Sec. 104. Enrollment
603 words·~3 min read·
/bill/118/s/3102/is/section-104·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary of the Treasury and the Executive Director shall jointly establish an enrollment process for participating employers to enroll qualifying workers to participate in the Fund that incorporates, to the extent practicable, such enrollment and participant contributions under section 105(a) into Federal tax withholding forms and payments. Such process shall provide that a business operating on the date of the establishment of the Fund shall complete such enrollment process for any qualifying worker as of such time no later than the date that is 1 year from such date.
In the case of independent contractors who are qualifying workers, the enrollment process shall allow businesses who have contracts with such qualifying workers to elect to enroll such qualifying workers to participate in the Fund. An election (or failure to make an election) by a business under subparagraph
(A)with respect to any independent contractor who is a qualifying worker shall not be relevant to the classification of such worker as an independent contractor under any Federal, State, or local law. Each participating employer shall enroll each of its qualifying workers to participate in the Fund under subsection
(a)unless such qualifying worker elects to opt out of participating pursuant to paragraph (3). A qualifying worker who is a sole proprietor or independent contractor shall enroll or elect to opt out of participating pursuant to paragraph (3). Each qualifying worker enrolled under paragraph
(1)shall be automatically enrolled to make contributions under section 105(a) at the default percentage of 3 percent of the qualifying worker’s compensation from the employer for such period as shall be established by regulation under section 105(a)(3). A qualifying worker may elect to opt out of participating in the Fund pursuant to procedures established jointly by the Secretary of the Treasury and the Executive Director as part of the regulations governing the enrollment process set forth in subsection (a). If a qualifying worker elects to opt out of participating in the Fund, such qualifying worker shall not be enrolled in subsequent years unless the qualifying worker elects to participate in the Fund. The Secretary of the Treasury and the Executive Director shall determine procedures to establish accounts for qualifying workers who elect to opt out of participating in the Fund who are determined to be eligible for automatic contributions or who would make contributions otherwise allowable by law outside the withholding process. A participating employer who fails to enroll a qualifying worker pursuant to subsection
(b)or fails to deposit in the Fund the amount of a participant’s contributions under section 105(a) shall be subject to a penalty equal to the applicable penalty percentage of the amount of the contributions by the qualifying worker or participant, as the case may be, that the participating employer fails to deposit due to failure to enroll the qualifying worker or otherwise deposit such funds. The Secretary of the Treasury and the Executive Director shall jointly prescribe regulations under which a participating employer shall be required to pay to the Fund amounts representing lost earnings resulting from errors made by such participating employer in carrying out this section. The term applicable penalty percentage means— 2 percent if the failure is for not more than 5 days; 5 percent if the failure is for more than 5 days but not more than 15 days; and 10 percent if the failure is for more than 15 days. The Secretary of the Treasury shall credit to the Fund, out of any sums in the Treasury not otherwise appropriated, the amount determined by the Executive Director to be necessary to carry out this section and section 105(d).