Bill H.B. 551
This bill would provide that if the Department of Workforce Development (“Department”) finds that an employer willfully failed to pay any contribution for state unemployment compensation with intent to defraud the Department, and that the failure to pay by the employer involved the misclassification of an employee’s wages on a Federal 1099 record, for any subsequent finding by the Department of such a failure to pay by that employer involving the misclassification of an employee’s wages on a Federal 1099 record, the additional contribution penalty required would equal 100 percent of the amount the employer failed to pay due to misclassification. Current law provides that such an additional contribution penalty equals 50 percent of the amount the employer failed to pay.
