Looking for a Iowa Tax Forms And Templates? Download it for free!

Iowa Withholding Information

AMENDING A RETURN: A withholding amended return is included

IOWA CREDITS FROM WITHHOLDING: An industry that has

in this booklet. This quarterly return must be used to adjust

entered into a Chapter 260E agreement with a community college for

previously-filed tax periods. Follow the instructions on preparing

new jobs training can take a credit from withholding for the costs of a

originally-filed quarterly returns.

training project. This New Jobs Credit may be noted as "”NJC” on

line 2 of the monthly deposit form or line 3 of the quarterly return.

FILING REQUIREMENTS: Please go to our Web site for the current

filing requirement information.

In addition, an eligible business as defined in Iowa Code section 15.329

or an eligible business in an enterprise zone may enter into an

CHANGES OR CANCELLATION:

agreement with a community college for a Supplemental New Jobs

This is now an online process! Go to to change

Credit from withholding for an additional job training project. The

or cancel your registration.

employer may take a credit against the withholding payment due for

If the business ownership changes, the new owner cannot use the

all employees equal to, but not to exceed, 1-1/2 % of the gross wages

previous owner’s reporting forms. The new owner must apply to the

paid to employees participating in the additional job training project.

Federal government for a new Federal Employer Identification Number

This Supplemental Jobs Credit may be in addition to the New Jobs

and register with the Iowa Department of Revenue and Finance.

Credit mentioned above and may be noted as “SJC” on line 2 of the

monthly deposit form or line 3 of the quarterly return.

Note: All tax activity for a taxpayer is kept under one legal name and

In lieu of the Supplemental Jobs Credit, a business in an enterprise

under one trade name for activities at the same location. A change in

zone may provide a housing assistance program for employees in

legal name will alter the legal name for all taxes for which you are

qualified new jobs who rent or buy housing within the enterprise

registered.

zone. The employer may take a credit against the withholding payment

due for all employees equal to, but not to exceed, 1-1/2 percent of the

BONDING: A withholding agent may be required to post a security

gross wages paid to employees participating in the housing assistance

bond to ensure collection of withholding tax.

program. The amount of the credit must be deposited in a housing

RECORD KEEPING: The withholding agent must maintain an

assistance fund. The Housing Assistance Credit may be noted as

accurate record of withholding transactions. A Taxpayer Record is

“HAC” on line 2 of the monthly deposit form or line 3 of the quarterly

located at the back of this booklet or you may photocopy each deposit

return.

and return.

The Accelerated Career Education Program is an agreement between

CONFIDENTIALITY: State tax information may be disclosed only

an employer and a community college under Chapter 260G with a

to other tax officials for tax administration purposes.

credit of up to 10 percent of the gross program job wage. The

SUPPLEMENTAL WAGES: State income tax withholding is required

Accelerated Career Education Program may be noted as “ACE” on

from supplemental wage payments. This includes payment of a bonus,

line 2 of the monthly deposit form or line 3 of the quarterly return.

overtime pay, commission or other special wage payments which are

In a situation where two or more credits from withholding are

in addition to an employee’s regular wages for a payroll period. If an

applicable, each program and credit amount should be identified on

employer chooses to use a flat percentage rate to determine the amount

the monthly deposit form or quarterly return.

of Federal withholding, a rate of 6% is to be used to withhold Iowa

GAMBLING WINNINGS: Withholding of 5% for Iowa residents

income tax.

and nonresidents is required as follows. Slot machine winnings: more

PENSIONS, ANNUITIES, DEFERRED COMPENSATION AND

than $1,200. Winnings from parimutuel wagering: more than $1,000.

OTHER NONWAGE INCOME: State income tax withholding is

Lottery, games of skill or chance, or raffles: more than $600.

required from payments of pensions, annuities and other nonwage

FILM OR TELEVISION PRODUCTION IN IOWA: Nonresidents

incomes made to residents of Iowa if Federal income tax is being

employed in film or television production in Iowa are not subject to

withheld from the payments.

withholding on wages earned from the activity if their employer has

However, Iowa income tax is not required to be withheld from

applied to the department for exemption from withholding of Iowa

pensions, annuities and deferred compensation paid to a

income tax. The application must include the nonresident employees’

nonresident of Iowa.

names, permanent mailing addresses, Social Security numbers, and

The Iowa tax must be withheld one of two ways: (1) a flat 5% rate or

estimated amounts they are to be paid.

(2) methods prescribed in the Iowa withholding tax guide.

AGRICULTURAL WORKERS: Generally, Iowa income tax is

A partial pension exclusion applies to retirement incomes of disabled

required to be withheld from wages paid to agricultural workers in the

persons, persons 55 years old or older, and a surviving spouse or

same circumstances that Federal income tax is required to be withheld,

other survivor of a qualified individual.

unless a worker claims tax exempt status, more dependents for Iowa

Withholding is not required if the monthly distribution is $500 or less

or fails to complete an IA W-4.

or if the total distribution for the year is $6,000 or less if the payee

EMPLOYEES IN INTERSTATE COMMERCE: Employees covered

meets the criteria for the partial pension exclusion.

under the Amtrak Reauthorization and Improvement Act of 1990

An IA W-4P withholding certificate, on which recipients indicate their

(PL101-322) who work in two or more states should have state income

pension exclusion amount, is available for use by payers of pensions,

tax withheld by the state of residence only.

annuities, deferred compensation, incomes from individual retirement

accounts, and other retirement income. Contact our department for

more information on the pension/retirement income exclusion and to

request withholding certificates.

Payers who withhold Iowa income tax from both employee wages and

from pensions, annuities, or other nonwage payments should include

the total of all Iowa tax withheld for the period on the same

withholding tax return. It does not matter if the tax is withheld from

wage or nonwage payments as long as it is under the same Federal ID

number.

44-095b (10/01/02)

Form 44-095a - Withholding Quarterly Return - Iowa Department Of Revenue And Finance Page 2

Related Articles

Related forms

Related Categories