Governor Kim Reynolds announced that unemployment insurance tax rates for Iowa employers will remain unchanged for 2022 in a press release by the Iowa Workforce Development Department.
2022 tax rates will hold steady as compare to 2021 and tax rates will be calculated using Tax Table 7, with total tax rates for experience-rated employers ranging from 0.00% to 7.50%. Despite the rate ranges remaining the same, some employers could still see a shift in tax rates due to a change in the benefit ratios and their corresponding tax rates within the schedule. Additionally, the total tax rate for new non-construction employers will be 1.00% and the total tax rate for new construction employers will be 7.50%.
“Remaining in Tax Table 7 ensures Iowa businesses will continue to recover from the pandemic without facing additional costs,” Townsend said. “And like employers, we are working hard to make sure they have the skilled workforce they need to continue their recovery.”
Iowa law requires Iowa Workforce Development to establish a table to determine the unemployment tax rates that will impact eligible employers each year. The unemployment insurance rate table trigger is derived from a formula based primarily on the balance in Iowa’s unemployment insurance trust fund, unemployment benefit history, and covered wage growth. Based on this formula, contribution rates will continue to be drawn from Table 7 (out of eight possible tables) in calendar 2022.
The taxable wage base will increase for 2022 to $34,800 from $32,400 in 2021. This represents a 7.4% increase year over year.
As always, we will continue to monitor this situation and provide updates as they become available. If there are any questions please do not hesitate to contact us or visit our website for the latest news and updates.