All Roll Calls
Yes: 92 • No: 43
IowaSF 60791st General Assembly (2025–2026)SenateWALLET
A bill for an act relating to unemployment insurance taxes on employers. (Formerly SF 504, SSB 1173.) Effective date: 07/01/2025.
Sponsored By: COMMITTEE ON WAYS AND MEANS
Signed by Governor
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
New unemployment tax tables and fund rules
Beginning July 1, 2025, the state recalculates the reserve fund ratio using the higher of the fund balance on the computation date or on August 15, and it adds $150 million to the fund in that calculation. The ratio equals funds available divided by total covered wages for the prior four quarters. The ratio now picks the statewide rate table using breakpoints at 0.50, 0.90, and 1.30. Employers with experience ratings are sorted into nine benefit-ratio ranks, with set rates under tables A–D; for example, rank 1 is 0.00 and rank 9 is 5.40 in all tables. A higher reserve ratio can move the state to a lower table and cut many employers’ rates, while some may pay more depending on their rank.
Lower unemployment tax wage base for Iowa employers
Beginning July 1, 2025, taxable wages equal the greater of two amounts. One is 33 1/3% of last year’s statewide average weekly wage times 52, rounded up to the next $100. The other is the wages subject to a qualifying federal unemployment tax. This change generally lowers the wage base that employers pay unemployment tax on.
Higher starting unemployment tax for new employers
Beginning July 1, 2025, newly liable nonconstruction employers pay at the fourth benefit-rank rate, not less than 1%. Newly liable construction or landscaping employers pay at the ninth benefit-rank rate. These starting rates last until your account has been charged with benefits for 12 straight quarters before the computation date, through the end of that calendar year.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON WAYS AND MEANS
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 5/14/2025
Passed Senate
Yes: 32 • No: 16
House vote • 5/14/2025
Passed House
Yes: 60 • No: 27
Actions Timeline
Explanations of votes.
6/27/2025legislatureFiscal note.
6/6/2025legislatureSigned by Governor.
6/5/2025GovernorReported correctly enrolled, signed by President and Speaker, and sent to Governor.
5/23/2025SenateExplanation of vote.
5/20/2025legislatureMessage from House.
5/14/2025HouseImmediate message.
5/14/2025legislaturePassed House, yeas 60, nays 27.
5/14/2025HouseSubstituted for HF 980.
5/14/2025legislatureRead first time, passed on file.
5/14/2025legislatureFiscal note.
5/14/2025legislatureMessage from Senate.
5/14/2025SenateImmediate message.
5/14/2025legislaturePassed Senate, yeas 32, nays 16.
5/14/2025SenateAmendment S-3186 filed, lost.
5/14/2025legislatureAmendment S-3185 filed, lost.
5/14/2025legislatureAmendment S-3184 filed, lost.
5/14/2025legislatureAmendment S-3181 filed, adopted.
5/14/2025legislatureFiscal note.
3/25/2025legislatureCommittee report, approving bill.
3/12/2025legislatureIntroduced, placed on Ways and Means calendar.
3/12/2025legislature
Bill Text
As Introduced
Enrolled
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