![]() ![]() Each employer’s benefit ratio is then compared to every other employer’s benefit ratio in a ranking or array system. Those with the lowest benefit ratio receive the lowest tax rates. The result is benefits expressed as a percent of taxable payroll, or a benefit ratio. In the benefit ratio system two factors are calculated. An employer’s five-year average annual benefit payment is divided by the employer’s five-year average annual taxable payroll. In addition to mandating the tax table in effect, the Iowa UI law provides a formula for determining the tax rates of individual employers. ![]() once you are eligible you will receive a computed UI Tax RateĭETERMINING EACH EMPLOYER’S BENEFIT RATIO.new construction employers are assigned the rate from Rank 21 of the table in effect.new non-construction employers are assigned the rate from Rank 12 of the table in effect, or 1.000 percent, whichever is higher.The rate table in effect for all private employers for 2024 is Contribution Rate Table 8. The rate table in effect for all private employers for 2022 is Contribution Rate Table 7. The rate table in effect for any given year is applicable to all participating employers. As such, a formula in the law mandates movement to a table that collects more revenue when the balance in the UI Trust Fund is low and movement to a table collecting less revenue when the balance is high. The tables were established to help maintain the solvency of the UI Trust Fund. (This means that Table 1 collects the most and Table 8 collects the least tax). UI contributions may be collected from employers under eight different tax rate tables, each table having 21 ranks. Rates vary from 0.000 percent to 9.000 percent on Table 1 and from 0.000 percent to 7.000 percent on Table 8. complete NAICS information can be found at.your myIowaUI account homepage lists your NAICS classification.State Unemployment Tax (SUTA) uses this classification process to determine if an employer is considered a construction industry or non-construction industry.NAICS uses a six digit numerical coding system to identify particular industries and their placement in the classification system compared to all other North America industries.NAICS is a comprehensive system covering the entire spectrum of economic activities, both producing and non-producing.each UI account is assigned a NAICS classification based upon the activities in which they are primarily engaged.NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) charges to your account are used to determine your rate.your account is charged for all regular UI benefit payments and 50 percent of extended benefit payments to former employees that are qualified. ![]()
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