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Iowa Payroll & Paycheck Tax Calculator

Running payroll in the Hawkeye State shouldn't feel like navigating a cornfield maze. From Des Moines to Cedar Rapids, our Iowa Payroll Tax Calculator makes calculating employee withholdings as straightforward as an Iowa handshake. Handle state income tax, local option taxes, and federal requirements with confidence—all in one simple tool.

Iowa Payroll Tax Steps

Iowa’s progressive tax system combined with local option taxes in certain school districts can make payroll trickier than it first appears. Our calculator helps you navigate Iowa’s payroll landscape without getting lost in the details, ensuring accurate calculations whether you’re in the capital city or out in the countryside. Get precise withholdings as reliably as Iowa corn grows tall.

Here are some key steps you’ll have to take to make smarter payroll decisions.

Step #1: Register with Iowa Department of Revenue and IWD

To hire employees in Iowa, you'll need to register with the Iowa Department of Revenue for withholding taxes and Iowa Workforce Development (IWD) for unemployment insurance. Iowa's online eFile & Pay system makes registration as easy as the State Fair butter cow. You'll receive account numbers for both tax withholding and unemployment.

New employers pay 1.0% unemployment tax on the first $36,100 of each employee's wages for their first four years—one of the higher wage bases in the Midwest.

Step #2: Handle Iowa's Tax Forms and Requirements

Step #3: Understand Iowa's Minimum Wage and Overtime Laws

Step #4: Meet Iowa's Pay Period Requirements

Step #5: Use our Simple Iowa Payroll Calculator

Step #6: Submit Taxes and File Iowa Payroll Reports

Fingercheck and any related entities do not offer tax, accounting, or legal advice. This content is designed for informational purposes only and should not be considered a source of tax, legal, or accounting advice. It is recommended that you consult your tax, legal, and accounting advisors before undertaking any related activities or transactions.

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