Iowa bill cuts employer unemployment tax rates

A bill for an act relating to unemployment insurance taxes on employers.(Formerly HSB 315.)

Introduced· 2025-03-27

Who's it for

Who's it for: Employers

What it means for you

3/10Hurts you

Bad for everyday people ·

Cost shift

Plain‑English summary, cross‑checked against the official bill text.

If passed, the bill would lower the amount Iowa employers pay into unemployment insurance, which could shrink the fund that pays workers' benefits.

Our take

What we think, in plain words.

Workers could see smaller unemployment checks or higher taxes later, while businesses get cheaper insurance, so the public should watch this bill now.

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The facts

What the bill actually says, no spin.

Reduces taxable wages percentage from 66.66% to 33.33% of average weekly wage.
Removes $150 million from reserve fund calculation.
Cuts contribution rate tables from eight to four.
Sets a minimum 1% contribution rate for non‑construction employers.
Sets rates for construction/landscaping employers based on new rank tables.
Requires any employer savings to be used for salaries or as alternative benefits.