Withholding - Iowa Individual Income Tax

About

Every employer who maintains an office or transacts business in Iowa and who is required to withhold federal income tax on any compensation paid to employees for services performed in Iowa is required to withhold Iowa individual income tax from that compensation. Tax Rate: The amount withheld is calculated using the Iowa withholding tables, formulas, or percentages.

Code Citation IC 422.16

Who Applies Those who make payments to individuals subject to Iowa income tax withholding.

When To Apply Prior to making a payment subject to withholding.

Initial Requirements Depending on the amount of tax collected, a return is due quarterly, monthly, or semi-monthly. They are filed electronically through eFile & Pay. It is important to file returns and pay the tax by the due date to avoid penalty and interest. A return must be filed with zeros if an employer does not have withholding to report.

Duration Once issued, a withholding permit is effective until it is canceled by the retailer.

Processing Time Processing the permit application takes 4-6 weeks. Submitting the application electronically on the Department website speeds the process.

Fee Structure None.

Renewal Requirements Does not pertain.

Exam Does not pertain.

Additional Information None.