A bill for an act relating to unemployment insurance taxes on employers.
Impact
The bill modifies the way taxable wages are calculated, specifically excluding wages paid to employees from other states under certain reciprocity conditions. This change is expected to reduce the tax burden on Iowa employers as the maximum contribution rate is lowered from 9.0% to 7.0%. Additionally, the bill incentivizes employers to redirect any savings from reduced contributions towards employee salaries, benefits, or to provide alternatives during seasonal unemployment, which may ultimately support job retention in the state.
Summary
Senate Study Bill 1189 aims to amend Iowa's unemployment insurance tax structure by revising the calculation of employer contributions. The bill proposes reducing the number of contribution rate tables from eight to four, streamlining the tax process for employers. This change is designed to simplify the classification of employers based on their benefit ratio ranks, which will now be divided into nine ranks instead of the previous 21. The higher the benefits charged against an employer, the higher their rank, which directly influences their tax contribution rate.
Contention
Despite the benefits proposed by SSB1189, there are notable points of contention. Critics may argue that while the bill offers immediate tax relief, it could lead to reduced funds available for unemployment benefits during economic downturns. There are concerns regarding the potential long-term impacts on Iowa's unemployment compensation fund and whether such tax reductions could jeopardize the stability of the fund during future crises. Thus, while the restructuring of contribution rates aims to assist employers, the implications for unemployed workers remain a significant concern.
A bill for an act relating to state taxation and appropriations by combining special purpose funds, modifying individual income tax rates, placing assessment limitations for property tax purposes on commercial child care facilities, and modifying unemployment benefits, and including effective date and retroactive applicability provisions.
A bill for an act relating to state taxation and appropriations by combining special purpose funds, modifying individual income tax rates, placing assessment limitations for property tax purposes on commercial child care facilities, and modifying unemployment benefits, and including effective date and retroactive applicability provisions.(See SF 2398.)
A bill for an act relating to employer recordkeeping and auditing requirements for purposes of unemployment insurance and including applicability provisions.
A bill for an act relating to a family leave and medical leave insurance program that provides for paid, job-protected leave for certain family leave and medical leave reasons for eligible employees of specified employers.
A bill for an act relating to employment matters involving public employees including collective bargaining, educator employment matters, personnel records and settlement agreements, city civil service requirements, and health insurance matters, and including effective date, applicability, and transition provisions.
Provides for transfers from General Fund to UI trust fund, reduces employer contributions to UI trust fund, assesses contributions from employers to repay transferred amounts, and provides tax credits to small businesses to offset UI tax increases.
Prevents future tax increases based on revisions to employee unemployment tax wage base; allocates $100 million to unemployment compensation fund from federal government assistance.
Prevents future tax increases based on revisions to employee unemployment tax wage base; allocates $100 million to unemployment compensation fund from federal government assistance.
Provides for transfers from General Fund to UI trust fund, reduces employer contributions to UI trust fund, assesses contributions from employers to repay transferred amounts, and provides tax credits to small businesses to offset UI tax increases.
Allocates sufficient funds to unemployment compensation fund from federal government assistance and halts increases in employer unemployment taxes related to benefits paid during coronavirus disease 2019 pandemic state of emergency.
Allocates $2.5 billion to unemployment compensation fund from federal government assistance and halts increases in employer unemployment taxes related to benefits paid during coronavirus disease 2019 pandemic state of emergency.
Allocates $2.5 billion to unemployment compensation fund from federal government assistance and halts increases in employer unemployment taxes related to benefits paid during coronavirus disease 2019 pandemic state of emergency.