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Taxes
Iowa Payroll Taxes 2026: Complete Overview for Employers
Iowa graduated 4.4%–5.7% income tax, SUI on $38,200, and all employer obligations.
Practical, accurate resources for Iowa small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Iowa graduated 4.4%–5.7% income tax, SUI on $38,200, and all employer obligations.
How to register with Iowa Department of Revenue and Iowa Workforce Development as a new Iowa employer.
New employer rate 1.0%, experienced range 0.00%–7.00%, wage base $38,200.
Iowa minimum wage is $7.25/hr. Iowa’s minimum wage is $7.25/hr, matching the federal minimum. Tipped employees may be paid $4.35/hr.
Semi-monthly or monthly pay required. Final pay: Final wages are due on the next regular payday after separation..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Iowa-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Iowa new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Iowa recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Iowa small businesses.
Federal OT after 40 hrs/week, Iowa overtime rules, exemptions, salary thresholds.