Iowa Administrative Code › Agency 871 - Workforce Development Department › Chapter 22 - Employer Records and Reports › Rule 871-22.17 - Procedures of Field Auditors

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
			 Field auditors are to provide a cost-effective method of promoting employers'
			 understanding of employer rights and responsibilities under Iowa unemployment
			 insurance laws.
(2) The department,
			 through duly appointed field auditors, may examine an employer's records at any
			 time, subject to the limitations of
			 871-22.1 (96), to determine
			 compliance with Iowa Code chapter 96.
(3) The department has enforcement authority.
			 An employer, when requested to produce records by an auditor, must make the
			 records available within and at a reasonable time to the auditor. If an employer
			 does not comply with the auditor's request to produce records, a subpoena duces
			 tecum may be served on the employer to appear before the auditor with the records
			 in accordance with Iowa Code section
			 96.11, subsections 8 and
			 9.
(4) The department, through duly
			 appointed field auditors, may perform a systematic audit of an employer's records
			 as authorized by Iowa Code section
			 96.11, subsection 7, and as
			 mandated by the United States Department of Labor. In addition to the provisions
			 of subrules 22.17(1) to 22.17(3), the following provisions apply to systematic
			 audits:
a. The employer is to be given
			 reasonable notice of the intent to audit, and a preaudit interview is to be
			 conducted with the employer or a designated representative.
b. The records required, if maintained, may
			 include individual pay records, Internal Revenue Service Forms W-2 and 1099, cash
			 disbursement journal, check register, chart of accounts, general ledger, balance
			 sheet, profit and loss statement, federal and state tax returns and other records
			 to the extent they relate to possible hidden or misclassified wages.
c. To verify the existence of the business, the
			 auditor may require a visit to the business premises or to see other evidence of
			 legitimate business activity.
d. To
			 verify the correct business entity is listed on department files, the auditor may
			 examine various employer business licenses, legal documents or other tax
			 returns.
e. To verify the reporting
			 of all workers reportable to the department under Iowa Code chapter 96,
			 questionable entries will be investigated and documented. Under rule
			 871-22.7 (96), if the employer
			 disagrees with the audit decision on coverage of a worker, the auditor may
			 require the employer to complete Form 68-0192, Questionnaire for Determining
			 Status of Workers. In any disputed case, the auditor is to be granted access to
			 records as necessary to determine the remuneration paid for any given calendar
			 quarter.
f To verify proper employer
			 posting to department reports, a detailed audit of check stubs, weekly time
			 cards, or other maintained source documents will be made and documented for at
			 least one worker for at least one quarter. The detailed audit may be more
			 comprehensive at the discretion of the auditor or if discrepancies are
			 found.
g. Employer records will be
			 compared and reconciled to amounts reported to the department on contribution and
			 payroll reports and audit findings documented.
h. Discrepancies will be resolved or explained,
			 and report adjustments prepared as necessary.
i. The audit will cover four calendar quarters;
			 however, if material errors are found, the audit may be expanded to cover prior
			 or subsequent years subject to limitations of subrule 22.1(1). The auditor will
			 review and correct similar errors in a minimum of a year prior to and after the
			 audited year.
j. Additional amounts
			 due will be calculated and collected, including applicable interest and
			 penalties, or an explanation will be given. The employer may be required to
			 submit a payment plan.
k. When the
			 audit is completed, the audit will be discussed with the employer or a
			 representative designated by the employer. The employer will be furnished copies
			 of any wage adjustments, supplemental reports or delinquent reports prepared by
			 the auditor. An audit report with all worksheets, adjustments and reports will be
			 retained by Iowa workforce development.