IA SSB1189

Reduces the number of unemployment insurance contribution rate tables from eight to four (designated A through D) and decreases benefit ratio ranks from 21 to 9, with employers grouped differently based on percentage of total taxable wages

Lowers the maximum contribution rate for the highest benefit ratio rank from 9.0% to 7.0%

Changes the current reserve fund ratio calculation to use the preceding year instead of the previous five calendar quarters and eliminates the requirement to add $150 million to total funds available for benefits on each computation date

Modifies the "taxable wages" definition by excluding wages paid to employees from other states that extend reciprocity to Iowa and adjusting the calculation percentage from 66.66% to 17% for employers in benefit ratio ranks 1-8 and 58% for rank 9

States that any employer savings resulting from the Act should be used for employee salaries or benefits, or as an alternative to unemployment benefits during periods of seasonal unemployment