The Iowa Employment Security Law (ESL) provides temporary compensation to those workers meeting the eligibility requirements of Iowa law. Most Iowa employers are required by law to pay contributions in the form of a tax (SUTA) to the Unemployment Insurance Trust Fund (the Trust). Monies from the Trust are used to pay unemployment benefits to eligible employees. Most Iowa employers that are liable for Iowa unemployment taxes are also liable for the federal unemployment taxes (FUTA).
In accordance with the provisions of the ESL, Iowa’s unemployment compensation program is administered by the Department of Iowa Workforce Development's Unemployment Insurance Division and the Unemployment Appeals Division (IWD). The UI Division collects unemployment insurance taxes, maintains the Iowa Unemployment Compensation Trust Fund, and makes payments to eligible jobless Iowans. The Unemployment Insurance Appeals Division consists of administrative law judges (ALJs) who hear and decide administrative appeals regarding unemployment insurance benefits.
An employer’s contribution to the Trust is based on benefit/experience ratings, which relate the employer’s taxes to the cost of providing unemployment benefits to their employees. Employers who have fewer employees receiving unemployment benefits are subject to lower rates. Therefore, it is to the employer’s benefit to contest those claims that are without...
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