Sources checked:
Quick answer. Iowa: $21,100 SUTA wage base; 1% new employer rate; new hires reported in 15 days; $7.25 minimum wage; no statewide paid sick leave law; final pay by the next payday if fired. 17 of 19 checklist items are confirmed on official pages; 2 are marked not confirmed, with the page to check.
Iowa 2027 employer checklist
1. Register for unemployment tax and withholdingBefore the first payroll.
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ConfirmedOpen a state unemployment tax account
IWD: register online at myIowaUI.org within 30 days of first paying wages in Iowa or acquiring a business.
Source: Iowa Workforce Development: Employer Resources (UI Employer Handbook), checked November 2026 · More: Iowa unemployment tax 2027
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ConfirmedTaxable wage base for 2027
$21,100 per employee in 2027 ($20,400 in 2026).
Iowa Workforce Development (June 30, 2026): "The taxable wage base for Calendar Year 2027 will be $21,100, up slightly from CY 2026 but down from $39,500 in CY 2025."
Source: Iowa Workforce Development: Tax topic page (September 2, 2026 announcement), checked November 2026 · More: Iowa unemployment tax 2027
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ConfirmedNew employer tax rate
1% for a new employer.
1.00% per the DOL table.
Source: Iowa Workforce Development: Tax topic page (September 2, 2026 announcement), checked November 2026 · More: Iowa unemployment tax 2027
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ConfirmedQuarterly wage reports and payments
Iowa Administrative Code rule 23.8: contributions are due quarterly on the last day of the month after the quarter; a weekend or legal holiday moves it to the next business day.
Source: Iowa Workforce Development: Tax topic page (September 2, 2026 announcement), checked November 2026 · More: Iowa unemployment tax 2027
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ConfirmedState income tax withholding
State income tax applies. New employees fill out the state certificate: Form IA W-4, Employee Withholding Allowance Certificate.
Source: Official page, checked November 2026
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ConfirmedWorkers who live in a neighboring state
Reciprocity partners named by the state: Illinois. Their residents can give you Form 44-016 (Employee's Statement of Nonresidence in Iowa).
Any wages or salary made by an Iowa resident working in Illinois is taxable only to Iowa and not to Illinois.
Source: Iowa Department of Revenue: Form 44-016, Employee's Statement of Nonresidence in Iowa (10/3/2024), checked November 2026 · More: State tax reciprocity agreements
2. Report new hires and check work eligibilityFor every hire, rehire and, where the state says so, contractor.
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ConfirmedReport each new hire to the state
Within 15 days of the hire or rehire date. Magnetic or electronic reports may instead be sent 12 to 16 days apart.
- Who: Employees hired or rehired.
- Independent contractors: yes, report them too. Report a contractor within 15 days of the date both conditions are met: you have a contract with the contractor under which you pay them twice a year or more, and the payment is more than the amount that requires a 1099-MISC. A contractor is reported only once.
- How: online, mail, fax. Online at iowachildsupport.gov; mail to Iowa Centralized Employee Registry, PO Box 10322, Des Moines IA 50306-0322; fax 800-759-5881.
Source: Iowa Child Support: New Hires FAQ, checked November 2026 · More: First hire checklist for Iowa
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ConfirmedWorkplace posters
Iowa Workforce Development lists the required posters.
Source: Iowa Workforce Development: Employer and Workplace Posters, checked November 2026 · More: First hire checklist for Iowa
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Not confirmedE-Verify for private employers
Not confirmed — check Conference Committee Report on Senate File 2218, Iowa Legislature.
3. Set pay at the minimum wage: January 1 and mid-yearCheck every hourly and tipped rate against the floor.
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ConfirmedMinimum wage now (2026)
$7.25 an hour.
$7.25 (US DOL).
Sources: Iowa Code 364.3: limitation of powers (cities); U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026); U.S. Department of Labor: Minimum Wages for Tipped Employees (revised July 1, 2026), checked November 2026 · More: Minimum wage by state 2027
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ConfirmedMinimum wage change in 2027
$7.25 an hour; no scheduled change in our data.
US DOL's state table (updated November 5, 2026) shows no scheduled change.
Sources: Iowa Code 364.3: limitation of powers (cities); U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026); U.S. Department of Labor: Minimum Wages for Tipped Employees (revised July 1, 2026), checked November 2026 · More: Minimum wage by state 2027
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ConfirmedTipped employees
Cash wage of at least $4.35 an hour in 2027, with tips making up the rest.
US DOL tipped table: tip credit up to 40% ($2.90), cash wage $4.35.
Source: U.S. Department of Labor: Minimum Wages for Tipped Employees (revised July 1, 2026), checked November 2026 · More: Minimum wage by state 2027
4. Paid sick leaveAccrual, limits and notice.
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ConfirmedPaid sick leave
No statewide paid sick leave law for private employers.
House File 295 (2017) added Iowa Code 364.3(12) and 331.304(12): a city or county "shall not adopt, enforce, or otherwise administer" an ordinance on terms of employment that exceed state or federal law "relating to a minimum or living wage rate, any form of employment leave" and other conditions. Not adopted (list basis): the US Department of Labor Women's Bureau map of state paid sick leave laws (as of September 2024; checked November 2026) names 15 states and DC with a paid sick leave law, and Iowa is not among them. Check the state labor agency for any law passed since.
Sources: U.S. Department of Labor, Women's Bureau: State Paid Sick Leave Laws (map, as of September 2024); Iowa House File 295 (2017, enrolled): amends Iowa Code 364.3 and 331.304, checked November 2026 · More: Paid sick leave laws by state
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ConfirmedCity or county sick leave rules
Iowa 2017 House File 295 (Iowa Code 364.3(12) and 331.304(12))
Source: Iowa House File 295 (2017, enrolled): amends Iowa Code 364.3 and 331.304, checked November 2026 · More: Paid sick leave laws by state
5. Meal and rest breaksAdults and workers under 18.
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Not confirmedMeal breaks for adults
Not confirmed — check Iowa DIAL: Hiring Iowa teens, what an employer needs to know.
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ConfirmedRest breaks for adults
No state requirement, per the state's own page. No state rest-break requirement: Iowa isn't in the US DOL table of state paid rest-period rules (revised January 1, 2023), which says states not listed don't require paid rest periods.
States not listed do not require paid rest periods.
Sources: Iowa DIAL: Hiring Iowa teens, what an employer needs to know; Iowa DIAL: Wage claims FAQ; U.S. Department of Labor: Minimum Paid Rest Period Requirements under State Law for Adult Employees in Private Sector (revised January 1, 2023), checked November 2026 · More: Meal and rest break laws by state
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ConfirmedBreaks for workers under 18
14- and 15-year-olds get a 30-minute break after 5 hours worked, during the school year and in summer. (Ages: 14 and 15.)
30-minute break after 5 hours worked
Sources: Iowa DIAL: Hiring Iowa teens, what an employer needs to know; Iowa DIAL: Wage claims FAQ; U.S. Department of Labor: Minimum Paid Rest Period Requirements under State Law for Adult Employees in Private Sector (revised January 1, 2023), checked November 2026 · More: Meal and rest break laws by state
6. Workers' compensationCoverage, posters and proof.
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ConfirmedWorkers' compensation insurance
Most employers must carry insurance or register as self-insured. The page gives no headcount threshold.
Iowa law requires most employers to either:
- Owners and officers: A proprietor, LLC member, partner or limited liability partner can file a nonelection of coverage; certain corporate officers can file a rejection of coverage.
- Poster: An employer that hasn't insured must keep a sign posted where employees can see it, saying it has failed to insure as required by law.
- Check a policy: The division contracts with the National Council on Compensation Insurance to verify coverage; see its verification page.
Source: Compliance | Iowa Department of Inspections, Appeals, & Licensing, checked November 2026 · More: Workers' comp requirements by state
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ConfirmedIf there's no coverage
An employer that fails to insure, and doesn't post the required sign saying so, is guilty of a simple misdemeanor.
Source: Compliance | Iowa Department of Inspections, Appeals, & Licensing, checked November 2026 · More: Workers' comp requirements by state
7. Final payWhen someone leaves.
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ConfirmedFinal pay when you let someone go
By the next regular payday for the pay period in which the wages were earned.
by the next regular payday
Sources: Iowa Code 91A.4: Employment suspension or termination, how wages are paid; Iowa Code Chapter 91A: Wage Payment Collection; Paycor (secondary source): Final paycheck laws by state (last updated December 1, 2025), checked November 2026 · More: Iowa final paycheck law
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ConfirmedFinal pay when an employee quits
By the next regular payday for the pay period in which the wages were earned. Iowa Code 91A.4 applies whenever employment is "suspended or terminated", and Paycor's 50-state chart (secondary source, last updated December 1, 2025) lists the next scheduled payday for resignations too.
by the next regular payday
- Unused vacation: If vacation is due under an agreement or employer policy, accrued vacation is paid, prorated for the part of the year worked.
- If it's late: If the employer intentionally fails to pay, the employee can recover the unpaid wages plus liquidated damages, court costs and attorney fees (91A.8).
Source: Iowa Code 91A.4: Employment suspension or termination, how wages are paid, checked November 2026 · More: Iowa final paycheck law
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ConfirmedFor a laid-off employee: the state's work search rule
At least 4 valid reemployment activities each week, and at least 3 of them must be job applications.
Source: Iowa Workforce Development (IWD), checked November 2026 · More: Unemployment work search rules by state
8. Year-end W-2 and 1099 filingState copies, due in early 2027 for 2026 pay.
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ConfirmedState copies of W-2s and 1099s
Businesses that issued W-2s or 1099s that contain Iowa withholding must file them electronically through GovConnectIowa by February 15. If a business did not withhold any Iowa tax, filing is not required.
- W-2s: February 15 (electronic)
- 1099s: February 15 (electronic)
- Annual reconciliation: None: the Department says VSPs (Verified Summary of Payments reports) are no longer required to be filed, due Not applicable.
- Electronic filing: W-2s and 1099s with Iowa withholding must be filed electronically through GovConnectIowa by February 15.
Sources: Iowa DOR: Filing Frequencies and Return Due Dates; Iowa DOR: File a W-2 or 1099 (last updated October 11, 2026), checked November 2026 · More: 1099 and W-2 deadline finder
Key dates for 2027
Only the dates our files state. A date on a weekend or holiday is flagged, not moved, unless the agency's page says it moves.
Hiring in another state? Employer registration in Iowa, done for you, or a free bookkeeping health check.
| Date | What | Source |
|---|---|---|
| Sunday, January 31, 2027 | Unemployment tax report and payment for the fourth quarter of 2026 Falls on a Sunday. This is the date as the agency states it; check its rule for weekend due dates (see step 1). | |
| Monday, February 1, 2027 | Form W-2 Copy A (with W-3) to SSA, and employee copies (federal) | |
| Monday, February 1, 2027 | Form 1099-MISC copies to payees (federal) | |
| Monday, February 1, 2027 | Form 1099-NEC to the IRS and to each payee (federal) | |
| Monday, February 15, 2027 | W-2s and 1099s with Iowa withholding, filed electronically Monday, February 15, 2027 is Washington's Birthday, a federal holiday. Check whether the agency moves the date. | |
| Monday, March 1, 2027 | Form 1099-MISC to the IRS on paper (federal) | |
| Wednesday, March 31, 2027 | Form 1099-MISC to the IRS electronically (federal) | |
| Friday, April 30, 2027 | Unemployment tax report and payment for the first quarter of 2027 | |
| Saturday, July 31, 2027 | Unemployment tax report and payment for the second quarter of 2027 Falls on a Saturday. This is the date as the agency states it; check its rule for weekend due dates (see step 1). | |
| Sunday, October 31, 2027 | Unemployment tax report and payment for the third quarter of 2027 Falls on a Sunday. This is the date as the agency states it; check its rule for weekend due dates (see step 1). |
Still to confirm
- E-Verify for private employers: check Conference Committee Report on Senate File 2218, Iowa Legislature
- Meal breaks for adults: check Iowa DIAL: Hiring Iowa teens, what an employer needs to know
General information, not legal, tax or payroll advice. We are not lawyers, and MCC Solutions is not a law firm or a payroll service. Nothing here guarantees compliance. Rules change, cities and counties can add their own, and the agency's own page has the final word.
Common questions
What is the Iowa unemployment tax wage base for 2027?
$21,100 per employee in 2027 ($20,400 in 2026). Iowa Workforce Development (June 30, 2026): "The taxable wage base for Calendar Year 2027 will be $21,100, up slightly from CY 2026 but down from $39,500 in CY 2025."
How soon must a Iowa employer report a new hire?
Within 15 days of the hire or rehire date. Magnetic or electronic reports may instead be sent 12 to 16 days apart.
What is the Iowa minimum wage in 2027?
$7.25 an hour; no scheduled change in our data. US DOL's state table (updated November 5, 2026) shows no scheduled change.
Does Iowa require paid sick leave?
No statewide paid sick leave law for private employers.
When is a final paycheck due in Iowa?
If the employer ends the job: By the next regular payday for the pay period in which the wages were earned. If the employee quits: By the next regular payday for the pay period in which the wages were earned. Iowa Code 91A.4 applies whenever employment is "suspended or terminated", and Paycor's 50-state chart (secondary source, last updated December 1, 2025) lists the next scheduled payday for resignations too.
Does Iowa require state W-2 or 1099 filing?
Businesses that issued W-2s or 1099s that contain Iowa withholding must file them electronically through GovConnectIowa by February 15. If a business did not withhold any Iowa tax, filing is not required. W-2s: February 15 (electronic) 1099s: February 15 (electronic)
Do Iowa employers need workers' comp?
Most employers must carry insurance or register as self-insured. The page gives no headcount threshold.
Related: Employer compliance by state · 2027 changes for employers
Rule Watch: keep this state's employer rules and next deadlines on one private dashboard, with changes marked when our data changes. From $9 a month. See Rule Watch.
Required posters: Iowa workplace posters, with free official links.