Gov. Reynolds Acts to Prevent Unemployment Withholding Tax Increase in 2021
July 2, 2020
Historically high levels of unemployment related to COVID-19 in Iowa have led to unprecedented claims on Iowa’s Unemployment Trust Fund. The fund level is maintained by withholding taxes paid by employers on a per employee basis. The governor sought and received guidance from the federal government that federal monies could be used to offset the COVID-19 hit to the unemployment trust fund. Today, the governor announced she will deposit $490 million in CARES Act fund to the trust fund. By taking this action the governor has ensured that employers will not see a withholding tax increase in 2021, as the rate will remain in Tax Table 7. More Iowans will be employed next year because of this action. Thank you, Gov. Reynolds! Read the news release.