IA HF 176
Increases penalties for employers misclassifying employees for unemployment compensation contribution purposes.
This bill provides that if the department of workforce development finds that an employer willfully failed to pay any contribution for state unemployment compensation with intent to defraud the department, and that the failure to pay by the employer involved the misclassification of an employee’s wages on a federal 1099 record, for any subsequent finding by the department of such a failure to pay by that employer involving the misclassification of an employee’s wages on a federal 1099 record, the additional contribution penalty required by Code section 96.14(2)(e) shall equal 100 percent of the amount the employer failed to pay due to misclassification. Current law provides that such an additional contribution penalty equals 50 percent of the amount the employer failed to pay.
Session adjourned. Carries-over to 2022. Pending Committee action.
01/22/2021 Introduced. Referred to House Committee on Labor.
05/19/2021 Remains in Committee.