**DES MOINES**—Today, Governor Kim Reynolds officially signed **SF 607**, a legislative measure aimed at reducing the unemployment insurance taxable wage base and lowering the maximum unemployment insurance tax rate.
“Iowans are securing new jobs in an average of just nine weeks, which contributes to a robust unemployment trust fund,” stated Governor Reynolds. “Our nearly $2 billion fund balance ranks ninth in the nation, despite Iowa being 32nd in terms of population. This legislation will cut unemployment insurance payments made by employers in half, resulting in almost $1 billion in savings for businesses large and small, allowing them to reinvest in their employees and communities.”
**SF 607** implements a 50% reduction in the unemployment insurance taxable wage base, simplifies the unemployment tax tables, and lowers the maximum tax rate from 9% to 5.4%.
This bill is set to take effect on **July 1, 2025**.
