(The Center Square) – Iowa businesses will pay the same unemployment insurance rate in 2024 as in 2023, the Iowa Workforce Development said Monday.
Businesses will pay between 0% and 7% based on Table 8, the state’s lowest tax table, according to IWD. The switch from Table 7 to Table 8 in 2023 saved employers paying the median rate of $72.20 per employee with a salary of $36,100.
The department bases the rate on the unemployment insurance trust fund balance, unemployment benefit history and covered wage growth, IWD said in a news release.
Gov. Kim Reynolds used federal COVID-19 relief money to stabilize the unemployment trust fund, according to IWD. A $490 million investment from the Coronavirus Aid, Relief and Economic Security Act was made into the fund in 2020 and $237 million in money from the American Rescue Plan Act was directed into it in 2021.
“Under the leadership of Governor Reynolds, Iowa’s wise investments and prudent stewardship of the Unemployment Insurance Trust Fund have allowed us to provide stability to Iowa’s employers,” said Beth Townsend, executive director of Iowa Workforce Development. “Additionally, the positive impact of returning Iowans to work in the shortest time possible through the efforts of the Reemployment Case Management program have helped to keep the UI Trust Fund healthy and well-funded.”
The labor force participation rate is 68.8% for July, the same as in March 2020 before the COVID-19 pandemic, according to a report. The state’s unemployment rate is 2.7% below the national rate of 3.5%.
The number of new jobs added from July 2022 to July 2023 is 14,400, according to data from IWD.
“Today’s announcement will be welcome news to any Iowa business that may be fearing the impact of the uncertainty in the economy on a national level,” Reynolds said. “We have done everything possible to insulate Iowa employers from ongoing inflation and other rising costs and our efforts have ensured that the tax burden for employers in Iowa will be the lowest possible rate for the second time in the last 25 years.”