Iowa’s Employer Unemployment Insurance Tax Tables Continue Improvement in 2014
Tax Tables Move in a Positive Direction, 3rd Year in a Row
DES MOINES, IOWA – Iowa Workforce Development announced today that employers will see approximately $104 million dollars in tax savings by moving from tax table five to table six. The average rate will fall from 2.0 percent to 1.6 percent for 2014.
This marks the third year in a row for positive movement, and will save Iowa businesses nearly half a billion dollars in tax savings, which can be reinvested to further encourage job growth.
“This change demonstrates the continued improvement in Iowa’s economy,” stated Iowa Workforce Development director Teresa Wahlert. “Iowa continues to demonstrate stability within the Unemployment Insurance Trust Funds and has moved the tax rates in a positive direction for businesses three years in a row.”
In 2014, the Unemployment Insurance Tax Table will move in a positive direction to Table 6. The new employer non-construction rate will decrease from 1.1 percent to 1.0 percent in 2014, the lowest permitted rate by federal law.
“The people of Iowa have our commitment to carefully manage the trust fund in the coming year to continue this beneficial trend for Iowa businesses. Iowa has one of the lowest UI tax rates in the nation,” stated Wahlert.
Iowa Workforce Development is the state agency charged with collecting unemployment insurance taxes from employers and operating Iowa’s unemployment insurance payment programs for workers. Annually, Iowa Workforce Development identifies the appropriate table for the following year. Unemployment tax rates are based on wages and recent unemployment benefit payments.
Due to the design of Iowa’s unemployment tax system developed under Governor Branstad’s administration in the 1980’s and Iowa Workforce Development’s diligent oversight of the UI Trust Fund throughout the national recession and recovery, Iowa businesses will benefit with an average decrease in taxes.
Throughout the state, Iowa Workforce Development provides critical services and resources to support the prosperity, productivity, health and safety of Iowans and their communities. Services are available in 15 regional centers, four satellite offices and hundreds of Virtual Access Points.