IA SSB1173

Reduces the taxable wage base calculation from 66.67% to 33.33% of the statewide average weekly wage, lowering the amount of wages subject to employer unemployment insurance contributions

Lowers the initial contribution rate for new nonconstruction employers from the 12th benefit ratio rank to the 4th rank, and for new construction/landscaping employers from the 21st rank to the 9th rank

Reduces the number of benefit ratio ranks from 21 to 9 and decreases the number of contribution rate tables from 8 to 4 (designated A through D based on reserve fund ratios)

Eliminates the requirement to add $150 million to the total funds available for benefits when computing the current reserve fund ratio, and changes the calculation period from five calendar quarters to one calendar year

Caps the maximum employer contribution rate at 5.40% (reduced from 9.0%) and recommends employers use any resulting savings for employee salaries, benefits, or as an alternative to unemployment benefits during seasonal unemployment