Small businesses originally slated to make first-quarter unemployment insurance tax payments by April 30 have received an extension until the end of the second quarter, on July 31, Gov. Kim Reynolds said Monday.
No interest or penalties will accrue for delayed payments from eligible employers with 50 or fewer employees and in good standing, with no outstanding delinquencies on previous quarterly tax payments.
Beth Townsend, director of Iowa Workforce Development, said more than 95 percent of Iowa businesses, or 72,264 employers, have 50 or fewer employees.
Those businesses employ a total of 417,536 Iowans and pay around $4.2 billion in wages, she noted.
“Providing an extension to paying unemployment insurance taxes will help the vast majority of employers during this difficult time,” Townsend said in a news release.
The interest-free payment deadline extension does not constitute a holiday or forgiveness, and employers still must file quarterly reports, with employee wage data necessary for computing benefits eligibility and amounts to be paid, according to Iowa Workforce Development.
Businesses that intend to use the extension must notify the agency by 4:30 p.m., April 24.
“Iowa’s small businesses are the lifeblood of our communities and the engine behind our economy,” Reynolds said in the release. “Now more than ever we need to make sure they have the ability to manage their cash flow. It’s critically important that we continue to take steps in support of our small business community during these challenging times.”
Employers interested in taking advantage of the extension can contact Iowa Workforce Development’s Unemployment Insurance Tax division at (888) 848-7442 or Q1tax@iwd.iowa.gov.
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The agency recommends interested employers reach out via email due to an expected high call volume and possible extended wait times.
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