; opt-Out (1) In general 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). (2) Automatic contribution rates 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). (3) Opt-out 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. (c) Penalties (1) Penalty 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