HLS 22RS-789 ORIGINAL
2022 Regular Session
HOUSE BILL NO. 241
BY REPRESENTATIVE RISER
LABOR: Provides relative to the Fresh Start Proper Worker Classification Initiative
1 AN ACT
2To amend and reenact R.S. 23:1772(A)(1) and (C), relative to the Fresh Start Proper Worker
3 Classification Initiative; to provide for an application period; to require the payment
4 of unemployment taxes and interest; to provide for the forgiveness of penalties; to
5 allow for a payment schedule; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 23:1772(A)(1) and (C) are hereby amended and reenacted to read as
8follows:
9 ยง1772. Fresh Start Proper Worker Classification Initiative
10 A. The Fresh Start Proper Worker Classification Initiative is optional and
11 provides a taxpayer with an opportunity to voluntarily reclassify his worker as an
12 employee for a future tax period. To be eligible, a taxpayer shall meet all of the
13 following requirements:
14 (1) Apply to the Fresh Start Proper Worker Classification Initiative between
15 January 1, 2022 2023, and December 31, 2022 2023.
16 * * *
17 C.(1) An eligible taxpayer that participates in the Fresh Start Proper Worker
18 Classification Initiative agrees to prospectively treat the class or classes of workers
19 identified in the application as employees for future tax periods and is not liable for
20 any withholding tax, unemployment tax, interest, or penalties with respect to any
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 22RS-789 ORIGINAL
HB NO. 241
1 amounts paid to any workers before the date on which the taxpayer is accepted for
2 participation in the Fresh Start Proper Worker Classification Initiative.
3 (2) Notwithstanding any other provision of law to the contrary, an eligible
4 taxpayer shall remain obligated for all unemployment taxes and interest due for any
5 applicable look-back period but he shall not be liable for any penalties otherwise
6 related thereto.
7 (3) An eligible taxpayer may request that the Louisiana Workforce
8 Commission develop with the taxpayer a reasonable payment schedule for
9 unemployment taxes owed for the look-back period.
10 * * *
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 241 Original 2022 Regular Session Riser
Abstract: Provides relative to the Fresh Start Proper Worker Classification Initiative.
Present law provides that the Fresh Start Proper Worker Classification Initiative is optional
and provides a taxpayer with an opportunity to voluntarily reclassify a worker as an
employee for a future tax period. Present law further provides that in order to be eligible,
a taxpayer shall meet all of the following requirements:
(1)Apply to the Fresh Start Proper Worker Classification Initiative between Jan. 1,
2022, and Dec. 31, 2022.
(2)Produce a certificate of proof of workers' compensation coverage for the employee.
(3)Enter into a closing agreement with the La. Workforce Commission (LWC) and the
La. Dept. of Revenue.
Proposed law changes the time frame for applying to the initiative from Jan.1, 2022 through
Dec. 31, 2022, to between Jan. 1, 2023, through Dec. 31, 2023. Proposed law otherwise
retains present law.
Present law provides that an eligible taxpayer that participates in the initiative agrees to
prospectively treat the class or classes of workers identified in the application as employees
for future tax periods. Present law further provides that the taxpayer is not liable for any
withholding tax, unemployment tax, interest, or penalties with respect to any amounts paid
to any workers before the date on which the taxpayer is accepted into the initiative.
Proposed law provides that the taxpayer is liable for any unemployment tax. Proposed law
otherwise retains present law.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 22RS-789 ORIGINAL
HB NO. 241
Proposed law provides that an eligible taxpayer shall remain obligated for all unemployment
taxes and interest due for any applicable look-back period; however, he shall not be liable
for any penalties.
Proposed law provides that an eligible taxpayer may request that LWC develop with the
taxpayer a reasonable payment schedule for unemployment taxes owed for the look-back
period.
(Amends R.S. 23:1772(A)(1) and (C))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.