Withholding

Yes, each taxpayer is assigned a unique 9-digit identification number which can be viewed on GovConnectIowa or on correspondence sent by the Department.

To receive a refund of Iowa withholding, file an amended quarterly withholding return(s).

To receive a refund of Iowa withholding due to jobs credit: 

• File an amended quarterly withholding return for each affected quarter.
• On the amended return(s), indicate only the jobs credit earned in that quarter.
  • If you were awarded a tax credit certificate for the period being filed, a withholding credit schedule will be provided through GovConnectIowa. Each credit claimed against withholding tax is recorded separately on this schedule. Information entered on the credit schedule will be automatically populated on the amended withholding quarterly return.

There are two methods of figuring the Iowa income tax withholding. The employer can use either the manual tables or the computer formula. Either method is acceptable. The tables and computer formula are available on the Withholding Tax Information page.

Complete the Iowa Business Tax Registration form online, indicate "Applied for" in the Federal Employer Identification Number (FEIN) field. 

Employees are not required to claim personal allowances. Allowances are based on specific factors (filing status, age, being blind). The employee should read the instructions (page 2 of the form) to determine if any of the allowance factors apply to them. Not claiming them could result in more tax being withheld which will either reduce their tax owed or increase their refund when they file their 2024 return.

Calculate your withholding using the Withholding Estimator.

No. There is no matching of withholding of Iowa income tax from the employees’ wages.

If they don’t fill out a new form, do their deductions stay the same or do employers need to change their withholding, using the $40 total allowance?

Employers who expect to receive updated W-4 forms from employees using the 2024 IA-W-4 form, but who have not yet received the updated W-4 form, may temporarily use $40 as the total allowance amount and $0 as the additional withholding amount when calculating these employees’ withholding amounts.

Alternatively, for employees who have furnished Form W-4 in any year before 2024, employers may continue to compute withholding based on the information from the employee's most recently furnished Form W-4 but, if they do, must make the following modification: Multiply the number of allowances claimed on line 6 of the pre-2024 W-4 by $40 to determine the amount of allowances. For example, if an employee claims 6 total allowances on a 2023 IA W-4, when calculating the 2024 Iowa withholding the employer should use $240 (6*$40) of total allowances.

Read more about income withholding for tax year 2024.

Other = Single, Married Filing Separately, or Qualifying Surviving Spouse

You may print your payment voucher directly from GovConnectIowa. 

You may also contact the Department. Please be sure to provide the tax I.D. number, business name and address, tax period, your Business eFile Number, your name and telephone number, and other pertinent information.

Payment vouchers are not available on the website.

Please note that these vouchers are not returns. Returns must be filed through GovConnectIowa. 

If you are a semimonthly filer, you are required to pay electronically.

Employees must complete the federal W-4 and the Iowa W-4.

Page three of the Iowa W-4 is the Centralized Employee Registry (CER) administered by the Iowa Department of Health and Human Services.

Instead of using page three of the IA W-4, you may complete it online at the Department of Health and Human Services website.

If you have questions, contact the CER hotline at 1-877-274-2580.

Employers are required to submit information on any new hire or re-hire to the CER within 15 days of hire.

The Department will accept both the 12-digit permit number and 9-digit permit number when filing withholding returns, W-2s, and 1099s.

All permits issued after November 15, 2021 will have a 9-digit number. The Department recommends using the 9-digit number when possible. 12-digit numbers were assigned to permits issued before November 15, 2021. As part of the Department's efforts to modernize technology, new 9-digit permit numbers were assigned as accounts were migrated into GovConnectIowa.

An employee can adjust their withholding at any time by providing the employer with a new Iowa W-4.

W-2s may be obtained from the Internal Revenue Service on the IRS website or by calling 800-829-3676 or by purchasing them through an office supply/forms business.

Forms are available free of charge online: IA W-4 (44-019) | IA W-4P (44-020)

NOTE: Be sure to select the correct year from the drop down menu. 

As part of the Department's modernization efforts, account and permit numbers were updated when they were transitioned into GovConnectIowa. 

• All taxpayers have been issued an IDR ID.
• Current permit or account numbers can be located on the Summary tab when logged in to GovConnectIowa, or on recent correspondence from the Department.  
• Withholding Permits: Previously assigned 12-digit withholding numbers have been assigned a new 9-digit number. Both the old 12-digit number and the new 9-digit number will be accepted when filing, but the Department suggests using the 9-digit number when possible.
• All previously assigned tax permit numbers will still be on file with the Department, and can be used when filing or verifying your account. 

In some cases, withholding amounts on the withholding tax table for a given income will actually rise as the number of allowances increases. This is because federal tax is deductible when calculating state tax. Federal tax will decline as the number of allowances increases, resulting in a smaller deduction when calculating Iowa tax. Because of this, state withholding amounts may increase even though the number of allowances claimed increased.

A penalty of 10% will be added to the tax due if the return is not filed by the due date and at least 90% of the correct tax is not paid by the due date.

If the return is filed timely and the tax is not remitted, a penalty of 5% will be added to the tax due if at least 90 percent of the correct tax is not paid by the due date.

The interest rate may change yearly. Interest must be added to delinquent tax at a per month rate, beginning on the due date of the return and accruing each month until you make full payment of all tax, penalty, and interest due.

Visit our Penalty and Interest page for more information.