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Iowa New Employer Information

Congratulations on your decision to become an Iowa new employer! You will need a few things in place before you run your first payroll. For help registering your business in Iowa, check out our partner, CorpNet.

Federal and State Tax Accounts

Federal Tax Accounts:

Apply for an EIN View Details

Your business will need to have an Employer Identification Number (also known as an EIN or FEIN), if you do not already have one.
The simplest 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 EINs, read our help article, “Your Step-by-step Guide on How to Apply for EIN”.

Enroll in EFTPS View Details

Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can register online for the EFTPS.
To find out more about EFTPS, read our article, “What Is EFTPS?”

State of Iowa Tax Accounts:

Register With Iowa Department of Revenue View Details

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.

Register With the Iowa Workforce Development View Details

You will need to register for a state unemployment insurance (SUI) account for your business. This can can be done online at myIowaUI.

Get Your SUTA Rate View Details

The Iowa new employer rate is 1.0% (non-construction) and 7.0% (construction) for 2024. 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?”

State-mandated Insurance:

Sign up for Workers’ Comp Insurance View Details

You must have workers’ comp insurance if you have at least 1 employee in Iowa. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Iowa here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.

Setting Up Your New Employee:

Fill Out Form I-9 View Details

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 Employee Fill Out Federal Form W-4 View Details

Have your new employee fill out Form W-4, Employee’s Withholding Certificate for federal income taxes.
For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?”

Have Employee Fill Out State Form IA W-4 View Details

Have your new employee fill out Form IA W-4 state income taxes (SIT).

Report New Hires View Details

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.

Meet Minimum Wage Requirements View Details

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.

Obtain Labor Law Posters View Details

Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!

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!

This is not an all-inclusive list for new employers. Please check with your state and federal government for full compliance.

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