Gov. Reynolds signs bill into law reducing amount of money businesses put in state unemployment fund

PLEASANT HILL, Iowa —

Iowa Gov. Kim Reynolds signed a bill into law Thursday that reduces the amount of money businesses need to put into the state's unemployment compensation trust fund.

SF 607 reduces the unemployment insurance taxable wage base used to calculate unemployment insurance taxes for businesses from 66.7% to 33.4%.

That means the amount of money businesses must contribute to the fund used to pay unemployment benefits is now lower. Reynolds said the law is "the latest chapter in Iowa's incredible economic transformation."

She said Iowa's current unemployment trust fund is full. She said at nearly $2 billion, the fund balance is the ninth highest in the country while Iowa ranks 32nd for population.

"Our unemployment insurance tax has needlessly over-collected from our bus