US EditionGov. Kim Reynolds Signs $1.2 Billion Unemployment Tax Cut for Businesses Into Law
- Governor Kim Reynolds signed SF 607 into law Thursday in Des Moines, reducing unemployment insurance taxes for Iowa businesses.
- The legislation cuts the taxable wage base from 66.7% to 33.4% and lowers the tax rate to a maximum of 5.4% on wages up to about $19,000 starting July 1.
- The bill was approved by the Republican majority in the legislature despite opposition from Democrats and labor unions who expressed concerns about potential risks to workers and the sustainability of the fund balance.
- The Unemployment Trust Fund held $1.887 billion as of March 2025, and the law is expected to reduce contributions by $63 to $77 million annually, saving businesses nearly $1.2 billion over five years.
- Supporters say savings will allow reinvestment into hiring and wages, while opponents warn it could risk fund depletion during economic downturns without guaranteed worker benefits.
16 Articles
16 Articles
The Quad-City Times
Reynolds signs bill reducing unemployment insurance taxes for Iowa businesses
Iowa businesses will see a $1.2 billion reduction in the unemployment insurance tax over the next five years under legislation signed by Republican Gov. Kim Reynolds.
Governor approves reduced unemployment tax rate for Iowa businesses - Radio Iowa
Governor Kim Reynolds has signed a bill into law that reduces the taxes businesses pay into the state fund that pays out unemployment benefits. “It’s a signature piece of legislation, one of my top priorities this session,” Reynolds said, “and a key part of our ongoing effort to make Iowa’s economy stronger, more competitive and […]
Iowa Capital Dispatch
Gov. Kim Reynolds signs unemployment insurance tax bill into law
Gov. Kim Reynolds, joined by lawmakers, business owners and Iowa Workforce Development staff, signed into law a bill reducing the taxable wage base for Iowa's unemployment insurance system at U.S. Erectors in Pleasant Hill June 5, 2025. (Photo by Robin Opsahl/Iowa Capital Dispatch)Iowa Gov. Kim Reynolds has signed into law a bill cutting the taxable wage base for Iowa’s unemployment insurance system, one of her goals from the 2025 legislative se…
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