Guide to Setting Up Payroll for Your Child Care Business in Iowa

Francesca Bonnevie

Run Payroll with Playground

All-in-one child care management platform with billing, attendance, registration, communication, payroll, and more

5.0 Rating

Run Payroll with Playground

All-in-one child care management platform with billing, attendance, registration, communication, payroll, and more

5.0 Rating

Run Payroll with Playground

All-in-one child care management platform with billing, attendance, registration, communication, payroll, and more

5.0 Rating

Welcome to our comprehensive guide on how to get set up with payroll in Iowa. This post will provide you with all the necessary details, ranging from the essential documentation and permit numbers to understanding your responsibilities as an employer in this state. Whether you're a new business owner or just looking to stay updated on the requirements, this guide will equip you with the critical information needed to successfully navigate the payroll process in Iowa.

To get set up with payroll in Iowa, you must provide the following:

  • Iowa Withholding Permit Number

  • Iowa Application for ACH Credit Transfer (Form 53-0110)

  • Iowa Unemployment Account Number

  • Iowa Unemployment Insurance Contribution Rate

  • Iowa Power of Attorney (Form 68-0092)

  • Iowa Tax Information Disclosure Designation

Who needs to pay payroll taxes?

Every employer that makes business transactions or maintains an office in Iowa and who’s required to withhold federal income tax from any compensation paid to employees for services performed in Iowa is required to withhold Iowa individual income tax from that compensation.

Iowa Withholding Permit Number

Your Iowa Withholding Permit Number is either a nine- or twelve-digit number formatted as either of the following:

  • X-XX-XXXXXX (nine digits)

  • XX-XXXXXXX-XXX (twelve digits)

How to find your Iowa Withholding Permit Number

Your Iowa Withholding Permit number can be found online on GovConnectIowa or on previous correspondence from the Iowa Department of Revenue (IA DoR). You can also contact the IA DoR by calling them at 888-848-7442.

Don’t have an Iowa Withholding Permit Number?

You can receive an Iowa Withholding Permit Number by registering online as a new business. You will receive your Withholding Permit Number immediately upon completing the registration process.

Iowa Application for ACH Credit Transfer (Form 53-0110)

The Iowa Application for ACH Credit Transfer (Form 53-0110) is a form necessary to authorize the Iowa Workforce Development to process user-initiated variable ACH credit payments to your Iowa UI account number. This form must be mailed to:

EFT Coordinator
Unemployment Insurance Tax Bureau
Iowa Workforce Development
1000 E Grand Ave
Des Moines IA 50319-0209

Iowa Unemployment Account Number

Your Iowa Unemployment Account Number is an eight-digit number formatted as XXXXXXXX. This number is assigned by the Unemployment Insurance (UI) Division.

How to find your Iowa Unemployment Account Number

You can find your Iowa Unemployment Account Number on all correspondence and forms that have previously been submitted to the Iowa Workforce Development (IWD).

Don’t have an Iowa Unemployment Account Number?

If you don’t already have an Iowa Unemployment Account Number, you can receive one by registering online at http://www.myiowaui.org/. You will immediately receive your UI number upon completing your registration online.

Iowa Unemployment Insurance Contribution Rate

What is Iowa Unemployment Insurance?

The Unemployment Insurance Program provides unemployment benefits to eligible workers who have become unemployed through no fault of their own, as determined by Iowa law, and meet other eligibility requirements. Unemployment benefits are meant to temporarily provide financial assistance.

How Your Contribution Rate is Determined

Your Contribution Rate is determined through eight different tax rate tables, with each tax rate table containing twenty-one different rate brackets. Rates vary from 0-8% overall, with table one collecting the most UI tax and table eight collecting the least UI tax.

These tables were established in order to help keep the UI trust fund stable, therefore, there is a formula within Iowa law mandating movement to tables that collect more revenue when the UI fund balance is low, as well as movement to tables collecting less revenue when the balance is high.

New employers are assigned the rate of either 1.0% or the rank 12 rate of the table in effect (for 2024, this rate is between 0.4 and 3%), whichever is higher.

How to Find Your Contribution Rate

You can find your contribution rate in one of three ways:

  • Looking it up online on the Iowa Workforce Development Website

  • On previous notices of Notice of Unemployment Insurance Contribution Rate from the IA Workforce Development

  • Contacting the Iowa Workforce Development agency at 888-848-7442

Iowa Power Of Attorney (POA) (Form 68-0092)

The Iowa Power of Attorney (POA, Form 68-0092) is a legal document authorizing someone else, such as an attorney, accountant, firm, tax preparer, or any individual acting on behalf of an employer. It allows authorized individuals (like Playground Payroll) to do the following:

  • Sign and file reports for UI matters

  • Make deposits and payments for UI

  • Receive UI information, notices, and other communication regarding authorization granted

  • Access electronic records specific to the employer

  • Represent the employer in any formal or informal hearing, meeting, or appeal, final or otherwise.

The IWD will only discuss confidential UI matters with authorized parties. Employers must have a signed Declaration of POA on file with IWD.

Child Care business owners in Iowa using a payroll service must fill out and submit this form in order to authorize their payroll service to do things like file taxes, and process unemployment payments. Playground Payroll users in Iowa can sign and file their POA within the software, but you can also submit your POA using the following methods:

  • Online on myiowaui.org

  • Emailing the completed form to iwduitax@iwd.iowa.gov

  • Mailing the completed form to:

    Iowa Workforce Development

    UI Tax Bureau

    1000 E Grand Ave

    Des Moines, IA

    50319

Iowa Tax Information Disclosure Designation (IA 8821)

The Iowa Tax Information Disclosure Designation (IA 8821) authorizes individuals, such as a payroll service, under a tax disclosure designation to discuss confidential tax information with the Iowa DoR.

Further Reading

https://workforce.iowa.gov/employers/unemployment-insurance/ui-tax-and-audit/unemployment-insurance-taxes

https://www.myiowaui.org/UITIPTaxWeb/uilogin.do

https://tax.iowa.gov/what-withholding-permit-number-do-i-use-file

https://tax.iowa.gov/payment-tax-type/withholding-tax#

Welcome to our comprehensive guide on how to get set up with payroll in Iowa. This post will provide you with all the necessary details, ranging from the essential documentation and permit numbers to understanding your responsibilities as an employer in this state. Whether you're a new business owner or just looking to stay updated on the requirements, this guide will equip you with the critical information needed to successfully navigate the payroll process in Iowa.

To get set up with payroll in Iowa, you must provide the following:

  • Iowa Withholding Permit Number

  • Iowa Application for ACH Credit Transfer (Form 53-0110)

  • Iowa Unemployment Account Number

  • Iowa Unemployment Insurance Contribution Rate

  • Iowa Power of Attorney (Form 68-0092)

  • Iowa Tax Information Disclosure Designation

Who needs to pay payroll taxes?

Every employer that makes business transactions or maintains an office in Iowa and who’s required to withhold federal income tax from any compensation paid to employees for services performed in Iowa is required to withhold Iowa individual income tax from that compensation.

Iowa Withholding Permit Number

Your Iowa Withholding Permit Number is either a nine- or twelve-digit number formatted as either of the following:

  • X-XX-XXXXXX (nine digits)

  • XX-XXXXXXX-XXX (twelve digits)

How to find your Iowa Withholding Permit Number

Your Iowa Withholding Permit number can be found online on GovConnectIowa or on previous correspondence from the Iowa Department of Revenue (IA DoR). You can also contact the IA DoR by calling them at 888-848-7442.

Don’t have an Iowa Withholding Permit Number?

You can receive an Iowa Withholding Permit Number by registering online as a new business. You will receive your Withholding Permit Number immediately upon completing the registration process.

Iowa Application for ACH Credit Transfer (Form 53-0110)

The Iowa Application for ACH Credit Transfer (Form 53-0110) is a form necessary to authorize the Iowa Workforce Development to process user-initiated variable ACH credit payments to your Iowa UI account number. This form must be mailed to:

EFT Coordinator
Unemployment Insurance Tax Bureau
Iowa Workforce Development
1000 E Grand Ave
Des Moines IA 50319-0209

Iowa Unemployment Account Number

Your Iowa Unemployment Account Number is an eight-digit number formatted as XXXXXXXX. This number is assigned by the Unemployment Insurance (UI) Division.

How to find your Iowa Unemployment Account Number

You can find your Iowa Unemployment Account Number on all correspondence and forms that have previously been submitted to the Iowa Workforce Development (IWD).

Don’t have an Iowa Unemployment Account Number?

If you don’t already have an Iowa Unemployment Account Number, you can receive one by registering online at http://www.myiowaui.org/. You will immediately receive your UI number upon completing your registration online.

Iowa Unemployment Insurance Contribution Rate

What is Iowa Unemployment Insurance?

The Unemployment Insurance Program provides unemployment benefits to eligible workers who have become unemployed through no fault of their own, as determined by Iowa law, and meet other eligibility requirements. Unemployment benefits are meant to temporarily provide financial assistance.

How Your Contribution Rate is Determined

Your Contribution Rate is determined through eight different tax rate tables, with each tax rate table containing twenty-one different rate brackets. Rates vary from 0-8% overall, with table one collecting the most UI tax and table eight collecting the least UI tax.

These tables were established in order to help keep the UI trust fund stable, therefore, there is a formula within Iowa law mandating movement to tables that collect more revenue when the UI fund balance is low, as well as movement to tables collecting less revenue when the balance is high.

New employers are assigned the rate of either 1.0% or the rank 12 rate of the table in effect (for 2024, this rate is between 0.4 and 3%), whichever is higher.

How to Find Your Contribution Rate

You can find your contribution rate in one of three ways:

  • Looking it up online on the Iowa Workforce Development Website

  • On previous notices of Notice of Unemployment Insurance Contribution Rate from the IA Workforce Development

  • Contacting the Iowa Workforce Development agency at 888-848-7442

Iowa Power Of Attorney (POA) (Form 68-0092)

The Iowa Power of Attorney (POA, Form 68-0092) is a legal document authorizing someone else, such as an attorney, accountant, firm, tax preparer, or any individual acting on behalf of an employer. It allows authorized individuals (like Playground Payroll) to do the following:

  • Sign and file reports for UI matters

  • Make deposits and payments for UI

  • Receive UI information, notices, and other communication regarding authorization granted

  • Access electronic records specific to the employer

  • Represent the employer in any formal or informal hearing, meeting, or appeal, final or otherwise.

The IWD will only discuss confidential UI matters with authorized parties. Employers must have a signed Declaration of POA on file with IWD.

Child Care business owners in Iowa using a payroll service must fill out and submit this form in order to authorize their payroll service to do things like file taxes, and process unemployment payments. Playground Payroll users in Iowa can sign and file their POA within the software, but you can also submit your POA using the following methods:

  • Online on myiowaui.org

  • Emailing the completed form to iwduitax@iwd.iowa.gov

  • Mailing the completed form to:

    Iowa Workforce Development

    UI Tax Bureau

    1000 E Grand Ave

    Des Moines, IA

    50319

Iowa Tax Information Disclosure Designation (IA 8821)

The Iowa Tax Information Disclosure Designation (IA 8821) authorizes individuals, such as a payroll service, under a tax disclosure designation to discuss confidential tax information with the Iowa DoR.

Further Reading

https://workforce.iowa.gov/employers/unemployment-insurance/ui-tax-and-audit/unemployment-insurance-taxes

https://www.myiowaui.org/UITIPTaxWeb/uilogin.do

https://tax.iowa.gov/what-withholding-permit-number-do-i-use-file

https://tax.iowa.gov/payment-tax-type/withholding-tax#

Welcome to our comprehensive guide on how to get set up with payroll in Iowa. This post will provide you with all the necessary details, ranging from the essential documentation and permit numbers to understanding your responsibilities as an employer in this state. Whether you're a new business owner or just looking to stay updated on the requirements, this guide will equip you with the critical information needed to successfully navigate the payroll process in Iowa.

To get set up with payroll in Iowa, you must provide the following:

  • Iowa Withholding Permit Number

  • Iowa Application for ACH Credit Transfer (Form 53-0110)

  • Iowa Unemployment Account Number

  • Iowa Unemployment Insurance Contribution Rate

  • Iowa Power of Attorney (Form 68-0092)

  • Iowa Tax Information Disclosure Designation

Who needs to pay payroll taxes?

Every employer that makes business transactions or maintains an office in Iowa and who’s required to withhold federal income tax from any compensation paid to employees for services performed in Iowa is required to withhold Iowa individual income tax from that compensation.

Iowa Withholding Permit Number

Your Iowa Withholding Permit Number is either a nine- or twelve-digit number formatted as either of the following:

  • X-XX-XXXXXX (nine digits)

  • XX-XXXXXXX-XXX (twelve digits)

How to find your Iowa Withholding Permit Number

Your Iowa Withholding Permit number can be found online on GovConnectIowa or on previous correspondence from the Iowa Department of Revenue (IA DoR). You can also contact the IA DoR by calling them at 888-848-7442.

Don’t have an Iowa Withholding Permit Number?

You can receive an Iowa Withholding Permit Number by registering online as a new business. You will receive your Withholding Permit Number immediately upon completing the registration process.

Iowa Application for ACH Credit Transfer (Form 53-0110)

The Iowa Application for ACH Credit Transfer (Form 53-0110) is a form necessary to authorize the Iowa Workforce Development to process user-initiated variable ACH credit payments to your Iowa UI account number. This form must be mailed to:

EFT Coordinator
Unemployment Insurance Tax Bureau
Iowa Workforce Development
1000 E Grand Ave
Des Moines IA 50319-0209

Iowa Unemployment Account Number

Your Iowa Unemployment Account Number is an eight-digit number formatted as XXXXXXXX. This number is assigned by the Unemployment Insurance (UI) Division.

How to find your Iowa Unemployment Account Number

You can find your Iowa Unemployment Account Number on all correspondence and forms that have previously been submitted to the Iowa Workforce Development (IWD).

Don’t have an Iowa Unemployment Account Number?

If you don’t already have an Iowa Unemployment Account Number, you can receive one by registering online at http://www.myiowaui.org/. You will immediately receive your UI number upon completing your registration online.

Iowa Unemployment Insurance Contribution Rate

What is Iowa Unemployment Insurance?

The Unemployment Insurance Program provides unemployment benefits to eligible workers who have become unemployed through no fault of their own, as determined by Iowa law, and meet other eligibility requirements. Unemployment benefits are meant to temporarily provide financial assistance.

How Your Contribution Rate is Determined

Your Contribution Rate is determined through eight different tax rate tables, with each tax rate table containing twenty-one different rate brackets. Rates vary from 0-8% overall, with table one collecting the most UI tax and table eight collecting the least UI tax.

These tables were established in order to help keep the UI trust fund stable, therefore, there is a formula within Iowa law mandating movement to tables that collect more revenue when the UI fund balance is low, as well as movement to tables collecting less revenue when the balance is high.

New employers are assigned the rate of either 1.0% or the rank 12 rate of the table in effect (for 2024, this rate is between 0.4 and 3%), whichever is higher.

How to Find Your Contribution Rate

You can find your contribution rate in one of three ways:

  • Looking it up online on the Iowa Workforce Development Website

  • On previous notices of Notice of Unemployment Insurance Contribution Rate from the IA Workforce Development

  • Contacting the Iowa Workforce Development agency at 888-848-7442

Iowa Power Of Attorney (POA) (Form 68-0092)

The Iowa Power of Attorney (POA, Form 68-0092) is a legal document authorizing someone else, such as an attorney, accountant, firm, tax preparer, or any individual acting on behalf of an employer. It allows authorized individuals (like Playground Payroll) to do the following:

  • Sign and file reports for UI matters

  • Make deposits and payments for UI

  • Receive UI information, notices, and other communication regarding authorization granted

  • Access electronic records specific to the employer

  • Represent the employer in any formal or informal hearing, meeting, or appeal, final or otherwise.

The IWD will only discuss confidential UI matters with authorized parties. Employers must have a signed Declaration of POA on file with IWD.

Child Care business owners in Iowa using a payroll service must fill out and submit this form in order to authorize their payroll service to do things like file taxes, and process unemployment payments. Playground Payroll users in Iowa can sign and file their POA within the software, but you can also submit your POA using the following methods:

  • Online on myiowaui.org

  • Emailing the completed form to iwduitax@iwd.iowa.gov

  • Mailing the completed form to:

    Iowa Workforce Development

    UI Tax Bureau

    1000 E Grand Ave

    Des Moines, IA

    50319

Iowa Tax Information Disclosure Designation (IA 8821)

The Iowa Tax Information Disclosure Designation (IA 8821) authorizes individuals, such as a payroll service, under a tax disclosure designation to discuss confidential tax information with the Iowa DoR.

Further Reading

https://workforce.iowa.gov/employers/unemployment-insurance/ui-tax-and-audit/unemployment-insurance-taxes

https://www.myiowaui.org/UITIPTaxWeb/uilogin.do

https://tax.iowa.gov/what-withholding-permit-number-do-i-use-file

https://tax.iowa.gov/payment-tax-type/withholding-tax#

Playground is the only app directors need to run their early child care center. Playground manages billing, attendance, registration, communication, paperwork, reporting, and more for child care programs. 300,000+ directors, teachers, and families trust Playground to simplify their lives.


Learn more by scheduling a free personalized demo.

See what Playground can do for you

Learn how our top-rated child care management platform can make your families & teachers happier while lowering your costs

Stay in the loop.
Sign up for Playground updates.

Stay in the loop.
Sign up for Playground updates.

Stay in the loop.
Sign up for the updates.

Guide to Setting Up Payroll for Your Child Care Business in Iowa

Published Jul 1, 2024

|

Francesca Bonnevie
Director Tips