Iowa employer tax information
About Iowa employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Iowa, you must be registered with the Iowa Department of Revenue (DOR) and Iowa Workforce Development so we can pay and file your state taxes.
For Iowa Department of Revenue (DOR), you need your:
Iowa Withholding Permit Number (12 digits or 9 digits)
Iowa Filing Frequency (semi-monthly, monthly, or quarterly)
For Iowa Workforce Development, you need your:
Iowa UI Account Number (8 digits)
Iowa Contribution Rate
Iowa payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
Iowa Department of Revenue (DOR)
Wage and Tax Statement (W-2): processes annually
Withholding Quarterly Tax Return: processes quarterly
Withholding Tax Payment Voucher: process semi-monthly or monthly
Withholding Tax Payment: processes after every pay run
Make Iowa payroll tax payments
To make an Iowa state income tax payment, sign in to your account at GovConnect Iowa and you can make an online payment by direct debit or credit card.
Make payroll withholding tax filings
Withholding Quarterly Tax Returns are due the last day of the month following the end of the quarter (for example, due on April 30 for the first quarter). You must file this form even if no tax was withheld.
To file online, go to eFile & Pay. Be sure to have your Business E-File number ready (BEN) to login.
Employers with Iowa withholding must electronically file W-2 wage statements to the Iowa Department of Revenue (IDR). These reports are due on February 15 for the preceding calendar year. If you cannot submit this filing by then, an extension form is available on the IDR’s website. An exact guide on how to file these forms can be found on the Iowa Department of Revenue website.
Use the Iowa Department of Revenue website to file W-2s online via the eFile & Pay. Be sure to have your Business E-File number ready (BEN) to login.
For assistance, call the Iowa Department of Revenue Customer Support line at 515-281-3114 or 800-367-3388.
Make unemployment insurance tax filings in Iowa
Unemployment insurance tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
Use the myIowaUI.gov website to file and make tax payments.
You must file quarterly returns even if no contributions are due. As long as you have an active unemployment insurance account, you must file reports every quarter by the due date. If you are liable for unemployment insurance taxes for any part of a calendar year, you are liable for the entire year and must file quarterly reports for the entire year.
If you believe your business no longer meets the qualifications for unemployment insurance tax, you must notify Iowa Workforce for Development. In such cases, you must continue to file quarterly contribution and wage reports until you are notified that your account has been made inactive. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact the myIowaUI Customer Service Team at IWDuitax@iwd.iowa.gov or call 888-848-7442.
Amend tax filings in Iowa
The Iowa Department of Revenue allows you to correct any misreported payroll on your Form 44-095 by submitting an amended return.
File your amended Form 44-095 with the Iowa Department of Revenue as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. This can be done online at GovConnect Iowa. If you have any questions, contact the Iowa Department of Revenue at 800-367-3388.
Register as a new employer in Iowa
Register on GovConnectIowa as a new business. You will receive your Withholding Permit Number and Filing Frequency immediately after completing the registration online.
Register on the Iowa Workforce Development website as a new business. You will receive your UI account number immediately after completing the registration online.
For more information about your rate, contact the agency at 888-848-7442 or by email at IWDuitax@iwd.iowa.gov. See additional instructions below on how to locate your rate.
Find your Iowa tax account numbers and rates
Look these up on the GovConnectIowa website or on previous correspondence from the IA Department of Revenue.
If you’re unsure, contact the agency at 515-281-311 or 800-367-3388.
Find your Iowa UI Account Number
Look this up on the Iowa Workforce Development website or on any previous Notice of Unemployment Insurance Contribution Rate from IA Workforce Development.
If you’re unsure, contact the agency at 888-848-7442.
Look this up on the Iowa Workforce Development website or on the Notice of Unemployment Insurance Contribution Rate mailed by IA Workforce Development each year.
If you’re unsure, contact the agency at 888-848-7442.
Find your Iowa Reporting Unit Numbers
Iowa employers must assign a Reporting Unit Number to each employee when adding them to Square Payroll. This number is required because Iowa Workforce Development requires us to include each employee’s Reporting Unit Number in the unemployment insurance (UI) tax filing (Form IA 65-5300) due each quarter.
You can find all active Reporting Unit Numbers for your business in My Iowa UI.
Sign in to My Iowa UI.
Select Reporting Units > Active Reporting Units.
If you’re unable to locate this, contact Iowa Workforce Development directly at 888-848-7442.
Payroll reciprocal state agreements
A reciprocal agreement is an agreement between two states that allows employees that work in one state but live in another to request exemption from tax withholding in their employment state. This means that the employee would not have income tax withheld from their paycheck for their employment state; they would only pay income taxes to the state where they live.
A Non-Residency Certificate (or statement or declaration), is used to declare that an employee is a resident of a state which has a reciprocal agreement with their work state and therefore chooses to be exempt from withholding income tax in their work state. A non-resident employee qualifying for this exemption must complete and file this declaration with his or her employer as authorization for the employer to stop withholding state income taxes where the employee works. Employers should keep the non-residency certificate on file.
Iowa has reciprocal agreements with:
Illinois
Non-resident employees should file Form 44-016.