(DES MOINES) – Beginning January 1, Iowa employers will see unemployment insurance taxes decrease an average of 25% on 2018 wages. The decrease is a result of the strength of the unemployment insurance trust fund, unemployment contributory wages and target levels of the unemployment insurance contributory wages. Yearly rates are determined by a formula.
“This shift is a clear signal that the integrity of our unemployment insurance trust fund is solvent and strong,” Iowa Workforce Development (IWD) Director Beth Townsend said. “A decrease in taxes to employers is a positive factor that can contribute to economic growth in the state.”
Gov. Kim Reynolds also praised the stability in the unemployment insurance trust fund.
“With our unemployment insurance trust fund consistently in the top 20, Iowa is well positioned to support our workforce and enable our employers to continue to grow their businesses,” she said. “Maintaining a low tax rate for employers will help attract new employers to the state.”
In 2018, Iowa’s employers will be in Table 7 of 8 possible tables (with 8 being the most favorable). Iowa law requires IWD to establish the tax table that will be used to determine the unemployment tax rate for eligible employers each year.