|
|
|
Gov. Reynolds signs bill to reform unemployment insurance taxes
DES MOINES— Today, Governor Kim Reynolds signed SF 607, a bill lowering the unemployment insurance taxable wage base and decreasing the maximum unemployment insurance tax rate.
“Iowans are finding new jobs, on average, in just nine weeks. As a result, our unemployment trust fund is full,” Gov. Reynolds said. “Our nearly $2 billion fund balance is the ninth highest in the country even though we’re 32nd for population. With this legislation, we will reduce the unemployment insurance payments that employers make by half, resulting in nearly $1 billion in savings for businesses of all sizes and allowing employers to reinvest into their workers and communities.”
SF 607 decreases the unemployment insurance taxable wage base by 50%. The bill also simplifies the unemployment tax tables and decreases the maximum tax rate from 9% to 5.4%.
The bill goes into effect July 1, 2025.
“Iowans are finding new jobs, on average, in just nine weeks. As a result, our unemployment trust fund is full,” Gov. Reynolds said. “Our nearly $2 billion fund balance is the ninth highest in the country even though we’re 32nd for population. With this legislation, we will reduce the unemployment insurance payments that employers make by half, resulting in nearly $1 billion in savings for businesses of all sizes and allowing employers to reinvest into their workers and communities.”
SF 607 decreases the unemployment insurance taxable wage base by 50%. The bill also simplifies the unemployment tax tables and decreases the maximum tax rate from 9% to 5.4%.
The bill goes into effect July 1, 2025.
