D
EFINITIONS
"EXTRAORDINARY PAY" means remuneration which is not paid on a regularly
"EMPLOYEE" is an individual who performs service for an employing unit which
is considered liable for state unemployment taxes.
recurring basis to the employee such as a bonus, executive pay, profit sharing,
severance pay, etc.
A worker is classified as an employee and not an independent contractor when
"TAXABLE WAGES" means exactly the same as total wages until the "taxable
the entity for which services are being performed has the right to direct and
wage base" in effect for the particular calendar year is reached on each
control the worker, not only as to the result to be accomplished, but also by the
employee. The taxable wage base changes each year and is printed on all Iowa
details and means by which the result is accomplished. Decisions on disputed
Workforce Development computer generated tax forms.
employee versus independent contractor issues will be rendered by the Tax
Bureau.
Year and Taxable Wage Base
2000
$17,300
Length of service has no bearing on whether or not a worker is an employee.
1999
$16,500
Employees may be full-time, part-time, casual, temporary, intermittent, probation-
1998
$15,700
ary or on-call.
1997
$15,200
1996
$14,700
Certain workers are not considered "employees" for unemployment purposes.
1995
$14,200
The following is a listing of the more commonly exempt workers.
A. Individual owner of a business (sole proprietor).
B. Partners of a partnership.
EXAMPLE: For 2000, report all gross wages paid, but pay tax only up to the
C. Father or mother working for a son or daughter or a child under 18
taxable base of $17,300.00 for each employee. Example applies to a worker with
years of age in the employ of their father or mother (sole proprietor-
$5,000.00 wages a quarter.
ship). Children under 18 years of age in the employ of a partnership
consisting of father and mother. Family exemptions do not apply when
business ownership is incorporated.
Qtr
Total Wages
Taxable Wages
D. Husband or wife working for his or her spouse (sole proprietorship).
1
$5,000.00
$5,000.00
E. Service performed by a student for an employer as a formal and
2
$5,000.00
$5,000.00
accredited part of the school curriculum.
3
$5,000.00
$5,000.00
F. Independent Contractor as defined by Administrative Rule 23.19(1)-(7).
4
$5,000.00
$2,300.00
Other services or workers may be exempt. If any doubt exists, contact the field
EXPLANATION FOR #13 ON EMPLOYER'S CONTRIBUTION AND PAYROLL
auditor at the Workforce Center nearest you. Field office locations and telephone
numbers are listed in this tax booklet.
REPORT:
13.
Iowa Account Number
For Months Of
Qtr Yr
NOTE: OMIT EXEMPT WORKERS ENTIRELY FROM THE CONTRIBUTION
B B B B B
A A A A A
C C C C C
AND PAYROLL REPORT.
Year
Taxable Wage Base
Contribution Rate
Surcharge Rate
D D D D D
E E E E E
F F F F F
G G G G G
"TOTAL WAGES" for state unemployment insurance (SUTA) purposes means
all remuneration paid during the calendar quarter to an employee for services
Federal ID Number
Delinquent After Date
H H H H H
performed for the employer. Wages include commissions, bonuses, tips and the
I I I I I
cash value of some fringe benefits, including some employer portions of cafeteria
plans.
Employer Name & Address
J J J J J
Deductions from an employee's wages (employee's contribution) such as
deferred compensation, pre-tax insurance plans, retirement plans and many
cafeteria plan benefits are considered wages for state unemployment insurance
purposes. Generally, if the employee can choose cash instead of a benefit, the
cost of the benefit is considered wages for state unemployment insurance
(SUTA) purposes.
Benefits specifically exempted from the definition of "Wages" include:
A. Seven-digit number assigned by Iowa Workforce Development.
B. Calendar quarters are used when filing Employer's Contribution and
A. Payments made by the employer under a specific plan (each
Payroll Reports. This area shows the three months covered on each
employer's established procedures):
report.
• sick pay
• medical and hospital expense
C. Calendar quarter and year for which this report is being filed.
• accident disability
• death benefits
D. Calendar year for which the taxable wage base applies.
E. Maximum wages subject to tax for each employee for the calendar
B. Retirement benefit payments made by an employer with or without a
year.
specific plan.
F. Tax rate assigned to your account by Iowa Workforce Development for year
indicated (expressed as a percentage).
C. Payments made by an employer without a specific plan:
G. Legislated surcharge rate (expressed as a percentage), if it applies.
• sick pay after six months
H. Number assigned to your business by the Internal Revenue Service
• accident disability after six months
(not your personal Social Security Number).
• medical and hospitalization expense after six months
I. Your report is delinquent after this date. See Item 6 in instructions.
NOTE: Total wages are the basis for payment of unemployment benefit claims. It
J. Name and address-of-record for mailing of all Iowa unemployment tax
is important that these are correctly reported for each quarter.
documents.