Capital City
Des Moines
Timezone
CST
(
GMT-6
)
Paid Leave
none
Income Tax
4.4% - 6.0%
Employer Tax
0% - 9%
Capital City
Des Moines
Timezone
CST
(
GMT-6
)
Paid Leave
none
Income Tax
4.4% - 6.0%
Employer Tax
0% - 9%
In Iowa, employers must adhere to both federal and state payroll regulations. The state mandates a minimum wage of $7.25 per hour, consistent with the federal standard. Overtime is calculated at 1.5 times the regular pay rate for hours exceeding 40 in a workweek. Employers are required to pay employees at least monthly, with payments made no later than 12 days after the end of the pay period, excluding Sundays and legal holidays. Additionally, employers must withhold state income tax from employees' wages and remit these withholdings to the Iowa Department of Revenue.
Access competitive benefits like health insurance and retirement plans, often at a lower cost through a PEO. Leverage its pooled volume for enterprise rates - resold to PEO customers, with no employment minimums in Iowa.
Check out our comprehensive state hiring guide.
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FAQS
A PEO assists Iowa businesses by managing complex employment laws, ensuring adherence to regulations such as wage and hour laws, tax withholdings, and workplace safety standards. This support helps mitigate legal risks and allows businesses to focus on core operations.
Yes, PEOs operating in Iowa must comply with state regulations and are often required to register with the appropriate state authorities. This ensures they meet specific standards and operate within legal guidelines.
Absolutely. PEOs provide small businesses in Iowa with access to comprehensive HR services, including payroll processing, benefits administration, and compliance assistance, often at a lower cost than managing these functions in-house.
Yes, a PEO can help businesses maintain compliance with Iowa's employment laws by keeping abreast of legislative changes, managing employee documentation, and ensuring all HR practices meet state and federal requirements.
Terminating a relationship with a PEO in Iowa typically involves reviewing the service agreement for termination clauses, providing the required notice, and ensuring a smooth transition of HR responsibilities back to the company or to another service provider. It's important to plan this process carefully to maintain compliance and continuity.
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Your “everything you ever needed to know” guides to compliant employment around the United States.