Information for Employers
Reporting the incorrect amount of jobs credit on withholding return?
If the amount of jobs credit is reported incorrectly, employers must file amended returns for all periods covered in their jobs credit agreement.
If an employer has been paying 100% withholding to the Iowa Department of Revenue but failing to claim their jobs credits, amended withholding returns for all affected quarters must be filed.
- If you were awarded a tax credit certificate for the period being filed, a withholding credit schedule will be provided in GovConnectIowa. Each credit claimed against withholding tax is recorded separately on this schedule. Information entered on the credit schedule will be automatically populated on the amended withholding quarterly return.
If an employer has been reporting the net amount of withholding less the amount of jobs credit on line 1 of the quarterly return, amended returns for all affected quarters must be filed. Report the total amount of withholding for the quarter on line 1 of the quarterly return.
- If you were awarded a tax credit certificate for the period being filed, a withholding credit schedule will be provided in GovConnectIowa. Each credit claimed against withholding tax is recorded separately on this schedule. Information entered on the credit schedule will be automatically populated on the amended withholding quarterly return.
New Jobs Credit (NJC): 1.5% of the gross wages of employees participating in project.
Supplemental Jobs Credit (SJC): An additional 1.5%, for a maximum jobs credit of 3%.
Accelerated Career Education Credit (ACE): Up to 10% of the gross program job wage.
Targeted Jobs Tax Credit (TJC): 3% of the gross wages paid to employees.