A bill for an act relating to unemployment insurance taxes on employers.

This bill (SSB 1173) changes how Iowa employers calculate unemployment insurance taxes. It reduces the percentage used to determine taxable wages from 66.66% to 33.33% of the statewide average weekly wage, and revises the system for setting employer contribution rates based on the unemployment fund's reserve ratio. Employers will now use updated contribution rate tables that group businesses into nine benefit ratio ranks, with rates ranging from 0.00% to 5.40% depending on their historical claims. Employers saving money from these changes must use the savings for employee salaries, benefits, or seasonal unemployment alternatives. The bill directly affects all Iowa employers paying unemployment insurance taxes.