Iowa payroll tax and registration guide

Updated September 7, 2023

This article will cover:

• What information OnPay needs from you
• What state and local taxes and filings OnPay handles for Iowa employers
• Where you can find the tax account numbers needed
• Paying employees in other states?

Why is this important?

The following information requests and registration instructions are required before you can use a payroll provider to run payroll. This is in compliance with state payroll tax regulations. Without this information, OnPay is unable to file or deposit any tax payments for your company, and will not be responsible for any resulting penalties or interest. Note: If this isn't the only state where you have employees, there will be a separate guide like this one for each state where you hire and pay workers. 

Let Middesk handle your state tax registrations (and more)

If you'd like help, our partner Middesk makes hiring employees and staying compliant with every state agency simple and easy.

• Register with every state agency to get the tax IDs you need within minutes
• Stay compliant as you grow by managing agency mail and notices in your dashboard
• Manage your government accounts in one place on Middesk's intuitive platform
• Foreign Qualify with the Secretary of State to create payroll tax accounts 

Learn more about Middesk→

What information OnPay needs from you

What state and local taxes and filings OnPay handles for Iowa employers

Where you can find the tax account numbers needed

If you are an existing employer who has previously run payroll in Iowa, you likely already have the IDs and online accounts needed for OnPay to process your tax filings. 

If you are a new employer in Iowa, you will need to register your business with the Iowa Department of Revenue and Iowa Workforce Development. This must be completed for OnPay to be able to file and pay your Iowa taxes.

Iowa Withholding Permit Number and Business eFile Number

Existing Iowa Employer: 

• You can find your Withholding 9-digit Permit Number on notices received from the Iowa Department of Revenue. 
  • 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.
• If you cannot find this number, please call the agency at 515-281-3114 or 800-367-3388.

New Iowa Employer: Register with the Iowa Department of Revenue 

• Register online with the Iowa Department of Revenue.
• You will receive your Withholding Permit Number and Filing Frequency immediately after completing the online registration. 

Unemployment Insurance (UI) Account Number and Contribution Rate

Existing Iowa Employer: 

• You can find your UI Account Number on any previous Notice of Unemployment Insurance Contribution Rate from Iowa Workforce Development.
• Your Contribution Rate can be found on the annual Unemployment Insurance Contribution Rate Notice mailed to you each year by Iowa Workforce Development.
• If you cannot find these numbers, please contact the agency at 888-848-7442.

New Iowa Employer: Register with the Iowa Workforce Development

• Register online with Iowa Workforce Development. 
• You'll receive your UI Account Number immediately after completing the online registration. 
• New employers generally have a Contribution Rate of 1% (construction 7%), with a wage base of $36,100. If you are unsure of your rate, contact the agency at 888-848-7442 or by email at IWDuitax@iwd.iowa.gov.

Paying employees in other states?

If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.

v6.23