Hibou Odoo Suite Enterprise: State of Iowa: Filing State Income Taxes, W-2s, and 1099s

Purpose

The purpose of this documentation is to outline the processes and requirements associated with filing state income taxes as well as how to file W-2s and 1099s, if needed, in the state of Iowa.

State Income Tax Withholding

To determine the amount of income tax withheld, employees should complete a Centralized Employee Registry Reporting Form (2019 IA W-4) within 15 days of hire.   

An employer doing business in Iowa who hires or rehires an employee must complete the top section and submit it using any of the below methods:

Regardless of the method used, please include your FEIN.

If you have questions about employer reporting requirements, call the Employers Partnering in Child Support (EPICS) Unit at (877) 274-2580.

The employee must complete a new IA W-4 within 10 days from the day they anticipate they will incur an Iowa income tax liability for the calendar year (or fiscal year). If they anticipate they will incur an Iowa income tax liability for the following year, then they must complete a new IA W-4 on or before December 31 of the current year.

If an employee is claiming more than 22 withholding allowances or an exemption from withholding when wages are expected to exceed $200 per week, complete the bottom section and send it to the Iowa Department of Revenue. See Employer Withholding Requirements on page 2 of the form.

State Income Tax Withholding Reporting and Deposits

Your monthly/annual state withholding tax liability determines when you remit taxes to the State.
FrequencyState withholding tax liability thresholdFiling Withholding
QuarterlyRemit less than $6,000 per tax year (less than $500 per month)Required to file a quarterly return and remit deposits for each calendar quarter for which they are registered 
MonthlyRemit $6,000 - $120,000 tax per year ($500 - $10,000 per month)Required to file two monthly deposits and one quarterly return for each calendar quarter.
Semi-monthlyRemit more than $120,000 tax per year (more than $10,000 per month; more than $5,000 semi-monthly)Required to file six semi-monthly deposits and one quarterly return for each calendar quarter.

Withholding returns and deposits are submitted electronically through the eFile & Pay system. 

Several payment options are offered through EasyPay Iowa.  

W-2 and 1099 Forms

All withholding agents are required to submit a completed Verified Summary of Payments Report (VSP) by January 31. This covers the Iowa income tax withholding payments made in the prior calendar year. The VSP is submitted online through File & Pay

Businesses with 1 or more 1099s or W-2s that have Iowa tax withholding are required to electronically file all Iowa 1099 Information Returns that contain Iowa tax withholding.