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Iowa Payroll Taxes

Iowa requires the following state payroll Tax and withholding forms

Form NHR – New Hire Reporting

Employers are required to report all new hires to the state of Iowa within 15 days of their employment. This form helps Iowa track employment and ensures new hires are properly registered for tax purposes. Timely reporting is essential to avoid penalties and keep your business compliant.

Form WH-44095 – Iowa Employer Withholding Tax Report

Form WH-44095 is used by employers to report Iowa income tax withheld from employees' wages. This form must be filed on a quarterly basis and is due by the last day of the month following the end of each quarter, ensuring that your withholding tax payments are up to date.

Important Deadlines for Iowa Payroll Tax Filing

Form NHR (New Hire Reporting)

  • Due within 15 days of hiring a new employee. It's important to submit this report quickly to stay compliant with Iowa regulations.

Form WH-44095 (Employer Withholding Tax Report)

  • Due by the last day of the month following the end of each quarter
    • description
      1st Quarter (January - March): Due April 30
      2nd Quarter (April - June): Due July 31
      3rd Quarter (July - September): Due October 31
      4th Quarter (October - December): Due January 31
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Additional Information

Penalties
  • 5% Penalty for Late Filing or Paying Taxes:

If you don’t file your return on time or don’t pay enough tax (less than 90% by the due date), you’ll owe an extra 5% of the unpaid tax.

  • 5% Penalty for Audit Deficiency:

If an audit finds you owe more tax, you'll get an additional 5% penalty on the unpaid tax.

  • 75% Penalty for Fraud:

If you file a fraudulent return or willfully avoid filing, you face a 75% penalty on the unpaid tax. This penalty can’t be waived.

  • $500 Civil Penalty for "Frivolous Returns":
    • A $500 penalty is charged if your return lacks enough information or is clearly wrong on purpose.

  • Fraud Penalty

If tax underpayment is due to fraud, a 75% penalty is charged.

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Frequently Asked Questions (FAQ)

  • Form NHR (New Hire Reporting): Due within 15 days of hiring a new employee.
  • Form WH-44095 (Employer Withholding Tax Report): Less than $6,000 tax per year (less than $1,500 per quarter; less than $500 per month) File a quarterly return for each calendar quarter Return and payment due on or before the last day of the month following each calendar quarter

Failure to file Form NHR within 15 days or Form WH-44095 by the quarterly deadline can result in 5% of penalties. Employers must meet these deadlines to avoid fines.

Form NHR and Form WH-44095 can be easily filed online through an eFiling platform like Tax1099. This ensures quick, secure, and accurate submissions that help you stay compliant.

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