Most private employers covered by the Unemployment Insurance program in Iowa are subject to the Federal Unemployment Tax Act (FUTA)​. The FUTA tax rate is currently 6.0 percent on the first $7,000 of wages your business pays to each employee.
Employers can receive a maximum credit against this tax equal to 5.4 percent if you are participating in a state unemployment insurance program that meets federal requirements. That means the 6.0 percent FUTA tax is reduced to 0.6 percent on the first $7,000 of wages paid to each employee.
For Federal 940 Certification purposes, the State Experience Rate indicated on the tax rate notice is the State Experience rate as defined on the federal form 940.
You can find additional information about FUTA by visiting the Internal Revenue Service (IRS) FUTA website .