(Radio Iowa) – Iowa Workforce Development says the unemployment tax rates paid by businesses will remain unchanged in 2021. Businesses pay unemployment taxes into a trust fund so unemployment benefits can be paid out — and there was some question whether the increase in unemployment brought on by the pandemic would cost them more. I-W-D says the governor has put 490 million dollars of federal coronavirus relief money into the pool — and that will allow the rate to stay the same in 2021.

I-W-D is required to set the new unemployment tax rate each year based on the trust fund balance at the end of the fiscal year June 30th.