Iowa Payroll Instructions

Payroll Links

Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2021 Payroll Tax Table Updates

Other Links

Iowa has state income tax withholding that uses a standard deduction, plus a credit amount for each exemption. It uses a 'step' table that is similar to the federal payroll tax tables.

The Iowa state withholding tax formulas changed in 2021, with an increase in the standard deduction, and indexing of tables for inflation. Iowa tables have changed 8 times in the past 31 years.

NOTE-- Starting in 2006, we are using annualized tables rather than weekly ones, since they are easier to match up to the info available on the Iowa state website. Goldenseal will automatically convert the tax tables to whatever payroll period you use.

Iowa State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of Iowa dependents into the State Exemptions field.
  7. Enter the Iowa Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
  8. Click OK.

Iowa State Unemployment Tax Instructions

In 2021, Iowa state unemployment cost applies to the first $32,400 of each employee's wages, which is a $800 increase from last year. For new employers, the starting rate depend on the business type, ands the current state of the UI reserve. In 2020 construction companies start at 7.5%, while most others start at 1.0%. In later years the tax rate is different for each company, depending on their experience rating.

To enter your Iowa SUTA tax rate into the Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate Iowa SUTA in the list, and double-click on it. HINT: If you don't see Iowa SUTA in the list, you'll need to import your state's payroll info first.
  3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Iowa Marital Status

Enter one of the following for each employee:

  • Single- single employee with one personal exemption
  • Married- married employee with two personal exemptions
  • Dual Income- married employee with one personal exemption
  • Head of House- employee claims Head of Family status
  • Other- not used

Iowa Tax Contacts

Payroll taxes website

Tax Forms Automated System-- 515 281-3114
SUTA-- 515 281-5640

Iowa Department of Revenue & Finance
Hoover State Office Building
Des Moines IA 50319

Little Known Iowa Tax Fact

During presidential election years, Iowa residents may claim 1 (one) candidate as a dependent. The deduction is valid only if said candidate supports the ethanol mandate, and consumes at least 14.5 pounds of butter during his or her stay (State Law #IA-4335a).

Official State Lawn Ornament

Riding mower.