First Benefit Payment
The first payment is issued approximately three weeks after an application for UI benefits is processed, if all the eligibility requirements are met. Payments may be delayed until all outstanding issues are resolved.
Method of Payment
All individuals who file an unemployment insurance claim will be mailed an Iowa Workforce Development (IWD) Debit Card managed by Bank of America. The card will not expire for three years, so please do not destroy the card when once unemployment insurance ends. The same card should be used if unemployment insurance benefits are needed in the future. Any payments made by IWD will be deposited to the IWD Debit Card.
The benefit payment is deposited three to four business days after the weekly claim is filed, if all eligibility requirements are met. Holidays may delay the payment.
The IWD Debit Card is issued and serviced by Bank of America. A new card may take seven to ten business days to arrive. Through the website, cardholders can:
- Check the account balance
- Review transaction history
- Sign up for balance alerts (text messages and email)
- Sign up for notification of deposits by email
Bank of America customer service is available 24/7 for card inquiries at:
- 866-656-5913 (TTY)
- Only IWD can update an individual’s personal information with Bank of America.
- Address or name changes should be reported to IWD.
- Card account balance and transaction history are not available to IWD staff.
- To report a lost or stolen card or order a replacement card, Bank of America must be contacted directly by the individual.
Child Support Deduction
The Child Support Recovery Unit may withhold up to 50 percent of an individuals UI benefit payment for a child support obligation. The individual is mailed a notification with the beginning date and the amount of the deduction. The amount withheld is included on the IRS Form 1099-G, since it was paid to another agency on the individuals behalf. Requests to modify or stop the deductions must be made to the Child Support Recovery Unit or through the court system.
Individuals are responsible for repaying any benefits they were not eligible to receive. Future UI benefit payments are withheld until the non-fraud overpayment has been recovered in full. If the individual is not making attempts to repay the overpayment, the debt may be recovered by withholding state and federal tax refunds, casino and lottery winnings, and vendor payments. Overpayments caused by fraud include a 15 percent penalty. All overpayments are assessed interest of 1/30th of 1 percent per day until the debt is paid in full. Individuals with fraud debt are not eligible to receive benefits until the debt, including penalty, interest and fees have been paid in full.
NOTE: Overpayment amounts include payments received by the individual and payments made on behalf of the individual to revenue agencies for tax withholdings or to the Child Support Recovery Unit.
UI benefits are taxable. UI payments of $10.00 or more are reported annually to the Internal Revenue Service and the Iowa Department of Revenue and Finance. An Internal Revenue Service (IRS) Form 1099-G is mailed by January 31 of each year. This form provides important tax information that must be reported on the state and federal income tax returns, such as the amount of benefits paid during the tax year and the amount of state and federal taxes withheld.
IWD can withhold 10 percent of the benefit payment for federal taxes and 5 percent for Iowa taxes. Individuals elect tax withholdings on their application for UI benefits. To make changes in tax withholdings, the Tax Withholding Agreement Form 60-0351 must be submitted to IWD.