Iowa Admin. Code r. 871-23.18 - Nature of relationship between employer-employee

(1) Commission salespersons and insurance solicitors. Commission salespersons are considered employees and wages are subject to unemployment tax unless there is a department-approved independent contractor agreement in place.
(2) Directors and officers of a corporation. Directors who receive a reasonable fee for attending meetings and who perform no other services are not employees of the corporation. Officers of associations and corporations who perform services for the associations or corporations are employees.
(3) Members of family.
a. Services performed by an individual in the employ of a son, daughter, or spouse, and services performed by a child under the age of 18 in the employ of a father or mother are exempt from the provisions of this chapter.
b. Services performed by a foster parent in the employ of a foster child, by a stepparent in the employ of a stepchild, and by a child under the age of 18 years in the employ of a stepparent or foster parents are exempt from the provisions of this chapter.
c. Services performed by a son or daughter over the age of 18 as an approved provider for consumer-directed care in the employ of a father or mother who is an approved consumer of a home- and community-based waiver services program are exempt from the provisions of Iowa Code chapter 96.
(4) Aliens. This chapter makes no distinction between citizens and lawful aliens. Lawful aliens in nonexempt employment are counted in determining whether the employer is subject to the Act and are covered by the contribution and benefit provision.
(5) Aged and minor employees. Contributions are payable upon services rendered by an employee regardless of the age of the employee.
(6) Family employment. Parents, spouse and minor children under the age of 18 years working for an individual proprietor are exempt from the provisions of this chapter. If such individuals are employed by a partnership, the exemption only applies if such a relationship exists between the worker and each member of the partnership. This exemption is not applicable to corporations or to limited liability companies.
(7) Partners. Bona fide partners are not considered employees even though they receive salaries.
(8) Apprentices-clerks. This chapter makes no exceptions for persons serving a clerkship or other form of apprenticeship.
(9) Members of a limited liability company. Members of a limited liability company that perform services other than for the purpose of acquiring membership in the limited liability company are employees.

This rule is intended to implement Iowa Code section 96.1A(16).

Notes

Iowa Admin. Code r. 871-23.18
ARC 8711B, IAB 5/5/10, effective 6/9/10 Adopted by IAB January 22, 2025/Volume XLVII, Number 15, effective 2/26/2025

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