Business

Unemployment insurance tax rate to remain same in 2021

Gov. Reynolds' allocation of $490 million of CARES Act funding avoids tax increase

Gov. Kim Reynolds listens to Czech Village real estate investor Mary Kay Novak McGrath speak during a tour of small busi
Gov. Kim Reynolds listens to Czech Village real estate investor Mary Kay Novak McGrath speak during a tour of small businesses in the Czech Village affected by the Aug. 10 derecho storm in Cedar Rapids on Tuesday, Aug. 25, 2020. (Andy Abeyta/The Gazette)

The unemployment insurance tax rates for Iowa employers will remain the same in 2021, Iowa Workforce Development said Monday morning.

Each year, the balance of the unemployment insurance trust fund on June 30 or Aug. 15 — whichever is higher — determines the tax level for the following year.

Iowa Workforce Development has paid an unprecedented amount of unemployment claims this year, but Gov. Kim Reynolds allocated $490 million in CARES Act funding to the trust fund.

“Remaining in Tax Table 7 is key to Gov. Reynolds’ overall recovery strategy,” Iowa Workforce Development Director Beth Townsend said in a statement.

“Her decision will save Iowa employers over $400 million in unemployment insurance taxes in 2021 and significantly reduce the impact of the pandemic on employers.”

Comments: (319) 398-8394; john.steppe@thegazette.com

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