Withholding
Withholding requirements
Employees must fill out Form IA W-4
Supplemental rate
- State Income Tax Rate (2025): Iowa transitioned to a flat state income tax rate of 3.8% for 2025.
- Supplemental Withholding Rate (2025): The supplemental withholding rate for Iowa is also 3.8%. It is applied if federal income tax is withheld at a flat rate.
State Unemployment Insurance (SUI)
Wage base
$39,500
Contributions
- Experienced Employers: Rates range from 0.0% to 7.0%.
- New Employers:
- New non-construction employers are assigned a rate of 1.0%.
- New construction employers are assigned a rate of 7.0%.
More information
Not Allowed in Iowa: As of 2025, Iowa does not allow employers to make voluntary contributions to potentially lower their tax rate.
Labor
Minimum wage
$7.25
Termination Pay
- Final Paycheck Deadline: If an employee is fired or quits, Iowa law requires that all earned wages be paid on or before the next regularly scheduled payday.
- Earned Wages: The final paycheck must include all wages earned up to the last day of employment.
More information
- Accrued Leave: Iowa law does not require employers to pay out accrued, unused vacation or paid time off (PTO) at termination unless company policy or an employment agreement mandates it.
- Withholding for Property: Employers cannot generally withhold a final paycheck due to unreturned company property unless there is a prior written agreement with the employee.
- Iowa Workforce Development: This is the correct state agency for more information on labor law, wages, and unemployment insurance in Iowa.
- Iowa Legal Aid: A valuable resource for Iowa labor laws, including rights and wage payment.
New Hire Filing
Reporting deadline
Within 15 days of employee hiring, rehiring, or returning to work.
Reporting by mail
Centralized Employee Registry
P.O. Box 10322
Des Moines, IA 50306-0322
New hire reporting form
Iowa Centralized Employee Registry Reporting Form, which can be found on the Iowa Department of Health and Human Services (HHS) website. You can submit this form or simply use the required information on a comparable document.
Child Support
Online payments
More information
Payment Address:
P.O. Box 9217
Des Moines, IA 50306-9217
- Note: The case name and number should be clearly written on the check or money order.
- Contact Number: A 24-hour automated phone system is available by calling 1-888-229-9223.
Iowa’s Employer Child Support Website:
https://secureapp.dhs.state.ia.us/epay/
Other
New employer registration
Local taxes
School District Surtax: While there are no city or county income taxes, some school districts and counties in Iowa impose a local option sales tax and a school district surtax.
Emergency Medical Services Surtax: A county can impose an emergency medical services income surtax.
Employer Responsibilities: Employers are responsible for withholding the school district surtax from employees' wages if applicable.
Reciprocal states
Illinois
Disability insurance
N/A
Helpful links
Last Updated
09/18/2025
States
The information provided here should not be considered legal or accounting advice nor should it substitute for legal, accounting, and other professional advice. If you require legal or accounting advice, you should always consult your licensed attorney, accountant, or other professional to discuss the facts of your particular situation.
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