Iowa Payroll Tax and Labor Laws

Get your Iowa State Tax ID Numbers 

Click HERE to obtain State Tax ID   

Click HERE to obtain State Unemployment Tax ID  

Iowa Wage and Hour Laws 

Minimum Wage 

Iowa minimum wage rate is currently $7.25 per hour.  

For more information on Iowa’s minimum wage law, please click HERE.  

Overtime 

There is no state-mandated overtime law in Iowa for private employers. Employers in Iowa covered by the Fair Labor Standards Act (FLSA) should follow the federal overtime rules which require employers to pay non-exempt employees time and one-half the employee’s regular rate of pay for hours worked in excess of 40 hours per workweek.  

Pay Frequency 

Iowa’s pay frequency statute requires covered employers to pay employees for wages earned at consistent intervals, designated in advance, at least on a biweekly, semimonthly, or monthly basis. Paydays must be no more than 12 days after the end of the pay period, excluding Sundays and legal holidays.  

Iowa Unemployment 

Taxable Wage Base ($000s):                                $38,200 

New Employer Rate (% Taxable Wages):       1.0% New Employer, or 7.5% Construction 

Employee Tax Rate (% Taxable Wages):           None 

Iowa Income Tax Withholding 

Iowa requires employers to withhold state income tax from employees' wages and remit the amounts withheld to the Department of Revenue. Iowa and Illinois have a reciprocal withholding agreement that allows withholding from wages in the employee's state of residence only.  

Iowa State Resources 

Iowa Department of Revenue  

Iowa Division of Labor  

Iowa Workforce Development  

Iowa SUI Rate  

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.  

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.  

Revised 1/1/2024