Iowa New Employer Registration: Step-by-Step Guide

When you hire your first employee in Iowa, you trigger a series of registration requirements at the federal and state level. Missing any of these steps can result in penalties, delayed payroll, and compliance headaches. This guide walks you through everything, in order.

Registration Overview

Here’s a checklist of what every new Iowa employer needs:

• ☑ Federal Employer Identification Number (EIN)
• ☑ Iowa state tax registration (Iowa Department of Revenue)
• ☑ Iowa SUI account (Iowa Workforce Development)
• ☑ Workers’ compensation insurance
• ☑ New hire reporting setup
• ☑ Payroll system or software

Step 1: Get Your Federal EIN

Your Employer Identification Number (EIN) is your federal tax ID. You need it for everything — federal tax filings, state registrations, opening a business bank account, and running payroll.

Apply online at IRS.gov/EIN. It’s free and you receive your EIN immediately.

Step 2: Register with Iowa Department of Revenue

Visit the Iowa Department of Revenue website to register for a state employer tax account. This allows you to withhold Iowa state income tax from employee paychecks and remit it to the state.

💼 From the Payroll Desk

Don’t wait until your first payroll to register. State registrations can take days or weeks to process. Start the registration process as soon as you know you’ll be hiring.

Step 3: Register for SUI

Register for a State Unemployment Insurance account through the Iowa Workforce Development. You’ll be assigned:

• An employer account number
• Your initial SUI rate (1.0% for new employers)
• Quarterly filing requirements

SUI is an employer-paid tax on the first $38,200 of each employee’s wages. See our Iowa SUI Rates 2026 guide for details.

Step 4: Workers’ Compensation Insurance

Most Iowa employers are required to carry workers’ compensation insurance, which covers employees who are injured on the job. Requirements vary by state — some states require coverage from the first employee, while others have minimum thresholds.

You can obtain workers’ comp through private insurance carriers or, in some states, through a state fund. Compare quotes from multiple carriers to find the best rate for your industry classification.

Step 5: New Hire Reporting

Federal and Iowa law require you to report every new hire within 20 days of their start date. This information is used to enforce child support orders and prevent fraud.

Most states allow online reporting through their new hire reporting website. See our New Hire Reporting guide for details.

Step 6: Set Up Payroll

With all registrations complete, you’re ready to set up your payroll system. For Iowa small businesses, we recommend:

• — Best overall for small businesses. Automated tax filings, easy setup, starting at $40/mo + $6/employee.
• — Best for growing teams with dedicated support needs.
• — Best if you already use QuickBooks for accounting.

Start running payroll in Iowa today →

Frequently Asked Questions

How do I register as a new employer in Iowa?

Register for a state tax ID with the Iowa Department of Revenue and for an SUI account with the Iowa Workforce Development. You'll also need a federal EIN from the IRS.

When must I register as an employer in Iowa?

You must register as soon as you hire your first employee or, in some cases, when you pay wages above a threshold in a calendar quarter. Register before your first payroll.

Do I need workers' compensation in Iowa?

Most Iowa employers are required to carry workers' compensation insurance. Check with the Iowa Workforce Development or your state's workers' compensation board for specific requirements.

What is an EIN and how do I get one?

An Employer Identification Number (EIN) is a federal tax ID from the IRS. Apply online at irs.gov/ein — it's free and you receive it immediately.