Chapter 23. EMPLOYER’S CONTRIBUTION AND CHARGES

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…

An employing unit having services performed 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 con…

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…

Unless the context 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 …

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. Wages earned by an individual who is a full-time …

Wages earned by a student who is enrolled at a 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 ind…

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…

A nonliable employer shall be liable if the 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 Co…

When workers perform 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 locali…

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…

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 exclusio…

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…

If a predecessor has 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 b…

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 …

If the department requests proof of the validity of 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 implemen…

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 …

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 July 31 of each year by the employer’s five-year average annual taxable payroll to de…

The computation date for determining tax rates for future 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 immedi…

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…

A new unemployment tax account and new employer 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 imple…

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…

A nonprofit organization that has been approved 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 ben…

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…

An employer who appeals a rate notice 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 …

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…

23.60(1) An employer who fails to file timely and accurate quarterly wage reports shall pay to the department a penalty in accordance with Iowa Code section 96.14(2). 23.60(2) The amount of the penalty for a delinquent or insufficient quarterly contribution and payroll is based o…

When quarterly wage reports are filed with contributions paid, but without payment of penalties and interest due, penalties and interest may be assessed and a lien filed in the same manner as for unpaid contributions. This rule is intended to implement Iowa Code section 96.16(4).…

23.62(1) Interest and penalty charges may be rescinded whenever an employer can provide documentary evidence to the satisfaction of the department that an inquiry in writing was directed to the department within 15 days following the end of the quarter for the contribution or pay…

The department may, at its discretion and for good cause, cancel interest and penalty upon written request from the employer or its agent. Requests should be directed to the department at its administrative office. The employer will be advised if the request is denied. In determi…