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Paying employees in Iowa
When hiring employees in new states, you will need to register for relevant state tax accounts to facilitate their payment. In Iowa, you must be registered with the Iowa Department of Revenue (DOR) (income tax withholding) and the Iowa Workforce Development (unemployment tax).
Alternatively, Justworks Payroll can handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Your Iowa Accounts and Rate Info
Registering for a Withholding Tax Account (Permit Number):
To start the registration process:
- Visit the Iowa Department of Revenue website.
- Scroll to the “Registration” section and click on "Register a New Business."
- Select “Login or create a GovConnectIowa account to register a new business."
- Click "Create a Logon."
- Review the provided information, then click Next when ready.
- After creating your user account, log in and select "Register."
If you can’t register online, you can complete the Iowa Business Tax Permit Registration, Form 78-005.
You only need to apply once, unless your business has relocated to a new county or you are now a remote seller operating in Iowa.
Once you register, you’ll receive your tax account information within approximately 4–6 weeks. For questions or to confirm your registration, contact the Iowa Department of Revenue at (515) 281-3114.
Registering for an Unemployment Insurance Tax Account:
Before you begin, review the Iowa Workforce Development New Business Fact Sheet. To check your tax liability and register for an unemployment account, use the myIowaUI platform:
- Go to the myIowaUI website.
- Under “New Users” in the top-right corner, click "Create ID."
- Follow the remaining prompts to complete your registration.
Upon completing the online registration, you should receive your unemployment insurance (UI) account number and tax rate (contribution rate) immediately. If you're unable to locate your account number or tax rate, contact the agency at (866) 239-0843.
Already Registered? Locate This Information
Locate Your Withholding Tax Account Number:
If your business has previously processed payroll in Iowa, you can find your Withholding Account Number by:
- Visit GovConnectIowa.
- Select "Create a Logon."
- Choose "I am here to request access to existing accounts."
- Follow the prompts to enter your information.
- Provide the required account verification details:
- You only need to verify one account for each business. Once verified, you can choose to access other associated tax accounts.
- Information needed may include:
- Account Type
- Permit Number
- IDR ID, e-file & Pay BEN, or details from a recent tax return.
- Complete the logon setup by following the on-screen instructions.
- An access code and instructions will be mailed to the primary address on file, typically the next business day.
- After receiving the access code, log back into your GovConnectIowa account and enter the code.
For assistance, call the agency at (515) 281-3114 or (800) 367-3388.
Locate Your Unemployment Tax Account Number and Contribution Rate:
You can locate your unemployment account number and contribution rate by:
- Reviewing your Notice of UI Contribution Rate (Form 65-5306)
- Checking your Employer's Contribution and Payroll Report
- Contacting the agency at (888) 848-7442.
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid IA address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- Under ‘Company tax info’ click into “Iowa” to edit the state tax information
In your Justworks Payroll account, you’ll want to enter your IA Withholding Tax Account Number (Permit Number), Unemployment Insurance Account Number and Tax Rate.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your IA tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your IA state tax account. During onboarding, we will request that you sign state specific TPA forms, which authorizes us to handle and report your taxes to the state.
Why is this important?
Justworks Payroll calculates tax liabilities as part of payroll processing. If we cannot access your IA state tax accounts, we must return any unremitted tax liabilities to your company bank account, requiring you to remit and file your company’s state taxes manually.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.