How can you manage your unemployment costs? For starters, you can streamline the process, bring in skilled labor and make sure that all hiring and termination actions are accurately tracked. But, that is leaving out one of the biggest ways to save: lower taxes.

However, your unemployment insurance tax rate can be impacted by your state just as much as it can by your own actions. That is why the recent news in Iowa is so welcome – the state’s Workforce Development agency announced that roughly $108 million will be saved in taxes as the local economy continues to improve.

This change was made possible thanks to a shift from tax table six to tax table seven. Back in 2012, the state operated in the fourth table, and since then continuous improvements have led to tax savings of more than $409 million.

“Iowa continues to demonstrate stability within the Unemployment Insurance Trust Funds and has moved the tax rates in a positive direction for businesses four years in a row,” noted Iowa Workforce Development director Teresa Wahlert.

The average employer tax rate for Iowa in 2015 will now be 1.2 percent, down from 1.6 percent the previous year. Furthermore, the non-construction new employer rate will be the lowest permitted by the federal government, at 1 percent.

Unemployment rate holds below national average
Iowa’s jobless rate is also a source of positive news for local employers. The Iowa Workforce Development reported that the rate in July was 4.5 percent, up slightly from June’s 4.4 percent but still well below the national average of 6.2 percent.

“The state’s labor force continued to expand in July, causing a slight increase in the monthly unemployment rate,” said Wahlert. “Iowa’s labor force has grown steadily this year, and surpassed 1.7 million in July.”

The number of people unemployed in the state reached almost 80,000 in July, but it is still lower than year-ago estimates of 80,600. In addition, the strongest job gains on a monthly basis were found in education and health services, with improvements also noted in professional and business services, as well as construction.

Overall, Iowa’s economic and employment trends are a sign that employers are likely to see lower costs in the near future.

At Corporate Cost Control, we work closely with employers across the country to better manage the nuances of unemployment insurance. Legislation changes on the state level could impact you today, and we welcome any questions or concerns you may have on a wide range of topics.


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

Featured Videos

View All Videos

Latest News

Close

Sales

    Your Name:*

    Title:

    Company Name:*

    Company Address:

    Company City:

    Company State:

    Company Zip:

    Number of Employees:

    Your Email:*

    Phone Number:*

    Fax Number:

    Check the boxes below if you wish to receive information on any of the following:

    Unemployment Cost ControlTax Credits & Incentives (WOTC)Employment / Wage Verification

    Your Message:

    Employment & Income Verfication

      Your Name:*

      Title:

      Company Name:*

      Company Address:

      Company City:

      Company State:

      Company Zip:

      Number of Employees:

      Your Email:*

      Phone Number:*

      Fax Number:

      Your Message: