Chapter 23. EMPLOYER’S CONTRIBUTION AND CHARGES

23.1(1) 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. See Iowa…

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 that are based on wage credits tr…

23.11(1) Each employer shall obtain the social security number of each of its employees subject to the Iowa employment security law. 23.11(2) An employer shall report the worker’s social security number in making any report required by the department with respect to the worker. 2…

23.13(1) Arrangement. The following rule governs the department’s administrative cooperation with other states subscribing to the interstate reciprocal coverage arrangement, hereinafter referred to as the arrangement. Unless and until the department approves the arrangement via t…

for it that are not subject to the compulsory coverage provisions of the Act may file an application for voluntary election to become an employer under the law or to extend its coverage to individuals performing services that do not constitute employment as defined in the law. 23…

23.18(1) Commission salespersons and insurance solicitors. Commission salespersons are considered employees and wages are subject to unemployment tax unless there is a department-approved independent contractor agreement in place. 23.18(2) Directors and officers of a corporation.…

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…

otherwise requires, terms used in rules, forms, and other official pronouncements issued by the department have the following meaning: 23.2(1) Wages paid are wages paid to an individual during the calendar quarter. Wages earned but not paid during the calendar quarter are conside…

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. Wages earned by an individual who is a full-time employee for a school, college or unive…

nonprofit or public educational institution under a program taken for credit that combines academic instruction with work experience are normally excluded from the definition of employment, provided that no work performed by such individual in excess of the hours called for in th…

23.22(1) If one employer contracts with another employing unit for any work that 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 if the second employing…

employer owns one or more employing units (or business units) and the combined employment has paid wages for service in employment in a calendar quarter in either the current or preceding year. This rule is intended to implement Iowa Code section 96.1A(15). [ARC 8848C, IAB 1/22/2…

services in more than one state, the department will review each case individually and make a determination whether wages are reportable to Iowa based on the following guidelines in sequence: 23.24(1) Services performed in only one state are considered localized in that state reg…

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 …

23.26(1) “Farm” as used in Iowa Code section 96.1A(16)“g”(3) and 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 c…

organization that 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 associat…

23.28(1) “Successor employer” means an employing unit that: a. Acquired, and continues to operate, the organization, trade or business, or substantially all the assets of an employing unit that were subject to the provisions of Iowa Code chapter 96 prior to the acquisition, regar…

23.29(1) Notice of acquisition. a. Whenever an 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 n…

23.3(1) Wages are as defined in provided in Iowa Code section 96.1A(40), with the additional clarifications. 23.3(2) The term “wages” shall not include: a. The amount of payment in addition to the employee’s regular wages paid for the sole purpose of compensating the employee for…

Any employer who becomes a successor to an employer account is liable for any debt owed to the department by the predecessor at the time of the transfer. Any employer found to be successor to a reimbursable account is liable to reimburse the department for any benefits paid based…

23.31(1) Application and required information. a. Partial experience will be transferred to an employing unit that has acquired such portion only if the successor employing unit: (1) Submits a registration online within 90 days of the legal date of transfer; (2) Provides necessar…

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 ther…

transferred its organization, trade, or business, or substantially all assets, to a successor, and the predecessor continues to operate a part of the business in order to wind down or close the business after the legal date of transfer, the predecessor will be issued a new accoun…

23.37(1) If an employer, after submitting a quarterly unemployment tax report, discovers an error that results in an overpayment of contribution due and owing, such employer may file an application for credit allowance or refund. If the department discovers that the contribution …

any claimed credit, and the employing unit fails to provide the proof within 30 days, the claim will be denied unless the department has provided an extension of time to provide the information. This rule is intended to implement Iowa Code section 96.14(5). [ARC 8848C, IAB 1/22/2…

(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 is taxable and …

be computed by dividing the average of all benefits charged to an employer during the five periods of four consecutive calendar quarters immediately preceding July 31 of each year by the employer’s five-year average annual taxable payroll to determine its benefit ratio. This rati…

years is July 1. Rate computation includes all taxable wages and benefit charges for the quarters prior to and ending on June 30 immediately prior to the computation date. Delinquent reports filed after September 30 immediately following the computation date will not be used in t…

23.43(1) Benefits paid to an eligible claimant. Benefits paid to an eligible claimant are charged against the base period wage credits in the same inverse chronological order in which the wages were paid to the claimant. 23.43(2) Formula for charging employer accounts. a. Wage cr…

23.44(1) The employer may not be relieved of benefit charges for a payment of back pay until the amount of the overpayment is recovered by the department. 23.44(2) If the department determines that an overpayment has been made: a. The charge for the overpayment against the employ…

23.47(1) If an employer discontinues business or continues business without employment, the employer may request that the employer’s account be placed in an inactive status. Upon verification of inactive status, the department shall notify the employer and the employer is not req…

rating will be given to reimbursable employers electing to become contributory and to formerly active contributory employers whose unemployment tax accounts have changed from inactive to active status. This rule is intended to implement Iowa Code sections 96.7 and 96.8. [ARC 8848…

23.5(1) 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…

to make payments in lieu of contributions (e.g., a reimbursable employer) will be billed each quarter for benefits paid during such quarter. 23.51(1) Charges billed to the employer’s unemployment account are equal to the regular benefits and one-half of the extended benefits paid…

23.52(1) An employer liability determination including employer status and liability, assessments, rate of contributions, successorships, worker’s status, and all questions regarding coverage of a worker or group of workers may be appealed to the department of workforce developme…

or corrected rate notice within 30 days may have its rate recomputed based upon the reversal of a benefit eligibility decision under the following circumstances: 23.53(1) An employer may appeal on the grounds that benefit charges against the employer’s account have been reversed …

23.54(1) Payment of a disputed assessment is held to be an acceptance of the assessment only when a timely appeal is not filed. 23.54(2) An employing unit that has appealed a determination of liability, or a payment of contributions due, shall submit full payment of any disputed …

23.55(1) The employer bears the burden of proof in all employer liability cases. 23.55(2) The burden of proof shall rest with an employing unit that employs any individual during any calendar year but that considers itself not an employer subject to the Act, to establish that it …

23.56(1) Pursuant to Iowa Code chapter 17A, a controversy may, unless precluded by statute, at the discretion of the department be informally settled by mutual agreement of the department and the person or employer who is or is about to be engaged in the controversy. The settleme…

23.57(1) If an employer, on its own motion, submits an adjustment for an error made on previously submitted wage detail and pays any additional contributions due on the adjustment when submitting the adjustment, no interest on the additional contributions will be charged if it is…

23.59(1) If the department finds from the examination of the employer’s account that contributions have been underpaid because of a department error in assigning the contribution rate, the additional contributions shall be paid within 30 days after the department notifies the emp…

23.6(1) If an individual has more than one employer, each employer must pay contributions on the employee’s wages up to the taxable wage base. 23.6(2) The employer may not deduct any part of the contributions due on taxable wages from an employee’s pay. 23.6(3) Only wages reporte…