LA SB 92

Author

Jay Luneau
711 Washington Street
Alexandria, LA 71301
318-484-2288
luneauj@legis.la.gov
Author Detail Link
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Bill Text

Category

Employee Misclassification

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State

LA

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Summary

Provides for uniform definitions of independent contractor and employee, and for penalties for the misclassification of employees.

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Issue

Defines "employee" as an individual who performs services for an employer where there exists a right by the employer to control what work the employee does or how the employee
performs his job or where the employer provides the tools and supplies to the employee for the performance of the job.

Adds an exception to the definition of "employment" for an individual engaged in an independent trade, business, or
profession in which he offers his services to the general public with the authority to control what will be done and how it will be done.

Defines "misclassified employee" an employee from whom no tax was deducted or withheld as required by present law due to the employer's failure to properly classify the individual
as an employee.

Provides for a penalty for employers who fail to withhold the amounts required to be withheld due to the misclassification of an employee. The penalty is determined by multiplying the
highest Louisiana individual income tax rate (currently 6%) by the total wages paid to the misclassified employee during the period. However, the penalty may be reduced if the misclassified employee paid Louisiana income tax on these wages.

Provides for a penalty for contractors who knew or had reason to know that amounts paid to its subcontractor included labor costs of misclassified employees equal to 25% of the penalty
for employers who fail to withhold the amounts required to be withheld due to the misclassification of an employee.

Increases the late filing penalty from $5 to $25 for each late return, report, or receipt and increases the annual maximum penalty from $7,500 to $37,500.

Provides a specific penalty for non-filing of withholding returns, reports, and receipts or failure to remit withholding where the failure to file or remit is due to the misclassification of an employee. The penalty is equal to 25% of the amount of withholding tax that should have been remitted.

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Notes

Dead.

History

03/30/2021 Pre-filed. Referred to the Senate Committee on Revenue and Fiscal Affairs.
04/12/2021 Introduced in Senate. First reading. Rules suspended. Read second time and referred to Senate Committee on Revenue and Fiscal Affairs.
04/28/2021 Substituted by SB 244.