Relating to unemployment insurance taxes on employers

7(2)(d)(1) by basing the calculation of the ratio on the preceding year rather than the previous five calendar quarters, and strikes the requirement that $150 million be added on the reserve ratio computation date to the total funds available for benefits. The bill also strikes the computation of the highest cost-benefit ratio and removes the ratio from the computation of the current reserve ratio. _____ for the rate year from eight contribution rate tables to four contribution rate tables. Under the bill and current law, only one contribution rate table may be in effect per rate year. In reducing the number of possible contribution rate tables from eight to four, the bill also changes the numbered contribution rate designations to lettered contribution rate designations. Under current law, there are benefit ratio ranks in the contribution rate tables. The benefit ratio is a calculation based upon the average number of unemployment benefits charged to an employer over previous calendar quarters. The higher the benefits charged to an employer, the higher the benefit ratio rank the employer receives. The bill reduces the number of benefit ratio ranks from to 9.76 percent of total taxable wages.76 percent of total taxable wages.0 percent.0 percent. As a result of the bill, each employer will be assigned one of the nine new benefit ratio ranks that corresponds with one of the four new lettered contribution rate designations in effect for the rate year to determine the contribution rate for the year. The bill modifies the definition of “taxable wages” by eliminating the wages paid to an employee from another state from the calculation of wages upon which an employer is required to contribute to the unemployment compensation fund (fund) when the other state extends a like comity (reciprocity) to Iowa for employment purposes.1A(36). The bill changes the calculation of one of these amounts under paragraph “a”.66 percent of the statewide average weekly wage used during the previous calendar year. The resulting figure is then multiplied by and rounded to the nearest $100 to determine maximum weekly benefit amounts. The bill provides that for employers in the first through eighth benefit ratio ranks, the percentage is percent of the statewide average weekly wage used during the previous calendar year. The bill provides that for employers in the ninth benefit ratio rank, the percentage is percent.1A(36). The bill provides that any savings an employer receives as a result of the bill should be used for at least one of the purposes specified in the bill. The specified purposes are to pay for employee salaries or benefits or to use as an alternative to unemployment benefits during periods of seasonal unemployment.