Form 44-095 - Withholding Quarterly Return - Iowa Department Of Revenue And Finance (Page 2 of 2) in pdf

Iowa Withholding Information

REGISTRATION: New employers must apply for an Iowa

of disabled persons, persons 55 years old or older, and a surviving

withholding number on an Iowa Tax Business Registration form.

spouse or other survivor of a qualified individual. Withholding is not

required if the monthly distribution is $417 or less or if the total

FILING REQUIREMENTS: Iowa has four filing statuses for

distribution for the year is $5,000 or less if the payee meets the

withholding Iowa income tax.

criteria for the partial pension exclusion. An IA W-4P withholding

1. Less than $50 in withholding per month: File only a quarterly

certificate on which recipients indicate their pension exclusion amount

return with payment.

is available for use by payers of pensions, annuities, deferred

2. More than $50 but less than $16,000 per month: File monthly

compensation, incomes from individual retirement accounts, and other

deposits the first two months of the quarter and a quarterly

retirement income. Contact our department for a copy of the certificate

return the third month.

and more information on the partial pension and retirement income

exclusion. Payers who withhold Iowa income tax from both employee

3. More than $16,000 per month: File twice a month electronically

wages and from pensions, annuities, or other nonwage payments should

using Electronic Funds Transfer (EFT).

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

4. Has no employee withholding and has only annual distributions

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

in one calendar quarter: File for the one calendar quarter in which

wage or nonwage payments as long as it is under the same Federal I.D.

tax is withheld.

number.

CHANGES OR CANCELLATION: You must complete and mail a

GAMBLING WINNINGS: Withholding of 5% for Iowa residents

Withholding Information Form if you change your location, mailing

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

address, business or trade name, responsible parties, or if you will no

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

longer be a withholding agent. If the business ownership changes, the

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

new owner cannot use the previous owner’s reporting forms. The

FILM OR TELEVISION PRODUCTION IN IOWA: Nonresidents

new owner must apply to the Federal government for a new Federal

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

Employer Identification Number (FEIN) and register with the Iowa

withholding on wages earned from the activity if their employer has

Department of Revenue and Finance. Iowa uses the FEIN and adds a

applied to the department for exemption from withholding of Iowa

3-digit suffix to register the employer for Iowa withholding. All tax

income tax. The application must include the nonresident employees’

activity for a taxpayer is kept under one legal name and under one

names, permanent mailing addresses, Social Security numbers, and

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

estimated amounts they are to be paid.

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

AGRICULTURAL WORKERS: Generally, Iowa income tax is

DUE DATES: Quarterly returns are due on or before the last day of

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

the month following the end of the quarter. A return and payment is

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

considered timely if the envelope shows a postmark no later than the

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

due date. Make all remittances payable to Treasurer-State of

Iowa, or fails to complete the IA W-4.

Iowa. Electronic Funds Transfer (EFT) offers other payment deadline

options, which are outlined in the EFT manual. All employers may

EMPLOYEES IN INTERSTATE COMMERCE: Employees covered

participate in EFT filing. To obtain additional information about EFT

under the Amtrak Reauthorization and Improvement Act of 1990

filing call 1-800-338-4692. Employers must file an Iowa Withholding

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

Agent Annual Verified Summary of Payments Report (VSP) on or

tax withheld for the state of residence only.

before the last day of February of the year following the withholding

IOWA CREDITS FROM WITHHOLDING: An industry that has

of Iowa income tax from wages and other incomes.

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

AMENDING A RETURN: A withholding amended quarterly return

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

must be used to adjust previously-filed tax quarters.

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. An

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

eligible business as defined in Iowa Code section 15.329 or an eligible

bond to ensure collection of withholding tax.

business in an enterprise zone may enter into an agreement with a

RECORD KEEPING: The withholding agent must maintain an

community college for a Supplemental NJC from withholding for an

accurate record of withholding transactions.

additional job training project. The employer may take a credit against

CONFIDENTIALITY: State tax information may be disclosed only

the withholding payment due for all employees equal to, but not to

to other tax officials for tax administration purposes.

exceed, 1-1/2 % of the gross wages paid to employees participating in

SUPPLEMENTAL WAGES: State income tax withholding is required

the additional job training project. This Supplemental NJC may be in

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

addition to the NJC mentioned above and may be noted as "SJC" on

overtime pay, commission or other special wage payments which are

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

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

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

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

may provide a housing assistance program for employees in qualified

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

new jobs who rent or buy housing within the enterprise zone. The

income tax from the supplemental wages.

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 gross

PENSIONS, ANNUITIES, DEFERRED COMPENSATION AND

wages paid to employees participating in the housing assistance

OTHER NONWAGE INCOME: State income tax withholding is

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

required from payments of pensions, annuities and other nonwage

assistance fund. The Housing Assistance Credit may be noted as

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

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

withheld from the payments. Iowa income tax is not required to be

return. In a situation where two or more credits from withholding are

withheld from pensions, annuities and deferred compensation

applicable, each program and credit amount should be identified on

paid to a nonresident of Iowa.

the monthly deposit form or quarterly return.

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

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

pension and retirement income exclusion applies to retirement incomes

44-095b (10/99)

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

Related Articles

Related forms

Related Categories