Iowa SF 607 Change Notification
This bill has multiple changes to statute. First, it removes language that would require employers to file wages paid in surrounding states. It now applies only to wages paid in the state of Iowa. Next, it changes the percentage of the statewide average weekly wage from sixty-six and two-thirds to thirty-three and one-third for calculating the statewide average weekly wage used during the previous calendar year which determines maximum weekly benefit amounts. Next, it changes language regarding non- construction contributory employers newly subject, to pay contributions at the rate specified on the fourth benefit ratio rather than the twelfth. It also changes language related to reimbursable employment wages from the first four calendar quarters of the five calendar year, to immediately preceding the computation date.
Effective Date
July 1, 2025
Iowa Senate Filing 607 Implication to Stakeholders
Employer payroll tax team should be made aware of the change in reporting surrounding state wages. The remainder of the changes should be understood as it relates to weekly benefit amounts for claimants and determining employment wages for reimbursable employers.
Recommended Action
Be aware of these updates indicated above.
