Iowa New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Apply for an Employer Identification Number (also known as an EIN or FEIN), if you do not already have one. The most convenient (and preferred) way is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
- To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN”.
- We recommend creating an EFTPS account, although it is not required. By creating an account, you will have the ability to make tax payments online or view whatever tax filings have been made on your behalf by Patriot. You can easily register online, and there is no charge to create an account.
- To find out more about EFTPS, read our article, “What Is EFTPS?”
State of Iowa Tax Accounts:
- You can register online for your state income tax (SIT) accounts, as well as other tax accounts needed for your business. You will need your FEIN and SSN to begin the registration process.
- Your Business eFile Number (BEN) will arrive in 4-6 weeks by mail.
- You will need to register for a state unemployment insurance (SUI) account for your business. This can can be done online at myIowaUI.
- The Iowa new employer rate is 1.0% for 2021. You will need to know this for your company payroll tax settings. For more information, visit the Iowa Workforce Development.
- Every year, the Iowa Workforce Development will give your business an Unemployment Contribution Rate, (aka state unemployment taxation assessment (SUTA) rate). This will be based on your business type and merit rating.
- To learn more about SUTA please read our article, “What Is SUTA Tax?”
Setting Up Your New Employee:
- Fill out the required Form I-9. This is a two-part form. The first half is filled out by the employee and the second half is filled out by you, the employer. For more information, read, “Form I-9 In a Nutshell”.
- Note: You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “What Should Be in an Employee File?”
- Have your new employee fill out Form W-4, Employee’s Withholding Certificate for federal income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
- Have your new employee fill out Form IA W-4 state income taxes (SIT).
- Iowa employers must report all new hires within 15 days from the date of hire or rehire. You can report your new employees online with the Iowa Department of Human Services.
- Iowa employers must follow the federal minimum wage rate of $7.25 per hour.
- You need to display the minimum wage poster for your employees.
Once you have all the necessary information, you will be able to set up your payroll for your business. For more information, read, “What Information Is Needed to Set Up Payroll?”
Keep employee payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!