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January 20, 2019

Unemployment Insurance

Unemployment insurance replaces part of the income workers lose when they become unemployed through no fault of their own. Employers pay the money for unemployment benefits. The Unemployment Insurance Services Division at IWD maintains the Iowa Unemployment Compensation Trust Fund, and makes payments to eligible persons.

A liable employer is an employing unit that is required to report wages and pay unemployment insurance taxes to the Unemployment Insurance Division. Employers fall into at least one of the following classifications and become a liable employer if one of the following conditions is met, retroactive to January 1 (of any year in which the conditions occur):

1. One or More Employees - One or more employees performing covered services for any portion of a day in at least twenty (20) different calendar weeks.

2. Payroll of $1,500 - Having a total payroll of $1,500 or more in any calendar quarter for covered services.

3. Agricultural Laborers - Paying cash wages of $20,000 or more to agricultural laborers in any quarter of the current or previous calendar year, or employing 10 or more workers in some portion of a day in 20 separate weeks in the current calendar year or the preceding calendar year.

4. Domestic Workers - Paying cash wages of $1,000 or more to domestic workers during any calendar quarter in the current calendar year or the preceding calendar year.

5. Nonprofit Organizations - Having one or more employees performing covered services in some portion of a day in at least 20 different calendar weeks or having a total payroll of $1,500 or more in any calendar quarter for covered services.