Iowa Admin. Code r. 871-23.22 - Employees of contractors and subcontractors
(1) If
one employer contracts with another employing unit for any work that is part of
the first employer 's usual business, the first employer is liable for any
contributions based on wages paid by the second employing unit in connection
with the work if the second employing unit is not liable to pay
contributions .
(2) Employees of the
second contractor are counted as employees of the first contractor while
performing services on the contract for the first contractor.
This rule is intended to implement Iowa Code section 96.1A(15).
Notes
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(1) If one employer contracts with another employing unit for any work which is part of the first employer 's usual business, the first employer is liable for any contributions based on wages paid by the second employing unit in connection with the work providing the second employing unit is not liable to pay contributions .
(2) Employees of the second contractor are counted as employees of the first contractor while performing services on the contract for the first contractor.