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Unemployment Tax Rate For Businesses To Remain The Same In 2021

By Staff Writer
September 1, 2020 6:51AM CDT
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From Radio Iowa – 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. I-W-D says the governor has put 490 million dollars of federal covid-19 relief money into the pool and that will allow the rate to stay the same in 2021. I-W-D 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.

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