Iowa
Withholding Tax Guide
This guide is valid until further notice
Iowa Withholding Tax Rate Tables
Effective April 1, 2005
Table of Contents
Page
CHANGES FOR TAX YEAR 2005 ................................................................................. 1
1. WITHHOLDING.......................................................................................................... 1
2. WHO MUST ACT AS A WITHHOLDING AGENT? .............................................. 1
Registering as a withholding agent ................................................................................. 1
Failure to withhold.......................................................................................................... 2
3. WHAT INCOME IS SUBJECT TO WITHHOLDING? .......................................... 3
Wages and other employee compensation ...................................................................... 3
Nonwage withholding requirements ............................................................................... 4
Taxable compensation not subject to Iowa withholding ................................................. 5
4. EMPLOYEE’S WITHHOLDING ALLOWANCE CERTIFICATE (IA W-4) ....... 6
5. REPORTING AND PAYING THE TAX .................................................................... 7
Filing frequencies ........................................................................................................... 7
Withholding payment vouchers ...................................................................................... 7
End of the year reporting ................................................................................................ 8
6. CALCULATION OF WITHHOLDING .................................................................... 9
Computer formula........................................................................................................... 9
Formula examples and instructions .............................................................................. 10
Rate table for computer formula ................................................................................... 12
7. WITHHOLDING TABLES ....................................................................................... 12
Calendar of Due Dates ................................................................................................... 25
Frequently Asked Questions .......................................................................................... 26
Iowa Department of Revenue
P.O. Box 10457
Des Moines, IA 50306-0457
515/281-3114 from Des Moines or out of state, or
1-800-367-3388 (Iowa, Rock Island, Moline,Omaha)