record, for any subsequent finding by the
27department of such a failure to pay by that employer involving
28the misclassification of an employee’s wages on a federal 1099
29record, the additional contribution penalty required by Code
30section 96.14(2)(e) shall equal 100 percent of the amount the
31employer failed to pay due to misclassification. Current law
32provides that such an additional contribution penalty equals 50
33percent of the amount the employer failed to pay.
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