Bill Text: IA HF74 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act increasing certain penalties for employers willfully misclassifying employees for unemployment compensation contribution purposes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-01-31 - Subcommittee: Watts, Holz and Hunter. H.J. 166. [HF74 Detail]
Download: Iowa-2017-HF74-Introduced.html
House File 74 - Introduced HOUSE FILE BY HUNTER A BILL FOR 1 An Act increasing certain penalties for employers willfully 2 misclassifying employees for unemployment compensation 3 contribution purposes. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1953YH (1) 87 je/rj PAG LIN 1 1 Section 1. Section 96.14, subsection 2, paragraph e, Code 1 2 2017, is amended to read as follows: 1 3 e. (1) If the department finds that any employer has 1 4 willfully failed to pay any contribution or part thereof when 1 5 required by this chapter and the rules of the department, 1 6 with intent to defraud the department, then such employer 1 7 shall in addition to such contribution or part thereof, pay 1 8 a contribution equal to fifty percent of the amount of such 1 9 contribution or part thereof, as the case may be. 1 10 (2) If the department finds that such a failure to pay by an 1 11 employer involves the misclassification of an employee's wages 1 12 on a federal 1099 record, for any subsequent finding by the 1 13 department of such a failure to pay by that employer involving 1 14 the misclassification of an employee's wages on a federal 1099 1 15 record, the additional contribution required by subparagraph 1 16 (1) shall instead equal one hundred percent of the amount the 1 17 employer failed to pay due to misclassification. 1 18 EXPLANATION 1 19 The inclusion of this explanation does not constitute agreement with 1 20 the explanation's substance by the members of the general assembly. 1 21 This bill provides that if the department of workforce 1 22 development finds that an employer willfully failed to pay any 1 23 contribution for state unemployment compensation with intent 1 24 to defraud the department, and that the failure to pay by the 1 25 employer involved the misclassification of an employee's wages 1 26 on a federal 1099 record, for any subsequent finding by the 1 27 department of such a failure to pay by that employer involving 1 28 the misclassification of an employee's wages on a federal 1099 1 29 record, the additional contribution penalty required by Code 1 30 section 96.14(2)(e) shall equal 100 percent of the amount the 1 31 employer failed to pay due to misclassification. Current law 1 32 provides that such an additional contribution penalty equals 50 1 33 percent of the amount the employer failed to pay. LSB 1953YH (1) 87 je/rj
