workforce development department[871]
[Prior
to 9/24/86, see Employment Security[370], renamed Job Service Division[345]
under the “umbrella” of Department of Employment Services by 1986 Iowa Acts,
chapter 1245]
[Prior to 3/12/97, see Job
Service Division[345],
renamed Department of Workforce Development by 1996 Iowa Acts, chapter 1186]
1.1(84A) Mission and overall organization
CHAPTER 2
CUSTOMER AND ADMINISTRATIVE
SERVICES DIVISION
2.1(84A) Mission and organization
2.2(84A) Customer services bureau
2.3(84A) Financial management bureau
2.4(84A) Business management bureau
2.6(84A) Budget and reporting bureau
2.7(84A) Employee services bureau
2.8(84A) Planning and information services
CHAPTER 10
RESEARCH AND INFORMATION
SERVICES DIVISION
10.1(84A) Mission and organization
10.2(84A) Actuarial research bureau
10.3(84A) Applications/programming bureau
10.4(84A) Employment statistics bureau
10.5(84A) Iowa state occupational information coordinating committee bureau (ISOICC)
10.6(84A) Labor market information bureau
10.7(84A) Planning and development bureau
10.8(84A) Information management bureau
CHAPTER 11
EMPLOYER RECORDS AND REPORTS
11.2(96) Filing of Multiple Worksite Report, 65-5519, also known as Form Number BLS 3020
11.3(96) Filing of Industry Verification Statement, BLS 3023VS or 3023VM
CHAPTER 12
FORMS AND INFORMATIONAL
MATERIALS
12.1(96) Federal restriction—forms
CHAPTER 13
NEW EMPLOYMENT
OPPORTUNITIES FUND
13.3(78GA,SF2428) Allocation of funds
13.5(78GA,SF2428) Pilot projects
13.6(78GA,SF2428) Allowable costs and limitations
13.7(78GA,SF2428) Grant reporting and compliance review
14.3(78GA,SF2428) Allocation of funds
14.4(78GA,SF2428) Length of project
14.5(78GA,SF2428) Allowable costs and limitations
14.6(78GA,SF2428) Grant reporting and compliance review
CHAPTER 21
UNEMPLOYMENT INSURANCE
SERVICES DIVISION
21.1(96) Unemployment insurance services division
CHAPTER 22
EMPLOYER RECORDS AND REPORTS
22.1(96) Records to be kept by the employer
22.4(96) Reporting of earnings data on magnetic media
22.5(96) Filing of quarterly report forms by newly subject or covered employers
22.6(96) Employer changing status, address or name required to file report
22.7(96) Exempt employing units and exempt employment
22.9(96) Employing units required to file report to determine liability
22.10(96) Report of a Partnership on Change in Partners
22.12(96) Employer’s request to maintain separate accounts
22.14(96) Notification by employer of employee’s rights
22.17(96) Procedures of field auditors
CHAPTER 23
EMPLOYER’S CONTRIBUTION AND CHARGES
23.2(96) Definition of wages for employment during a calendar quarter
23.7(96) New employer contribution rates
23.8(96) Due date of quarterly reports and contributions
23.10(96) Payments in lieu of contributions
23.11(96) Identification of workers covered by the Iowa employment security law
23.13(96) Employer elections to cover multistate workers
23.14(96) Elective coverage of excluded services
23.18(96) Nature of relationship between employer–employee
23.19(96) Employer–employee and independent contractor relationship
23.20(96) Employment—student and spouse of student
23.21(96) Excluded employment—student
23.22(96) Employees of contractors and subcontractors
23.23(96) Liability of affiliated employing units
23.24(96) Localization of employment—employees covered—exemption
23.26(96) Definition of a farm—agricultural labor
23.29(96) Transfer of entire business
23.30(96) Successorship—liability for contributions and payments in lieu of contributions
23.31(96) Transfer of segregable portion of an enterprise or business
23.32(96) Mandatory and prohibited successorships
23.36(96) Predecessor—contribution rates for winding down a business
23.37(96) Adjustments and refunds of contributions
23.38(96) Denial of claim for refund or credit
23.40(96) Computation of rates for private sector employer
23.41(96) Computation date defined
23.42(96) Crediting of interest earned on the unemployment trust fund
23.43(96) Charging of benefits to employer accounts
23.46(96) Termination of coverage
23.47(96) Termination of accounts because of no wage reports
23.48(96) Previously covered employers
23.51(96) Payments in lieu of contributions
23.52(96) Employer liability appeal
23.53(96) Rate appeal and eligibility decision reversal
23.54(96) Payment of disputed assessments
23.57(96) Interest and penalty on contributions paid with adjustments submitted by employer
23.59(96) Determination and assessment of estimated contributions and errors in reporting
23.60(96) Accrual of interest and penalties
23.61(96) Collection of interest and penalties
23.62(96) Rescission of interest and penalty
23.63(96) Cancellation of interest and penalty
23.64(96) Refund of interest and penalty
23.65(96) Liens for unpaid contributions, interest, and penalties
23.66(96) Jeopardy assessments
23.69(96) Injunction for nonpayment or failure to report
23.70(96) Nonprofit organizations
23.71(96) Governmental entity—definition
23.72(96) Governmental entity—elective coverage and liability
23.73(96) Governmental
entities—
delinquent accounts
23.82(96) Definition of construction employer
CHAPTER 24
CLAIMS AND BENEFITS
24.2(96) Procedures for workers desiring to file a claim for benefits for unemployment insurance
24.3(96) Social security number needed for filing
24.4(96) Benefit rights information
24.5(96) Mass separation—definition and procedure
24.6(96) Profiling for reemployment services
24.7(96) Workers’ compensation or indemnity insurance exclusion and substitution
24.9(96) Determination of benefit rights
24.11(96) Eligibility review program
24.13(96) Deductible and nondeductible payments
24.17(96) Vacation pay procedure
24.18(96) Wage–earnings limitation
24.19(96) Determination and review of benefit rights
24.22(96) Benefit eligibility conditions
24.23(96) Availability disqualifications
24.24(96) Failure to accept work and failure to apply for suitable work
24.25(96) Voluntary quit without good cause
24.27(96) Voluntary quit of part–time employment and requalification
24.28(96) Voluntary quit requalifications and previously adjudicated voluntary quit issues
24.31(96) Subsequent benefit year condition
24.32(96) Discharge for misconduct
24.34(96) Labor dispute—policy
24.35(96) Date of submission and extension of time for payments and notices
24.37(96) Payment of benefits to interstate claimants
24.39(96) Department–approved training or retraining program
24.41(96) Unemployed parents program (FIP/UP)
24.42(96) Retention of DHS referral form
24.50(96) Temporary extended unemployment compensation
24.52(96) Determining eligibility of school claims after employer protest
24.53(96) Noncovered school–related employment
24.54(96) Church school coverage
24.57(96) Athletes—disqualifications
24.58(96) Voluntary shared work
24.59(96) Child support intercept
CHAPTER 25
BENEFIT PAYMENT CONTROL
25.2(96) Policy of the investigation and recovery section
25.3(96) Functions of the investigation and recovery section
25.4(96) Allegation of claimant fraud
25.5(96) Allegation of employing unit fraud
25.6(96) Investigation of fraud (procedure)
25.7(96) Determination of overpayment by reason of claimant’s fault or fraud
25.8(96) Recovery of benefit overpayments when benefits are erroneously received
25.9(96) Administrative penalties
25.10(96) Prosecution on overpayments
25.11(96) Prosecution for fraud (procedure)
25.12(96) Wage cross match audit procedure
25.13(96) Duplicate benefit warrants
25.14(96) Payments of benefits due deceased person
25.15(96) Back pay—benefit recovery and charging
25.16(96) State payment offset
CHAPTER 26
CONTESTED CASE PROCEEDINGS
26.3(17A,96) Time requirements
26.4(17A,96) Commencement of unemployment benefits contested case
26.5(17A,96) Commencement of employer liability contested case
26.6(17A,96) Notice of hearing
26.8(17A,96) Withdrawals and postponements
26.10(17A,96) Ex parte communications
26.12(17A,96) Prehearing conference
26.13(17A,96) Subpoenas and witnesses
26.14(17A,96) Conduct of hearings
CHAPTER 41
REQUEST FOR WAIVER OR VARIANCE OF ADMINISTRATIVE RULE
41.1(17A,ExecOrd11) Requests for waiver or variance of rules
41.2(17A,ExecOrd11) Procedural requirements
41.3(17A,ExecOrd11) Criteria for waiver or variance
41.4(17A,ExecOrd11) Public inspection
CHAPTER 42
PUBLIC RECORDS AND
FAIR INFORMATION PRACTICES
(Uniform Rules)
42.3(22,84A) Request for access to records
42.4(22,84A) Access to confidential records
42.7(22,84A) Consent to disclosure by the subject of a confidential record
42.9(22,84A) Disclosure without the consent of the subject
42.11(22,84A) Release to a subject
42.12(22,84A) Availability of records
42.13(22,84A) Personally identifiable information
CHAPTER 43
PETITIONS FOR RULE MAKING
43.1(17A,84A) Petition for rule making
43.4(17A,84A) Agency consideration
43.5(17A) Criticism of agency rule
44.1(17A) Petition for declaratory order
44.6(17A) Service and filing of petitions and other papers
44.9(17A) Refusal to issue order
44.10(17A) Contents of declaratory order—effective date
44.12(17A) Effect of a declaratory order
871—1.1(84A) Mission and overall organization.
1.1(1) Mission. The department of workforce development will commit its resources to Iowa’s prosperity by working to ensure the income security, productivity, safety and health of Iowans.
1.1(2) Vision. The department of workforce development will strive to provide safe workplaces, provide a productive and economically secure workforce, provide all Iowans with access to workforce development services and become a model workplace.
1.1(3) Overall organization. The chief executive officer of the department is the director of the department of workforce development who shall be appointed by the governor with the approval of two–thirds of the members of the senate and is responsible directly to the governor. The director shall serve as the secretary to the Iowa workforce development board.
1.1(4) Operation and administration. For ease of operation and administration of responsibilities assigned to it, the director has organized the department into six divisions which are further divided into bureaus, sections and units. The director has general supervision over the administration and operation of the department. The director shall prepare, administer, and control the budget of the department and its divisions and shall approve employment of all personnel of the department and its divisions. The director can set aside any portion of funds appropriated to the department for allocation to Innovation Zones as long as the set–aside is consistent with state and federal laws.
1.1(5) Division of customer and administrative services. The division is under the direction of a division administrator who reports to the director and is responsible for administrative support. A specific description of the division is contained in 871—Chapter 2.
1.1(6) Division of workers’ compensation. The division is the office of the industrial commissioner with the functions to administer, inform, regulate, and enforce the workers’ compensation, occupational disease and occupational hearing loss laws as provided in Iowa Code chapters 85, 85A, 85B, 86 and 87. A specific description of the division is contained in 876—Chapter 1.
1.1(7) Division of labor services. The division is the office of the labor commissioner with the function to administer, inform, regulate, and enforce the labor laws as provided in Iowa Code chapters 88, 88A, 88B, 89, 89A, 89B, 90A, 91, 91A, 91C, 91D, 91E, 92, 94, and 95, and Iowa Code sections 30.7 and 327F.37. The division consists of four bureaus: occupational health and safety enforcement, occupational safety and health consultation and education, inspections and reporting, and employee protection. A specific description of the division is contained in 875—Chapter 1.
1.1(8) Division of research and information services. The division is under the direction of a division administrator who reports to the director. The divisions’ functions include planning, researching, analyzing, directing and coordinating labor market information and automated services for the department. A specific description of the division is contained in 871—Chapter 10.
1.1(9) Division of unemployment insurance services. The division is under the direction of a division administrator who reports to the director. The division’s function is to administer, inform, regulate and enforce the unemployment insurance laws as provided in Iowa Code chapter 96. A specific description of the division is contained in 871—Chapter 21.
1.1(10) Division of workforce development center administration. The division is under the direction of a division administrator who reports to the director. The budget and rules relating to workforce development must be approved by the Iowa workforce development board. The division’s function is to administer, inform, regulate and enforce workforce development issues and services such as employment, training and placement as provided in Iowa Code chapters 7B, 84A and 96. A specific description of board duties and division responsibilities is contained in 877—Chapters 2 and 3.
1.1(11) Office of workforce development policy. The staff report to the director. The office develops and analyzes policy options, reviews the operations and performance of the workforce development system, coordinates staff support to the Iowa workforce development board and to Iowa’s human resource investment council, and prepares strategic plans for workforce development in Iowa. The office coordinates with other state departments, other divisions in the department and partners and stakeholders in other sectors concerning workforce development policy matters.
This rule is intended to implement Iowa Code chapter 84A.
[Filed 2/20/97, Notice 1/15/97—published
3/12/97, effective 4/16/97]
[Filed 4/29/99, Notice 3/24/99—published 5/19/99, effective 6/23/99]
chapter 2
CUSTOMER AND ADMINISTRATIVE SERVICES DIVISION
871—2.1(84A) Mission and organization.
2.1(1) Mission. The customer and administrative services division serves the department and its customers by satisfying fiscal, employee, office, property and information needs.
2.1(2) Operation and administration. The customer and administrative services division is under the direction of a division administrator who assists the director by planning, directing, and coordinating activities such as customer services; financial management; business management; budget and reporting; employee services; public relations; and planning and information. For ease of operation and administration of responsibilities assigned to it, the customer and administrative services division has been organized into six bureaus corresponding to the functional responsibilities of the division administrator.
871—2.2(84A) Customer services bureau.
2.2(1) Bureau chief. The customer services bureau is under the direction of a bureau chief who reports to the division administrator.
2.2(2) Responsibilities. The customer services bureau is responsible for:
a. Customer satisfaction measurement tools and resources;
b. Customer assistance center operation for both internal and external customers;
c. County labor availability surveys;
d. Special projects relating to service improvement and customer services;
e. Coordination of the statewide employers council activity and support for the employers council board of directors;
f. Development of customer service policy and customer service standards in collaboration with other bureaus within the department; and
g. Management of the electronic bulletin board (data center).
871—2.3(84A) Financial management bureau.
2.3(1) Bureau chief. The financial management bureau is under the direction of a bureau chief who reports to the division administrator.
2.3(2) Responsibilities. The financial management bureau staff are responsible for auditing all claims for expenditure of administrative and program funds; coding the claims for processing of warrants or fund transfers; and preparing accounting entries as required. The bureau also accounts for all unemployment insurance revenues collected for the trust fund and for benefits paid from the fund.
871—2.4(84A) Business management bureau.
2.4(1) Bureau chief. The bureau of business management is under the direction of a bureau chief who reports to the division administrator.
2.4(2) Purchasing unit. The purchasing unit is responsible for purchasing supplies, equipment and services and maintaining a statewide inventory of supplies and equipment.
2.4(3) Mail services unit. The mail services unit is responsible for receiving and for internal distribution of incoming mail as well as daily processing of outgoing mail.
2.4(4) Printing and collating unit. The printing and collating unit is responsible for in–house printing as required and development and maintenance of forms and forms inventory.
2.4(5) Supply and warehousing unit. The supply and warehousing unit is responsible for receiving, storing and issuing supplies throughout the state.
2.4(6) Building maintenance. The business management bureau handles the building maintenance for both the 1000 East Grand and 150 Des Moines locations.
871—2.5(84A) Special projects, premises, and forms management bureau. Rescinded IAB 5/19/99, effective 6/23/99.
871—2.6(84A) Budget and reporting bureau.
2.6(1) Bureau chief. The budget and reporting bureau is under the direction of a bureau chief who reports to the division administrator.
2.6(2) Responsibilities. Staff of the budget and reporting bureau are responsible for:
a. Developing and analyzing both the state and local departmental budgets;
b. Collecting and identifying all necessary raw data from the department’s divisions for budget preparation;
c. Preparing budgets in required formats;
d. Providing actual cost reports to the department’s divisions for analysis;
e. Completing required federal and state reports; and
f. Managing the processing of the department’s contracts for services.
871—2.7(84A) Employee services bureau.
2.7(1) Bureau chief. The employee services bureau is under the direction of a bureau chief who reports to the division administrator.
2.7(2) Responsibilities. The bureau is responsible for:
a. Providing an equal employment opportunity (EEO) program;
b. Maintaining a comprehensive department personnel program in accordance with rules and regulations of the Iowa department of personnel (IDOP), federal standards for a merit system, and department policy and regulations;
c. Maintaining employee records including payroll;
d. Interpreting and informing employees of personnel rules, regulations, procedures, and fringe benefits;
e. Maintaining a day–to–day working relationship with IDOP and cooperating with IDOP in test development for examinations, validation of department position classifications, and development of new job classifications and job specifications;
f. Providing in–service and out–service training and related training programs, developing training materials, giving training and cooperating in development and giving of training to department employees;
g. Providing out–service training including individual courses at local colleges and universities, especially developed short courses for specialists and management; and
h. Loaning audio–visual equipment and keeping it in repair.
i. Coordination of facility management for administrative and field offices.
j. Providing recommendations on and coordinating the development and distribution of internal administrative policies and procedures.
k. Coordination of communication systems for administrative and field offices.
2.7(3) Equal employment opportunity program. The equal employment opportunity (EEO) officer is under the supervision of the chief of the bureau of employee services. Individuals may file complaints on EEO matters at the Iowa Workforce Development Administrative Office, 1000 East Grand Avenue, Des Moines, Iowa 50319, attention: EEO Officer. If the department is involved in charges or allegations in the EEO area, the EEO officer is responsible for pursuing reconciliation or resolution. When necessary, the issues will be referred to the appropriate agencies, federal or state, for action. The EEO officer provides written and verbal guidance on EEO matters to the director, division administrators, and bureau chiefs. This guidance includes providing guidelines necessary to keep the department in compliance with federal and state law as well as United States Department of Labor regulations. The EEO officer is the official liaison with civil rights agencies and human service organizations. A department employee filing a grievance may elect, in matters involving EEO, to confer directly with the EEO officer who may make recommendations deemed appropriate. The EEO officer is responsible for developing and giving training along with other bureau employees on civil rights and EEO and is also responsible for monitoring the same.
871—2.8(84A) Planning and information services.
2.8(1) Planning and information services staff is responsible for:
1. Serving as the department’s liaison with Congress and the Iowa general assembly;
2. Reviewing legislation affecting the department;
3. Developing, presenting, and securing enactment of the department’s legislative package;
4. Providing constituent services to Congress and the Iowa general assembly.
2.8(2) Public relations and marketing bureau. The public relations and marketing bureau is under the direction of a bureau chief who reports to the division administrator. The public relations and marketing bureau is a resource to help other parts of the department communicate to various audiences. The bureau is responsible for:
1. Coordinating the department’s internal and external communication efforts. Functions include providing support in audience and message definition, writing and graphic support, coordinating projects with outside printers and other communication vendors, and serving as a primary media contact.
2. Identifying and managing the department’s marketing efforts including selecting and working with outside vendors such as advertising agencies and communication professionals to develop and place advertisements in various media to reach important customers and stakeholders.
These rules are intended to implement Iowa Code chapter 84A.
[Filed 2/20/97, Notice 1/15/97—published 3/12/97, effective 4/16/97]
[Filed 4/29/99, Notice
3/24/99—published 5/19/99, effective 6/23/99]
CHAPTERS 3 to 9
Reserved
chapter 10
RESEARCH AND INFORMATION SERVICES DIVISION
871—10.1(84A) Mission and organization.
10.1(1) Mission. The research and information services division conducts research, develops labor market information, and provides information services in support of the department of workforce development mission.
10.1(2) Operation and administration. The division is under the direction of a division administrator who reports to the director. The division functions include planning, researching, analyzing, directing, and coordinating labor market information and automated services for the department. The division administrator directs actuarial research, applications/programming, employment statistics, occupational information coordination, labor market information, and project planning and development.
871—10.2(84A) Actuarial research bureau. The bureau is under the direction of the division administrator and is responsible for research and reporting functions of the unemployment compensation program in Iowa. The bureau is responsible for:
1. Calculating the financial impact of proposed changes to Iowa’s unemployment compensation system with regard to the unemployment compensation fund, employer tax rates, and claimant benefits;
2. Monitoring the unemployment compensation fund solvency and writing legislative proposals recommending revisions to the tax and benefits sections in Iowa Code chapter 96;
3. Producing required and special reports analyzing and reporting the unemployment compensation system workload activities, employer compensation payments, and claimant benefit payments.
4. Calculating the contribution rate tables for private employers and the base rate for nonprofit and government employers.
871—10.3(84A) Applications/programming bureau. The bureau is under the direction of a chief who assists the division administrator in planning, directing and coordinating the development of computer programs and operating systems necessary to meet the needs of the department. The bureau is responsible for:
1. Developing new computer application systems/programs that are mandated by federal or state law or are required to support the department’s mission. These systems/programs are developed in consultation with the requesting division.
2. Changing or modifying existing systems/programs to meet the changing needs or mandated requirements of federal or state law.
871—10.4(84A) Employment statistics bureau. The bureau is under the direction of a chief who assists the division administrator in planning, directing and coordinating the production of employment data for Iowa and the counties. The bureau is responsible for:
1. Collecting, analyzing and summarizing data and producing monthly employment and hours and earnings estimates for Iowa, metropolitan statistical areas (MSAs) in Iowa, and counties in Iowa;
2. Collecting, analyzing and summarizing employment and wage data from Iowa employers subject to the unemployment insurance law to produce statewide and county data by industrial groups;
3. Producing information with regard to large long–term and permanent layoffs in Iowa.
871—10.5(84A) Iowa state occupational information coordinating committee bureau (ISOICC). The bureau is under the direction of a chief who is the executive director of ISOICC and assists the division administrator in meeting the occupational and career information needs of developers and users through coordination and communication. The bureau is responsible for:
1. Providing occupational and training information to planners of vocational and other training programs.
2. Paying special attention to the career development and labor market information needs of youth and adults by managing the administration of the state’s career information delivery system, Iowa Choices.
3. Providing training in the uses of occupational and labor market information to school counselors, teachers and labor market intermediaries.
4. Contributing to the improvement in the quality and dissemination of information through joint projects with and among ISOICC’s member agencies.
5. Providing technical assistance to other states, federal agencies and private sector information developers on the use of occupational classification systems and related data.
871—10.6(84A) Labor market information bureau. The bureau is under the direction of a chief who assists the division administrator in planning, directing and coordinating the production of labor market information. The bureau is responsible for:
1. Collecting, preparing, analyzing and distributing labor force, unemployment, unemployment rate and total employment information for the state, metropolitan statistical areas, counties and selected cities in Iowa;
2. Collecting, preparing, analyzing and distributing occupational employment and occupational wage information for the state, metropolitan statistical areas and the balance of state;
3. Preparing, analyzing and distributing projected industry and occupational employment information for the state and service delivery areas;
4. Preparing and issuing Prevailing Wage Determinations for Alien Labor Certification;
5. Preparing and distributing economic analyses of the Iowa labor market in hard copy and electronic formats and by in–person presentations.
871—10.7(84A) Planning and development bureau. The bureau assists the division administrator in planning, directing and coordinating division projects. Responsibilities include:
1. Developing and using labor market information;
2. Developing and using information technology for better delivery of workforce development services.
871—10.8(84A) Information management bureau. The bureau is under the direction of a chief who assists the division administrator in planning, developing, directing, and coordinating the department’s plan with automation technology.
These rules are intended to implement Iowa Code chapter 84A.
[Filed 2/20/97, Notice 1/15/97—published 3/12/97, effective 4/16/97]
chapter 11
EMPLOYER RECORDS AND REPORTS
871—11.1(96) Records. Each employer shall keep records and submit reports at such times as the department may require, and shall comply with the instructions printed upon any report forms issued by the department pertaining to the preparation and return of such reports.
871—11.2(96) Filing of Multiple Worksite Report, 65–5519, also known as Form Number BLS 3020. Each employer having more than one physical worksite at which workers are employed shall file a Multiple Worksite Report, 65–5519 (BLS 3020), for each quarter, providing monthly employment for the three payroll periods which include the twelfth of each month and the amount of wages subject to the unemployment insurance law, for each location within this state. This report is required as a supplement to the Employer’s Contribution and Payroll Report, 65–5300, required by 871—22.3(96). Failure to provide this report may result in the assessment of a penalty as provided for by 871—23.60(96).
871—11.3(96) Filing of Industry Verification Statement, BLS 3023VS or 3023VM. Each employer shall complete the Industry Verification Statement, BLS 3023VS or 3023VM, for the purpose of verifying the primary products or services of each physical worksite.
These rules are intended to implement Iowa Code chapter 96.
[Filed 2/20/97, Notice 1/15/97—published 3/12/97, effective 4/16/97]
chapter 12
FORMS AND INFORMATIONAL MATERIALS
871—12.1(96) Federal restriction—forms. The research and information services division uses many federally prepared and supplied forms that contain an office of management and budget (OMB) number and an approved expiration date. The department, which receives and uses in its normal operations such federal forms through a federally appointed special agent, is subject to all of the provisions, restrictions, sanctions and penalties imposed by the Federal Reports Act of 1942 and subsequent amendments.
Form No. Name and description of form.
12.1(1) Federal forms.
a. BLS 790, Bureau of Labor Statistics Report on Employment, Payroll and Hours. A research and information services division shuttle schedule sent each month, to a sample of Iowa employers, to collect employment, payroll and hours worked information.
b. BLS 3020, Multiple Worksite Report (65–5519) [reference 345—2.3(96)]. A research and information services division form required each quarter of Iowa employers subject to the unemployment insurance law.
c. BLS 3023VS, Industry Verification Statement (single worksite). A research and information services division form required of employers on a periodic basis to verify the products or services, or both, provided by an employer to ensure that the correct standard industrial classification code is assigned to the employer’s unemployment insurance account.
d. BLS 3023VM, Industry Verification Statement (multiple worksites). A research and information services division form required of employers on a periodic basis to verify the products or services, or both, provided at each worksite by an employer to ensure that the correct standard industrial classification code is assigned to each employer location.
e. BLS 2877, Occupational Employment Survey. Sent once a year to a sample of employers. Voluntary. Used to obtain confidential information on occupational employment and occupational wages by industry. Forms differ by industry.
12.1(2) State forms.
a. E–Z Form—for Occupational Employment Survey. Short form for collecting confidential occupational employment and occupational wages. Sent once a year to a sample of employers. Voluntary. Forms differ by industry.
b. Fringe Benefit Survey. Sent once a year to a sample of employers. Voluntary. Used to collect confidential information on employee fringe benefits.
c. Prevailing Wage Request Form. Used by employers to request prevailing wage determinations from the department of workforce development.
This rule is intended to implement Iowa Code chapter 96.
[Filed 2/20/97, Notice 1/15/97—published 3/12/97, effective 4/16/97]
chapter 13
NEW EMPLOYMENT OPPORTUNITIES FUND
871—13.1(78GA,SF2428) Purpose. The new employment opportunities program is designed to help individuals in underutilized segments of Iowa’s workforce gain and retain employment. The new employment opportunities program complements existing employment and training programs by providing additional flexibility and services that are often needed for underutilized segments of the population to gain and retain employment. Services may include, but are not limited to, transportation, child care, mentoring, assisting businesses with compliance issues related to the Americans with Disabilities Act, or reducing perceived risks that cause segments of the population to be underutilized in the workforce.
871—13.2(78GA,SF2428) Definitions.
“Department” means the department of workforce development.
“Regional workforce investment board” means a regional advisory board as defined in 877—Chapter 6.
“Underutilized segments of Iowa’s workforce” means persons with disabilities, ex–offenders, immigrants and refugees, minority youth, dislocated workers, senior workers, seasonal workers, welfare recipients, and low–income individuals. Additional target groups may be identified by a regional workforce investment board based on the region’s needs assessment and analysis.
“Workforce development region” means a region of the state designated by the state workforce development board as required by Iowa Code section 84B.2.
871—13.3(78GA,SF2428) Allocation of funds. Funds will be appropriated either by a direct allocation to the regions on a per capita basis, or made available to a limited number of pilot projects. The director of the department will determine the method by which the funds are appropriated.
871—13.4(78GA,SF2428) Projects.
13.4(1) Maximum grant amounts. The maximum grant amount for a project is set at $250,000.
13.4(2) Length of project. A proposed project may be designed for up to 18 months in duration, but must have an ending date no later than June 30 of the state fiscal year following the year funding was awarded.
871—13.5(78GA,SF2428) Pilot projects.
13.5(1) Maximum grant amounts. The maximum grant amount for a pilot project is set at $250,000.
13.5(2) Length of project. A proposed pilot project may be designed for up to 18 months in duration, but must have an ending date no later than June 30 of the state fiscal year following the year funding was awarded.
13.5(3) Eligible recipients. The regional workforce investment board will identify the recipient(s) of funds and program operator. The project must be operated in conjunction with the workforce development center system.
871—13.6(78GA,SF2428) Allowable costs and limitations. The program operator shall distribute new employment opportunities program funds on a voucher basis to address individuals’ barriers to obtaining or retaining employment. A maximum of $5,000 in vouchers shall be allowed per individual served.
13.6(1) Allowable training activities and support services. The allowable training activities and support services under this program will be jointly determined by the department and the program operator. To be allowable, training activities and support services must meet needs not covered by existing programs and enhance an individual’s ability to obtain and retain employment.
13.6(2) Cost categories. Allowable costs must be consistently charged against the two cost categories of administration and participant support/training.
13.6(3) Cost limitations. Costs of administration may not exceed 10 percent of the budget.
871—13.7(78GA,SF2428) Grant reporting and compliance review. Grantees are required to submit a monthly financial report detailing fund expenditures. Quarterly progress reports shall be submitted to the department detailing progress in accomplishing the goals and objectives of the project. Financial and quarterly progress report forms will be in a format approved by the department.
These rules are intended to implement 2000 Iowa Acts, Senate File 2428, section 20.
[Filed emergency
7/11/00—published 8/9/00, effective 7/11/00]
871—14.1(78GA,SF2428) Purpose. The program is designed to establish immigration service centers to provide a broad array of services to deal with the multiple issues related to immigration and employment. The new Iowan centers program offers one–stop service designed to support workers, businesses and communities. Services may include, but are not limited to, information, referral, job placement assistance, translation, language training, resettlement, and technical and legal assistance.
871—14.2(78GA,SF2428) Definitions.
“Department” means the department of workforce development.
“Immigrant” means a person who enters the country with the expectation of legally residing in the United States of America rather than returning to the person’s country of origin.
“Regional workforce investment board” means a regional advisory board as defined in877—Chapter 6.
“Workforce development region” means a region of the state designated by the state workforce development board as required by Iowa Code section 84B.2.
871—14.3(78GA,SF2428) Allocation of funds. Funds will be made available to a limited number of pilot projects in regions selected by the department, after consultation with other related state agencies. Matching funds shall be sought in the development of the pilot centers and special services needed to support the centers.
871—14.4(78GA,SF2428) Length of project. A proposed project may be designed for up to 18 months in duration, but must have an ending date no later than June 30 of the state fiscal year following the year funding is awarded.
871—14.5(78GA,SF2428) Allowable costs and limitations. A program coordinator shall be identified for each pilot site and shall work within the workforce development center system. Each pilot program shall provide training for local and workforce development center system partners, and supportive services for customers.
14.5(1) Allowable training activities and support services. The allowable training activities and support services under this program shall be jointly determined by the department and the program coordinator, and may include, but not be limited to, English as a second language programs in the workforce development center system, interpreter services, resources for legal services, facilitation of community meetings regarding immigrant issues, and development of specialized services specific to a community’s needs.
14.5(2) Cost categories. Allowable costs must be consistently charged against the three cost categories of staff salary and fringe benefits, supportive services, and administrative support.
871—14.6(78GA,SF2428) Grant reporting and compliance review. Program operators shall be required to submit a monthly financial report detailing fund expenditures. Quarterly progress reports shall be submitted to the department detailing progress in accomplishing the goals and objectives of the project. Financial and quarterly progress report forms shall be in a format approved by the department.
These rules are intended to implement 2000 Iowa Acts, Senate File 2428, section 12, subsection 2.
[Filed emergency
7/25/00—published 8/23/00, effective 7/25/00]
CHAPTERS 15 to 20
Reserved
chapter 21
UNEMPLOYMENT INSURANCE SERVICES DIVISION
871—21.1(96) Unemployment insurance services division.
21.1(1) The primary responsibility of this division is to administer the provisions of the Iowa employment security law and related federal programs in accordance with pertinent laws, regulations, and policies. Attorneys who report to the administrator of the unemployment insurance services division perform the legal services for the division pursuant to Iowa Code section 96.17 which empowers the division to employ attorneys to represent it and give advice on all matters coming before it in conjunction with the administration of Iowa Code chapter 96. The division administers the payment of job insurance benefits to eligible individuals, determines which employers are subject to the state and federal laws enacted in this area, supervises the collection of taxes from these employers, and oversees a program to control the quality of benefit payment and revenue collection. These functions are performed by the following bureaus:
a. Claims case bureau. The claims case bureau determines the eligibility of individuals claiming unemployment insurance. In addition to the Iowa unemployment insurance benefits, the bureau also processes unemployment insurance for Federal Employees Compensation Act (FECA), Unemployment Insurance for Ex–service Members (UCX), claims for Trade Readjustment Act and Expansion Act (TRA and TEA), Voluntary Shared Work (VSW), and Disaster Unemployment Assistance (DUA). It is also responsible for payments of other special federal unemployment insurance benefits as agreed to by the United States Department of Labor and the state of Iowa.
(1) Claims resolution and consultation section. The claims resolution and consultation section is responsible for screening all employer protests and issuing special investigation reports to the local workforce development centers. This section investigates all labor dispute protests and issues appropriate decisions. This section determines individuals’ eligibility on disputed claims for unemployment insurance benefits which are not adjudicated at the local office level. This section reviews decisions that determine which employers will receive charges on claims for unemployment insurance benefits and investigates claims for missing wages. The section also responds to communications involving technical matters related to unemployment insurance and corrects necessary records and database due to subsequent appeal decisions which reverse the prior decision issued on a claim.
(2) Special claims section. The special claims section is responsible for processing claims for FECA, UCX, TRA, VSW, DUA, and any other federal unemployment insurance programs. This section determines eligibility, computes and authorizes payments due, maintains needed records, and makes adjustments or redeterminations as applicable. This section is also responsible for processing initial interstate claims, assisting claimants in calling in their continued claims for payment, notifying employer of claim filing, processing overpayments and underpayments, adjudicating issues, processing interstate appeals, and processing combined wage claims.
b. Benefit control bureau. The benefit control bureau is responsible for overseeing the determination of eligibility for individuals claiming unemployment insurance benefits, processing and adjusting benefit payments, document control, and division support. The functions are performed by two sections.
(1) Information control section. The information control section is responsible for the control and conversion of all paper documents compiled during the normal course of business for unemployment insurance claims and taxes. The section converts paper documents to imaged objects or microfilm copies. The section assigns document control information to each paper document which provides automated electronic workflow routing, document retention criteria, document locating information, and computer updates. The section is also responsible for the retrieval of micrographic documents for internal and external customers. The section prepares documents and computer records for release to the public under subpoena or waiver provisions and collects record processing fees. The section is responsible for the child support intercept program in which unemployment insurance benefits are withheld and paid to the child support recovery unit. The section is responsible for the voluntary income tax withholding program in which state and federal taxes are withheld from unemployment insurance benefits. The section is responsible for reporting tax withholdings and taxable unemployment insurance benefits to the Internal Revenue Service, Iowa department of revenue and finance, and claimants.
(2) Payment control section. The payment control section is responsible for determining eligibility of individuals for unemployment insurance benefits. The section performs fact–finding interviews with claimants and employers to resolve issues discovered by recording the responses the claimant provides to questions asked in the weekly continued claim certification process. The section allows or denies benefits based on Iowa employment security law and Iowa administrative rules and issues a determination. The section computes and issues overpayment determinations and underpayment supplemental benefit payments due to misreported earnings or eligibility disqualifications. The section is responsible for all overpayment billing activity which results in an overpayment setup or refund, overpayment decision letter, or overpayment billing notice. The section is responsible for overpayment recovery programs which include withholding of Iowa income tax refunds, Iowa lottery prizes, Iowa vendor payments, and the Interstate Reciprocal Overpayment Recovery Arrangement. The section is responsible for the issuance of duplicate benefit payments for lost, stolen, outdated, or returned payments. The section authorizes and issues replacement warrants or direct deposit transactions. The section verifies financial institution corrections of direct deposit routing and account numbers and updates the database records.
c. Tax bureau. The tax bureau is responsible for the maintenance and control of all records of unemployment insurance tax paid by liable employers in the state of Iowa. Taxes collected are deposited in a fund to be subsequently used for benefit payments. This section maintains financial records on employers; assigns rates each year to employers; makes all necessary adjustments to ensure proper charging to employers of benefits chargeable to them; maintains records of employer overpayments and refunds; and maintains the necessary contacts with employers’ accountants, attorneys, and the general public to ensure the proper and timely submission of all the required reports to the division of unemployment insurance. The collection section is responsible for the collection of delinquent tax contributions, benefit reimbursements, and unpaid interest and penalty assessments from all Iowa employers who file job insurance reports. Staff instigates routine legal actions such as the filing of liens, garnishments, and bankruptcies. Employers are contacted by mail, telephone, or personally to initiate the collection process. The deposition section thoroughly reviews contribution reports against payroll reports for matching totals and verifies the amount of the check against the employer’s report. The section is responsible for depositing all money received for contribution reports, benefit reimbursements, and interest and penalties with the state treasurer’s office. The information on the contribution reports is keypunched and the proof sheets are checked to see that they have been correctly punched. The adjustment/chargeback section assigns contribution rates to employers, handles the accounting work on partial changes of ownership, adjusts the amounts owed by employers, and audits the taxable wages reported by the employer in accordance with state and federal requirements. The chargeback unit removes erroneous charges when employers are charged in error. This unit is also responsible for corrections on employee charge notices which could affect employee contribution tax rates.
d. Field audit bureaus. These bureaus are responsible to contact Iowa and out–of–state employers who do business in Iowa to establish taxpayers’ liability under the law; explain the law’s provisions; secure information and make determinations pertaining to new accounts, successorships and terminating tax liability; collect delinquent contributions; give information and assistance to ensure compliance in the preparation of tax reports and in securing refunds of overpaid taxes; conduct investigations on FUTA discrepancy problems, contractor registration issues, business closings, and claimant requests for omitted wage credits; determine employer/employee and independent contractor relationship issues; assist in fraud investigations; conduct payroll and financial audits; and appear as an expert witness at employer liability hearings. The bureaus also provide services to other states who request assistance in their unemployment insurance enforcement with Iowa–based employers who conduct business in their states. The bureaus also assign all field audit work. Information is entered into the automated system which generates materials to be utilized by the field audit staff in conducting an employer inquiry and audit.
e. Investigation and recovery bureau. The investigation and recovery bureau is responsible for aggressive action to prevent, detect, investigate and penalize fraudulent actions on the part of employing units and individuals claiming unemployment insurance benefits. The bureau also recovers overpayments and files liens and garnishments to assist with recovery of overpayments. The bureau verifies that aliens are entitled to unemployment insurance and investigates and disqualifies those that are not eligible. The bureau conducts the fictitious employer detection program to discover employers set up for the purpose of fraudulent activities. The bureau also prosecutes violations of the Iowa employment security law including fraudulent receipt of unemployment insurance benefits in conjunction with each county attorney in Iowa. The bureau also investigates and determines whether an unemployment insurance warrant has been forged and whether it should be reissued.
f. Quality control bureau. The quality control bureau is responsible for the collection and analysis of data pertaining to both the accuracy of payments as well as the effectiveness of revenue collectionprocesses for the unemployment insurance program. Quality control reports directly to the division administrator as it works to support the development and execution of corrective action plans for the improvement of the program. In addition, quality control is responsible for validation of the unemployment insurance data reports, identification and analysis of risk factors which could threaten the unemployment insurance program, and maintenance of the data processing capabilities to store and transmit various agency–required reports to the federal government.
21.1(2) Reserved.
This rule is intended to implement Iowa Code chapter 96.
[Filed 1/20/99, Notice 12/16/98—published 2/10/99, effective 3/17/99]
chapter 22
EMPLOYER RECORDS AND REPORTS
[Prior to 9/24/86, Employment Security [370] Ch 2]
[Prior to 3/12/97, Job Service Division [345] Ch 2]
871—22.1(96) Records to be kept by the employer.
22.1(1) Each employing unit having employment performed for it shall maintain records to show the information hereinafter indicated. Such records shall be kept in such form and manner that it will be possible from an inspection thereof to obtain the facts necessary to determine what remuneration was made by the employing unit and what remuneration is reportable to the department. Such records shall be open to inspection and be subject to be copied by the department and its authorized representatives at any reasonable time. Such records shall be kept for a period of five years after the calendar year in which the remuneration to which they relate was paid or, if not paid, was due.
22.1(2) Such records shall show with respect to each employee, unless the department has ruled that the particular service does not constitute employment:
a. Name of worker.
b. Social security account number.
c. Date on which employee was hired, rehired, or returned to work after a temporary layoff, and the date separated from work and the reason therefor.
d. Scheduled hours except for workers without a fixed schedule of hours, such as those working outside of the employer’s establishment in such a manner that the employer has no definite knowledge of their working hours.
e. Total wages paid for employment in each period and the date of payment. For all pay periods ending in each quarter show separately: money wages, the cash value of other remuneration such as any special payment for services such as wages in lieu of notice, bonuses, gifts, prizes, and the nature of payments such as accounts paid to employees as allowance or reimbursement for traveling and other business expenses, and the amounts of such expenditures actually incurred and accounted for by the employees.
f. The state or states in which the services are performed; and if any of such services are performed outside of this state and are not incidental to the service within the state, the base of operations (or if there is no base of operations then the place from which such services are directed or controlled) and the residence (by state), and the name of the county in Iowa in which services were performed.
g. When the pay period covers services performed both in covered employment and in excluded work, show the hours and wages for covered employment under the Iowa employment security law, hereinafter referred to as the “Act,” and also show hours and wages for excluded work.
h. The physical work site at which each employee worked during each pay period which includes the twelfth of each month. If an employee worked at more than one work site, the work site at which the majority of the work was performed should be the one of record.
22.1(3) Such payroll records may be preserved by the employer in microfilm form, provided the employer:
a. Keeps a microfilm viewer available, and
b. Is willing to transcribe any information that may be required by the department.
22.1(4) Maintenance of records by out–of–state employing units. Any employing unit having its principal place of business outside of Iowa shall maintain payroll records in this state with respect to wages paid to employees who perform some service in this state; provided, however, that an out–of–state employing unit may, with the approval of the department, maintain such payroll records outside the state upon its understanding that it will, when requested so to do, furnish the department with a true and correct copy of such payroll records. Failure to maintain said records in Iowa as required may result in estimated reports and payroll listings being made by the department. See 871—subrule 23.59(2).
This rule is intended to implement Iowa Code section 96.11(6)“a.”
871—22.2(96) Reports. Each employing unit shall make such reports at such times as the department may require, and shall comply with the instructions printed upon any report form issued by the department pertaining to the preparation and return of such report.
This rule is intended to implement Iowa Code section 96.11(1).
871—22.3(96) Filing of Employer’s Contribution and Payroll Report, 65–5300 and Employer’s Payroll Continuation Sheet, 60–0103.
22.3(1) Each employer shall, not later than the due date required for the payment of quarterly contributions, file a 65–5300, Employer’s Contribution and Payroll Report, for such quarter on a form prescribed by the department based upon wages paid with respect to all the employer’s business maintained within this state and computed in accordance with the Code and these rules. The 60–0103, Employer Payroll Continuation Sheet, shall be used for the additional payroll information which cannot be entered on the 65–5300.
22.3(2) Failure to receive report forms shall not relieve the employer from responsibility for filing required forms on or before the due date or to pay any contribution due.
22.3(3) A copy of each such report shall be preserved by each such employer for a period of at least five years from the end of the calendar year in which the report was due.
22.3(4) Employer to file report even when no payroll. Every qualified or subject employer is required to send in an Employer’s Contribution and Payroll Report, Form 65–5300, each quarter. Even though an employer finds that for some particular quarter no contributions are due, or they have no employees during the period covered, a report must be filed with the department.
22.3(5) Combined reports, leased employees, and concurrently employed individuals.
a. Consolidated or combined reports of parent and subsidiary corporations or other employing units, whether or not the employing units are related, shall not be allowed.
b. Employees of parent and subsidiary corporations or other employing units, whether or not they are related, shall be reported on the quarterly reports of the employing unit for which the services are performed regardless of which employing unit actually issues the employees’ paychecks.
c. Leased employees:
(1) Except as described in subparagraphs (2), (3), (4), and (5) below, individuals leased from an employee leasing company, by the client of the employee leasing company, shall be considered to be employed by the client and shall be reported on the quarterly reports of the client, at the contribution rate of the client, unless and until it is shown to the satisfaction of the department that the individuals are and will continue to be under the exclusive direction and control of the employee leasing company, both under a written contract and in fact.
In order for a contract to be considered evidence that individuals are the employees of the employee leasing company it shall:
1. Specify the service to be performed by the individuals, on behalf of the employee leasing company, for the client.
2. Specify the fee the client must pay for this service. The fee must be large enough to cover the actual cost of the individuals’ wages and fringe benefits plus provide a reasonable profit on the service performed for the client.
3. Specify that the employee leasing company has the exclusive right to determine the number of individuals needed to provide the service for the client and to direct and control the individuals in the performance of the service.
4. Specify that the employee leasing company has the exclusive right to hire, fire, discipline, and reassign any of the individuals to another position or to another client without the consent of the client.
(2) If an individual is leased to fill a temporary need from a company whose business is primarily to provide workers to fill temporary needs, the individual shall be considered to be the employee of the leasing company as long as a written contract is in place.
(3) If an individual is a truck driver leased from a company that leases truck tractors with drivers to trucking companies, the individual shall be considered to be the employee of the leasing company unless and until it is shown to the satisfaction of the department that the trucking company has the exclu–
sive right to hire, fire, discipline, reassign, and direct and control the services performed by the individual, both under a written contract and in fact.
(4) If an individual leased from an employee leasing company is a corporate officer of the client, the individual shall always be considered the employee of the client and not the employee of the leasing company.
(5) If an individual leased from an employee leasing company holds an exempt relationship, as defined in Iowa Code section 96.19(18)“g”(5), with the client, the individual shall not be considered to be an employee of either the client or the leasing company unless an election to cover the individual has been filed and approved in accordance with Iowa Code section 96.8(3)“b.”
d. Concurrently employed individuals.
(1) Except as described in subparagraph (2) below, individuals who perform services concurrently for more than one employing unit, whether or not the employing units are related, shall be considered as working for each of the employing units and shall be reported on the quarterly reports of each of the employing units. Each of the employing units shall be required to pay contributions on the wages attributable to that employing unit up to the taxable wage base limit for each calendar year.
(2) An individual who concurrently performs services as a corporate officer for two or more related corporations and who is paid through a common paymaster that is one of the related corporations may be treated as working for only the common paymaster at the discretion of the related corporations.
22.3(6) Each Form 65–5300, Employer’s Contribution and Payroll Report, shall include:
a. The social security number, name (last name first), total wages paid and taxable wages paid to each employee during the calendar quarter. All corrections to previous reports submitted to the department must be listed and submitted on Form 68–0061, Employer’s Wage Adjustment Report. See rules 871—23.3(96) through 871—23.6(96).
b. The sum of the total and taxable wages paid to all employees during the calendar quarter.
c. The amount of contribution due for the calendar quarter.
d. The amount of interest due, if any, for the calendar quarter.
e. The amount of penalty due, if any, for the calendar quarter.
f. The total amount of contribution, interest and penalty due for the calendar quarter.
g. The number and amount of the credit memo, if any, used to reduce the net remittance due.
h. The amount of net remittance due for the calendar quarter; however, if the amount of net remittance due is less than $1, the employer may show “.00” as the net remittance due and need not submit a payment with the report.
i. The total number of employees listed on the report.
j. The amount of extraordinary pay which was paid to the employees during the calendar quarter.
k. The total number of employees paid wages during the pay periods which include the twelfth day of each month of the calendar quarter.
l. The number of the county in which the worksite is located if only one business activity is conducted at only one worksite during the calendar quarter; however, if the same business activity is conducted at more than one worksite or if different business activities are conducted at one or more worksites, the employer shall also be required to complete and return the Form 65–5519, Multiple Worksite Report, which shall include for each worksite, the total number of employees paid wages during the pay periods which include the twelfth day of each month of the calendar quarter and the total wages paid during the calendar quarter.
(1) The total number of employees paid wages during the pay periods which include the twelfth day of each month of the calendar quarter for all worksites as reported on the Form 65–5519, Multiple Worksite Report, should equal the total number of employees reported for that month in item 11 on the Form 65–5300, Employer’s Contribution and Payroll Report.
(2) The total wages paid to all employees at all worksites as reported on the Form 65–5519, Multiple Worksite Report, should equal the total wages reported in item 1 on the Form 65–5300, Employer’s Contribution and Payroll Report.
(3) It could be possible for wages to be reported for a worksite without corresponding employment being reported in any of the months during the quarter because wages paid are reportable for the full 13–week period in the calendar quarter, while employment is reportable in item 11 on the Form 65–5300, Employer’s Contribution and Payroll Report, when such employment occurs during the pay periods which include the twelfth day of any month in the calendar quarter.
m. The reason (seasonal change, labor dispute, layoff, recall, worksite opening, or worksite closing) for the increase or decrease in total employment during the calendar quarter.
n. Rescinded IAB 3/5/03, effective 4/9/03.
o. The signature of the owner, responsible officer, or authorized agent of the employer certifying that the information given is true and correct to the best of the signer’s knowledge and belief, the date the report was submitted and the telephone number.
p. Such other schedules or reports as may be required, duly completed in all substantial respects on such forms and in accordance with such instructions as the department may provide or approve.
This rule is intended to implement Iowa Code sections 96.7, 96.11(6), 96.11(11) and 96.19(17).
871—22.4(96) Reporting of earnings data on magnetic media.
22.4(1) Employers may, in lieu of the individual wage item listing on Form 65–5300, Employer’s Contribution and Payroll Report, submit a magnetic media listing. Authorization for this reporting method will be given if the employer meets the specification requirements so as to be compatible with the department’s computer capabilities. Such specifications will be furnished upon request.
22.4(2) A magnetic media listing does not relieve the employer’s responsibility to timely file Form 65–5300. If all wages are reported on magnetic media, designate this on Form 65–5300 and enter the grand total of all wages on the 65–5300 grand total all pages line. If some wages are on magnetic media and the balance individually listed on Form 65–5300, designate the total for each group on the form and enter the grand total of both groups on the 65–5300 grand total all pages line. All corrections to previous reports submitted to the department must be listed and submitted on Form 68–0061, Employer’s Wage Adjustment Report. Negative wage amounts must not be reported on magnetic media. All reporting forms and contributions must be packaged and submitted separately from the magnetic media.
This rule is intended to implement Iowa Code section 96.11.
871—22.5(96) Filing of quarterly report forms by newly subject or covered employers. Any employing unit which becomes an employer subject to this chapter within any calendar quarter other than by a voluntary election of the employing unit shall file reports for each calendar quarter on Form 65–5300, Employer’s Contribution and Payroll Report. Reports shall include all wages paid during the current quarter as well as separate quarterly reports for wages paid in prior quarters of the same calendar year. The first quarterly reports of that employer shall be due on the last day of the calendar month following the close of the calendar quarter in which the employing unit becomes subject to the Code and shall be considered delinquent if not submitted and paid by that date. Any employer filing a voluntary election for coverage must begin filing reports in the quarter the employer’s election is effective.
This rule is intended to implement Iowa Code sections 96.7(1), 96.14(1), 96.14(2) and 96.8(3).
871—22.6(96) Employer changing status, address or name required to file report. Any employer who terminates business for any reason whatsoever, or transfers or sells all or a substantial part of the assets of the organization, trade or business to another, or changes the trade name of such business or address thereof shall, within ten days after such termination, transfer, or change of name or address, give notice in writing to the department of that fact. The employer shall set forth in such notice the former name, address of the business, the new name, telephone number and address, the name of any new owner, and the employer’s own name, telephone number and present address. Such notification shall be on Form 60–0111, Employer’s Notice of Change, or on Form 65–5313, Employer’s Delinquency Notice.
This rule is intended to implement Iowa Code sections 96.11 and 96.8(4).
871—22.7(96) Exempt employing units and exempt employment.
22.7(1) Any employing unit having workers performing services for it which it considers exempt from this Act shall file a Form 68–0192, Questionnaire for Determining Status of Workers, along with supporting exhibits and documents (i.e., contract, statements from employer and claimant) so that a decision can be made as to whether or not such service is in fact exempt from the provisions of this Act.
22.7(2) Any employing unit which has established its status as an organization exempt under this Act or that certain employment performed for it is not subject to contributions shall immediately notify the department of any changes in the character of its organization, the purposes and manner of its operation or the changed manner in which employment theretofore determined to be exempt by the department is performed.
22.7(3) Whenever an employing unit claims that any employment is not employment under this Act, the burden shall be on the employer to prove the exemption claimed.
This rule is intended to implement Iowa Code section 96.19(18)“f.”
871—22.8(96) Subject employers.
22.8(1) Requesting determination of status. Whenever an employing unit is in doubt as to whether or not an individual is an employee, or is engaged in employment subject to the Act, the employing unit shall submit a statement of all relevant facts to the department for a determination as to the status under the Act of such individual or employment on Form 68–0192, Questionnaire for Determining Status of Workers, information for use in obtaining a ruling from the department as to whether or not a worker is an employee for the purposes of the Act.
22.8(2) Notification of status. The department shall maintain a separate account for each employer and shall notify the employer by mailing a Form 65–5308, Notice of Employer Status and Liability, to the last–known address. This notice will advise the employer of:
a. The effective subjectivity date.
b. The date of the determination (last day of quarter in which subjectivity occurred). See rule 22.5(96).
c. The assigned industry code.
d. The section of the law under which the employer was found liable.
e. The federal identification number (if available).
f. The workforce development unemployment insurance account number.
g. The contribution rate for that year and preceding four years, if applicable.
h. Whether the account was established new, reestablished or placed on an inactive status.
22.8(3) For the specific procedure and requirements for perfecting an appeal of an employer liability determination see rules 871—23.52(96) to 23.56(96).
This rule is intended to implement Iowa Code section 96.7(4).
871—22.9(96) Employing units required to file report to determine liability.
22.9(1) Each employing unit engaged in doing business in the state of Iowa January 1, 1936, or after, shall file a report to determine liability with the department on a form supplied by the department, Form 60–0126, Report to Determine Liability, setting forth the names and addresses of the owners of the business, or if a corporation, association, or joint stock company or limited liability company, the names and addresses of its officers or members. Each employing unit must show its principal place of business, the nature of its business, the number of individuals whom it customarily hires to perform services for it, the place or places where such services are performed, the time when such business was begun, the number of weeks in the year for which it is customary to operate such business and such other information as may be required by such form.
22.9(2) Each employing unit which shall hereafter begin business in the state of Iowa in any manner whatsoever whether by succession to a business already being operated, by starting a new business, or otherwise, shall, within 30 days after beginning such business, inform the department of that fact, request the forms referred to in 22.9(1) and make and file the report required of all employing units by said rule.
This rule is intended to implement Iowa Code section 96.11(1).
871—22.10(96) Report of a Partnership on Change in Partners.
22.10(1) Change in partnership. In any case in which a partnership consisting of two or more partners adds to or deletes a partner or partners and is not required by the Internal Revenue Service to obtain a new federal identification number after such addition or deletion of partner or partners, the partnership shall notify the department of such change by filing a Form 68–0234, Report of a Partnership on Change in Partners, within ten days from the date the change occurred. The department will subsequently correct the partnership account to reflect this change.
22.10(2) Reporting requirement. If, after the change in partners, the partnership is required to obtain a new federal identification number by the Internal Revenue Service, or if there has been a change of ownership as described in Iowa Code section 96.19(18)“b” or a change of ownership as described in rule 871—23.28(96), then the old partnership shall notify the department by filing Form 60–0111, Employer’s Notice of Change, within ten days from the date the change occurred. The new partnership shall notify the department by filing Form 60–0126, Report to Determine Liability, within ten days from the date the change occurred.
This rule is intended to implement Iowa Code section 96.11(6).
871—22.11(96) Employer account.
22.11(1) Separate accounts. The department shall maintain one account for each employer (or single legal entity). An employer who has more than one establishment or business shall be considered to be one employing unit entitled to one account and a single experience rate. However, the employer may request that the department assign a separate reporting number (account number) to each establishment or business in accordance with rule 22.12(96). If the department issues a separate reporting number to the various establishments or businesses, each establishment or business that has a reporting number must submit a quarterly contribution and payroll report showing all wages paid by the establishment or business during each quarter. The experience of all the establishments or businesses of the employer shall be combined on the rate computation date for the purpose of computing one experience rate which shall be applicable to all of the employer’s establishments or businesses.
If an establishment or business owned by an employer is a separate legal entity in its own right (i.e., a subsidiary corporation), it will be considered to be a separate employer and must have an experience rate based on its own experience.
When an already covered employer acquires another establishment or business, the employer will have a separate account number with a separate experience rate for the acquired business only if that business retains its character as a separate legal entity. If the acquired business is merged with that of the employer so that they become a single legal entity under the law, the successor is not entitled to separate rates although the employer may request a separate reporting number in accordance with rule 22.12(96).
22.11(2) Each employer shall report all wages for employment paid by the employer in all employing enterprises and pay all contributions thereon into the active account or accounts maintained by the department. The title of the employer’s account shall be the name of the individual, partnership, corporation, association or other organization constituting the employing unit, and may contain the trade name used by the employing unit. Where the employing unit is a fiduciary agent or legal representative, the title of the account shall be the name of the fiduciary or legal representative and the official title.
22.11(3) Each employer’s account shall be assigned a number and except as the system of numbering accounts may be changed, the number identifying an employer’s account shall not be changed unless the employer’s account is legally terminated and the employer is again determined to be a covered employer.
22.11(4) Establishment defined. As used in this rule, “establishment” means an economic unit, generally at a single physical location, where business is conducted, or where services or industrial operations are performed, or from which employees are dispatched.
This rule is intended to implement Iowa Code sections 96.7(2)“a”(1) and 96.19(17).
871—22.12(96) Employer’s request to maintain separate accounts.
22.12(1) Any employer having two or more separate establishments within this state may file a written request with the department that a separate account number be assigned to each separate establishment. The department at its discretion may grant the employer a separate account number for each separate establishment; however, the separate accounts shall be considered to be one account for all purposes of Iowa Code chapter 96 and shall all carry the same contribution rate.
22.12(2) If an employer which has two or more separate establishments with separate account numbers sells or conveys one of the separate establishments to another employer, it shall be considered a partial sale of a business and shall be subject to laws and rules governing partial transfers of experience.
22.12(3) When a covered employer acquires a separate enterprise or business, the employer may file a written request with the department that a separate account number be assigned to the newly acquired enterprise or business. The department at its discretion may grant the employer a separate account number for the newly acquired establishment; however, the separate accounts shall be considered to be one account for all purposes of Iowa Code chapter 96 and shall both carry the same contribution rate.
22.12(4) An employer’s request to have separate account numbers for separate establishments shall not be granted unless it is shown to the satisfaction of the department that allowing the separate account numbers will not add significantly to the administrative costs of the department.
This rule is intended to implement Iowa Code sections 96.7(2)“a” and 96.19(6).
871—22.13(96) Procedure to be followed by an employer wishing to have an active account location coded for notice of claim for unemployment benefit mailing.
22.13(1) Any employing unit reporting under an assigned account and having one or more separate and distinct employing locations in the state of Iowa may request in writing the assignment of a location code for each of the various separate and distinct establishments. The location code, which is limited to three digits, will be assigned for the specific purpose of mailing Form 65–5317, Notice of Claim Filing, to the location coded account so that responsible personnel at that location can make a timely protest on Form 65–5317 if the employment separation was for a disqualifiable reason. Those accounts so wishing may request in writing that all unemployment insurance material other than Form 65–5317, Notice of Claim Filing, be sent to the home office or regional accounting office. All such requests must be from a responsible financial or operating officer of the firm and shall indicate:
a. Full trade name and address of each location to be coded.
b. The full trade name and address of the home office or financial office that all unemployment insurance material other than Form 65–5317 is to be sent.
22.13(2) It will be permissible to accept this information over the telephone by qualified personnel of the field audit section providing the employer makes known all of the above requested information and the person receiving this information notes the date it was received, the time it was received, who telephoned the information to the department, and the name and telephone number of a responsible party that can be contacted if further verification is needed with respect to the location coding procedure. Field audit section personnel receiving this classified information by telephone will accordingly note this and make it a matter of permanent record.
22.13(3) Once an account becomes location coded it will become the responsibility of the employer to complete Form 65–5305, Summary of Quarterly Payroll by Location. The employer will record the following information on the Form 65–5305, if it has not been preprinted on the form by the computer:
a. Employer account number.
b. The location code.
c. Firm name and mailing address for Form 65–5317.
d. Industrial classification code.
e. The payroll page numbers for the location code payroll attributable to that location.
f. The total wages attributable to the location code.
g. The taxable wages attributable to that location.
22.13(4) Once the employer’s account is properly location coded, the following information will be preprinted by the computer on Form 65–5305.
a. The employer’s account number.
b. Location code(s).
c. The firm name(s) and mailing address(es) for Form 65–5317.
d. The industrial classification code(s).
22.13(5) It will then become the employer’s responsibility to complete the following column headings on the Form 65–5305.
a. Page numbers.
b. Total wages attributable to each coded location.
c. Taxable wages attributable to each coded location.
22.13(6) It will be the employing unit’s responsibility to complete this information in the proper sequence in order for the location code procedure to be maintained in a workable manner. If any locations are deleted or added, the department shall be notified within ten working days from the date of change.
22.13(7) Until such time as the first calendar quarter that is entered into the department’s data processing system by location code becomes a quarter in a base period, the location coding procedure cannot be considered as fully implemented. Form 65–5317 will continue to be mailed to the employer’s last recorded address until the location coded procedure is fully implemented.
This rule is intended to implement Iowa Code section 96.6(2).
871—22.14(96) Notification by employer of employee’s rights. Each employer shall post and maintain in places readily accessible to individuals in its employ printed notices or posters, Form 60–0160, informing employees of their potential rights to benefits under the employment security law and providing general instructions as to what the employees shall do and where the employees shall go to obtain these benefits. Copies of these printed notices or posters may be obtained from the department, upon request, without cost to the employer.
This rule is intended to implement Iowa Code section 96.11(2).
871—22.15(96) 940 certification.
22.15(1) Upon request, the department shall furnish to the Internal Revenue Service a certification of an employer’s account for a particular year. Certification requests may be on an individual basis or may be part of a bulk yearly certification. Such certification will include the employer’s state account number, yearly taxable payroll, contribution rate, contributions paid prior to January 31 of the next succeeding year, and the date and amount of contributions after January 31 of the next succeeding year.
22.15(2) In addition to the information certified in subrule 22.15(1), yearly certification shall include:
a. Employers who filed a federal unemployment tax return (Form 940) that did not file with the department.
b. Employers who filed returns with the department but not with the Internal Revenue Service except governmental employers and employers that department records indicate to be 501(c)(3) nonprofit organizations.
This rule is intended to implement Iowa Code sections 96.11(1) and 96.11(6)“c”(2).
22.16(1) Effect of postmark date.
a. When the due date for filing reports and paying contributions falls on Saturday, Sunday or a legal holiday it is sufficient compliance with the law if reports and contributions are postmarked on or before midnight of the next succeeding business day following such Saturday, Sunday or legal holiday.
b. Contributions, if mailed, shall be deemed to have been paid on the date of mailing as indicated by the postmark on the cover thereof. If no postmark date on the cover, the date received by the department shall be deemed date of payment.
22.16(2) Reserved.
This rule is intended to implement Iowa Code sections 96.7(1) and 96.14(2).
871—22.17(96) Procedures of field auditors.
22.17(1) Field auditors are to provide a cost–effective method of promoting employers’ understanding of employer rights and responsibilities under Iowa unemployment insurance laws.
22.17(2) The department, through duly appointed field auditors, may examine an employer’s rec–ords at any time, subject to the limitations of 22.1(96), to determine compliance with Iowa Code chapter 96.
22.17(3) The department has enforcement authority. An employer, when requested to produce rec–ords by an auditor, must make the records available within and at a reasonable time to the auditor. If an employer does not comply with the auditor’s request to produce records, a subpoena duces tecum may be served on the employer to appear before the auditor with the records in accordance with Iowa Code section 96.11, subsections 8 and 9.
22.17(4) The department, through duly appointed field auditors, may perform a systematic audit of an employer’s records as authorized by Iowa Code section 96.11, subsection 7, and as mandated by the United States Department of Labor. In addition to the provisions of subrules 22.17(1) to 22.17(3), the following provisions apply to systematic audits:
a. The employer is to be given reasonable notice of the intent to audit, and a preaudit interview is to be conducted with the employer or a designated representative.
b. The records required, if maintained, may include individual pay records, Internal Revenue Service Forms W–2 and 1099, cash disbursement journal, check register, chart of accounts, general ledger, balance sheet, profit and loss statement, federal and state tax returns and other records to the extent they relate to possible hidden or misclassified wages.
c. To verify the existence of the business, the auditor may require a visit to the business premises or to see other evidence of legitimate business activity.
d. To verify the correct business entity is listed on department files, the auditor may examine various employer business licenses, legal documents or other tax returns.
e. To verify the reporting of all workers reportable to the department under Iowa Code chapter 96, questionable entries will be investigated and documented. Under rule 22.7(96) if the employer disagrees with the audit decision on coverage of a worker, the auditor may require the employer to complete Form 68–0192, Job Service Questionnaire For Determining Status of Workers. In any disputed case, the auditor is to be granted access to records as necessary to determine the remuneration paid for any given calendar quarter.
f. To verify proper employer posting to department reports, a detailed audit of check stubs, weekly time cards, or other maintained source documents will be made and documented for at least one worker for at least one quarter. The detailed audit may be more comprehensive at the discretion of the auditor or if discrepancies are found.
g. Employer records will be compared and reconciled to amounts reported to the department on contribution and payroll reports and audit findings documented.
h. Discrepancies will be resolved or explained, and report adjustments prepared as necessary.
i. Generally the audit will cover a minimum of four calendar quarters; however, if the initial audit discloses material errors as defined by the department, the audit may be expanded to cover prior or subsequent periods subject to limitations of subrule 22.1(1), except that no period covered by a prior audit may be included in the expansion. The auditor will review and correct similar errors in a minimum of a year prior to and after the audited year.
j. Additional amounts due will be calculated and collected, including applicable interest and penalties, or an explanation will be given. The employer may be required to submit a payment plan.
k. When the audit is completed, the audit will be discussed with the employer or a representative designated by the employer. The employer will be furnished copies of any wage adjustments, supplemental reports or delinquent reports prepared by the auditor. An audit report with all worksheets, adjustments and reports will be submitted by the auditor to the Iowa workforce development administrative office.
22.17(5) There are several other reasons department representatives may make employer contacts and demands under authority of this rule. Any of these activities may be expanded into a systematic compliance audit as described in subrule 22.17(4) upon approval of the duly authorized representative of the department.
a. An auditor may request to examine business records to determine the date employment began and the date the employing unit became subject to Iowa Code chapter 96.
(1) To determine if an employing unit is to be a covered employer and if an individual, or class of individuals, are employees whose remuneration would be subject to contributions, the auditor will examine employment contracts and related documents.
(2) If it is determined that the employing unit is to be a covered employer, the auditor will examine legal documents such as leases, purchase contracts, partnership agreements, articles of incorporation, limited liability operating agreements and stock records to determine ownership of the business, to establish responsibility for filing reports and paying contributions, and to assist in the determination of the unemployment insurance tax rate.
(3) If liability is determined, the payroll/remuneration records may be examined to establish the correct amount of covered wages and the period to which they belong. Reports will be completed and the correct amount of contribution, penalty and interest due will be computed and collection action will be initiated.
b. When an unemployment insurance claim is filed, an auditor may request to examine the rec–ords of an employer to establish the claimant’s rights to benefits under Iowa Code chapter 96. Form 68–0192, Job Insurance Questionnaire For Determining Status of Workers, and supporting documents may be required in contested cases. If the department determines that the claimant is an employee, the records will be examined to determine the correct amount of wages paid to the claimant and the period to which the wages apply.
c. When an employer fails or refuses to file a report, the auditor may examine the records to determine the correct amount of wages that should be reported, prepare the report, compute and collect contributions, penalty, and interest due. Should records not be made available, the auditor may estimate the wages paid and amounts due pursuant to 871—subrule 23.59(2).
d. When an employer is delinquent in paying contributions due, the auditor may examine records including cash accounts, accounts receivable, real and personal property accounts, accounts payable, notes payable, installment contracts and mortgages payable to determine the employer’s equity in the assets on which a lien may be filed and judgment obtained.
22.17(6) When a temporary writ of injunction has been filed by the department, pursuant to Iowa Code section 96.16, against an employer because of the employer’s failure or refusal to file a required report or to pay assessed contributions, penalty, and interest, a field auditor shall have the right to inspect the enjoined business premises during reasonable hours and interview any interested parties having knowledge of or being involved with the enjoined employer to ensure that such enjoined employer and all of the employer’s agents, servants, employees, and assigns are observing the conditions of the temporary writ of injunction.
This rule is intended to implement Iowa Code sections 96.7(1), 96.7(3), 96.8(1), 96.11(1), 96.11(6)“a,” 96.11(7), 96.14, 96.16 and 96.20(3).
871—22.18(96) Agents and other practitioners or firms representing employers in unemployment insurance matters.
22.18(1) An agent, tax practitioner, accounting firm, attorney or any other firm or individual that represents or intervenes on behalf of an employer in any unemployment insurance matter shall have on file with the department:
a. A power of attorney, or
b. A letter of authorization from the employer.
22.18(2) The foregoing documents shall contain the following information:
a. The employer’s full trade name, address and account number.
b. The name, address and telephone number of the agent or firm representing the employer.
c. The signature of the employer.
d. A statement that such agent or firm is duly authorized to represent the employer.
22.18(3) Rescinded IAB 3/5/03, effective 4/9/03.
This rule is intended to implement Iowa Code section 96.11(7).
[Filed 10/28/75, Notice 9/22/75—published 11/17/75, effective 12/23/75]
[Filed 12/9/76, Notice 11/3/76—published 12/29/76, effective 2/2/77]
[Filed 9/30/77, Notice 8/24/77—published 10/19/77, effective 11/23/77]
[Filed 5/24/78, Notice 4/5/78—published 6/14/78, effective 7/19/78]
[Filed 8/17/78, Notice 6/28/78—published 9/6/78, effective 10/11/78]
[Filed 12/22/78, Notice 11/15/78—published 1/10/79, effective 2/14/79]
[Filed 2/12/80, Notice 10/31/79—published 3/5/80, effective 4/9/80]
[Filed 12/28/81, Notice 11/11/81—published 1/20/82, effective 2/25/82]
[Filed 2/10/84, Notice 8/31/83—published 2/29/84, effective 4/5/84]
[Filed 7/11/86, Notice 5/7/86—published 7/30/86, effective 9/3/86]
[Filed emergency 9/5/86—published 9/24/86, effective 9/5/86]
[Filed emergency 6/12/87—published 7/1/87, effective 7/1/87]
[Filed 7/24/87, Notice 6/3/87—published 8/12/87, effective 9/16/87]
[Filed 9/4/87, Notice 7/11/87—published 9/23/87, effective 10/28/87]
[Filed 2/3/89, Notice 12/28/88—published 2/22/89, effective 3/29/89]
[Filed 6/23/89, Notice 5/17/89—published 7/12/89, effective 8/16/89]
[Filed 9/29/89, Notice 8/23/89—published 10/18/89, effective 11/22/89]
[Filed 6/22/90, Notice 5/16/90—published 7/11/90, effective 8/15/90]
[Filed 10/23/92, Notice 9/16/92—published 11/11/92, effective 12/16/92]
[Filed 11/16/94, Notice 9/14/94—published 12/7/94, effective 1/11/95]
[Filed 8/22/96, Notice
7/17/96—published 9/11/96, effective 10/16/96]
[Transferred from 345—Ch 2 to 871—Ch 22 IAC Supplement 3/12/97]
[Filed 1/20/99, Notice 12/16/98—published 2/10/99, effective 3/17/99]
[Filed 2/12/03, Notice 1/8/03—published 3/5/03, effective 4/9/03]
chapter 23
EMPLOYER’S CONTRIBUTION AND CHARGES
[Prior to 9/24/86, Employment Security[370]]
[Prior to 3/12/97, Job Service Division [345] Ch 3]
23.1(1) Accounts.
a. Benefit payment account. An account maintained in the unemployment compensation fund in which are recorded (1) amounts transferred from the unemployment trust fund in the United States treasury, and receipts from other sources, and (2) amounts of benefits paid.
b. Employer rating account. An account of an employer which is maintained by the department for the purpose of reporting wages and recording contributions or reimbursements for that employer.
c. Clearing account. An account maintained in the unemployment compensation fund in which are recorded all amounts payable under Iowa Code chapter 96, including those to be transferred to(1) the unemployment trust fund, (2) the special employment security contingency fund, (3) the administrative contribution surcharge fund, and (4) the temporary emergency surcharge fund. Employer refunds are issued from this account.
d. Balancing account. An account set up to receive benefit charges that by law are not chargeable to any employer. The purpose of the balancing account is to enable the department to properly account for all benefits paid out.
23.1(2) Average annual taxable payroll. The average of the total amount of taxable wages paid by an employer for insured work during the five periods (three or two periods for governmental contributory employers) of four consecutive calendar quarters immediately preceding the computation date.
23.1(3) Calendar quarter. The period of three consecutive calendar months ending on March 31, June 30, September 30, or December 31 of each year.
23.1(4) Computation date. The date as of which employers’ experience with respect to unemployment or unemployment risk is measured for the purpose of determining contribution rates.
23.1(5) Employer’s contribution and payroll report. An employer’s quarterly report of the wages paid to individual workers, the total and taxable wages paid and the amount of contributions due to a state unemployment insurance fund.
23.1(6) Contributions. Payments required by a state employment security law to be made to the state unemployment fund by reason of insured work but does not include reimbursement payments of nonprofit organizations or governmental entities in lieu of contributions.
23.1(7) Contributor rate. The percent constituting the rate at which the employer’s payroll is taxed.
23.1(8) Employer. An employer subject to the employment security law of Iowa who is liable for contributions and subject to the experience rating provisions of the law or is liable for reimbursement payments in lieu of contributions. (See Iowa Code section 96.19(16).)
23.1(9) Experience. An employer’s record with respect to contributions paid, benefits charged, and taxable wages reported.
23.1(10) Experience rating. A method for determining the contribution rates of individual employers on the basis of the factors specified in the state employment security law for measuring employers’ experience with respect to unemployment or unemployment risk.
23.1(11) Reserved.
23.1(12) Rescinded IAB 5/14/03, effective 6/18/03.
23.1(13) Reserved.
23.1(14) Federal unemployment tax. The tax imposed by the Federal Unemployment Tax Act on employers with respect to having individuals in their employ.
23.1(15) Federal Unemployment Tax Act. Subchapter C of Chapter 23 of the Internal Revenue Code which relates to the federal unemployment tax.
23.1(16) Federal unemployment tax return. A report by an employer to the Internal Revenue Service of the amount of federal unemployment tax due and payable with respect to wage payments to workers during the calendar year.
23.1(17) Rescinded IAB 5/14/03, effective 6/18/03.
23.1(18) Funds.
a. Administrative contribution surcharge fund. A special fund in the state treasury, established by state law, as a repository for an employer surcharge levied to meet the operational cost of certain state workforce development offices. Referred to in subrule 23.40(2).
b. Administrative funds. Funds made available from federal, state, local and other sources to meet the cost of state workforce development administration.
c. Contingency fund. An amount of money appropriated by Congress to meet certain unpredictable increases in costs of administration by the state workforce development divisions arising from increases in workload or other specified causes.
d. Employment security administration fund. A special fund in the state treasury, established by state law, in which are deposited moneys granted by the United States Department of Labor, manpower administration and moneys from other sources, for the purpose of paying the cost of administering the state workforce development program.
e. Special employment security contingency fund. A special fund in the state treasury, established by state law, for moneys received from employers in payment of interest and penalties on delinquent contributions and reports.
f. Temporary emergency surcharge fund. A special fund in the state treasury, established by state law, for use in the event an employer surcharge is levied to pay interest on a federal government loan to the unemployment compensation fund. Referred to in subrule 23.40(3).
g. Title V funds. Funds appropriated by Congress to pay unemployment benefits under Title V of the United States Code to federal civilian and military employees.
h. Unemployment compensation fund. A special fund established under an employment security law for the receipt and management of contributions and the payment of unemployment insurance benefits. Included in this fund are moneys in the benefit payment account, clearing account, and unemployment trust fund account.
i. Unemployment trust fund. A fund established in the treasury of the United States which contains all moneys deposited with the treasury by the state employment security agencies to the credit of their unemployment fund accounts and by the railroad retirement board to the credit of the railroad unemployment insurance account.
23.1(19) Indian tribe. Indian tribe has the same meaning given to the term by Section 4(e) of the federal Indian Self–Determination and Education Assistance Act, and shall include any subdivision, subsidiary, or business enterprise wholly owned by such an Indian tribe.
23.1(20) Reserved.
23.1(21) Rescinded IAB 5/14/03, effective 6/18/03.
23.1(22) and 23.1(23) Reserved.
23.1(24) Liability determination. A determination as to whether an employing unit is a subject employer and whether services performed for it constitute employment as defined under the employment security law.
23.1(25) Liability report. A report required of all employing units in a state, which gives the information on which the state employment security agency bases its determination as to whether the employing unit is liable under the state employment security law.
23.1(26) Subject employer. An employing unit which is subject to the contribution provisions of a state employment security law.
23.1(27) Tax. (See “Contributions.”)
23.1(28) Unemployment compensation fund. The unemployment compensation fund established by this chapter to which all contributions or payments in lieu of contributions are required to be deposited and from which all benefits provided under Iowa Code chapter 96 shall be paid. (See “Funds.”)
23.1(29) Rescinded IAB 5/14/03, effective 6/18/03.
23.1(30) Quarterly Wage report. A report by an employer of the wages of individual workers.
23.1(31) Quarterly Wage listing. A report listing workers and their wages by social security number.
This rule is intended to implement Iowa Code sections 96.7(2)“c”(3), 96.7(7)“b,” 96.11(1) and 96.19(1).
871—23.2(96) Definition of wages for employment during a calendar quarter.
23.2(1) Unless the context otherwise requires, terms used in rules, forms, and other official pronouncements issued by the department shall have the following meaning:
23.2(2) Wages paid. Wages for employment during a calendar quarter consist of wages paid during the calendar quarter. Wages earned but not paid during the calendar quarter shall be considered as wages for employment in the quarter paid. The Employer’s Contribution and Payroll Report, Form 65–5300, shall be used as prima facie evidence of when the wages were paid. If the wages are not listed on the 65–5300, they shall be considered as paid:
a. On the date appearing on the check.
b. On the date appearing on the notice of direct deposit.
c. On the date the employee received the cash payment.
d. On the date the employee received any other type of payment in lieu of cash.
23.2(3) Wages payable means wages earned and unpaid. (See section 96.19(41).)
23.2(4) Wages is the name by which the remuneration for employment is designated and the basis on which the remuneration is paid is immaterial. It may be paid in cash or in a medium other than cash, on the basis of piece work or percentage of profits, commission, or it may be paid on an hourly, daily, weekly, monthly or annual basis. Remuneration paid in goods or services shall be computed on the basis of the fair value of the goods or services at the time of payment.
23.2(5) When the cash value for board or lodging, or both, furnished a worker is agreed upon in a contract of hire, the amount so agreed upon, if more than the rates specially determined by the department or the rates prescribed herein, shall be deemed the cash value of the board and lodging.
23.2(6) Cash value of room and board.
a. If board, rent, housing, lodging, meals, or similar advantage is extended in any medium other than cash as partial or entire remuneration for service constituting employment as defined in Iowa Code section 96.19(18), the reasonable cash value of same shall be deemed wages subject to contribution.
b. Where the cash value for such board, rent, housing, lodging, meals, or similar advantage is agreed upon in any contract of hire, the amount so agreed upon shall be deemed the value of such board, rent, housing, lodging, meals or similar advantage. Check stubs, pay envelopes, contracts, and the like, furnished to employees setting forth such cash value, are acceptable evidence as to the amount of the cash value agreed upon in any contract of hire except as provided in paragraphs “d” and “e” of this subrule.
c. In the absence of an agreement in a contract of hire, the rate for board, rent, housing, lodging, meals, or similar advantage, furnished in addition to money wages or wholly comprising the wages of an employed individual, shall be deemed to have not less than the following cash value except as provided in paragraph “d” of this subrule.
Full board and room per week.......................................................... $272.00
Meals (without lodging) per week..................................................... 92.00
Meals (without lodging) per day........................................................ 18.40
Lodging (without meals) per week.................................................... 180.00
Lodging (without meals) per day....................................................... 36.00
Individual meals:
Breakfast......................................................................................... 4.00
Lunch.............................................................................................. 4.80
Dinner............................................................................................. 9.60
A meal not identifiable as either breakfast, lunch or dinner............. 4.00
d. The department or its authorized representative may, after affording reasonable opportunity at a hearing for the submission of relevant information in writing or in person, determine the reasonable cash value of such board, rent, housing, lodging, meals, or similar advantage in particular instances or group of instances, if it is determined that the values fixed in or arrived at in accordance with paragraph “c” of this subrule, or in the contract of hire do not properly reflect the reasonable cash value of such remuneration.
e. If the department determines that the reasonable cash value is other than prescribed in a contract of hire or in paragraph “c” of this subrule, the employer’s payroll and contribution reports to the department shall thereafter show the value of such remuneration as determined by the department.
f. Notwithstanding the provisions of this paragraph, the cash value of meals which are provided by and for the convenience of the employer on the business premises of the employer shall not be deemed as insured wages under chapter 96 of the Iowa Employment Security Law. Lodging furnished by the employer, for the convenience and on the business premises of the employer, shall not be considered wages if the employee is required to accept the lodging as a condition of employment.
This rule is intended to implement Iowa Code section 96.19(41).
23.3(1) “Wages” means all remuneration for personal services, including commissions and bonuses and the cash value of all remuneration in any medium other than cash. Wages also means wages in lieu of notice, separation allowance, severance pay, or dismissal pay. The reasonable cash value of remuneration in any medium other than cash shall be estimated and determined in accordance with rule 23.2(96).
23.3(2) The term “wages” shall not include:
a. Subsistence payments. The amount of payment made by an employer to its employee, which is in addition to the employee’s regular wages and is paid for the sole purpose of compensating the employee for expenses inherent in the performance of services by the employee away from the regular base of operation of the employer and employee, commonly referred to as subsistence pay.
b. Travel and other ordinary and necessary expenses. Amounts paid specifically for travel or other ordinary and necessary expenses incurred or reasonably expected to be incurred in the employer’s business are not wages. Travel and other reimbursed expenses must be identified either by making a separate payment or by specifically indicating the separate amounts if both wages and expense allowances are combined in a single payment.
c. Employer’s payments to persons performing military services. Cash payments, or the cash value of other remuneration, made voluntarily and without contractual obligation to, or in behalf of, an individual for periods during which such individual is in active service or training as a member of the national guard, or the military or naval forces of the United States, including the organized reserves.
d. Sick pay.
(1) “Wages” shall not include any amounts paid as sick pay if the payments are made by or on behalf of an employer under a plan or system. The plan or system must provide sick pay for the employees of the employer or a class or classes of the employer’s employees. The plan may include dependents.
(2) In the absence of a plan or system any amounts paid by or on behalf of an employer on account of sickness shall not be included after the expiration of six calendar months following the last calendar month in which the employee worked for such employer.
e. Supplemental unemployment benefit plan (SUB). The term “wages” shall not include the amount of any payment by an employing unit for or on behalf of an individual in its employ, under a plan or system established by such employing unit, with approval of the department. Such plan or system must make provision for payment to a trust fund or similar account on behalf of individuals performing services for it. The account must be used to pay supplemental unemployment benefits to such employing unit’s employees over and above any sum to which such employees might be entitled under the provisions of the state employment security law. Such payments to employees are not remuneration for the purposes of reducing or preventing payment of unemployment benefits. Such plan shall contain the following features:
(1) The employer pays into a separately established trust fund or similar account an amount per hour (or amount equivalent) worked by the employees covered by the agreement until the maximum amount called for has been reached. The plan specifically provides for the supplementation of unemployment benefits under the written terms of an agreement, contract, trust arrangement, or other instrument.
(2) These payments made by the employer into the trust fund or similar account are not subject to recovery by the employer before the satisfaction of all liabilities to employees covered by the plan.
(3) The trust fund or similar account is to be used to pay supplemental unemployment benefits to employees over and above any sum to which they might be entitled under the provisions of a state employment security law.
(4) That the agreement shall provide that such employee is not entitled to receive any payment from the trust fund or similar account unless the employee is also concurrently eligible for benefits under a state employment security law.
(5) The plan requires that benefits are to be determined according to objective standards. Thus a plan may provide similarly situated employees with benefits which differ in kind and amount, but may not permit such benefits to be determined solely at the discretion of the administrator of the fund.
(6) That the employee has no vested right in any of the moneys paid into the trust fund or similar account except as the employee may qualify for benefits under the terms of the agreement.
(7) That any payment made to or on behalf of an employee be from and to a trust fund or similar account described in Section 401(a) of the United States Internal Revenue Code title 26 of 1970 which is exempt from tax under Section 501(a) of said Code.
(8) The employer shall seek approval of its plan by petitioning that its plan be designated as a supplemental unemployment benefit (SUB) plan in the manner provided for petitioning for a declaratory ruling. The employer should include a written copy of its plan in the petition for declaratory ruling. The department will respond in the manner provided for declaratory rulings.
f. Officers of corporation. The term “employment” shall not include wages paid to an officer of corporation if such officer is a majority stockholder:
(1) Unless such services are subject to a tax to be paid under any federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund; or
(2) If such services are required to be covered under this chapter of the Code as a condition to receiving a full tax credit against the tax imposed by the Federal Unemployment Tax Act (FUTA) (26 U.S.C. 3301–3309).
g. Remuneration paid by state or political subdivision. The term “employment” shall not include wages paid by this state or any of its political subdivisions or by an Indian tribe to:
(1) An elected official,
(2) A member of a legislative body,
(3) A member of the judiciary of a state or political subdivision,
(4) A member of the state national guard or air national guard,
(5) An employee serving on a temporary duty basis for fire, storm, snow, earthquake, flood, or similar emergency, or
(6) A person serving in a nontenured policymaking capacity or advisory capacity pursuant to state law which ordinarily does not require duties of more than eight hours per week.
See rule 871—23.71(96) for further definition of exemptions (1) through (6).
h. Sole proprietorship or partnership drawing accounts. The term “wages” shall not include any of the following:
(1) Any amount of personal compensation withdrawn by a bona fide sole proprietor from the business or profession.
(2) Any amount of personal compensation withdrawn by a bona fide partner or partners from their partnership entity.
(3) Remuneration for services which are paid by a limited partnership to a limited partner is reportable. If a limited partner performs the duties of a general partner, remuneration is considered to be exempt.
i. Payments into 401K and other deferred compensation plans. Payments made by an employer to a deferred compensation plan, established to provide for an employee’s retirement, are not wages subject to contributions unless the payments were deducted from the employee’s pay through a salary reduction agreement. In circumstances where both the employer and the employee contribute to the plan, the employer’s share is not wages unless the employee would receive a cash payment if the employee chose not to participate in the plan.
j. Remuneration paid to members of limited liability companies based on membership interest. The term “wages” shall not include remuneration paid to a member of a limited liability company based on a membership interest in the company provided that the remuneration based on membership interest is allocated among members, or classes of members, in proportion to their respective investments in the company. The term “wages” shall not include any remuneration for services performed in lieu of a contribution of cash or property to acquire a membership interest in the limited liability company. See Iowa Code sections 96.19(18a)(9) and 96.19(41e). If the amount of remuneration attributable to membership interest or the purchase of a membership interest and the amount attributable to services performed cannot be determined, the entire amount of remuneration shall be considered to be based on the services performed.
k. Inmates of correctional institutions. The term “employment” shall not include wages paid for services performed by an inmate of a correctional institution. Persons in work release programs are considered inmates and their wages are not reportable. Remuneration paid to residents of halfway houses is reportable.
23.3(3) The term “wages” shall include:
a. Small business corporation remuneration. Remuneration paid to officers of “subchapter S” corporations for services performed in Iowa shall be deemed to be wages. Any corporate dividends must be approved and recorded in the corporate minutes prior to payment of such dividends. Remuneration to shareholders shall not be deemed to be dividends if such remuneration is paid regularly, either weekly or monthly, and is not in proportion to such shareholder’s amount of stock, or in proportion to such shareholder’s investment in the corporation. Corporate dividends are not considered wages. Ordinary income distributions as reported on IRS Form K–1 will not be considered to be wages provided that distributions are made proportionate to stock ownership or shareholder’s investment, and provided that corporate officers performing services for the corporation have received appropriate remuneration for services performed as defined by the Internal Revenue Service and the remuneration is reported as wages. See subrule 23.3(2)“f” for possible exclusion of wages paid to corporate officers who are majority stockholders.
b. Wages of employees hired with equipment. Where an employee is hired with equipment, except where it is ordinary in custom and usage in the trade or business for employees to furnish such equipment at their own expense, the fair value of the remuneration for the employee’s services, if specified in the contract of hire, shall be considered wages. If the contract of hire does not specify the employee’s wages, or the value of the wages agreed upon under the contract of hire is not a fair value, the department shall determine the employee’s wages, taking into consideration the prevailing wages for similar work under comparable conditions, and the wages thus determined shall apply as wages and be so reported by the employer.
c. Union members. Members of a union, subject to the direction and control of the union and acting on behalf of the union, are considered employees of the union with respect to the services performed. Payments made to them by the union as reimbursement for time lost from their regular employment are considered wages.
d. Cafeteria plans. A cafeteria plan is a set of benefit options offered by the employer to employees or to a class of employees. A particular benefit in a cafeteria plan will be considered to be “wages” subject to contributions (tax) for Iowa unemployment insurance purposes if the employee has the option of receiving a cash payment in lieu of the benefit. If the employee does not have the option of receiving a cash payment, the benefit will still be considered “wages” subject to contributions unless the benefit is specifically excluded from the definition of “wages” in Iowa Code subsection 96.19(41).
e. Personal use of company vehicle. The cash value of personal use of a company automobile or other vehicle is “wages” subject to contributions (tax) for Iowa unemployment insurance purposes and shall be reported to the department as wages paid in the quarter in which the personal use occurred.
This rule is intended to implement Iowa Code sections 96.5(5)“a,” 96.19(6)“a”(1) and (6), and 96.19(41).
871—23.4(96) Wages—back pay. A payment in the form of or in lieu of back pay to an individual (exclusive of legal fees and other litigation expenses) shall be reported by the employer as total and taxable wages paid to the individual in the quarter in which the employer actually made the payment in the form of or in lieu of back pay. A payment for back pay shall be taxable and recoverable if it meets the definition of wages contained in rule 23.3(96). Punitive or liquidated damages for other than lost wages, and job search expenses, are not taxable, recoverable or deductible as a back pay award.
23.4(1) Where the back pay wages, award or a judgment is paid as remuneration for employment by an employer into an account for an individual, the wages, award or judgment shall be considered as wages paid in the quarter in which the employer actually pays the wages, award or judgment to an account for the individual.
23.4(2) If an individual receives benefits for a period of unemployment and subsequently receives a payment in the form of or in lieu of back pay for the same period, and if the benefits are recovered by the department under an agreement between the employer and the individual allowing the employer to deduct and remit to the unemployment compensation fund the amount of benefits received by the individual from the payment in the form of or in lieu of back pay, the employer shall be required to report this amount to the department as total and taxable wages paid to the individual in the calendar quarter in which the amount is actually paid.
This rule is intended to implement Iowa Code sections 96.7(3) and 96.8(5).
871—23.5(96) Gratuities and tips.
23.5(1) The following criteria shall be applicable in determining whether tips are wages under the contributions provision of the Act: Tips received by an individual from a person or persons other than the individual’s employer, and not accounted for to the employer, are not wages unless required by subrule 23.5(2). If the employee makes an accounting to the employer listing the tips received, these tips must be reported to the department as total and taxable wages. Where the customer writes the amount of the tip on a bill and the employer pays the employee the amount so shown and charges it to the customer’s account, such amounts are wages. Where the employer adds a certain percent to the customer’s bill for disbursement to the employees, the sums so disbursed are wages.
23.5(2) Tips are considered reportable and taxable as wages when taken into account by the employer in determining the employee’s compensation under the federal wage and hour law, or when paid by the customer as a service charge set by the employer, or when pooled and distributed to the employees by the employer. The employer shall keep sufficient detailed records so that it can be ascertained, if necessary, by audit or other authorized inspection which compensation is reportable as taxable tips and which compensation is reportable as compensation other than tips. For reporting purposes to the department, the tips and other reportable and taxable compensation may be submitted in aggregate on Form 65–5300, Employer’s Contribution and Payroll Report.
23.5(3) An accounting as used in this rule means the reporting of tips as gratuities by an employee to the employer for the purpose of deducting social security taxes or withholding taxes with the employer reporting the same on Form 941, Employer’s Quarterly Federal Tax Return.
23.6(1) Definition.
The term “taxable wages” means the higher of the federal taxable wage base for the Federal Unemployment Tax Act (FUTA) or 66 2/3 percent of the statewide average weekly wage paid to employees in insured employment, multiplied by 52 and rounded to the next highest multiple of $100 based upon the computation made during the previous calendar year to determine the maximum weekly benefit amounts for unemployment insurance benefits.
23.6(2) Applicability and successorship.
a. If an individual has more than one employer, each employer must pay contributions (tax) on the employee’s wages up to the taxable wage base.
b. The employer shall not deduct any part of the contributions (tax) due on taxable wages from an employee’s pay.
c. Taxable wages paid in another state by the same employer during the same calendar year prior to an employee being transferred to Iowa may be used in computing the employee’s reportable taxable wages in Iowa.
d. A successor employer may use the taxable wages paid and reported by the predecessor employer to determine the successor employer’s taxable wages if the successor employer received a transfer of experience from the predecessor employer.
e. A successor employer which received a transfer of experience may, at the successor employer’s option, use the taxable wages reported by the predecessor to compute the taxable wages for the balance of the calendar year or may compute the taxable wages as if the employees acquired from the predecessor were new employees.
This rule is intended to implement Iowa Code section 96.19(37).
871—23.7(96) New employer contribution rates.
23.7(1) A contributory employer means all employers other than employers which have elected, or are required by law, to reimburse the department for benefits paid in lieu of paying contributions. An employer which has earned a “zero” rate is still considered to be a contributory employer.
23.7(2) A nonconstruction contributory employer, which has not yet qualified for an experience rate, shall pay contributions at the rate specified in the twelfth benefit ratio rank but not less than1 percent until the end of the calendar year in which the employer’s account has been chargeable with benefits for 12 consecutive calendar quarters immediately preceding the computation date.
23.7(3) A construction contributory employer, which has not yet qualified for an experience rate, shall pay contributions at the rate specified in the twenty–first benefit ratio rank until the end of the calendar year in which the employer’s account has been chargeable with benefits for 12 consecutive calendar quarters.
23.7(4) Once an employer has qualified for an experience rating, the rate will be computed in accordance with the formula given in Iowa Code section 96.7. Rates will vary from 0 percent to 9 percent depending on how each employer’s experience compares to the experience of all other employers.
23.7(5) For the purposes of this rule, an administrative contribution surcharge and a temporary emergency surcharge may be added to an employer’s contribution rate.
23.7(6) For the purposes of this rule, the first quarter in which an employer’s account will be considered chargeable with benefits will be the third quarter of the employer’s liability unless the employer paid and reported no wages during the first two quarters of liability. In that case, the employer will not be considered chargeable with benefits until the first quarter in which the employer pays and reports wages. Once an employer’s account has been chargeable with benefits it will be considered chargeable for rate computation purposes until it is terminated.
23.7(7) For the purposes of this rule, any single employer which has two or more establishments or businesses engaged in different industrial classification activities, with one or more establishments or businesses engaged in construction activity, as defined in rule 23.82(96), shall be assigned the contribution rate applicable to construction if 50 percent or more of the combined business activity is derived from the establishments or businesses engaged in construction activities.
This rule is intended to implement Iowa Code section 96.7.
871—23.8(96) Due date of quarterly reports and contributions.
23.8(1) Due date.
a. Contributions shall become due and be payable quarterly on the last day of the month following the calendar quarter for which the contributions have accrued. If the department finds that the collection of any contributions from an employer will be jeopardized by delay, the department may declare the contributions due and payable as of the date of the finding.
b. If any due date prescribed in this rule falls on a Saturday or Sunday, or a legal holiday, the due date shall be the next following business day. Quarterly reports, contributions, and payments in lieu of contributions, if mailed, shall be considered as received on the date shown on the postmark of the envelope in which they are received by the department.
23.8(2) Regular due date. Each covered employer subject to Iowa Code section 96.7 shall file with the department quarterly reports on or before the due date, and any employer failing to file a quarterly report when due shall be delinquent.
23.8(3) Due date for new employer. The first contribution payment of any employer who becomes newly liable for contributions in any year shall become due and payable on the last day of the month next following that quarter wherein occurred the twentieth calendar week, during the calendar year within which a total of one or more workers were employed on any one day, or the last day of the month next following that calendar quarter in which a total of $1500 in wages was paid. The first payment of such an employer becoming liable in the course of a calendar year shall include contributions with respect to all wages paid for employment from the first day of the calendar year.
23.8(4) Due date for elective coverage. The first contribution payment of any employing unit which elects with the written approval of such election by the department, to become an employer, or to have nonsubject services performed for it deemed employment, shall become due and payable on the last day of the month next following the close of the calendar quarter in which the conditions of becoming an employer by election are satisfied, and shall include contributions with respect to all wages paid for employment occurring on and after the date stated in such approval (as of which such employing unit becomes an employer), up to and including the calendar quarter in which the conditions of becoming an employer by election are satisfied.
23.8(5) Due date for newly liable employer. The first contribution payment of an employer who becomes newly liable for contributions in any year in any other manner shall become due and be payable on the last day of the month next following the quarter wherein such individual or employing unit became an employer. The first payment of such an employer shall include contributions with respect to all wages paid for employment for such individual or employing unit since the first day of the calendar year.
23.8(6) Delinquent date and penalty and interest.
a. A quarterly report or contribution payment or payment in lieu of contributions which is not received on or before the due date is delinquent. An employer who fails to file on or before the due date a contribution and wage report shall pay to the department for each such delinquent report, subject to waiver for good cause shown, a penalty as provided in Iowa Code section 96.14(2). No penalty shall apply to delinquent reports when the employer proves to the satisfaction of the department that no wages were paid.
b. An employer who has not paid contributions or payments in lieu of contributions on or before the due date shall pay interest on the whole or part thereof remaining unpaid at the rate of 1 percent per month, or 1/30 of 1 percent for each day or fraction thereof, from and after the due date until payment is received by the department unless good cause is shown why such interest shall be waived.
23.8(7) Due date upon demand. If the department finds that the collection of any contribution or payment in lieu of contributions will be jeopardized by delaying the collection thereof until the date otherwise described, upon written demand by the department, such contribution or payment in lieu of contribution shall become immediately payable, and shall become delinquent.
23.8(8) Extension of time. Upon written request filed with the department before the due date of any contribution report, the department may, for good cause shown, grant an extension in writing of the time for filing of the report and the payment of the contributions, but no extension shall exceed 30 days and no extension shall postpone payment beyond the last day for filing tax returns under the Federal Unemployment Tax Act. If an employer who has been granted an extension fails to pay the contribution on or before the termination of the period of such extension, interest shall be payable from the original due date as if no extension had been granted.
This rule is intended to implement Iowa Code section 96.7(1).
871—23.9(96) Delinquency notice. Within 20 days from the delinquent date for filing Form 65–5300, Employer’s Quarterly Contribution and Payroll Report, a Delinquency Notice, Form 65–5313, will be sent to all employers from whom no report has been received. Such notice shall state the employer’s name, account number, experience rate, and the quarter for which the report needs to be made. The notice will be sent to the employer’s last–known address or place of business. If the employer has sold or dissolved the business, the employer shall fill out the reverse side of the notice, Form 65–5313, showing the date of the last wages paid and the date of last employment. If the business was sold or transferred, the employer shall show the name and address of the successor, and the employer’s future mailing address. Such notice shall then be returned to the department for a change of status determination.
871—23.10(96) Payments in lieu of contributions.
23.10(1) An employer who has qualified for reimbursement payments or has had an election to become a reimbursable employer approved shall pay to the department an amount equal to the amount of regular or extended benefits paid, including benefits which are based on wage credits transferred from another employer. If extended benefits are in effect, employers shall reimburse one–half of the extended benefits paid; except governmental employers and Indian tribes shall reimburse all extended benefits paid.
23.10(2) At the end of each calendar quarter, the department shall bill each reimbursable employer on Form 65–5324, Notice of Reimbursable Benefit Charges. This statement shall be sent to the employer within 30 days of the quarter for which the benefits are charged and shall set out the social security number, name and amount of benefits charged to the employer for each such claimant together with the amount of any previous charges remaining unpaid and interest to the end of the quarter for which the statement is rendered. Payment of each quarter’s charges shall be due within 30 days of the date the statement is sent. If the employer fails to reimburse the department within the period prescribed by these rules the department may attempt collection of the amount due including any of the following methods:
a. Issuance of Notice of Assessment and Lien, Form 68–0043.
b. Issuance of Notice of Jeopardy Assessment, Form 68–0138.
c. Any other actions as prescribed by the law or these rules including collection by distress warrant.
Interest on delinquent reimbursable benefits shall be charged at the rate of 1 percent per month or one–thirtieth of 1 percent per day from the date payment was due until the date of payment.
This rule is intended to implement Iowa Code section 96.7(8).
871—23.11(96) Identification of workers covered by the Iowa employment security law.
23.11(1) Each employer shall ascertain the federal social security number of each worker employed by such employer in employment subject to the Iowa employment security law.
23.11(2) The employer shall report the worker’s federal social security number in making any report required by the department of workforce development with respect to the worker.
23.11(3) If any employer has in employment a worker engaged in employment who does not have an account number, such employer shall request the worker to show a receipt issued by an officer of the social security board acknowledging that the worker has filed an application for an account number. The receipt shall be retained by the worker. In making any report required by the department of workforce development with respect to such a worker, the employer shall report the date of issue of the receipt, its termination date, the address of the issuing office, and the name and address of the worker exactly as shown in the receipt.
23.11(4) If a worker failed to report to the employer such employee’s correct federal social security number or fails to show the employer a receipt issued by an office of the social security board acknowledging that the worker has filed an application for an account number, the employer shall inform the worker that Regulation 106 of the Internal Revenue Service, United States Treasury Department, under the Federal Insurance Contribution Act provides that:
a. Each worker shall report to every employer for whom the worker is engaged in employment a federal social security number with the worker’s name exactly as shown on the social security card issued to the worker by the social security board.
b. Each worker who has not secured an account number shall file an application for a federal social security account number on Form SS–5 of the Treasury Department, bureau of internal revenue. The application shall be filed on or before the seventh day after the date on which the worker first performs employment for wages, except that the application shall be filed on or before the date the worker leaves employment if such date precedes such seventh day. Copies of Form SS–5, application for a social security account number, can be secured at the field office of the social security board nearest the worker’s place of employment or the local post office.
c. If, within 14 days after the date on which the worker first performs employment for wages for the employer, or on the day on which the worker leaves the employ of the employer, whichever is the earlier, the worker does not have a federal social security account number, and has not shown the employer a receipt issued to the worker by an office of the social security board acknowledging that the worker has filed an application for an account number, the worker shall furnish the employer an application on Form SS–5, completely filled in and signed by the worker. If a copy of Form SS–5 is not available, the worker shall furnish the employer a written statement, signed by the worker, of the date of the statement, the worker’s full name, present address, date and place of birth, father’s full name, mother’s full name before marriage, worker’s sex, and a statement as to whether the worker had previously filed an application on Form SS–5 and, if so, the date and place of such filing. Furnishing the employer with an executed Form SS–5, or statement in lieu thereof, does not relieve the worker of the obligation to make an application on Form SS–5 as required in paragraph “b” of this subrule.
23.11(5) The employer shall inform the worker, in instances in which the information is pertinent, that in accordance with the Regulation 106 of the Internal Revenue Service, United States Treasury Department:
a. When a federal social security account number card is lost, the worker may secure a duplicate card by applying at the field office of the social security board nearest the worker’s place of employment.
b. Any worker may have a number changed at any time by applying to a field office of the social security board and showing good reason for a change. Any worker whose name is changed by marriage or otherwise, or who has stated incorrect information on Form SS–5, should report such change or correction to a field office of the social security board. Copies of Form OAAN–7003, Employee’s Request for Change in Records, for making such reports may be obtained from any field office of the social security board.
c. Any worker who has more than one social security number shall report all numbers to the field office of the social security board nearest the worker’s place of employment (to a workforce development center).
23.11(6) If the worker fails to comply with the requirements enumerated under subrule 23.11(4), the employer shall execute a Form SS–5, Application for a Social Security Number, or statement, signed by the employer, setting forth as fully and as clearly as practicable the worker’s full name, present or last–known address, date and place of birth, father’s full name, mother’s full name before marriage, the worker’s sex, and a statement as to whether an application for a social security number has previously been filed by the worker, and if so, the date and place of such filing. This statement, or the executed Form SS–5 signed by the employer, shall be attached to any report required by the workforce development department with respect to such a worker.
871—23.13(96) Employer elections to cover multistate workers.
23.13(1) Arrangement. The following rule shall govern the workforce development department in its administrative cooperation with other states subscribing to the interstate reciprocal coverage arrangement, hereinafter referred to as the arrangement.
23.13(2) Definitions. As used in this rule, unless the context clearly indicates otherwise:
a. “Jurisdiction” means any state of the United States, the District of Columbia, Puerto Rico, or, with respect to the federal government, the coverage of any federal unemployment compensation law.
b. “Participating jurisdiction” means a jurisdiction whose administrative agency has subscribed to the arrangement and whose adherence thereto has not terminated.
c. “Agency” means any officer, board, department, division, commission or other authority charged with the administration of the unemployment compensation law of a participating jurisdiction.
d. “Interested jurisdiction” means any participating jurisdiction to which an election submitted under this rule is sent for its approval; and interested agency means the agency of such jurisdiction.
e. “Services customarily performed by an individual in more than one jurisdiction” means services performed in more than one jurisdiction during a reasonable period, if the nature of the service gives reasonable assurance that they will continue to be performed in more than one jurisdiction or if such services are required or expected to be performed in more than one jurisdiction under the election.
f. “Total wages paid in covered employment,” as it appears in Iowa Code section 96.7(2) for computing the benefit cost ratio, means total wages paid in covered employment, subject to contributions, as provided in Iowa Code section 96.7, and does not include wages paid by reimbursing employers whose payments to the unemployment fund, in lieu of contributions, are made in accordance with Iowa Code section 96.7.
23.13(3) Submission and approval of coverage elections under the interstate reciprocal coverage arrangement.
a. Any employing unit may file an election, on Form 68–0599, to cover under the law of a single participating jurisdiction all of the services performed for the employing unit by any individual who customarily works for the employing unit in more than one participating jurisdiction. Such an election may be filed, with respect to an individual, with any participating jurisdiction in which:
(1) Any part of the individual’s services are performed;
(2) The individual resides; or
(3) The employing unit maintains a place of business to which the individual’s services bear a reasonable relation.
b. The agency of the elected jurisdiction (thus selected and determined) shall initially approve or disapprove the election. If such agency approves the election, it shall forward a copy thereof to the agency of each other participating jurisdiction specified thereon, under whose unemployment compensation law the individual or individuals in question might, in the absence of such election, be covered. Each such interested agency shall approve or disapprove the election, as promptly as practicable, and shall notify the agency of the elected jurisdiction accordingly. In case its law so requires, any such interested agency may, before taking such action, require from the electing employing unit satisfactory evidence that the affected employees have been notified of, and have acquiesced in the election.
c. If the agency of the elected jurisdiction, or the agency of any interested jurisdiction, disapproves the election, the disapproving agency shall notify the elected jurisdiction and the electing employing unit of its action and of its reasons therefor.
d. Such an election shall take effect as to the elected jurisdiction only if approved by its agency and by one or more interested agencies. An election thus approved shall take effect, as to any interested agency, only if it is approved by such agency.
e. In case any such election is approved only in part, or is disapproved by some of such agencies, the electing employing unit may withdraw its election within ten days after being notified of such action.
23.13(4) Effective period of election.
a. Commencement. An election duly approved under this rule shall become effective at the beginning of the calendar quarter in which the election was submitted, unless the election, as approved, specifies the beginning of a different calendar quarter. If the electing unit requests an earlier effective date than the beginning of the calendar quarter in which the election is submitted, such earlier date may be approved solely as to those interested jurisdictions in which the employer had no liability to pay contributions for the earlier period in question.
b. Termination.
(1) The application of an election to any individual under this rule shall terminate, if the agency of the elected jurisdiction finds that the nature of the services customarily performed by the individual for the electing unit has changed, so that they are no longer customarily performed in more than one particular jurisdiction. Such termination shall be effective as of the close of the calendar quarter in which notice of such findings is mailed to all parties affected.
(2) Except as provided in subparagraph (1) of this paragraph, each election approved hereunder shall remain in effect through the close of the calendar year in which it is submitted, and thereafter until the close of the calendar quarter in which the electing unit gives written notice of its termination to all affected agencies.
(3) Whenever an election under this rule ceases to apply to any individual, under subparagraph (1) or (2) of this paragraph the electing unit shall notify the affected individual accordingly.
23.13(5) Reports and notices by the electing unit.
a. The electing unit shall promptly notify each individual affected by its approved election on Form 68–0601 supplied by the elected jurisdiction, and shall furnish the elected agency a copy of such notice.
b. Whenever an individual covered by an election under this rule is separated from employment, the electing unit shall again notify the individual forthwith, as to the jurisdiction under whose unemployment compensation law the individual’s services have been covered. If at the time of termination the individual is not located in the elected jurisdiction, the electing unit shall notify the individual as to the procedure for filing interstate benefit claims.
c. The electing unit shall immediately report to the elected jurisdiction any change which occurs in the conditions of employment pertinent to its election, such as cases where an individual’s services for the employer cease to be customarily performed in more than one participating jurisdiction or where a change in the work assigned to an individual requires such individual to perform services in a new participating jurisdiction.
871—23.14(96) Elective coverage of excluded services.
23.14(1) An employing unit having services performed for it which are not subject to the compulsory coverage provisions of the Act may file an application Form 68–0598, Voluntary Election, for voluntary election to become an employer under the law or to extend its coverage to individuals performing services which do not constitute employment as defined in the law.
a. In no case shall an elective coverage agreement under Iowa Code section 96.8(3) be approved unless and until it has been established that the employing unit making application for elective coverage is normally and continuously engaged in a regular trade, business or occupation.
b. An application for elective coverage shall be disapproved if the department finds that the employing unit at the time of making the application was insolvent or expected to discontinue business for any reason within one year from the date the application is filed, or that the employing unit is not normally and continuously engaged in a regular trade, business or occupation.
c. The department may, on its own motion, request a written statement as to why an employing unit wishes to file an election to become a subject employer as provided for in Iowa Code section 96.8(3)“a” and may request evidence of financial stability.
d. Any written election for a period prior to the date of filing shall become binding upon approval by the department, and notification of the approval shall be forwarded to the employer. If for any reason the department does not approve such voluntary election, the employing unit shall be notified of the reasons why such approval was withheld.
e. The date of filing of a voluntary election shall be deemed to be the date on which the written election, signed by a legally authorized individual, is received by the department.
f. Effect of election approval. Each approval of an election shall state the date as of which the approval is effective. The first contribution payment of any employing unit which elects to become a covered employer shall become due and shall be paid on or before the due date of the reporting period during which the conditions of becoming a covered employer by election are satisfied, and shall include employer contributions with respect to all wages paid on and after the date stated in such approval (as of which such employing unit becomes a covered employer), up to and including the last pay period in the reporting period in which the conditions of becoming a covered employer by election are satisfied.
23.14(2) Reserved.
23.17(1) Reimbursable employers who desire to form a group account or reimbursable employers who wish to be added to an existing group account shall apply on Form 68–0534, Application for a Group Account.
a. New group accounts. The application shall list each proposed member and must be signed by each proposed member and shall set out one member as agent for the group with respect to all dealings with the workforce development department.
b. Adding a member or members to an already existing group. The application shall list all members of the group including the new member(s) and shall be signed by all members of the group including the new member(s). The application shall set out one member as agent for the group, or an authorized agent of the group, with respect to all dealings with the workforce development department.
23.17(2) A government entity shall not be allowed to form a group with a nonprofit organization(s).
23.17(3) No application for a group account shall be approved if any member of the group is delinquent in the payment of contributions, interest or penalty, or in the filing of reports, or in the payment of reimbursable benefits.
23.17(4) If the application is denied by the department, a notice stating the reasons for denial will be sent to the agent for the group. A new application may be submitted by the group at any time.
23.17(5) If the application is approved by the department, a notice will be sent to the agent for the group. Such approval shall be effective with the first day of the quarter in which the application is received.
23.17(6) Such group account shall continue for a minimum period of one year from the first day of the quarter in which the application for a group account was received and no member may leave the group during such year except that withdrawal shall be allowed where the member’s liability has terminated under Iowa Code section 96.8(2) or 96.8(4).
a. If a new member(s) is added to the group during the first year of the group’s existence, the group shall continue for one year from the first day of the quarter in which the application to add the member is received and no member may leave the group during such year except where the member’s liability has terminated under Iowa Code section 96.8(2) or 96.8(4).
b. If a new member(s) is added to the group after the group has been in existence for one year, only the new member(s) shall be obligated to remain with the group for an additional one–year period from the first day of the quarter in which such member joined the group.
23.17(7) After the group has been in existence for one year, unless provided for differently in 23.17(6)“a” or 23.17(6)“b,” any member may withdraw by providing the agent for the group and the department with notice of the withdrawal in writing. Such withdrawal shall become effective with the first day of the quarter following the quarter in which notice is received by the department. For the withdrawal to be effective with the first day of the quarter immediately following the first year of the group’s existence, notice of withdrawal must be filed during the last three months of the first year of the group’s existence.
23.17(8) Rescinded IAB 5/14/03, effective 6/18/03.
23.17(9) A government group shall not post bond; however, should a government group or any member(s) thereof default with respect to any payments due the department, the amount of such delinquency shall be deducted from any further moneys due to the members of the group by the state as provided in Iowa Code section 96.14(2).
23.17(10) Each member of a group shall be jointly and severably liable for any defaults by any members of the group with respect to unpaid reimbursable benefit charges and any interest and penalty. All charges to the members of a group shall be in accordance with the provisions of Iowa Code section 96.7(13).
23.17(11) Upon the formation of a group, all benefits paid after the effective date of the group based upon wages paid by any member(s) of the group shall be charged to the group regardless of when the wages upon which such benefits were earned except those benefits based upon wages paid when the member(s) was a nonprofit contributory employer. Benefits based on wages paid when a member(s) was a government contributory employer that are paid after the effective date of the group will be charged to the group.
23.17(12) Upon the occasion of a member withdrawing from a group and the member continues to be a liable employer, such member shall be liable for the payment of all benefits paid after the date of withdrawal and attributable to employment with such member regardless of when the wages upon which the benefits are based were earned.
23.17(13) Liability for benefits upon termination of a group or withdrawal of a defaulting or no longer liable member.
a. Notwithstanding subrules 23.17(1) to 23.17(12), when a group is terminated upon the application of all members or under subrule 23.17(7) where there are only two members, liability for any reimbursable benefits which the department concludes are not collectible from a defaulting ex–member(s) of the group and said benefits are based upon wages paid prior to or while the group was in existence shall lie with each of the former members of the group jointly and severably.
b. Notwithstanding subrule 23.17(12) when an ex–member of a group is in default at the time of withdrawal from the group or withdraws under subrule 23.17(7) and it is determined that the benefits are not collectible from such member, the group has remained in existence, and the benefits so paid are based upon wages paid prior to or while the ex–member was a member of the group, the group shall be held liable for the payment of such benefits.
23.17(14) Agent’s responsibilities.
a. The agent for a group shall be responsible, on behalf of the group members, for all the duties of an employer as set out in the Iowa Code and these rules. Specifically such agent shall be responsible for the pro–rata apportioning of benefit charges to each member of the group as set out in Iowa Code section 96.7(10) or be based on an experience rating system approved by the department and shall accept all legal services and notices on behalf of all members of the group.
b. All correspondence on behalf of the group shall be between the agent for the group and the department.
c. Each member of a group shall submit a quarterly payroll report to the group’s agent who shall combine such reports into one report on Form 65–5300, Employer’s Contribution and Payroll Report, and shall submit such combined report to the department on or before the delinquent date for such quarter.
d. The agent shall also submit Form 65–5305, Summary of Quarterly Payroll by Location, designating which page(s) of the combined payroll report belongs to each member of the group in the manner provided in 871—subrules 22.13(3) to 22.13(5).
e. Should an agent member withdraw from a group, or resign as agent, it shall immediately advise the department of its intent in writing. Such notice must be made at least 90 days prior to the date of withdrawal. The department shall notify the remaining members of the group of the withdrawal and shall request that the group elect a new agent. Such election must be held and the department notified of the result within 30 days of the notice of the withdrawal from the department. Failure to notify the department within 30 days of the new agent shall result in the termination of the group by the department.
23.17(15) Transfers and successorships.
a. If a member of a group sells or otherwise transfers its business to a nonmember and the acquiring employer has made or, at the time of acquisition is eligible to and makes an election to make payments in lieu of contributions, the successor shall assume the position of the predecessor in the group as of the date of acquisition.
b. If a member of a group sells or otherwise transfers a substantial portion of its business to a nonmember and the predecessor is a nonprofit organization and the successor is a governmental entity, the successor shall not acquire membership in the group.
c. If a member of a group sells or otherwise transfers a substantial portion of its business to a nonmember and the predecessor is a government entity and the successor is a nonprofit organization, the successor shall not acquire membership in the group.
d. If a member of a group sells or otherwise transfers a substantial portion of its business to an organization or other entity not eligible to make an election to make payments in lieu of contributions, the successor shall not acquire membership in the group.
e. A member of a group may become a successor to any other organization and remain in the group so long as the member remains a nonprofit organization or governmental entity.
f. Successors which are not permitted to enter a group under 23.17(15)“b” to 23.17(15)“d” shall be held liable for benefits which are based upon wages paid by the predecessor the same as provided in subrule 23.17(12) for members withdrawing from a group.
This rule is intended to implement Iowa Code section 96.7(10).
871—23.18(96) Nature of relationship between employer–employee.
23.18(1) Commission sales persons and insurance solicitors. Commission sales persons generally are considered employees subject to the law regardless of the method of their remuneration unless they are independent contractors.
23.18(2) Directors and officers of a corporation. Directors who receive a reasonable fee for attending meetings and perform no other services are not employees of the corporation. Officers of associations and corporations are included as employees if they perform services. Officers of a corporation who perform services for the corporation are employees.
23.18(3) Members of family.
a. Services performed by an individual in the employ of a son, daughter, or spouse, and services performed by a child under the age of 18 in the employ of a father or mother are exempt from the provisions of this Act.
b. Services performed by a foster parent in the employ of a foster child, by a stepparent in the employ of a stepchild, and by a child under the age of 18 years in the employ of a stepparent or foster parents are exempt from the provisions of this Act.
23.18(4) Aliens. This Act makes no distinction between citizens and lawful aliens. Lawful aliens in nonexempt employment are counted in determining whether the employer is subject to the Act and are covered by the contribution and benefit provision.
23.18(5) Aged and minor employees. Contributions are payable upon services rendered by an employee regardless of the age of the employee.
23.18(6) Family employment. Family employment includes parents, wife or husband and minor children under the age of 18 years working for an individual proprietor. This exclusion does not apply when the employing unit is a partnership unless an exempt relationship is held to each member of the partnership. This exclusion does not apply to corporations or to limited liability companies.
23.18(7) Partners. Bona fide partners are not considered employees even though they receive salaries.
23.18(8) Apprentices–clerks. This law makes no exceptions for persons serving a clerkship or other form of apprenticeship.
23.18(9) Members of a limited liability company. Members of a limited liability company that perform services other than for the purpose of acquiring membership in the limited liability company are employees.
871—23.19(96) Employer–employee and independent contractor relationship.
23.19(1) The relationship of employer and employee exists when the person for whom services are performed has the right to control and direct the individual who performs the services, not only as to the result to be accomplished by the work but also as to the details and means by which that result is accomplished. An employee is subject to the will and control of the employer not only as to what shall be done but how it shall be done. It is not necessary that the employer actually direct or control the manner in which the services are performed; it is sufficient if the employer has the right to do so. The right to discharge or terminate a relationship is also an important factor indicating that the person possessing that right is an employer. Where such discharge or termination will constitute a breach of contract and the discharging person may be liable for damages, the circumstances indicate a relationship of independent contractor. Other factors characteristic of an employer, but not necessarily present in every case, are the furnishing of tools, equipment, material and a place to work to the individual who performs the services. In general, if an individual is subject to the control or direction of another merely as to the result to be accomplished by the work and not as to the means and methods for accomplishing the result, that individual is an independent contractor. An individual performing services as an independent contractor is not as to such services an employee under the usual common law rules. Individuals such as physicians, lawyers, dentists, veterinarians, construction contractors, public stenographers, and auctioneers, engaged in the pursuit of an independent trade, occupation, business or profession, in which they offer services to the public, are independent contractors and not employees. Professional employees who perform services for another individual or legal entity are covered employees.
23.19(2) The nature of the contract undertaken by one for the performance of a certain type, kind, or piece of work at a fixed price is a factor to be considered in determining the status of an independent contractor. In general, employees perform the work continuously and primarily their labor is purchased, whereas the independent contractor undertakes the performance of a specific job. Independent contractors follow a distinct trade, occupation, business, or profession in which they offer their services to the public to be performed without the control of those seeking the benefit of their training or experience.
23.19(3) Independent contractors can make a profit or loss. They are more likely to have unreimbursed expenses than employees and to have fixed, ongoing costs regardless of whether work is currently being performed. Independent contractors often have significant investment in real or personal property that they use in performing services for someone else.
23.19(4) Employees are usually paid a fixed wage computed on a weekly or hourly basis while an independent contractor is usually paid one sum for the entire work, whether it be paid in the form of a lump sum or installments. The employer–employee relationship may exist regardless of the form,measurement, designation or manner of remuneration.
23.19(5) The right to employ assistants with the exclusive right to supervise their activity and completely delegate the work is an indication of an independent contractor relationship.
23.19(6) Services performed by an individual for remuneration are presumed to be employment unless and until it is shown to the satisfaction of the department that the individual is in fact an independent contractor. Whether the relationship of employer and employee exists under the usual common law rules will be determined upon an examination of the particular facts of each case.
23.19(7) If the relationship of employer and employee exists, the designation or description of the relationship by the parties as anything other than that of employer and employee is immaterial. Thus, if such relationship exists, it is of no consequence that the employee is designated as a partner, coadventurer, agent, independent contractor, or the like.
23.19(8) All classes or grades of employees are included within the relationship of employer and employee. For example, superintendents, managers and other supervisory personnel are employees.
871—23.20(96) Employment—student and spouse of student. Wages earned by a student who performs services in the employ of a school, college or university at which the student is enrolled and is regularly attending classes (either on a full–time or part–time basis) are not covered wages for claim or benefit purposes.
Wages earned by an individual who is a full–time employee for a school, college or university whose academic pursuit is incidental to the full–time employment are covered wages.
Wages earned by the spouse of such a student in employment with the educational institution attended by the student are not covered wages for benefit purposes if the employee–spouse is told prior to commencing the employment that the work is part of a program to provide financial assistance to the student and is not covered by unemployment insurance.
This rule is intended to implement Iowa Code section 96.19(18)“g”(6).
871—23.21(96) Excluded employment—student. Wages earned by a student who is enrolled at a nonprofit or public educational institution under a program taken for credit at such institution that combines academic instruction with work experience are normally excluded from the definition of employment. Provided, however, that no work performed by such individual in excess of the hours called for in the contract between the school and the employer or performed in a period of time during which the institution is on a regularly scheduled vacation and for which such student receives no academic credit shall be excluded from said definition.
This rule is intended to implement Iowa Code section 96.19(18)“g”(6).
871—23.22(96) Employees of contractors and subcontractors.
23.22(1) If one employer contracts with another employing unit for any work which is part of the first employer’s usual business, the first employer is liable for any contributions based on wages paid by the second employing unit in connection with the work providing the second employing unit is not liable to pay contributions.
23.22(2) Employees of the second contractor are counted as employees of the first contractor while performing services on the contract for the first contractor.
871—23.23(96) Liability of affiliated employing units. An employing unit not qualifying as a covered employer under any other section of this law shall be a liable employer if together with one or more employing units owned or controlled by the same interest, the combined employment or quarterly gross wages (counting together the number of workers or the combined gross quarterly wages of each enterprise) would total one or more workers in a portion of a day in each of 20 different weeks or have a combined gross quarterly payroll which equals or exceeds $1,500 in a calendar quarter.
871—23.24(96) Localization of employment—employees covered—exemption.
23.24(1) When workers perform services in more than one state, the department will review each case individually and make a determination whether or not wages are reportable to Iowa based on the following guidelines in sequence:
a. Services performed in a state are considered localized in that state regardless of where the employer is located. The wages are reportable to the state where the services are performed.
b. When a worker performs services in more than one state and the length of service in any one state is equal to or greater than a reporting period, the worker is reportable to that state. A reporting period is defined as a full calendar quarter. This rule does not apply if work is performed in multiple states during the reporting period.
c. Where services are performed among two or more states in a reporting period, the base of operations is considered. The base of operations is the point from which the workers start and finish their work on a regular basis and that is the state to which the wages are reportable. In this type of case, the department has the right to waive Iowa coverage to another jurisdiction (state of the base of operations) as long as the employee is properly covered by the other state.
d. When workers perform services in more than one state and there is no base of operations in any one state, the state from which the worker is immediately directed and controlled is the state to which the wages are reportable provided that some services are performed by the worker in that state.
e. If the services of the workers are not localized in a state, the base of operations is not involved or the place where services are directed and controlled is not applicable, then the wages are reportable to the state in which the worker resides provided some services are performed in that state.
23.24(2) Reserved.
This rule is intended to implement Iowa Code section 96.19(18)“b.”
871—23.25(96) Domestic service.
23.25(1) Services of a household nature performed by an individual in or about the private home of the person by whom the individual is employed or performed in or about the club rooms or house of a local college club or local chapter of a college fraternity or sorority by which the individual is employed are included within the term “domestic service.”
23.25(2) A private home is the fixed place of abode or residence of an individual or family, including the house and the lands on which the house stands.
23.25(3) Services of a general household nature are those ordinarily and customarily performed as an integral part of the upkeep operation and maintenance of a dwelling, residence or private home. In general, covered services of a household nature in or about a private home include services rendered by workers such as cleaning people, cooks, maids, housekeepers, caretakers, yard workers and similar domestic workers. In addition, services performed by babysitters, nannies, health aides and similar workers for members of the household are covered.
23.25(4) The services enumerated above are not covered under the term “domestic service” if performed in or about rooming or lodging houses, boarding houses, clubs (except local college clubs), hotels, offices or other commercial enterprises.
23.25(5) The term “domestic service” does not include the service of a skilled mechanic engaged in recognized independent craft not habitually rendered as a part of ordinary household duties. In sit–uations where it may be necessary to determine whether or not an employer–employee relationship exists between the householder and the household worker, the guidelines as set forth in 871—23.19(96) will be applied.
23.25(6) Rescinded IAB 5/14/03, effective 6/18/03.
23.25(7) Services of a household nature performed in or about the club rooms or house of a local college club, or in or about the club rooms or house of a local chapter of a college fraternity or sorority, by a student who is enrolled and regularly attending classes at a school, college, or university are excepted from employment. For the purpose of this exception, the statutory tests are the type of services performed by the employee, the character of the place where the services are performed, and the status of the employee as a student enrolled and regularly attending classes at a school, college, or university where the term “school, college, or university” is taken in its commonly or generally accepted sense.
23.25(8) In general, services of a household nature in or about the club rooms or house of a local college club or local chapter of a college fraternity or sorority include but are not limited to services rendered by cooks, janitors, laundry persons, furnace persons, handy persons, gardeners and housekeepers.
23.25(9) A local college club or local chapter of a college fraternity or sorority does not include an alumni club or chapter. If the club rooms or house of a local college club or local chapter of a college fraternity or sorority is used primarily for the purpose of supplying board or lodging to students or the public as a business enterprise, the services performed there are not covered under the term “domestic service.”
23.25(10) Rescinded IAB 5/14/03, effective 6/18/03.
23.25(11) Where an individual is employed by a domestic service or home health care organization to perform domestic services in a private home, the individual is an employee of the service firm, not the householder.
This rule is intended to implement Iowa Code sections 96.19(13) and 96.19(16)“m.”
871—23.26(96) Definition of a farm—agricultural labor.
23.26(1) “Farm” as used in section 96.19(6)“g”(3) and as used in these rules means one or more plots of land not necessarily contiguous, including structures and buildings, used either primarily for raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry and furbearing animals and wildlife or both such uses, if the activities conducted on the plot or plots of land have as their purpose the accomplishment of an objective which is agricultural in nature.
23.26(2) The definition of farm given in subrule 23.26(1) includes, but is not limited to, nurseries, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities. A parcel of real property or a portion of a parcel of real property which is used primarily for the raising of nursery stock from seeds, cuttings or transplanted stock is a farm. If any parcel of real property or a portion of a parcel of real property is used both for the raising of nursery stock and for display of nursery stock or allied products for sale, the parcel or portion is not a farm if the raising is not the primary operation. A parcel of real property or a portion of a parcel of real property which is used primarily to display nursery stock for sale, or to display an allied product for sale, or both, is not a farm. Allied product, as used in this rule, includes but is not limited to, garden supplies, lawn supplies, tools, equipment, fertilizers, sprays, insecticides or pottery.
23.26(3) If other than incidental sales of an allied product are made in connection with a nursery, the operations in connection with the sales area are commercial operations as distinguished from ordinary farm operations and services performed with respect to the sales areas are not agricultural labor.
23.26(4) A plot of land used primarily for the raising of Christmas trees is a farm.
23.26(5) The following shall be used to determine whether or not services are defined as agricultural labor.
a. Services performed by an individual on a farm, in the employ of any owner, tenant or operator, in connection with the operation constitutes agricultural labor if:
(1) The services are on the farm on which the materials in their raw or natural state were produced, and
(2) Processing, packing, packaging, transportation, or marketing is carried on as an incident to ordinary farming operation.
b. If the service is performed as an incident to industrial, manufacturing or commercial operation it does not constitute agricultural labor. (Example: Services performed for an insurance company in repair and construction of farm buildings do not constitute agricultural labor.)
23.26(6) Services performed on nonfarm property while in the employ of one who is not the owner, tenant or operator of the farm to which the operation relates or any service rendered in connection with the maintenance and repair of equipment, used in operation on the farm, as well as related collection, clerical and bookkeeping services, are not agricultural labor.
23.26(7) Services performed in the handling or processing of any agricultural or horticultural commodity are included as agricultural employment if performed in the employ of the owner, tenant, or other farm operator, only if the commodity is in a nonmanufactured state and only if the operator produced more than half of the commodity with respect to which the service was performed.
23.26(8) Aerial seeding, fertilizing, spraying, dusting, custom planting, cultivating or combining of farm acres while in the employ of any agricultural enterprise is agricultural labor. These include mixing or loading into the airplane the spraying or dusting material, as well as the measuring of the swaths and the marking and flagging of the fields, and is considered agricultural as long as it is performed on a farm. If any of these services are performed on property other than a farm, they are not agricultural labor and are covered by the other provisions of the Iowa employment security law.
23.26(9) If the employer does not own or operate the farm which is being sprayed or dusted, any service related to employees in connection with maintenance and repair of the aircraft, trucks, or other equipment used in those operations, as well as related collection, clerical and bookkeeping services, are not agricultural labor and are not exempt under the Iowa employment security law.
23.26(10) Services performed on a farm in the employ of any person in connection with hatching poultry are agricultural labor. A plot of land together with the structures and buildings located off the farm, devoted to the hatching of poultry, is not considered to be a farm. Any service, under any contract of hire, performed off the farm in connection with the hatching of poultry shall not be considered agricultural labor.
23.26(11) Executive, supervisory, administrative, clerical, stenographic, and office work are not agricultural labor although they may be rendered on a farm and in relation to a farm.
23.26(12) Services performed on a farm incidental to the overall commercial activities which are not incidental to ordinary farming operation or directly related to the farming operation are not agricultural labor.
23.26(13) Services performed in connection with the processing of agricultural commodities performed on a farm, for a farm operation, are not agricultural labor unless one–half or more of the commodities processed are produced by the farm operator.
23.26(14) Services performed in agricultural employment as defined in Iowa Code section 96.19(18)“g”(3) or rule 23.26(96) by an agricultural employee one–half or more of any calendar month shall be considered agricultural employment the whole of that calendar month.
871—23.27(96) Exempt employment in the employ of a church, association of churches or an organization which is operated primarily for religious purposes.
23.27(1) The word “church” is used in its limited sense and is synonymous with an individual house of worship maintained by a particular congregation. Any service by an individual for a church, convention or association of churches is excluded from coverage. However, the exclusion does not apply to service performed for an organization which may be religious in orientation unless it is operated primarily for religious purposes and is operated, supervised, controlled or principally supported by a church (or a convention or association of churches). Thus, the service of the janitor of a church is excluded, but the service of a janitor for a separately incorporated college, although it may be church related, is covered.
23.27(2) Service for a college devoted primarily to the preparation of students for the ministry is exempt, as is service for a novitiate or a house of study, training candidates to become members of religious orders. On the other hand, a church–related (separately incorporated) charitable organization (such as an orphanage or a home for the aged) is not considered, under this Act, to be operated primarily for religious purposes.
23.27(3) The exclusion of service performed by ministers in the exercise of their ministry and by members of a religious order in performing the duties required by such order applies only when such service is performed for nonprofit organizations ordinarily required to be covered by the Iowa employment security law.
23.27(4) A minister is ordained, commissioned, or licensed, if such minister has been vested with ministerial status in accordance with the procedure followed by the particular church denomination. However, such minister does not have to be connected with a congregation. Ministerial authority continues until revoked by the church.
23.27(5) The term “exercise of the ministry” includes: the conduct of religious worship and the ministration of sacerdotal functions; service performed in the control, conduct, and maintenance of a religious organization under the authority of a religious body constituting a church or church denomination, or an organization operated as an integral agency of such a religious organization or of a church or church denomination; service performed for any organization under an assignment or designation by a church (not including cases in which a church merely helps a minister by recommending such minister for a position involving nonministerial services for an organization not connected with the church); and missionary service or administrative work in the employ of a missionary organization. Control, conduct, and maintenance of an organization do not include services such as operating an elevator, or being a janitor, but refers to services performed in the directing, management, or promotion of the activities of the organization.
23.27(6) Accordingly, service of a clergyman (clergywoman) as a chaplain in an orphanage or in an old–age home is excluded since such service is in the exercise of a ministry as is the service of members of a teaching or nursing order who are engaged in teaching or nursing. In the case of a member of a religious order, the criterion is whether the order requires the performance of such service.
23.27(7) School coverage.
a. Schools that are not separately incorporated and are affiliated with a church are exempt from insured employment because their employees are in the direct employ of a church or convention or association of churches.
b. Schools that are separately incorporated and are affiliated with a church are exempt from insured employment if such schools are operated primarily for religious purposes.
c. Schools that are not affiliated with a church are covered employers with covered employment.
“Affiliated” as used in this rule means operated, supervised, controlled, or principally supported by a church or convention or association of churches. A school which is operated primarily for religious purposes must have as its chief and principal purpose for operation a religious orientation. The school must have as its purpose of first or highest rank of importance the religious indoctrination of its students.
This rule is intended to implement Iowa Code section 96.19(18)“a”(6)(a) and (c).
23.28(1) Definition of “successor employer“ as used in Iowa Code section 96.7 and these rules means an employing unit which:
a. Acquired the organization, trade or business, or substantially all the assets of an employing unit that was subject to the provisions of chapter 96 prior to the acquisition, regardless of whether the acquirer was an employing unit prior to the acquisition. The acquiring employer must continue to operate the enterprise or business.
b. An employing unit that acquired a severable portion of the business of an employer who is subject to chapter 96 providing:
(1) The portion of the business or enterprise acquired would have in itself met the requirements of section 96.19(16)“a.”
(2) An application is made for a transfer of the records of the severable portion transferred within 90 days from the date of transfer.
(3) The transfer of records meets the approval of the predecessor and department and adequate information is furnished to meet the requirements.
c. Rescinded IAB 5/14/03, effective 6/18/03.
23.28(2) An “organization,” “trade” or “business” as used in Iowa Code section 96.19(16)“b” is acquired if an employing unit acquires factors of an employer’s organization, trade or business sufficient to constitute an entire existing going business unit as distinguished from the acquisition of merely assets from which a new business may be built. The question of whether an organization, trade or business is acquired is determined from all the factors of the particular case. Among the factors to be considered are:
a. The place of business.
b. The staff of employees.
c. The customers.
d. The good will.
e. The trade name.
f. The stock in trade.
g. The tools and fixtures.
h. Other assets.
23.28(3) Substantially all of the assets as used in Iowa Code section 96.19(16)“b” are acquired if an employing unit acquires substantially all of the assets of any employer which generate substantially all of the employment, except those retained incident to the liquidation of obligations.
23.28(4) A segregable and identifiable part of enterprise as used in Iowa Code section 96.7(3)“b” is acquired if an employing unit acquires factors of any employer’s organization, trade or business sufficient to constitute an existing separable going business unit as distinguished from the acquisition of merely assets from which a new business may be built. The part of the business acquired, if considered separately, would have been liable under section 96.19(16)“a.” The question of whether a distinct and severable portion is acquired is determined from all of the factors of the particular case. Among the factors to be considered are:
a. The place of business.
b. The staff of employees.
c. The customers.
d. The good will.
e. The trade name.
f. The stock in trade.
g. The accounts receivable.
h. The tools and fixtures.
23.28(5) “Successor liability” as used in Iowa Code chapter 96, and these rules, occurs for the acquiring employing unit when there is a transfer of the predecessor’s assets or other physical components necessary to continue the operation of the enterprise or business to the successor employer and the successor employing unit must continue to operate the business to the same basic extent as if there had been no change in the ownership or control of the business or enterprise.
23.28(6) Successor liability will be found to occur. If an enterprise or business is leased to a covered employer and any party or entity purchases or assumes the covered employer’s lease, or any party or entity acquires a new lease and substantially all of the assets of the covered employer, and the new lessee continues the operation of the enterprise or business to the same basic extent as though there had been no change in the ownership or control of the enterprise or business, such party or entity acquires the covered employer’s experience.
23.28(7) The department will utilize the following general criteria when establishing successorship in specialized cases:
a. Where a covered employing unit is operating an enterprise or business under a lease agreement and it is terminated, there will be no transfer of the covered employing unit’s experience unless the lessor takes over and continues to operate the enterprise or business in which case the lessor will be considered the successor to the covered employer’s experience.
b. Where an enterprise or business is leased to a covered employing unit, and the lease agreement has terminated with the lessor acquiring a new lessee, the new lessee is not considered to be a successor to the experience of the predecessor lessee unless the new lessee acquires substantially all of the assets of the predecessor lessee and the new lessee continues the operation of the enterprise or business to the same basic extent as though there had been no change in the ownership or control of the enterprise or business.
c. A franchise agreement will be treated the same as lease agreement.
d. If the bankruptcy court closes an enterprise or business, the court becomes the agent for the bankrupt employer.
(1) Where the court closes the enterprise or business and starts liquidating procedures, the employer’s account is placed in an inactive status subject to termination and no successorship or transfer of the employer’s experience is involved, or
(2) If the court appoints a trustee or receiver to continue the operation of the enterprise or business, the account address will be corrected to include the name of the trustee or receiver for mailing purposes. If the trustee or receiver obtains a new federal identification number for this business, a new account number will be established for the trustee or receiver as a successor to the original enterprise or business. If the trustee or receiver sells the enterprise or business as a going enterprise, the new owner will be a successor to the predecessor’s experience.
e. If a covered employer is forced out of business through foreclosure proceedings there will be no transfer of the employer’s experience unless the mortgagee takes over the operation of the business or enterprise and continues it to the same basic extent as though there had been no basic change in the ownership control.
This rule is intended to implement Iowa Code sections 96.7(3)“b,” 96.8 and 96.19(16)“b.”
871—23.29(96) Transfer of entire business.
23.29(1) Notice of acquisition.
a. Whenever any employing unit in any manner succeeds to or acquires from an employer either the organization, trade or business or substantially all the assets thereof, and continues such organization, trade or business, such employing unit shall notify the department for the purpose of accomplishing the transfer of the reserve account of the predecessor employer to the successor employing unit. Such notification must be in writing on Form 60–0126, Report to Determine Liability, and include the name and address of the predecessor, the date of acquisition, and the name and address of the successor. When such notice has been received or in the absence of the notice when necessary information establishing that the acquisition occurred has been received by the department, the actual contribution and benefit experience and taxable payrolls of the predecessor shall be transferred to the successor employing unit for determining its rate of contribution. Thereafter, benefits chargeable because of employment for such transferred organization, trade, or business shall be charged to the account of the successor. The predecessor must submit in writing a completed Form 60–0111, Employer Notice of Change.
b. Where one or more employing units have been reorganized, merged or consolidated into a single employing unit and the successor employing unit continues to operate such merged or consolidated enterprise, the employing units involved shall file change of ownership Forms 60–0111, Employer Notice of Change, and 60–0126, Report to Determine Liability, with the workforce development department within 30 days from the date of the transaction. In addition to Forms 60–0111 and 60–0126, all entities involved in the merger shall file with the workforce development department the articles of merger, or if there are no articles of merger, a statement advising that the merger has transpired.
(1) The predecessor business or businesses involved in the merger shall each file a final quarterly payroll report form as soon as possible after the merger has occurred but in no case later than 30 days after the close of the quarter in which the merger occurred.
(2) The successor entity shall indicate on Form 60–0126, Report to Determine Liability, whether or not the experience rates of all accounts are to be combined and the rate recomputed for the balance of the calendar year in which the merger took place.
23.29(2) Contribution rate. The successor’s contribution rate for the remainder of the calendar year beginning with the date of acquisition shall be assigned as follows:
a. If the successor had no account prior to the transfer and the successor purchased the business of only one predecessor, or more than one predecessor with identical rates, the rate assigned will be the rate of the predecessor employer or employers.
b. If the successor had no account prior to the transfer and purchased the business of more than one predecessor on the same day, the final rate assigned will be a computed rate based on the combined experience of all the predecessor employers.
c. If the successor had an account prior to the transfer, the rate assigned will be the successor’s existing rate. However, the successor may apply for a recomputed rate based on the combined experience of the predecessor or predecessors and the experience of the successor.
This rule is intended to implement Iowa Code section 96.7(2)“b.”
871—23.30(96) Successorship—liability for contributions and payments in lieu of contributions.
23.30(1) Any employer who becomes a successor to an employer account shall be held liable for any unpaid contributions, reimbursable benefit payments, interest, penalties or costs which are owed to the department by the predecessor at the time of the transfer. An employer which is found to be a successor to a reimbursable account shall also be liable to reimburse the department for benefits paid after the date of acquisition that are based on wages paid by the reimbursable predecessor prior to the date of acquisition whether or not the successor has elected, or is eligible to elect, to become a reimbursable employer with respect to the successor’s payroll.
23.30(2) Transfers under the Bulk Sales Act, uniform commercial code of Iowa, shall not be held by the department to be exempted from the provisions of Iowa Code section 96.7. The transferee shall be held a successor to the employer account of the transferor and liable for any unpaid contributions, reimbursable benefit payments, interest, penalty, and costs owed to the department by the transferor notwithstanding any agreement between the two parties pursuant to the Bulk Sales Act, provided the transferee continues to operate the business.
This rule is intended to implement Iowa Code section 96.7.
871—23.31(96) Transfer of segregable portion of an enterprise or business.
23.31(1) Application and required information.
a. The experience of a distinct and segregable portion of an organization, trade, or business shall be transferred to an employing unit which has acquired such portion only if the successor employing unit:
(1) Files with the department a written application, on Form 60–0126, Report to Determine Liability, or in letter form, within 90 days after the date of purchase;
(2) Submits necessary information establishing the separate identity of the accounts within 30 days after request is made by the department unless the time is extended for good cause shown; and
(3) Continues to operate the acquired portion of the business.
b. Necessary information establishing the separate identity of the account includes but is not limited to:
(1) Written agreement to the transfer by the predecessor. The predecessor’s signature on Forms 68–0068 and 68–0065, The Report of Employer on Transfer of One of Two or More Employing Units, will be sufficient. (See 23.31(1)“b”(4), (5));
(2) Date of acquisition of the segregable portion;
(3) Date of commencement of the segregable portion by the predecessor;
(4) Report showing the names of employees, their social security numbers, and their wages attributable to the acquired portion of the business for the six calendar quarters including and immediately preceding the quarter in which the acquisition occurred. (Form 68–0065, The Report of Employer on Transfer of One of Two or More Employing Units.)
(5) Report showing the predecessor and successor name, address, account numbers, information showing the total taxable wages and benefit charges to be transferred by quarter, for the 20 calendar quarters including and immediately preceding the date of the acquisition. (Form 68–0068, The Report of Employer on Transfer of One of Two or More Employing Units.)
c. It shall be the sole responsibility of the successor employer to determine whether or not to apply for a partial transfer of experience. An application for a partial transfer may be withdrawn in writing at any time prior to the department mailing notice that the transfer has been approved.
d. It shall be the sole responsibility of the predecessor employer to determine whether or not to grant the partial transfer of experience. Permission to grant the partial transfer of experience may be withdrawn in writing at any time prior to the department mailing notice that the transfer has been approved.
23.31(2) Portion of reserve and payroll transferred. When the requirements for partial transfer as defined in subrule 23.31(1) have been met, the transfer shall be made in accordance with one of the following:
a. If the predecessor’s account has been in existence less than five years prior to the acquisition or purchase date (or more than five years when records are available), the actual taxable wages contributions, benefit charges, interest earned, and wage records of individual employees (as supplied on Form 68–0065) attributable to the portion acquired shall be transferred; or,
b. If the predecessor’s account has been in existence more than five years (and records prior to five years are unavailable) and the acquired portion has also been in existence more than five years,
(1) The actual taxable wages, contributions, benefit charges, and interest earned attributable to the acquired portion for the five–year period immediately preceding the date of acquisition shall be transferred, plus
(2) That portion of the predecessor’s contributions, benefit charges, and interest earned for the period commencing with the beginning date of the predecessor’s account and ending five years prior to the acquisition date equal to the ratio of the taxable wages attributable to the acquired portion for the 12 completed calendar quarters immediately preceding the acquisition date to the total taxable wages reported by the predecessor for the same 12–quarter period, and
(3) The individual wage records attributable to the acquired portion (as supplied on Form 68–0065); or,
c. If the predecessor’s account has been in existence more than five years but the acquired portion came into existence within the last five years, the actual taxable wages, contributions, benefit charges, interest earned and individual wage records (as supplied on Form 68–0065) attributable to the acquired portion shall be transferred.
23.31(3) Future benefit charges based on wages paid by the predecessor prior to the acquisition or purchase date. The successor employer will receive future benefit charges based on the wage credits transferred to said successor’s account for the six–quarter period immediately preceding the acquisition date plus any benefit charges based on wages attributable to the acquired portion prior to the six–quarter period on claims already filed on the date of the acquisition.
23.31(4) Notification of approval or denial of transfer and appeals.
a. Upon receipt of application (see subrule 23.31(1)) and accompanying information as required, the department shall issue a determination approving or denying the partial transfer. The determination approving a partial transfer will include notice to both parties as to their contribution rate for the current year.
b. If the department finds in any case that the acquisition of a business or a severable portion thereof was made solely or primarily for the purpose of obtaining a more favorable rate of contribution, the transfer of the reserve account shall not be approved. An acquisition shall be deemed to have been solely or primarily for such purpose if the department finds an absence of any reasonable business purpose for the acquisition other than a more favorable contribution rate.
c. Any determination made hereunder denying a partial transfer shall become conclusive and binding upon both the predecessor and successor unless one or both of them file an appeal. For the specific procedure and requirements for perfecting an appeal of an employer liability determination see rules 23.52(96) to 23.56(96).
23.31(5) Liability of successor for contribution. Any individual or organization, whether or not an employing unit, which in any manner acquires the organization, trade or business or substantially all of the assets thereof, and is held to be a successor, shall be liable for the payment of contribution, interest and penalty, due or accrued and unpaid by such predecessor employer, at the time of acquisition or purchase, if the department concludes that such contributions cannot be collected from the predecessor on the portion of such organization, trade or business acquired by the successor.
This rule is intended to implement Iowa Code section 96.7(3).
871—23.32(96) Mandatory and prohibited successorships.
23.32(1) This rule applies to the mandatory successorship in Iowa Code section 96.7(2)“b”(2) and the prohibited successorship in Iowa Code section 96.7(2)“b”(3). If one employing unit receives the organization, trade or business, or a portion thereof of an employing unit and there is substantially common ownership, management or control of the two, the attributable unemployment experience will be transferred. This section of the law does not require a transfer of substantially all of the assets nor does it require the transferred portion to be segregable or identifiable. The acquiring employer must continue to operate the organization, trade or business or must transfer operation to an entity with substantially common ownership, management or control with the acquiring entity. Mandatory successorship also applies when the acquirer was not an employing unit prior to the transfer.
a. A transfer of staff and the business activity of that staff to an acquiring employer unit which continues to operate the portion of the business will establish mandatory successor liability.
b. The mandatory and prohibited successorships contained in Iowa Code sections 96.7(2)“b”(2) and (3) apply to corporations, limited liability companies, government or governmental subdivisions or agencies, business trusts, estates, trusts, partnerships, sole proprietorships or associations, or any other legal entity as defined in Iowa Code chapter 96.
c. “Substantially common ownership, management or control” is determined from the facts of a particular case. Among the factors to be considered are:
(1) The authority to make policy decisions.
(2) The authority to perform personnel actions.
(3) Direction and control of the day–to–day operations.
(4) Financial investment.
(5) Substantial or complete ownership by the same legal entity or entities.
(6) Ability to conduct or liability for financial transactions on behalf of the business.
(7) Authority to commit the business assets.
(8) Common management which may include direction or overall supervision by an individual or group of individuals.
d. For a mandatory full successorship the tax rate shall be established as provided in subrule 23.29(2), and for a mandatory partial successorship the tax rate shall be established as provided in subrule 23.32(4).
23.32(2) In determining whether or not an acquiring entity continues to operate an organization, trade or business as used in Iowa Code section 96.7(2)“b”(2), the following rules apply.
a. The acquiring entity continues the ongoing business operation (taking into account any seasonal or prior operational pattern), and continues the same business activity as the prior employer. A temporary cessation of the business activity by the acquiring entity will not constitute a discontinuance of the business.
b. The acquiring entity, not having operated the business, reassigns or otherwise transfers the operation of the business to a third–party entity that has substantially common ownership, management or control with the acquiring entity. The third party is considered to be continuing the operation of the original entity.
23.32(3) Prohibited successor liability. Successor liability is prohibited when the department finds that a legal entity that is not subject to Iowa Code chapter 96 at the time of acquisition (regardless of whether or not common ownership, management or control exists) acquires an organization, trade or business solely or primarily for the purpose of obtaining a lower rate of contribution. Factors to be considered include:
a. The existing employer account has a tax rate less than would be assigned to a new employer,
b. The cost of acquiring the organization, trade or business as compared with any potential savings in contributions costs,
c. The acquiring entity substantially changed the organization, trade or business after a short period of time, and
d. A substantial number of new employees were hired to perform duties unrelated to the organization, trade or business operated prior to the acquisition.
23.32(4) When a mandatory transfer of a portion of a business occurs, the successor’s experience and contribution rate will be determined as follows:
a. The experience transferred to the acquiring employing unit will be based on the percentage of employees moving from the predecessor to that unit.
(1) The percentage will be computed by comparing the number of employees on the successor’s first quarterly report covering a complete calendar quarter to the average number of employees on the four complete quarterly reports filed by the predecessor immediately preceding the transfer. The average number of employees will be computed using only the predecessor’s reports that have wages paid during those four quarters.
(2) Using this percentage, taxable wages, contributions, benefit charges and interest earned, commencing with the beginning date of the predecessor’s account, will be transferred from the predecessor’s account to the successor’s account.
b. If the successor had no account prior to the transfer, the rate assigned will be the rate of the predecessor for the remainder of the calendar year beginning with the date of acquisition.
c. If the successor already had an account prior to the transfer, the rate for the balance of the year in which the transfer took place will be recomputed by combining the transferred experience with the employer’s own experience as of the last computation date.
d. For the years following the year of acquisition, the rates will be computed using the experience of the employer combined with the transferred experience.
e. Future benefit(s) will be charged to the base period employer who reported the base period wages.
f. The department will issue a notification when the partial transfer has been completed. The determination will include notice to both parties as to their contribution rate for the current year.
g. Any rate determination resulting from a partial transfer will become final unless one or both of the parties files an appeal. For the specific procedure and requirements for perfecting an employer liability determination appeal, see rule 23.52(96).
23.32(5) Penalty contribution rate. The department may assess a penalty contribution rate of 2 percent for the current year and two subsequent years for an employer that the department finds has attempted to manipulate and circumvent the proper unemployment tax rate as provided in Iowa Code sections 96.7(2)“b”(2) and (3) by deliberate nondisclosure of a material fact.
a. The employer will be notified of the penalty contribution rate on Form 95–5306, Notice of Unemployment Insurance Contribution Rate.
b. If, after a liability determination has been issued, the department discovers, based upon new facts not available to the department at the time the determination was made, that a previously nonliable entity acquired a business solely or primarily to obtain a lower tax rate, the department will amend the original determination and assign a new employer rate and may provide a penalty contribution rate.
c. Interest will accrue on unpaid penalty contributions in the same manner as on regular contributions.
This rule is intended to implement Iowa Code sections 96.7(2)“b” and 96.16(5).
871—23.36(96) Predecessor—contribution rates for winding down a business. In the case where a predecessor has transferred its organization, trade, or business, or substantially all assets, to a successor in interest and the predecessor employer continues to operate a part of the business in order to wind down or close the business after the date of transfer, the predecessor shall be assigned a new account number and the rate of a newly covered employer for the purposes of reporting the wind down wages. For the purposes of this rule, the term “wind down wages” may exclude wages earned before the sale or transfer that were paid in the four consecutive quarters after the quarter in which the sale or transfer occurred.
This rule is intended to implement Iowa Code sections 96.8(1) and 96.8(4)“a.”
871—23.37(96) Adjustments and refunds of contributions.
23.37(1) Contribution reports, when once submitted, shall not be returned to employers for correction. Whenever any employer discovers that the contribution report submitted is incorrect resulting in overpayment of contributions due and owing, such employer may file an application for credit allowance or refund. If the department discovers that the contribution report submitted by any employer is incorrect resulting in overpayment of contribution, it may on its own initiative refund or make a credit allowance. No refund or credit allowance will be made after three years from the date on which the overpayment was made. The application (Employer’s Wage Adjustment Report, Form 68–0061) shall be furnished by the department and shall show corrections to the individual wage amounts, corrections to the report grand totals (total wages, taxable wages and contribution), and a full explanation for the adjustment. Adjustment shall be made by the department in the form of credit allowance or refund as provided in subrule 23.37(3) equal to that portion of contributions erroneously paid which exceeds the benefits paid to claimants as a direct result of the employer’s erroneous report.
23.37(2) If the contribution and wage report first submitted by an employer understates the amount of wages paid for a given period, such employer shall file a supplemental report or Employer’s Wage Adjustment Report, Form 68–0061, for the period and make remittance covering all additional contributions due and owing for the period on the unreported wages and interest.
a. If it is apparent, upon examination of any regular or supplemental contribution report or Employer’s Wage Adjustment Report, Form 68–0061, that a greater contribution than is required by law has been paid, the department may, within three years from the date of such overpayment, make an adjustment and issue a credit adjustment memorandum for such overpayment.
b. If it is not apparent from the examination of any regular or supplemental contribution report or Employer’s Wage Adjustment Report, Form 68–0061, that a contribution greater than that required by law has been made, any employer or employing unit claiming a credit adjustment shall file with the department a written application for such adjustment within three years from the date on which such overpayment was made. Such credit adjustment shall be granted only after a review of the application which shall set forth such information in the matter as may be required. If, after such review, the adjustment is found to be in order, the department shall issue a credit adjustment memorandum or refund for the overpayment.
23.37(3) Each credit adjustment memorandum issued shall be mailed to the employer at the last–known address. The employer may attach the memorandum to the contribution and wage report to the department for a future reporting period following receipt of the memorandum. The amount of the credit memo will be deducted from the contributions in the employer’s account and credited to a credit memo outstanding account until the credit memo is used or canceled in accordance with these rules. Upon receipt by the department, the credit memorandum will be applied against contributions due for the period covered by the contribution report to which the memorandum is attached and the account will be adjusted accordingly. If the employer fails to utilize the credit memorandum issued to it as provided above, the department shall, three years from the date of issuance, cancel the credit and redeposit the amount of the credit to the employer’s reserve balance. The department, upon request of the employer or employing unit or upon its own initiative, may issue an order directing refund of the overpayment. The state comptroller is responsible for the issuance of the warrant.
23.37(4) When an employer requests a refund or credit of contributions paid due to an erroneous reporting of wages, the refund or credit shall be reduced by the amount of benefits paid and charged to the employer as a result of the erroneous wages.
23.37(5) All grounds and facts alleged in support of a claim for refunds or credit shall be clearly set forth. The employing unit shall furnish such proof in support of the claim as may be reasonably necessary at the discretion of the department to support the validity and the amount of the claim and the fact that the employing unit making the application for refund or credit is legally entitled to it.
871—23.38(96) Denial of claim for refund or credit. A claim shall be denied if an employing unit within 30 days after written demand by the department fails to submit reasonable proof to support the validity and amount of the claim or fails to request an extension of time in which to submit the required information.
871—23.39(96) Issuance of a duplicate credit memo. Rescinded IAB 5/14/03, effective 6/18/03.
871—23.40(96) Computation of rates for private sector employer.
23.40(1) Experience rating. An employer’s experience rate shall be computed by dividing the average of all benefits charged to an employer during the five periods of four consecutive calendar quarters immediately preceding the computation date by the employer’s five–year average annual taxable payroll to arrive at the benefit ratio. This ratio shall be applied to the appropriate rate table, as determined by the department, to determine the employer’s contribution rate for the next calendar year. Indian tribal contributory employers shall be considered private sector employers for the purpose of computing their contribution rate.
23.40(2) Administrative contribution surcharge.
a. For calendar years 2002 and 2003, each employer except a governmental entity and a 501(c)(3) nonprofit organization will have an administrative contribution surcharge added to the contribution rate. The administrative contribution surcharge shall be a percentage of the taxable wage base in effect for the rate year following the computation date which is equal to one–tenth of 1 percent of the Federal Unemployment Tax Act (FUTA) taxable wage base in effect on the computation date. The surcharge will be a three–place decimal number which is added to the contribution rate. The surcharge formula will provide a target revenue level of no greater than $6,525,000 annually and the percentage surcharge will be capped at a maximum of $7 per employee.
b. A portion of each payment received from an employer shall be considered administrative contribution surcharge and shall be credited to the administrative contribution surcharge fund. The administrative contribution surcharge shall be collectible, and interest shall accrue on unpaid surcharge at the same rate as on regular contributions.
c. The portion of the employer’s payment credited to the administrative contribution surcharge fund shall not be certified to the Internal Revenue Service as contributions for which the employer may take credit against the employer’s federal unemployment tax (FUTA–Form 940).
d. The administrative contribution surcharge fund shall be a separate and distinct fund from the unemployment compensation fund. Interest earned on the moneys in the administrative contribution surcharge fund shall be credited to the administrative contribution surcharge fund. Moneys in the administrative contribution surcharge fund shall be appropriated by the general assembly.
23.40(3) Temporary emergency surcharge. If it becomes necessary to implement a temporary emergency surcharge on all employers, except zero rated employers, governmental employers, and 501(c)(3) nonprofit organizations, for any quarter to pay interest on moneys borrowed from the federal government to pay unemployment insurance benefits, the emergency surcharge shall be collected and credited in the following manner:
a. The emergency surcharge rate shall be added to the employer’s regular contribution (tax) rate for the quarter. The add–on rate shall be a uniform percentage of each affected employer’s regular contribution rate rounded to the nearest one–hundredth of a percent. The affected employers will be notified by the department of the surcharge by any appropriate means available at the time.
b. A portion of each payment that is received from an employer for a quarter in which the emergency surcharge is in effect shall be considered as being temporary emergency surcharge and shall be credited to the temporary emergency surcharge fund.
c. The portion of the employer’s payment credited to the temporary emergency surcharge fund shall not be certified to the Internal Revenue Service as contributions for which the employer may take credit against the employer’s federal unemployment tax (FUTA–Form 940).
d. The temporary emergency surcharge shall be used to pay the interest accrued on the trust fund money advanced to the department of workforce development by the federal government.
e. The director of the department of workforce development shall prescribe the manner and the amount of the surcharge to be collected.
This rule is intended to implement Iowa Code sections 96.7(2), 96.7(11), 96.7(12) and 96.19(8).
871—23.41(96) Computation date defined. The computation date for the succeeding year’s contribution rate shall be July 1. The rate computation shall include the taxable wages reported for the quarters prior to and ending on June 30 immediately preceding the computation date and benefit charges based on benefit warrants issued on or before June 30 immediately preceding the computation date. Delinquent reports received after September 30 immediately following the computation date shall not be used for the succeeding year’s rate computation.
This rule is intended to implement Iowa Code section 96.19(8).
871—23.42(96) Crediting of interest earned on the unemployment trust fund. Interest received on moneys deposited with the Secretary of the Treasury of the United States shall be credited to the unemployment compensation fund.
This rule is intended to implement Iowa Code section 96.9(2)“c.”
871—23.43(96) Charging of benefits to employer accounts.
23.43(1) How charged. Benefits paid to an eligible claimant shall be charged against the base period wage credits in the same inverse chronological order as the wages on which the wage credits are based were paid to the claimant.
23.43(2) Formula for charging employer accounts.
a. Wage credits in the most recent quarter of the base period will be used first and when wage credits in this quarter are exhausted, wage credits for the next most recent quarter will be used until each of the four quarters in the base period is exhausted or until the claimant is paid an amount not to exceed the claimant’s maximum benefit amount.
b. Each employer who has wage credits in the quarter of the base period currently being used will be charged the employer’s proportional share of each payment. The proportional share to be charged to each employer in the quarter will be the employer’s percentage of the total wage credits in the quarter.
23.43(3) Rule of two affirmances.
a. Whenever an administrative law judge affirms a decision of the representative or the employment appeal board of the Iowa department of inspections and appeals affirms the decision of an administrative law judge, allowing payment of benefits, such benefits shall be paid regardless of any further appeal.
b. However, if the decision is subsequently reversed by higher authority:
(1) The protesting employer involved shall have all charges removed for all payments made on such claim.
(2) All payments to the claimant will cease as of the date of the reversed decision unless the claimant is otherwise eligible.
(3) No overpayment shall accrue to the claimant because of payment made prior to and during the period in which the department is processing the reversal decision.
23.43(4) Supplemental employment.
a. An individual, who has been separated with cause attributable to the regular employer and who remains in the employ of the individual’s part–time, base period employer, continues to be eligible for benefits as long as the individual is receiving the same employment from the part–time employer that the individual received during the base period. The part–time employer’s account, including the reimbursable employer’s account, may be relieved of benefit charges. On a second benefit year claim where the individual worked only for the part–time employer during the base period and the lag quarter, the part–time employer shall not be considered for relief of benefit charges with the onset of the second benefit year. It is the part–time employer’s responsibility to notify the department of the part–timeemployment situation so the department may render a decision as to the availability of the individual and benefit charges. The individual is required to report gross wages earned in the part–time employment for each week claimed and the wages shall be deducted from any benefits paid in accordance with Iowa Code section 96.3(3).
b. An individual who voluntarily quits without good cause part–time employment and has not requalified for benefits following the voluntary quit of part–time employment, yet is otherwise monetarily eligible for benefits based on wages paid by the regular or other base period employers, shall not be disqualified for voluntarily quitting without good cause the part–time employer. The individual and the part–time employer which was voluntarily quit without good cause shall be notified on Form 65–5323 or 60–0186, Decision of the Workforce Development Representative, that benefit payments shall not be made which are based on the wages paid by the part–time employer, and benefit charges shall not be assessed against the part–time employer’s account; however, once the individual meets the requalification requirements following the voluntary quit without good cause of the part–time employer, the wages paid in the part–time employment shall be restored for benefit payment and charging purposes as determined by applicable requalification requirements.
23.43(5) Sole purpo