Unemployment Insurance Tax Collections and Offsets
The integrity of the Iowa Unemployment Insurance (UI) Trust fund is among the highest priorities for Iowa Workforce Development (IWD). The Collection Department is responsible for collecting unpaid UI taxes and is dedicated to firmly enforcing the tax laws on debt that is owed. The following information is provided on UI tax collections and offsets:
- Types of Debt
- Payment Methods
- Collection Methods
- Collection Employer Liability Specialist (ELS) Contacts
Unemployment Insurance Tax Account Audit
The United States Department of Labor requires Iowa Workforce Development (IWD) to randomly perform an Unemployment Insurance (UI) Tax Account Audit on a percentage of Iowa employers each year. Others are selected to verify that wages are being reported correctly or individuals are classified correctly in accordance with UI law. This requirement results in several thousand Iowa employers being selected for a UI Tax Account Audit. The audits are conducted to ensure compliance with the provisions of Iowa Code Section 96.11.6A and Iowa Administrative Code 871, Chapter 22.17(4).
Field auditors are assigned to specific territories throughout Iowa. Territories are assigned based on mailing address ZIP code on the employers account. Employers can contact the auditor assigned to their account for any questions.
State Unemployment Tax Act
The State Unemployment Tax Act (SUTA) describes state unemployment taxes imposed on employers. Employers' SUTA tax rate is determined annually. Employers are responsible for paying state unemployment insurance taxes to fund Iowa's unemployment insurance system.
Federal Unemployment Tax Act
The Federal Unemployment Tax Act (FUTA) allows the federal government to tax businesses with employees for the purpose of collecting revenue that is then allocated to state unemployment agencies and paid to unemployed workers who are eligible to claim unemployment insurance.