Quick Facts
| Item | Value |
|---|---|
| Minimum Wage | $7.25/hr |
| Pay Frequency | At least every 16 days |
| Overtime Rules | 1.5x after 40 hrs/week; live-in exempt |
| Record Retention | 5 years |
State Income Tax
Withholding Form: IA W-4
Unemployment Insurance
Registration: Register online
Workers' Compensation
Threshold: employee earns $1,500+ in 12 months
New Hire Reporting
Deadline: Within 20 days of hire
Required Forms
Form IA W-4
Iowa state income tax withholding form
Purpose: Employee completes for state tax withholding
Key Deadlines
| Deadline | Date | Description | Frequency |
|---|---|---|---|
| New Hire Reporting | Within 20 days of hire | Report new employees within 20 days to the state | at-event |
State Agencies
Sources
Frequently asked
- Do I owe nanny tax in Iowa?
- If you pay a household employee $3,000 or more in 2026, you owe federal FICA (Social Security and Medicare). If you pay $1,000 or more in any calendar quarter, you owe FUTA. Iowa state unemployment kicks in once you exceed the state's wage threshold — typically the first $20,400 of wages.
- What is the Iowa SUI rate for a new household employer?
- New household employers in Iowa start at 1%, applied to the first $20,400 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.
- How much state income tax do I withhold for a Iowa nanny?
- Iowa applies a flat 3.8% state income tax. You withhold this from each paycheck after applying any state standard deduction or exemptions based on your employee's state withholding certificate.
- What forms do I need to file for a household employee in Iowa?
- Federally: Schedule H (filed with your personal Form 1040), W-2 and W-3 (given to your employee and filed with the SSA), and quarterly EFTPS deposits if your liability exceeds $1,000/year. In Iowa: new-hire reporting, quarterly SUI filings, and any required state income tax withholding returns. CareTax generates all federal reference documents and points you to the Iowa state portals.