Iowa Workforce Development says the unemployment tax rates paid by businesses will remain unchanged in 2021.
Businesses pay unemployment taxes into a trust fund so unemployment benefits can be paid out — and there was some question whether the increase in unemployment brought on by the pandemic would cost them more. IWD says the governor has put $490 million of federal coronavirus relief money into the pool — and that will allow the rate to stay the same in 2021.
IWD is required to set the new unemployment tax rate each year based on the trust fund balance at the end of the fiscal year June 30th.