FOR IMMEDIATE RELEASE
September 7, 2016
Contact: Courtney Greene
Iowa Workforce Development Releases Employer Unemployment Insurance Tax Table for 2017
Des Moines, IA – Iowa law requires Iowa Workforce Development establish the tax table that will be used to determine the unemployment tax rate for eligible employers each year. The unemployment insurance rate table trigger formula is primarily based on the trust fund balance, unemployment benefit payment history and covered wage growth. The formula is designed to enable the trust fund to keep pace with potential liabilities as covered employment and wages grow.
Based on this formula, the contribution rate table will remain in Table 6 in 2017. Table 6 is the most frequently triggered table. The contribution rate Table 6 has been in effect 10 out of the last 15 years.
Iowa Workforce Development Director Beth Townsend praised the stability within the Unemployment Insurance Trust Fund saying, “The average contribution rate for employers will be 1.57 percent. We still have a large number of zero-rated employers and Iowa’s unemployment tax rate remains low, due to the strength of our Unemployment Insurance Trust Fund.”
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