Iowa employers will not see unemployment tax rate changes through 2022. Tax rates that are used to fund unemployment benefits will be the second lowest allowed by law for the fifth consecutive year.

$490 million of CARES Act coronavirus relief funds were used to support the unemployment trust fund in 2020.

“Remaining in Tax Table 7 ensures Iowa businesses will continue to recover from the pandemic without facing additional costs,” Beth Townsend, Director of Iowa Workforce Development said. “And like employers, we are working hard to make sure they have the skilled workforce they need to continue their recovery.”

Iowa Workforce Development is required by Iowa law to establish a table to determine the unemployment tax rates that will impact eligible employers every year. The unemployment insurance rate table trigger is created based on a formula that is primarily based on the balance in Iowa unemployment insurance trust fund, unemployment benefit history, and covered wage growth. Based on this formula, contribution rates will continue to come from Table 7 during the 2022 calendar year.