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eFile & Pay

Iowa Withholding Tax - How to Use eFile & Pay

Select a Permit Amended Quarterly Return Instructions
Information for Bulk Filers Annual Return Instructions
General Information about Iowa Withholding Amended Annual Return Instructions
Withholding Menu Instructions Annual VSP Instructions
Negative Amounts Amended VSP Instructions
Semi-Monthly/Monthly Return Instructions Payment Options
Quarterly Return Instructions For More Assistance

 

Enter eFile & Pay

Select a Permit

Use the drop-down menu to select the permit number for the return or payment you wish to file.

The numbers shown are those the Department has registered as active for the tax type you selected and for which you are authorized.

Back: Clicking on the BACK button will return you to the prior screen without saving any of the information on this screen.

Continue: Clicking on the CONTINUE button will save all information and take you to the next screen.  

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General Information for Bulk Filers/Service Providers

FAQs for Bulk Filers (pdf)

The terms "bulk filer" and "service provider" are used interchangeably to describe persons who perform tax reporting and paying services for multiple clients.

Service providers can file using any of three methods:

Single file online. At the eFile & Pay Website, submit return/e-payment information online, one transaction at a time, much like taxpayers would file for themselves.

Web import (DWI). Again at the eFile & Pay Website, submit a fixed length or delimited file of clients’ return/e-payment information by uploading a created file from your Microsoft browser. This option is explained in greater detail below.

Batch load. This method is now available. Batch load allows you to download a batch loader software tool which enables you to bulk load data through a standard HTTPS SSL secure process. Data is loaded from a standard ASCII text file formatted to your specifications as defined in this pdf file.

The Batch Loader User Guide (pdf)

Registering as a Service Provider

Service providers will need to be identified as such regardless of the method of filing used. The first step is to complete an Application to Become a Bulk Filer (pdf). Upon completion and submission of the application, the Department will register the applicant as a service provider. It could take up to 4 weeks to process the application. The Department will mail information on how to log in and set up to file for clients.

Service providers who already have a Business eFile Number (BEN) will use that same number to access eFile & Pay for purposes of filing on behalf of their clients. Once registered as a service provider, you will notice new options on the Main Menu: File For Your Clients and Cancel A Payment For Your Client.

Service providers who do not already have a BEN will be issued a unique 8-digit number. The Department will mail this BEN to the service provider. This number will be used for initial logon and account setup purposes, as well as being the access method for filing online.

The system also requires a permit number for initial logon into the system. If a service provider has any active Iowa permit number, that permit number will be used. Any service provider which does not have an active permit will be issued a permit number strictly for purposes of initial logon.

Initial Login
The first person to access the system using the service provider's BEN will be the administrator of the service provider's eFile & Pay account and will set up that account on the eFile & Pay Website. The administrator will be assigned a user ID and will create a password for future use. The administrator can either use this ID and password to file for clients or can set up additional user accounts to allow other users to file for clients. At the time any registered user logs in, he or she will be given the option to "File for Your Clients."

Once the “File for Your Clients” link is selected, the user will have options to either file individual client transactions or upload client transaction files. Service providers have the ability to file monthly/semi-monthly deposits, quarterly returns, annual returns, and VSPs. Also, amended quarterly and annual returns and VSPs can be filed. (Amended deposits cannot be filed.)

Third Party Main Menu (Iowa Withholding Tax)

Single File Online
If the "Third Party Filing/File Online" option is chosen, the Client’s eFile Number, Tax Type and Permit Number must be entered. This will then allow the service provider to enter information for that one client, just as the client might file on his or her own.

Upload a File
To define the file for Web Import (DWI) or Batch Loader, select the transaction to be filed (monthly/semi-monthly deposit, quarterly/annual return or VSP).

Obtaining Client BENs
Service providers need to provide the Business eFile Number (BEN) of each client at the time transactions are submitted. There are two ways to obtain the BENs of clients:

1) Request the BEN from each client. The Department sends each registered taxpayer a letter containing their unique 8-digit BEN and they should have it on file.

2) If a client is unable to provide their BEN, you may contact the Department with the name and permit number of that client(s). The Department will then provide the corresponding client BEN(s) and current filing frequency.

To request BENs for fewer than 50 clients, please contact the Department’s eFile Service Unit at:

  • Phone: 515-281-8453 or 1-866-50-e-file (1-866-503-3453)
  • E-mail

Note: A current Power of Attorney form (pdf) must be on file with the Department for the person in your company who is requesting the client’s BEN.

To request BENs for 50 or more clients, you may submit a file of your clients to the Department’s Revenue Operations Division. The Department will return the registration status, BEN and current filing frequency for each registered client. Specific information on this file exchange is available here.

Bulk Withholding File Type (Iowa Withholding Tax)

This screen defines the file. It can be either a fixed length file or a delimited file. The available delimiters are comma, semi-colon, pipe or tab.

Monthly/Semi-Monthly Deposit File Layout (Iowa Withholding Tax)

The file format for the type of transactions to be filed is provided. A standard format for each transaction type is displayed. This standard format can be used as the basis to file returns or it can be customized by changing the sequence of the fields, eliminating optional fields or adding filler. Once the format is determined and saved by a user, that format will be presented to that user for future filings until such time as it is modified.

The file layout includes each field name and provides maximum field lengths, and an indication whether the field is required or optional. All fields except for the dollar fields (withholding amount through payment amount) must be of the maximum length. All required fields must be populated, even if zero.

All dollar fields must be whole dollars only, with the exception of the following fields, which can be defined as dollars only (No Implied Decimal) or dollars and cents (Implied Decimal). For both the Monthly/Semi-monthly and Quarterly/Annual screens, those fields are:

  • Penalty
  • Interest
  • Total Amount Due
  • Payment Amount

If cents are defined, it is recommended that they be defined to two places.

Client Business eFile Number. (Required) Must be a valid 8-digit number issued by the Department and must be valid for the permit number being supplied.

Client Permit Number. (Required) Must be a valid permit number. This number is either the 9-digit FEIN of the client, plus a 3-digit suffix, or is a temporary number generated by the Department until the permit holder obtains a permanent FEIN from the federal government.

Period End. (Required) Must be in the MM/DD/CCYY format prescribed. Month must be two digits. For example, May is 05, not 5. A period being filed must be a valid period for that taxpayer. (For example, a quarterly filer cannot file monthly deposits.) A monthly filer must file deposits for the first two months of a quarter, followed by a quarterly return. A semi-monthly filer must file six deposits (two for each month of the quarter) followed by a quarterly return. A monthly or semi-monthly deposit can be filed late, but only up to the due date of the quarterly return for that quarter. (For example, first quarter deposits can’t be filed after April 30.)

Withholding this Period. (Required) Dollars only, up to nine characters.

Less Credits. (Required) Dollars only, defined as a 10-digit field, but can only be nine, with the possibility of a negative sign. Credits taken are to be presented as a positive number. Credits claimed do not have to be itemized on the deposit, but must be itemized on the quarterly return. The four valid credits are defined on the quarterly return.

Balance Due. (Required) Dollars only. Withholding less Credits. Entries out of balance will be identified as an error.

Penalty. A 10% (failure to file timely) or 5% (failure to pay timely) penalty on the balance due should be included. This is an optional field. If penalty should be included, but isn’t, the transaction will be accepted, but penalty will be assessed either in the form of a billing of the deposit or included in a billing for the entire quarter.

Interest. Interest, at the proper rate, should be included where necessary, but like penalty is not required.

Total Amount Due. (Required) Balance due plus Penalty plus Interest. Entries out of balance will be identified as an error.

Payment Amount. The payment amount will usually be equal to Total Amount Due. However, a payment amount greater or less than Total Amount Due will be accepted.

Payment Date. The Payment Date can be any date from the current date up to and including the due date of the deposit. Any date beyond the due date for a timely payment will be identified as an error. If the Payment Date field is left blank, it will default to immediate payment. If a deposit is filed late, any payment made must be for the current date (or the date can be left blank).

Payment Method. (Required) Valid options are Z (zero tax due), E (electronic payment to be made with this transaction), M (a check will be mailed) or A (ACH credit or credit card payment will be made separately). The Payment Method must match the Amount Due. (For example, an amount due of zero can only have ‘Z’ as a valid option.)

Bank Account Type. Valid values are C (checking) and S (savings). If payment method is ‘E’, a ‘C’ or ‘S’ must be present. A value entered with any other payment method will be ignored.

Bank Routing Number. If Payment Method is ‘E’, the Bank Routing Number must be present. It must be nine digits and must be a valid bank routing number. An invalid number or a number other than nine digits will result in an error. A value entered with any Payment Method other than ‘E’ will be ignored.

Bank Account Number. Again, if Payment Method is ‘E’, the Bank Account Number must be present. Any numeric value from 3 – 17 digits will be accepted. A value entered with any Payment Method other than ‘E’ will be ignored.

Quarterly/Annual Return File Layout (Iowa Withholding Tax)

The file format for the type of transactions to be filed is provided. A standard format for each transaction type is displayed. This standard format can be used as the basis to file returns or it can be customized by changing the sequence of the fields, eliminating optional fields or adding filler. Once the format is determined and saved by a user, that format will be presented to that user for future filings until such time as it is modified.

Payment Date. The Payment Date can be any date from the current date up to and including the due date of the return. Any date beyond the due date will be identified as an error. If the Payment Date field is left blank, it will default to immediate payment. If a return is filed late, any payment made must be for the current date (or the date can be left blank).

Payment Method. (Required) Valid options are Z (zero tax due), E (electronic payment to be made with this transaction), M (a check will be mailed) or A (ACH credit or credit card payment will be made separately). The Payment Method must match the Total Amount Due (For example, an Amount Due of zero can only have ‘Z’ as a valid option.)

Bank Account Type. Valid values are C (checking) and S (savings). If payment method is ‘E’, a ‘C’ or ‘S’ must be present. A value entered with any other payment method will be ignored.

Bank Routing Number. If Payment Method is ‘E’, the Bank Routing Number must be present. It must be nine digits and must be a valid bank routing number. An invalid number or a number other than nine digits will result in an error. A value entered with any Payment Method other than ‘E’ will be ignored.

Bank Account Number. Again, if Payment Method is ‘E’, the Bank Account Number must be present. Any numeric value from 3 – 17 digits will be accepted. A value entered with any Payment Method other than ‘E’ will be ignored.

VSP (Verified Summary of Payments) File Layout (Iowa Withholding Tax)

Client Business eFile Number. (Required) Must be a valid 8-digit number issued by the Department and must be valid for the permit number being supplied.

Client Permit Number. (Required) Must be a valid permit number. This number is either the 9-digit FEIN of the client, plus a 3-digit suffix, or is a temporary number generated by the Department until the permit holder obtains a permanent FEIN from the federal government.

Period End. (Required) Must be in the MM/DD/CCYY format prescribed. The Period End for a VSP can only be the end of the calendar year (12/31/20YY).

IA Withholding on W2s/1099s. (Required) Dollars only, up to nine digits. The total withholding on W2’s and 1099’s for the year.

Credits. (Required) Dollars only, up to nine digits. The total amount of credits eligible to be claimed for the tax year.

Withholding Payments. (Required) Dollars only, up to nine digits. The total amount of payments made for the year, less any debits or refunds issued.

Total Credits/Payments. (Required) Dollars only, up to nine digits. The figure entered here must equal the sum of Credits plus Withholding Payments or it will result in an error.

Return Type. (Required) Valid values are O (Original) and A (Amended). Filing an amended return type when no original has been filed (and vice versa) will result in an error.

Bulk File Upload (Iowa Withholding Tax)

Select the file you wish to upload.

Bulk Processing (Iowa Withholding Tax)

This screen shows you the status of your upload.

File Preview (Iowa Withholding Tax)

Performs basic edits on the first 10 records in the file. It will assist in determining that the file’s field sequence is the same as what was defined and that the fields are formatted properly. The file is not "submitted" at this point and can be pulled back, corrected and uploaded again. The goal is to receive the message "Record is Valid" so that you know your file is capable of being transmitted.

View Results (Iowa Withholding Tax)

Once the file is submitted, any transactions with errors will be identified with error codes. Click on the error code to determine the cause of the error. All valid transactions will be considered filed. Transactions with errors cannot be accepted until all errors are corrected. Although a transaction may be valid, it is not necessarily accurate.

IMPORTANT: Each valid transaction will be provided with a unique 10-digit confirmation number. The confirmation numbers can be viewed and saved on the View Results screen. There will be no other acknowledgement sent.

IMPORTANT: The complete file results must be saved when received if desired for future reference. There is no option to view results of previous job submissions after leaving the DWI Results screen.

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General Information about Iowa Withholding Tax

Every employer who maintains an office or transacts business in Iowa and who is required to withhold federal income tax on any compensation paid to employees for services performed in Iowa is required to withhold Iowa individual income tax from that compensation. (An exception exists for wages paid to Illinois residents covered under the Iowa/Illinois Reciprocal Agreement.)

Every employer is required to file returns for each period, even if compensation was not paid during a period.

If you need to cancel your Iowa withholding permit or change your information, such as address or filing frequency, use the Iowa Department of Revenue online change and cancellation system.

Additional information is available on the Department's Website at withholding-tax-forms-and-information:

  • Withholding Tax Booklet, includes explanations regarding the types of payments that require withholding
  • Withholding Tax Tables
  • Withholding Filing Frequencies
  • Iowa W-4

Due Dates:

Semi-Monthly deposits (returns) for the first 15 days of a month are due on or before the 25th of that month; returns for the last half of the month are due on or before the 10th of the following month.

Monthly deposits (returns) are due on or before the 15th day of the month following the month the tax was withheld.

Quarterly returns are due on or before the last day of the month following the end of the quarter.

Annual returns are due on or before the last day of the month following the end of the year.

Employers must file a Verified Summary of Payments Report (VSP) on or before the last day of February of the year following the withholding of Iowa income tax from wages and other income payments.

If a due date falls on a weekend or holiday, the return is due the next business day.

Supplemental Wages: State income tax withholding is required from supplemental wage payments. This includes a payment of a bonus, overtime pay, commission or other special wage payments which are in addition to an employee's regular wages for a payroll period. If an employer chooses to use a flat percentage rate to determine the amount of federal withholding, a rate of 6% is to be used to withhold Iowa income tax.

Pensions, Annuities, Deferred Compensation and Other Non-Wage Income: State income tax withholding is required from payments of pensions, annuities and other non-wage incomes made to residents of Iowa if federal income tax is being withheld from the payments.

However, Iowa income tax is not required to be withheld from pensions, annuities and deferred compensation paid to a nonresident of Iowa.

The Iowa tax must be withheld one of two ways: (1) a flat 5% rate or (2) methods prescribed in the Iowa withholding tax guide.

A partial pension exclusion applies to retirement incomes of disabled persons, persons 55 years old or older, and a surviving spouse or other survivor of a qualified individual.

Withholding is not required if the monthly distribution is $500 or less or if the total distribution for the year is $6,000 or less if the payee meets the criteria for the partial pension exclusion. An IA W-4P withholding certificate, on which recipients indicate their pension exclusion amount, is available for use by payers of pensions, annuities, deferred compensation, incomes from individual retirement accounts, and other retirement income. Contact our Department for more information on the pension/retirement income exclusion and to request withholding certificates.

Payers who withhold Iowa income tax from both employee wages and from pensions, annuities, or other non-wage payments should include the total of all Iowa tax withheld for the period on the same withholding tax return. It does not matter if the tax is withheld from wage or non-wage payments, as long as it is under the same federal ID Number.

Gambling Winnings: Withholding of 5% for Iowa residents and non-residents is required as follows. Slot machine winnings: more than $1,200. Winnings from parimutuel wagering: more than $1,000. Lottery, games of skill or chance, or raffles: more than $600.

Film or Television Production in Iowa: Non-residents employed in film or television production in Iowa are not subject to withholding on wages earned from the activity if their employer has applied to the Department for exemption from withholding of Iowa income tax. The application must include the non-resident employees' names, permanent mailing addresses, Social Security numbers, and estimated amounts they are to be paid.

Agricultural Workers: Generally, Iowa income tax is required to be withheld from wages paid to agricultural workers in the same circumstances that federal income tax is required to be withheld, unless a worker claims tax exempt status.

Employees in Interstate Commerce: Employees covered under the Amtrak Reauthorization and Improvement Act of 1990 (PL101-322) who work in two or more states should have state income tax withheld by the state of residence only.

Confidentiality: State tax information may be disclosed only to other tax officials for tax administration purposes.

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Withholding Menu Instructions

The options displayed correspond to the periods for which the Department shows this entity being eligible to file. If you believe you need to file for a period that is not shown, please contact the Department at the phone numbers or email address provided at the bottom of the screen.

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Negative Amounts

If a negative amount needs to be entered on a particular line, please place a minus sign ( - ) in front of that amount on the line. NOTE: Negative amounts are not allowed as entries in most areas of the eFile & Pay system.

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Semi-Monthly/Monthly Return Instructions for Filing (Iowa Withholding Tax)

Line 1:
Total Tax Withheld 
This Period - Enter the total Iowa tax withheld for this period. If none, enter zero.

Line 2: 
Less Credits - Enter the total of any NJC - New Jobs Credit, SJC - Supplemental Jobs Credit, ACE - Accelerated Career Education Credit, and/or Targeted Jobs Tax Credit for this period. If none, enter zero.

Iowa Credits From Withholding: 
An industry that has entered into a Chapter 260E agreement with a community college for new jobs training can take a credit from withholding for the costs of a training project. This New Jobs Credit is noted as "NJC."

In addition, an eligible business as defined in Iowa Code section 15.239 or an eligible business in an enterprise zone may enter into an agreement with a community college for a Supplemental New Jobs Credit from withholding for an additional job training project. The employer may take a credit against the withholding payment due for all employees equal to, but not to exceed, 1-1/2% of the gross wages paid to employees participating in the additional job training project. This Supplemental Jobs Credit may be in addition to the New Jobs Credit mentioned above and is noted as "SJC."

The Accelerated Career Education Program is an agreement between an employer and a community college under Chapter 260G with a credit of up to 10% of the gross program job wage. The Accelerated Career Education Program is noted as "ACE."

The Targeted Jobs Tax Credit is available to employers that created targeted jobs in an urban renewal area and that enter into a withholding agreement with pilot project cities approved by the Iowa Department of Economic Development. A credit equal to 3% of the gross wages paid to employees under the withholding agreement can be taken on the Iowa withholding tax return. The employer shall remit the amount of the credit to the pilot project city.

Line 3: 
Balance Due - 
The amount on Line 1 minus the amount on Line 2. This will be automatically calculated by the system.

Line 4: 
Penalty - 
Automatically calculated by the system.

Are you filing the return late but have 90% of the tax paid by the due date? You do not owe any penalty.

Are you filing the return late and do not have 90% of the tax paid by the due date? You owe 10% of the tax not paid by the due date.

Did you file your return on time but did not pay 90% of the tax by the due date? You owe 5% of the tax not paid by the due date.

Penalties can be waived only under special circumstances. If more than one penalty applies, the 10% penalty is the only one charged.

Line 5: 
Interest - 
Automatically calculated by the system.

Are you paying any amount of your tax after the due date? You owe interest on the amount due. Interest accrues on the unpaid tax from the due date of return. Any fraction of a month is considered as a whole month. Interest cannot be waived. The interest rate may change each year.

Line 6: 
Total Amount Due - 
The total of Lines 3, 4, and 5. Automatically calculated by the system.  

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Quarterly Return Instructions for Filing (Iowa Withholding Tax)

Line 1: 
Total Tax Withheld This Quarter -
 Enter the total Iowa tax withheld for this quarter. If none, enter zero.

Line 2: 
Less Monthly Deposits -
 Enter the amount of any withholding tax already deposited for the quarter. Include any credit carry forward amount on this line. Do not include any penalty and/or interest paid. If none, enter zero.

Line 3: 
Less Credits - 
Enter the total of any adjustments and/or credits for this quarter. If none, enter zero.

Credits are NJC - New Jobs Credit, SJC - Supplemental Jobs Credit, ACE - Accelerated Career Education Credit, and/or Targeted Jobs Tax Credit.

Iowa Credits From Withholding: 
An industry that has entered into a Chapter 260E agreement with a community college for new jobs training can take a credit from withholding for the costs of a training project. This New Jobs Credit is noted as "NJC."

In addition, an eligible business as defined in Iowa Code section 15.239 or an eligible business in an enterprise zone may enter into an agreement with a community college for a Supplemental New Jobs Credit from withholding for an additional job training project. The employer may take a credit against the withholding payment due for all employees equal to, but not to exceed, 1-1/2% of the gross wages paid to employees participating in the additional job training project. This Supplemental Jobs Credit may be in addition to the New Jobs Credit mentioned above and is noted as "SJC."

The Accelerated Career Education Program is an agreement between an employer and a community college under Chapter 260G with a credit of up to 10% of the gross program job wage. The Accelerated Career Education Program is noted as "ACE."

The Targeted Jobs Tax Credit is available to employers that created targeted jobs in an urban renewal area and that enter into a withholding agreement with pilot project cities approved by the Iowa Department of Economic Development. A credit equal to 3% of the gross wages paid to employees under the withholding agreement can be taken on the Iowa withholding tax return. The employer shall remit the amount of the credit to the pilot project city.

Line 4: 
Balance Due> - 
The amount on Line 1 minus the amounts on Lines 2 and 3. This will be automatically calculated by the system.

Line 5: 
Penalty - 
Automatically calculated by the system.

Are you filing the return late but have 90% of the tax paid by the due date? You do not owe any penalty.

Are you filing the return late and do not have 90% of the tax paid by the due date? You owe 10% of the tax not paid by the due date.

Did you file your return on time but did not pay 90% of the tax by the due date? You owe 5% of the tax not paid by the due date.

Penalties can be waived only under special circumstances. If more than one penalty applies, the 10% penalty is the only one charged.

Line 6: 
Interest - 
Automatically calculated by the system.

Are you paying any amount of your tax after the due date? You owe interest on the amount due. Interest accrues on the unpaid tax from the due date of return. Any fraction of a month is considered as a whole month. Interest cannot be waived. The interest rate may change each year.

Line 7: 
Total Amount Due - 
The total of Lines 4, 5, and 6. Automatically calculated by the system.  

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Amended Quarterly Return Instructions for Filing (Iowa Withholding Tax)

Line 1: 
Total Tax Withheld This Quarter - 
Enter the correct total Iowa tax withheld for this period. If none, enter zero.

Line 2: 
Less Monthly Deposits - 
Enter the correct amount of any withholding tax already deposited for the quarter. Include any credit carry forward amount on this line. Do not include any penalty and/or interest paid. If none, enter zero.

Line 3: 
Less Credits - 
Enter the total of any credits for this quarter. If none, enter zero.

Credits are NJC - New Jobs Credit, SJC - Supplemental Jobs Credit, ACE - Accelerated Career Education Credit, and/or Targeted Jobs Tax Credit.

Iowa Credits From Withholding: 
An industry that has entered into a Chapter 260E agreement with a community college for new jobs training can take a credit from withholding for the costs of a training project. This New Jobs Credit is noted as "NJC."

In addition, an eligible business as defined in Iowa Code section 15.239 or an eligible business in an enterprise zone may enter into an agreement with a community college for a Supplemental New Jobs Credit from withholding for an additional job training project. The employer may take a credit against the withholding payment due for all employees equal to, but not to exceed, 1-1/2% of the gross wages paid to employees participating in the additional job training project. This Supplemental Jobs Credit may be in addition to the New Jobs Credit mentioned above and is noted as "SJC."

The Accelerated Career Education Program is an agreement between an employer and a community college under Chapter 260G with a credit of up to 10% of the gross program job wage. The Accelerated Career Education Program is noted as "ACE."

The Targeted Jobs Tax Credit is available to employers that created targeted jobs in an urban renewal area and that enter into a withholding agreement with pilot project cities approved by the Iowa Department of Economic Development. A credit equal to 3% of the gross wages paid to employees under the withholding agreement can be taken on the Iowa withholding tax return. The employer shall remit the amount of the credit to the pilot project city.

Line 4: 
Balance Due - 
The amount on Line 1 minus the amount on Lines 2 and 3. This will be automatically calculated by the system.

Line 5: 
Penalty - 
Depending on the specific circumstances of the filing of the original return, you may or may not owe a penalty. If you owe additional tax, you can either calculate any penalty you think you might owe and enter it here, or the Department will calculate that amount and bill you.

Are you filing the return late but have 90% of the tax paid by the due date? You do not owe any penalty.

Are you filing the return late and do not have 90% of the tax paid by the due date? You owe 10% of the tax not paid by the due date.

Did you file your return on time but did not pay 90% of the tax by the due date? You owe 5% of the tax not paid by the due date.

Penalties can be waived only under special circumstances. If more than one penalty applies, the 10% penalty is the only one charged.

Line 6: 
Interest - 
Automatically calculated by the system.

Are you paying any amount of your tax after the due date? You owe interest on the amount due. Interest accrues on the unpaid tax from the due date of return. Any fraction of a month is considered as a whole month. Interest cannot be waived. The interest rate may change each year.

Line 7: 
Total Amount Due - 
The total of Lines 4, 5, and 6. Automatically calculated by the system.

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Annual Return Instructions for Filing (Iowa Withholding Tax)

Line 1: 
Total Tax Withheld This Year -
 Enter the total Iowa tax withheld for the year. If none, enter zero.

Line 2: 
Less Monthly Deposits -
 Enter the amount of any withholding deposits made for the year. Include any credit carry forward amount on this line. Do not include any penalty and/or interest paid. If none, enter zero.

Line 3: 
Less Credits - 
Enter the total of any credits for the year. This includes NJC - New Jobs Credit, SJC - Supplemental Jobs Credit, ACE - Accelerated Career Education Credit, and/or TJC - Targeted Jobs Credit. If none, enter zero.

Iowa Credits From Withholding:
An industry that has entered into a Chapter 260E agreement with a community college for new jobs training can take a credit from withholding for the costs of a training project. This New Jobs Credit is noted as "NJC."

In addition, an eligible business as defined in Iowa Code section 15.239 or an eligible business in an enterprise zone may enter into an agreement with a community college for a Supplemental New Jobs Credit from withholding for an additional job training project. The employer may take a credit against the withholding payment due for all employees equal to, but not to exceed, 1-1/2% of the gross wages paid to employees participating in the additional job training project. This Supplemental Jobs Credit may be in addition to the New Jobs Credit mentioned above and is noted as "SJC."

The Accelerated Career Education Program is an agreement between an employer and a community college under Chapter 260G with a credit of up to 10% of the gross program job wage. The Accelerated Career Education Program is noted as "ACE."

The Targeted Jobs Tax Credit is available to employers that created targeted jobs in an urban renewal area and that enter into a withholding agreement with pilot project cities approved by the Iowa Department of Economic Development. A credit equal to 3% of the gross wages paid to employees under the withholding agreement can be taken on the Iowa withholding tax return. The employer shall remit the amount of the credit to the pilot project city.

Line 4: 
Balance Due -
 The amount on Line 1 minus the amounts on Lines 2 and 3. This will be automatically calculated by the system.

Line 5: 
Penalty - 
Automatically calculated by the system.

Are you filing the return late but have 90% of the tax paid by the due date? You do not owe any penalty.

Are you filing the return late and do not have 90% of the tax paid by the due date? You owe 10% of the tax not paid by the due date.

Did you file your return on time but did not pay 90% of the tax by the due date? You owe 5% of the tax not paid by the due date.

Penalties can be waived only under special circumstances. If more than one penalty applies, the 10% penalty is the only one charged.

Line 6: 
Interest - 
Automatically calculated by the system.

Are you paying any amount of your tax after the due date? You owe interest on the amount due. Interest accrues on the unpaid tax from the due date of return. Any fraction of a month is considered as a whole month. Interest cannot be waived. The interest rate may change each year.

Line 7: 
Total Amount Due - 
The total of Lines 4, 5, and 6. Automatically calculated by the system.  

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Amended Annual Return Instructions for Filing (Iowa Withholding Tax)

Line 1: 
Total Tax Withheld This Year -
 Enter the correct total Iowa tax withheld for the year. If none, enter zero.

Line 2: 
Less Monthly Deposits - 
Enter the correct amount of any withholding deposits made for the year. Include any credit carry forward amount on this line. Do not include any penalty and/or interest paid. If none, enter zero.

Line 3: 
Less Credits - 
Enter the correct total of any credits for the year. This includes NJC - New Jobs Credit, SJC - Supplemental Jobs Credit, ACE - Accelerated Career Education Credit, and/or TJC - Targeted Jobs Credit. If none, enter zero.

Iowa Credits From Withholding: 
An industry that has entered into a Chapter 260E agreement with a community college for new jobs training can take a credit from withholding for the costs of a training project. This New Jobs Credit is noted as "NJC."

In addition, an eligible business as defined in Iowa Code section 15.239 or an eligible business in an enterprise zone may enter into an agreement with a community college for a Supplemental New Jobs Credit from withholding for an additional job training project. The employer may take a credit against the withholding payment due for all employees equal to, but not to exceed, 1-1/2% of the gross wages paid to employees participating in the additional job training project. This Supplemental Jobs Credit may be in addition to the New Jobs Credit mentioned above and is noted as "SJC."

The Accelerated Career Education Program is an agreement between an employer and a community college under Chapter 260G with a credit of up to 10% of the gross program job wage. The Accelerated Career Education Program is noted as "ACE."

The Targeted Jobs Tax Credit is available to employers that created targeted jobs in an urban renewal area and that enter into a withholding agreement with pilot project cities approved by the Iowa Department of Economic Development. A credit equal to 3% of the gross wages paid to employees under the withholding agreement can be taken on the Iowa withholding tax return. The employer shall remit the amount of the credit to the pilot project city.

Line 4: 
Balance Due - 
The amount on Line 1 minus the amount on Lines 2 and 3. This will be automatically calculated by the system.

Line 5: 
Penalty - 
Depending upon the specific circumstances of the filing of the original return, you may or may not owe penalty. If you owe additional tax, you can either calculate any penalty you think you might owe and enter it here, or the Department will calculate that amount and bill you.

Are you filing the return late but have 90% of the tax paid by the due date? You do not owe any penalty.

Are you filing the return late and do not have 90% of the tax paid by the due date? You owe 10% of the tax not paid by the due date.

Did you file your return on time but did not pay 90% of the tax by the due date? You owe 5% of the tax not paid by the due date.

Penalties can be waived only under special circumstances. If more than one penalty applies, the 10% penalty is the only one charged.

Line 6: 
Interest - 
Automatically calculated by the system.

Are you paying any amount of your tax after the due date? You owe interest on the amount due. Interest accrues on the unpaid tax from the due date of return. Any fraction of a month is considered as a whole month. Interest cannot be waived. The interest rate may change each year.

Line 7: 
Total Amount Due - 
The total of Lines 4, 5, and 6. Automatically calculated by the system.  

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Annual VSP Instructions for Filing (Iowa Withholding Tax)

Line 1: 
Total Iowa Withholding on W-2s/1099s - 
Enter the combined total of Iowa withholding on W-2s and 1099s. If none, enter zero.

Line 2: 
Less Credits - 
Enter the total of any NJC - New Jobs Credit, SJC - Supplemental Jobs Credit, ACE - Accelerated Career Education Credit, and/or TJC - Targeted Jobs Credit. If none, enter zero.

Line 3: 
Withholding Payments Made for Filing Year Above - 
Enter the total amount of withholding payments made for the year. Do not include any penalty and/or interest paid. If none, enter zero.

Line 4: 
Total of Lines 2 and 3 (should equal Line 1) -
 This will be automatically calculated by the system.  

Note: If the comparison of line 4 with line 1 indicates an overpayment, an amended return(s) should be filed. The Iowa Claim for Refund form IA 843 should not be used.

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Amended Annual VSP Instructions for Filing Iowa Withholding Tax)

Line 1: 
Total Iowa Withholding on W-2s/1099s -
 Enter the correct combined total of Iowa withholding on W-2s and 1099s. If none, enter zero.

Line 2: 
Less Credits -
 Enter the total of any NJC - New Jobs Credit, SJC - Supplemental Jobs Credit, ACE - Accelerated Career Education Credit, and/or TJC - Targeted Jobs Credit. If none, enter zero.

Line 3: 
Withholding Payments Made for Filing Year Above - 
Enter the correct total amount of withholding payments made for the year. Do not include any penalty and/or interest paid. If none, enter zero.

Line 4: 
Total of Lines 2 and 3 (should equal Line 1) - 
This will be automatically calculated by the system.  

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Payment Options and Information

Confirmation Number: If you are filing a return and making an ePayment in one transaction, a confirmation number will be issued after completion of the payment function in eFile & Pay. The same confirmation number will apply to both the return and payment.

If you are filing only a payment at this time, a confirmation number will be issued after completing an ePay transaction. This will be a different confirmation number than you received after filing the return.

Due Date: Payments must be made by 4 p.m. CT on the due date to be considered timely. Penalty and/or interest may be due when filing or paying late.

The following filers are required to make electronic payments:

  • LPG Dealers, Users, and Consolidated filers
  • Motor Fuel filers
  • Semi-monthly filers
  • Corporations who remit more than $20,000 a quarter in estimated tax
  • Businesses that have a Direct Pay Permit

Select a payment method:

ePay:

ePay is an electronic payment option available through the eFile & Pay system. ePay is also known as direct debit, ACH Debit, and direct payment.

Before making your payment through ePay, check with your bank to see if they require Iowa Department of Revenue’s ePay Bank Filter (Company-ID). It is 1421590141. (If you have used the Department's EFT system, please note that the new ePay system has a different filter.) When you provide your bank this Bank Filter number, you authorize Iowa Department of Revenue to debit your account. Your bank may reject debits to your account if they are not provided the Department’s Bank Filter in advance.

To use ePay, you enter your bank routing number and your bank account number in the eFile & Pay system. If your bank account number has fewer than three digits, please insert zeroes in front of the number.

The payment date is the date the person made the payment and the date the Department recognized the payment was made. The settlement date is the date the payment was extracted from the financial institution.

ePay is free. The Department pays any fees for this service and no special registration is required. You control the payment date and the amount paid, and you determine if the payment should be taken from checking or savings. This option allows you the convenience of paying any balance due without writing and mailing a check.

For future payments, the system remembers your bank information. If it changes, you simply enter the new information.

NOTE:  IDR will not accept a payment from an account outside the United States.

Mail a Check:

Not everyone qualifies to pay with a check or money order. Those who were not mailed payment vouchers with which to pay by check or money order are:

  • semi-monthly filers
  • filers who have been voluntarily using electronic funds transfer (EFT)
  • those who use a payroll service to file their withholding
  • LPG Dealers, Users, and Consolidated filers

To pay by check: If you are paying with a check or money order, you must use the paper payment vouchers that were mailed to you. These vouchers are preprinted with your account information and will help us match your payment to your electronic return. The payment voucher will ensure that the check is properly credited to your account.

If your payment is due and you do not have a preprinted voucher, please record your permit number, confirmation number received when you filed the return electronically, and tax period that the payment is for in the memo portion of your check.

If you qualify to receive preprinted vouchers and do not have them, contact our Department. Vouchers are not printed and mailed immediately. It may take up to four weeks to receive them.

Credit Card or ACH Credit: 
Credit Card: A link to the credit card site will be provided on the confirmation page. A convenience fee may be charged by the credit card company to process your payment in this manner.

Credit card payments are made through Official Payments Corp. Once your payment information is submitted, the transaction is complete. To reverse a payment, you must contact Official Payments. If approved by the Department, the credit card payment is credited for the payment and the fee.

ACH Credit: To submit a payment via ACH credit, please contact your bank for further information regarding this option and the cost of ACH credit services. When paying by ACH Credit you provide our Department's transaction information to your bank instead of providing us with your banking information. You must complete and mail or fax the Iowa Authorization Agreement for Electronic Funds Transfer (EFT) (pdf) to set this up with the Iowa Department of Revenue.

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ePay Screen Help

The electronic check allows you the convenience of paying any balance due without writing and mailing a check. Based on the information you provide, the Department will debit your account for the amount you specify. Your banking information will be redisplayed each time you choose to ePay your taxes. But if needed, you can change the banking information each time you initiate an ePay transaction.

Check with your bank to see if they require Iowa Department of Revenue’s Bank Filter (Company-ID). It is 1421590141. When you provide your bank this Bank Filter number, you authorize Iowa Department of Revenue to debit your account. Your bank may reject debits to your account if they are not provided the Department’s Bank Filter in advance.

Checking or Savings: Choose the type of account you wish to use to make this payment.

Enter Payment Date: Enter the date the payment should be made. For example, a payment on April 30, 2007, would be entered 04/30/2007. Payment must be dated no later than the due date of the return.

Payments will be considered to have been made on this day if the payment information was entered before 4:00 p.m. Central Time. Payments entered after 4:00 p.m. will be considered made on the next business day. NOTE: If the date is on a weekend or holiday, payment will be treated as having been made on the next banking day. Please be aware your bank account may not show the deduction for a few days thereafter.

Amount: When a return is filed at the same time as the payment, the amount will be automatically calculated from the return. You can change the payment amount to an amount different than the total amount due on the return if you choose.

If you are making a payment only, please enter the amount you want to pay at this time. The amount must be greater than $0.99. Enter dollars and cents.

Bank Routing #: Enter the 9-digit routing number for your bank.

Bank Account #: Enter your bank account number. The number may be from 3 to 17 digits in length.

Use the “SAMPLE” button on the ePay information page to see an example of where to find routing and account numbers on a paper check.

NOTE:  IDR will not accept a payment from an account outside the United States.

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Verify ePay Information

This page allows you an opportunity to review your payment information before submitting the payment for processing.

Click on the “EDIT” button to go back to the ePay information page to make changes.

Click on the “SUBMIT” button to authorize the payment for processing and receive a confirmation number.

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Make a Payment

This page will allow you to make a payment for the permit and tax period selected. A return or deposit must have already been eFiled for the specific permit and tax period before you will be allowed to make a payment.

Tax Type: Select the type of tax you would like to make a payment for. Only those taxes for which you are registered with the Department will be displayed. Your access may be further limited to only certain registered taxes based on the authorization you have been given by your company’s administrator.

Permit Number: Enter the permit number you wish to make a payment for that corresponds to the tax type above. Do not enter dashes or spaces.

Withholding filers must enter all 12 digits of their permit; that is, the FEIN and Department-assigned 3-digit suffix. (Example: 421234567001)

Sales/Use, Motor Fuel or LPG filers must use their 9-digit permit. (Example: 177123456)

Period End Date: Enter the last day of the period for which you are making a payment. Do not enter the due date. For example, a period end of June 30, 2007, would be entered 06/30/2007. A return or deposit must be filed for the period before a payment can be made.

Back: Press back to return to the Main Menu.

Continue: Press continue after entering all data to proceed to the next step.

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Confirmation

The page will confirm that the return, deposit, and/or payment have been submitted to the Iowa Department of Revenue for processing.

Confirmation Information: 
This portion of the page confirms the submission of your transaction. A confirmation number, date and time, and User ID are presented. Retain this information for your records. The User ID identifies the individual that submitted the transaction for processing.

ePay Information:
This portion of the page recaps the method chosen to pay any balance due on the return or deposit. Only those individuals with authorization to submit a payment will see this portion of the page.

If you chose to mail a check, please include the payment voucher sent to you by the Iowa Department of Revenue. The payment voucher will ensure that the check is properly credited to your account. If you no longer have the voucher, please record your permit number, confirmation number and tax period that the payment is for in the memo portion of your check.

If you chose to pay by credit card, press the exit button for a link to continue this transaction.

If you chose to pay by ACH credit, contact your bank.

Return or deposit information:
This portion of the page recaps the data from the return or deposit filed. Only those individuals with authorization will see this portion of the page when a return or deposit is filed.

Main Menu: Press this button to return to the Main Menu.

Print: Press this button to print a copy of this page for your records.

Email: Press this button to have a copy of this page e-mailed to you. E-mails will be sent to the contact e-mail address if available unless the administrator has delegated this function to another user.

To add or verify your e-mail address for future use, choose the “Change a Profile” link from the main menu.

Exit: Press this button to leave the eFile & Pay system.

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Cancel ePay

Payments can be canceled if they have not yet been sent to the bank for processing. The payment confirmation number and original confirmation date were provided on the confirmation page when the payment was submitted. Both the payment confirmation number and the original confirmation date are required to ensure the correct payment is canceled.

Payment Confirmation Number: Enter the original 10-digit confirmation number provided at the time the payment was submitted.

Original Confirmation Date: Enter the date the payment was entered on the eFile & Pay system.

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Verify ePay Cancellation:

This page allows you an opportunity to review your payment information before submitting it for cancellation.

Back: Pressing this button returns you to the Cancel ePay page to make corrections.

Cancel Payment: Pressing this button will proceed with the cancellation of the payment, provided it has not yet been submitted to your bank.

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For Assistance with eFile & Pay,  Monday-Friday, 8 am to 4:15 pm CT
1-866-503-3453 (Iowa only) or 515-281-8453 (outside Iowa) or e-mail idrefile@iowa.gov 
For Answers to Questions about Iowa Tax Law, Monday-Friday, 8 am to 4:15 pm CT
1-800-367-3388 Iowa, Omaha, Rock Island, Moline) or 515-281-3114 or e-mail idr@iowa.gov

If you request confidential tax information by e-mail, copy the three questions below into your e-mail and answer the questions. This will authorize the Department to transmit confidential information by e-mail. We will respond to a request for confidential information only after your authorization is received.

  1. Do you authorize the Iowa Department of Revenue to e-mail the confidential information you may request?
  2. To what e-mail address do you want us to send confidential information?
  3. Do you acknowledge that e-mail transmissions are not always secure?
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