| The Iowa State Agency that oversees the | | | | report in Iowa. |
| collection and reporting of State income taxes | | | | The Iowa new hire-reporting agency can be |
| deducted from payroll checks is: | | | | reached at 515-281-533 or on the web at |
| Department of Revenue | | | | Iowa does not allow compulsory direct deposit. |
| Income Tax Division | | | | Iowa requires the following information on an |
| Hoover State Office Bldg. | | | | employee's pay stub: |
| P.O. Box 10457 | | | | - Gross and Net Earnings |
| Des Moines, IA 50306-0457 | | | | - straight time and overtime pay |
| (515) 281-3114 | | | | - hours worked |
| (800) 367-3388 (in state) | | | | - itemized deductions |
| Iowa requires that you use Iowa form "IA W-4, | | | | The State Wage and Hour Law provisions |
| Centralized Employee Registry Reporting Form | | | | concerning pay stub information in Iowa is that it |
| Employee Withholding Allowance Certificate" | | | | must be provided within 10 days of employee's |
| instead of a Federal W-4 Form for Iowa State | | | | request, only once a year unless earnings, hours, |
| Income Tax Withholding. | | | | or deductions are changed. |
| Not all states allow salary reductions made under | | | | Iowa requires that employee be paid no less |
| Section 125 cafeteria plans or 401(k) to be | | | | often than monthly, semimonthly, or biweekly. |
| treated in the same manner as the IRS code | | | | Iowa requires that the lag time between the end |
| allows. In Iowa cafeteria plans are not taxable for | | | | of the pay period and the payment of wages to |
| income tax calculation; taxable for unemployment | | | | the employee not exceed twelve days after pay |
| insurance purposes. 401(k) plan deferrals are not | | | | period; excluding Sundays and holidays. |
| taxable for income taxes; taxable for | | | | Iowa payroll law requires that involuntarily |
| unemployment purposes. | | | | terminated employees must be paid their final pay |
| In Iowa supplemental wages are taxed at a 6% | | | | by their next regular payday; 30 days for |
| flat rate. | | | | commissions and that voluntarily terminated |
| State W-2s are not applicable in the state of | | | | employees must be paid their final pay by the |
| Iowa. | | | | next regular payday; 30 days for commissions or |
| The Iowa State Unemployment Insurance | | | | by mail if employee requests it. |
| Agency is: | | | | There is no provision in Iowa law concerning |
| Department of Workforce Development | | | | paying deceased employees. |
| 1000 E. Grand Ave. | | | | Escheat laws in Iowa require that unclaimed |
| Des Moines, IA 50319-0209 | | | | wages be paid over to the state after one year. |
| (515) 281-5387 | | | | The employer is further required in Iowa to keep |
| The State of Iowa taxable wage base for | | | | a record of the wages abandoned and turned |
| unemployment purposes is wages up to | | | | over to the state for a period of 4 years. |
| $19,700.00. | | | | Iowa payroll law mandates no more than 40% of |
| Iowa has optional reporting of quarterly wages on | | | | minimum wage may be used as a tip credit. |
| magnetic media. | | | | In the Iowa payroll law there is no provision |
| Unemployment records must be retained in Iowa | | | | covering required rest or meal periods. |
| for a minimum period of five years. This | | | | There is no provision in Iowa law concerning |
| information generally includes: name; social security | | | | record retention of wage and hour records |
| number; dates of hire, rehire and termination; | | | | therefor it is probably wise to follow FLSA |
| wages by period; payroll pay periods and pay | | | | guidelines. |
| dates; date and circumstances of termination. | | | | The Iowa agency charged with enforcing Child |
| The Iowa State Agency charged with enforcing | | | | Support Orders and laws is: |
| the state wage and hour laws is: | | | | Child Support Recovery Unit |
| Iowa Workforce Development | | | | Department of Human Services |
| Labor Services Division | | | | Hoover Bldg., 5th Fl. |
| 1000 East Grand Ave. | | | | Des Moines, IA 50319 |
| Des Moines, IA 50319-0209 | | | | (515) 242-3237 |
| (515) 281-5387 | | | | (888) 229-9223 |
| The minimum wage in Iowa is $5.15 per hour. | | | | Iowa has the following provisions for child support |
| There is also no general provision in Iowa State | | | | deductions: |
| Law covering paying overtime in a non-FLSA | | | | - When to start Withholding? 10 days after |
| covered employer. | | | | receipt of order. |
| Iowa State new hire reporting requirements are | | | | - When to send Payment? Within 7 days of |
| that every employer must report every new hire | | | | Payday. |
| and rehire; independent contractors over $600. | | | | - When to send Termination Notice? "Promptly." |
| The employer must report the federally required | | | | - Maximum Administrative Fee? $2 per payment. |
| elements of: | | | | - Withholding Limits? Federal Rules under CCPA. |
| - Employee's name | | | | Please note that this article is not updated for |
| - Employee's date of birth. | | | | changes that can and will happen from time to |
| - Employee's health insurance. | | | | time. |
| - Employee's address | | | | Charles J. Read, CPA has been in the payroll, |
| - Start date of contract. | | | | accounting and tax business for 30 years,the last |
| - Employee's social security number | | | | fifteen in private practice. Mr. Read is the author |
| - Employer's name | | | | of "Tax and Accounting Issuesin Forming a New |
| - Employers address | | | | Business." |
| - Employer's Federal Employer Identification | | | | To find professional payroll services at a budget |
| Number (EIN) | | | | price go to paperless payroll company. |
| This information must be reported within 15 days | | | | For a full service payroll bureau with CPA's on |
| of the hiring or rehiring. | | | | staff visit . |
| The information can be sent as a W4 or | | | | See an excerpt of Mr. Read's interviews from |
| equivalent by mail, fax or electronically. | | | | William Shatner's "Heartbeat of America"television |
| There is a penalty contempt of court for a late | | | | show on the web sites linked above. |