ARC 5521C

ARC 5521C

WORKERS' COMPENSATION DIVISION[876]

Notice of Intended Action

Proposing rule making related to payroll tax tables and providing an opportunity for public comment

The Workers' Compensation Commissioner hereby proposes to amend Chapter 8, "Substantive and Interpretive Rules," Iowa Administrative Code.

Legal Authority for Rule Making

This rule making is proposed under the authority provided in Iowa Code section 86.8.

State or Federal Law Implemented

This rule making implements, in whole or in part, Iowa Code section 85.61.

Purpose and Summary

The purpose of the rule making is to update references to the tables which determine payroll taxes.

Fiscal Impact

The Commissioner is responsible for updating the tax tables annually. This rule making has no fiscal impact to the State of Iowa.

Jobs Impact

After analysis and review of this rule making, no impact on jobs has been found.

Waivers

This amendment does not include a waiver provision because rule 876—12.4(17A) provides the specific situations for waiver of Workers' Compensation Division rules.

Public Comment

Any interested person may submit written comments concerning this proposed rule making. Written comments in response to this rule making must be received by the Commissioner no later than 4:30 p.m.on April 13, 2021. Comments should be directed to:

Public Hearing

No public hearing is scheduled at this time. As provided in Iowa Code section 17A.4(1)"b," an oral presentation regarding this rule making may be demanded by 25 interested persons, a governmental subdivision, the Administrative Rules Review Committee, an agency, or an association having 25 or more members.

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

The following rule-making action is proposed:

Amend rule 876—8.8(85,17A) as follows:

876—8.8(85,17A) Payroll tax tables. Tables for determining payroll taxes to be used for the period July 1, 2020 2021, through June 30, 2021 2022, are the tables in effect on July 1, 2020 2021, for computation of:

1.Federal income tax withholding according to the percentage method of withholding for weekly payroll period. (Federal Income Tax Withholding Methods, Publication 15-T [ 2019 2021].)

2.Iowa income tax withholding for weekly pay period Iowa individual income tax withholding formula. (Iowa Department of Revenue Iowa Withholding Tax Rate Tables [Effective January 1, 2020 2021].)

3.Social Security and Medicare withholding (FICA) at the rate of 7.65 percent. (Internal Revenue Service, Circular E, Employer's Tax Guide, Publication 15 [ 2019 2020].)

This rule is intended to implement Iowa Code section 85.61(6).