Iowa Workforce Development has announced that the UI taxable wage base will increase from $23,700 to $24,500 for 2010. Also, tax rate Table 4 will be in effect. This rate table contains significantly higher tax rates than the rate table currently in effect (Table 6).
Examples of the combined impact of these two changes are available on the printable version of this bulletin.
As you can see, tax rates will be markedly higher in general. A 0.00% tax rate will continue to be assigned to employers in the two lowest rate brackets, but all other experience-rated employers will be adversely impacted by the one-two punch of the higher wage base and the higher rate table. Ironically, employers in the highest rate bracket (who, it could be argued, are using the UI system the most) will have the smallest percentage increase (24%) in taxes.
Click here for a news release from Iowa Workforce Development on this topic.
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