Read the full stored bill text
Senate
File
487
-
Introduced
SENATE
FILE
487
BY
COMMITTEE
ON
WORKFORCE
(SUCCESSOR
TO
SSB
1165)
A
BILL
FOR
An
Act
relating
to
employer
recordkeeping
and
auditing
1
requirements
for
purposes
of
unemployment
insurance
and
2
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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487
Section
1.
Section
96.11,
subsection
6,
paragraph
a,
Code
1
2025,
is
amended
to
read
as
follows:
2
a.
An
employing
unit
shall
keep
true
and
accurate
work
3
records,
containing
information
required
by
the
department.
4
The
records
shall
be
open
to
inspection
and
copying
by
an
5
authorized
representative
of
the
department
at
any
reasonable
6
time
and
as
often
as
necessary.
For
each
employee,
the
7
employing
unit
shall
keep
such
records
for
three
years
after
8
a
calendar
year
in
which
remuneration
that
the
records
relate
9
to
was
paid
to
the
employee.
If
the
employing
unit
did
not
10
pay
remuneration,
but
remuneration
was
due,
the
employer
shall
11
keep
such
records
for
three
years
after
the
calendar
year
in
12
which
remuneration
was
due.
An
authorized
representative
of
13
the
department
may
require
from
an
employing
unit
a
sworn
or
14
unsworn
report,
with
respect
to
individuals
employed
by
the
15
employing
unit,
which
the
department
deems
necessary
for
the
16
effective
administration
of
this
chapter
.
17
Sec.
2.
NEW
SECTION
.
96.22
Employer
field
audits.
18
1.
The
department
shall
conduct
field
audits
of
employers
19
by
examining
employer
records
to
determine
compliance
with
20
this
chapter.
Such
audits
shall
be
carried
out
by
employer
21
field
auditors
employed
by
the
department.
Procedures
for
22
such
audits
shall
be
in
accordance
with
this
section.
The
23
department
may
establish
additional
procedures
for
employer
24
field
audits
consistent
with
this
section
by
rule.
25
2.
Prior
to
an
employer
field
audit,
the
department
shall
26
give
the
employer
reasonable
notice
of
the
intent
to
audit
and
27
conduct
an
in-person
preaudit
interview
with
the
employer
or
28
a
designated
representative
of
the
employer
at
the
employer’s
29
place
of
business
or
an
alternative
location
mutually
agreed
30
upon
by
the
employer
and
the
department.
The
employer
and
31
the
department
may
mutually
agree
to
conduct
the
preaudit
32
interview
through
alternative
means,
including
but
not
limited
33
to
telephone,
facsimile,
electronic
mail,
or
video
conference.
34
3.
Employer
records
subject
to
an
employer
field
audit,
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487
if
such
records
are
maintained
by
the
employer,
may
include
1
individual
pay
records,
federal
internal
revenue
service
forms
2
W-2
and
1099,
cash
disbursement
journals
and
check
registers
3
or
the
electronic
equivalent
thereof,
federal
and
state
tax
4
returns,
and
other
records
required
by
this
section.
5
4.
To
verify
the
correct
business
entity
is
listed
in
6
department
files,
the
employer
field
auditor
may
examine
7
business
licenses
of
the
employer
or
legal
documents
related
8
to
the
initial
establishment
of
the
business
entity
or
to
9
any
employee
to
whom
the
applicability
of
this
chapter
is
in
10
question.
11
5.
To
verify
proper
compliance
by
the
employer
with
12
reporting
requirements
of
the
department,
an
employer
field
13
auditor
shall
conduct
and
document
a
detailed
audit
of
check
14
stubs,
weekly
time
cards,
the
electronic
equivalent
of
such
15
documents,
or
other
maintained
source
documents
for
at
least
16
one
employee
for
at
least
one
quarter.
The
detailed
audit
may
17
be
more
comprehensive
than
provided
in
this
subsection
if
the
18
employer
field
auditor
finds
discrepancies
in
such
records.
19
6.
The
department
shall
establish
procedures
for
an
20
employer
to
contest
an
employer
field
auditor’s
decision
21
regarding
the
applicability
of
this
chapter
to
an
employee.
22
In
any
disputed
case,
the
employer
field
auditor
may,
at
the
23
discretion
of
the
presiding
officer,
be
granted
access
to
24
records
to
determine
the
remuneration
paid
for
any
calendar
25
quarter
at
issue
occurring
within
three
years
prior
to
the
26
department’s
issuance
to
the
employer
of
a
notice
of
intent
to
27
audit.
28
Sec.
3.
APPLICABILITY.
The
section
of
this
Act
enacting
29
section
96.22
applies
to
audits
conducted
by
the
department
of
30
workforce
development
pursuant
to
chapter
96
commencing
on
or
31
after
the
effective
date
of
this
Act.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
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487
This
bill
relates
to
employer
recordkeeping
and
auditing
1
requirements
for
purposes
of
unemployment
insurance
under
Code
2
chapter
96.
Current
requirements
for
these
matters
are
largely
3
set
out
in
rules
of
the
department
of
workforce
development.
4
The
bill
requires
that
an
employing
unit
keep
records
5
regarding
an
employee
that
are
required
for
purposes
of
6
unemployment
compensation
for
three
years
after
a
calendar
7
year
in
which
remuneration
that
the
records
relate
to
was
8
paid
to
the
employee.
If
the
employing
unit
did
not
pay
9
remuneration,
but
remuneration
was
due,
the
employer
shall
keep
10
records
regarding
an
employee
that
are
required
for
purposes
of
11
unemployment
compensation
for
three
years
after
the
calendar
12
year
in
which
remuneration
was
due.
13
The
bill
requires
the
department
to
conduct
field
audits
of
14
employers
by
examining
employer
records
to
determine
compliance
15
with
Code
chapter
96
and
establishes
procedures
for
such
16
audits.
Such
audits
shall
be
carried
out
by
employer
field
17
auditors
employed
by
the
department.
The
bill
authorizes
the
18
department
to
establish
additional
procedures
for
employer
19
field
audits
by
rule.
20
The
bill
requires
the
department
to
give
the
employer
21
reasonable
notice
of
the
intent
to
audit
and
provides
22
procedures
for
a
preaudit
interview
with
the
employer.
23
The
bill
provides
that
records
that
may
be
subject
to
audit
24
include
individual
pay
records,
W-2
and
1099
forms,
cash
25
disbursement
journals
and
check
registers
or
the
electronic
26
equivalent
thereof,
federal
and
state
tax
returns,
business
27
licenses
of
the
employer,
and
legal
documents
related
to
the
28
initial
establishment
of
the
business
entity
or
to
any
employee
29
to
whom
the
applicability
of
Code
chapter
96
is
in
question.
30
The
bill
requires
an
employer
field
auditor
to
conduct
31
and
document
a
detailed
audit
of
check
stubs,
weekly
time
32
cards,
the
electronic
equivalent
of
such
documents,
or
33
other
maintained
source
documents
for
at
least
one
employee
34
for
at
least
one
quarter.
The
detailed
audit
may
be
more
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487
comprehensive
if
the
employer
field
auditor
finds
discrepancies
1
in
such
records.
2
The
bill
requires
the
department
to
establish
procedures
for
3
an
employer
to
contest
an
employer
field
auditor’s
decision
4
regarding
the
applicability
of
Code
chapter
96
to
an
employee.
5
The
bill
provides
that
in
any
disputed
case,
the
employer
field
6
auditor
may,
at
the
discretion
of
the
presiding
officer,
be
7
granted
access
to
records
to
determine
the
remuneration
paid
8
for
any
calendar
quarter
at
issue
occurring
within
three
years
9
prior
to
the
department’s
issuance
to
the
employer
of
a
notice
10
of
intent
to
audit.
11
The
provision
of
the
bill
relating
to
audits
applies
to
12
audits
conducted
by
the
department
of
workforce
development
13
pursuant
to
Code
chapter
96
commencing
on
or
after
the
14
effective
date
of
the
bill.
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