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Setting up payroll in Iowa for the first time
Before you can pay employees in a new state, you must register with the stateβs tax agencies. This lets you file and pay the right taxes.
π₯ Watch a quick video to learn how registering in a new state works
π See our blog for full state business guides
Expand the sections below to learn more. Use CMD + F (or CTRL + F) to search for words in the article.
Let Gusto Business Compliance register your business in this state and keep you compliant after that. We'll register you with the state, act as your registered agent, file your annual reports, watch your government mail, and give you a concierge team. Learn more about Gusto Business Compliance.
Prefer not to use Business Compliance? We can still help you register in this state through our partner Middesk, with no monthly subscription. Order a one-time state tax registration.
Expand the sections below to see if you qualify, what's covered, how to sign up, and what happens next.
You can add Business Compliance if all of these are true:
You run payroll with Gusto. Business Compliance is not sold on its own.
You're on the Solo, Simple, Plus, or Premium plan. It's included with Premium at no extra cost.
Your business is a corporation or an LLC. Corporations include S corporations and nonprofit corporations. An LLC qualifies however it's taxed.
New sign-ups are not available for professional entities, including professional corporations and professional limited liability companies (PLLCs). If you already have a Business Compliance subscription as a professional entity, your coverage continues as it is.
Business Compliance is not available yet for sole proprietors, general partnerships, limited partnerships, or limited liability partnerships (LLPs). It's also not available for cannabis-related businesses, on any plan.
Not sure if you qualify? Chat with us before you sign up.
Business Compliance works state by state. Each state you add includes:
Registered agent β we accept legal and government mail for your business in that state.
Change of registered agent β we file the change so your mail comes to us.
Foreign qualification β we register your business with the Secretary of State so you can legally work there.
State tax registration β we register you with the state's tax agencies when you hire or start working there, including local tax agencies and Paid Family and Medical Leave (PFML) agencies wherever Gusto is able to register with them.
Annual report filing β we file the yearly report that keeps your business in good standing.
Government mail monitoring β we scan mail from state agencies into Gusto. Each notice comes with a plain-language summary of what it means and what to do next.
Proactive alerts β we tell you about deadlines before they're due.
You also get a compliance concierge team, no matter how many states you cover.
Cost: $85 per state, per month, billed monthly. Adding a state commits you to 12 months of coverage in that state. It's included with Premium at no extra cost. State filing fees are charged at cost, vary by state and business type, and show on your invoice.
Local tax and PFML coverage follows what Gusto's state tax registration supports, and not every agency can be registered through Gusto. Delaware and Maine do not allow a third party to register for Paid Family and Medical Leave, so you'll register with those agencies yourself. If we cannot register one of your agencies, we'll show it on your registration page under what you'll complete on your own. See Let Gusto help you with state tax registration.
Sign in to Gusto.
Go to Taxes & Compliance.
Select Business compliance.
Answer the questions about your business and the states where you work.
Review the price and what's included, then confirm.
After your first state is set up, you'll see its registrations and anything left to do.
When you add an employee or work location in a new state, that state shows up under Your states as Setup in progress, with your next step. Steps often include telling us more about your business there and moving your registered agent to us.
Select Start on a task to finish it, or View state details to see everything for that state. When every step is done, the state changes to Active.
To be your registered agent in a state, we file a change of registered agent with that state.
When a state needs this, you'll see a task on that state's card under Your states. Select Start to begin.
Keep your current registered agent until we confirm the transfer is done. A gap in coverage can put your business out of good standing in that state.
Once a state is active, we take over the ongoing work. We review your government mail, track your deadlines, and give you a concierge team to ask about any of it.
Your Business compliance page also shows your Compliance documents and Tax account details for each state.
Because we're your registered agent, legal mail for your business comes to us.
Other mail from state agencies is scanned into Agency notices on your Business compliance page. Each notice shows the state it came from, when it arrived, and a plain-language summary of what it means and what to do next. Select Unread or State to filter the list.
Still not sure what a notice means? Select Ask concierge about this mail on that notice. Your concierge team will follow up and explain what, if anything, you need to do.
If a notice is about your state payroll taxes, your concierge team brings in our tax resolution team. Learn more in How to handle a tax notice from an agency.
When you sign up, you get a compliance concierge team. They'll:
Learn about your business and the states where you work.
Check in regularly to make sure your filings are on track.
Explain any government mail you're unsure about.
Answer questions about your account.
To reach them, select Talk to a compliance concierge on your Business compliance page, or email [email protected].
We track filing and renewal deadlines for the states you cover. This includes annual reports, franchise tax filings, and business license renewals.
You'll get a notice in Gusto and by email before each deadline.
We file what we can for you. If a filing needs your approval, we'll send it to you with time to review.
Go to Taxes & Compliance β Business compliance β Manage subscription.
To stop coverage in one state, select Remove next to that state.
To cancel Business Compliance, select Leave Business Compliance.
Each state you add runs for a 12-month term, and you're billed monthly over that term. If you want to remove a state or leave Business Compliance before that term is up, email your compliance concierge team at [email protected] first. They'll tell you what happens to the rest of the term.
If Business Compliance is included with your Premium plan, you'll see a note on this page.
Before you remove a state: We'll stop being your registered agent there. Most states require one, so appoint a new agent to stay in good standing. We'll also stop tracking that state's mail and deadlines.
These services are charged separately from your subscription, on your regular Gusto invoice. Order them from your Business compliance page when you need them:
Certificate of good standing β $99 per certificate. Official proof that your business can operate and is in good standing. You may need one for a loan, a contract, or investors.
State account closure β $549 per order. We close your state tax accounts when you stop working in a state.
State filing fees are charged on top of these prices, at cost. They vary by state and by business type, so you'll see your total before you confirm the order. The filing fee appears as its own charge, separate from the service itself.
Legal and tax advice. We do not give legal or tax advice. For advice about your business, talk to a lawyer or an accountant.
Payroll taxes. Gusto payroll already handles the taxes tied to paying your team. Business Compliance covers what your business owes as a business.
Forming a new business. We register an existing business in a new state. We do not form new businesses.
Sales tax. We do not register you for sales tax or file sales tax returns.
Professional and industry licenses. We do not get or renew licenses for your profession or industry, or handle their reporting.
Reinstatements and reopened accounts. We do not reinstate a business with the Secretary of State or reopen closed payroll tax accounts.
General mail. We monitor payroll and compliance notices from government agencies, not your other mail.
Q: Why does my business need to register in a state?
A: Once you have an employee, a location, or other business in a state, that state's rules apply to you. This includes registration, filings, taxes, and renewals. It's separate from registering to run payroll there.
Q: How is this different from the payroll taxes Gusto already handles?
A: Gusto payroll handles the taxes tied to paying your team. Business Compliance covers what your business owes as a business, like Secretary of State registration, annual reports, and registered agent service.
Q: I'm already registered in my state. Do I still need this?
A: Registering is just the first step. Staying in good standing is ongoing. We keep you there by acting as your registered agent, watching your mail, filing your annual reports, and alerting you before deadlines.
Q: How much does Business Compliance cost?
A: $85 per state, per month, billed monthly. When you add a state, you are committing to 12 months of coverage in that state. It's included with Premium at no extra cost. State filing fees are charged at cost, and they vary by state and business type. One-time services are charged separately from your subscription. You'll see the price before you confirm.
Q: How do Business Compliance charges show up on my bill?
A: They appear on your regular Gusto invoice, not a separate bill. Your subscription, each one-time service you order, and state filing fees show up as their own charges, with the state named, so you can see what each one is for.
Q: I already paid for a one-time registration. What happens if I add Business Compliance?
A: Email your compliance concierge team at [email protected]. They'll review your account and share your options.
Expand the sections below to learn how to register with state agencies.
You'll work with the following Iowa agencies when registering for payroll taxes:
Iowa Department of Revenue (DOR): Handles income tax withholding.
Iowa Workforce Development (IWD): Handles unemployment tax.
Before you register online for Iowa state withholding tax, you'll need your Federal Employer Identification Number (FEIN). This is issued by the Internal Revenue Service (IRS).
Corporations, Partnerships, Limited Liability Companies, and Associations must also have each business owner's full name and Social Security Number (SSN) available.
After you register, you'll get your tax account information in about 4β6 weeks. Keep this time frame in mind when planning your first payroll for employees in Iowa.
Start registration by visiting the Iowa Department of Revenue online.
Scroll to the Registration tile and click Register a New Business.
Click Login or create a GovConnectIowa account to register a new business.
Click Create a Logon.
Read all the information provided, and when you're ready, click Next.
After creating your user account, log in and select Register.
Cannot register online? Complete the Iowa Business Tax Permit Registration, 78-005.
If you already registered for a permit in the past, you only need to apply once, unless your business location has moved to a new county, or you are a remote seller now selling in Iowa.
Once registered, you'll receive the below within 4β6 weeks:
A Withholding Permit Numberβthis will be a nine-digit number that starts with a 3.
Tax deposit schedule
For questions about registration, or to confirm your information, call the Iowa Department of Revenue at (515) 281-3114.
Most companies become liable for Iowa unemployment insurance tax once the company has paid one Iowa employee at least $1.00.
Liability thresholds can vary by business type (general, nonprofit, and similar). Contact the agency directly to confirm when your specific business will be liable.
If you need to run payroll and do not yet meet the above requirements, enter the new employer SUI tax rate for Iowa in Gusto in the meantime. Update it once you get your agency-assigned rate.
You should receive your unemployment insurance (UI) account number and tax rate (contribution rate) instantly after registering online.
Before starting registration, read the Iowa Workforce Development New Business Fact Sheet.
To check your tax liability and register for an unemployment account, register online with myIowaUI.
Under New Users in the top-right of the page, click Create ID.
Complete all remaining prompts.
After you've registered, give Gusto the Power of Attorney (POA) that Gusto will need to pay certain taxes. See the Authorize Gusto with Iowa agencies section.
If you cannot find your account number or rate, call the agency at (866) 239-0843.
Once you complete registration and add a valid Iowa work address for one or more employees, enter your tax account information in Gusto.
If you've already registered in Iowa, you need to enter your tax account details in Gusto. You need to be registered with one or more of the following agencies for Gusto to file and pay taxes on your behalf:
Iowa Department of Revenue (DOR): Handles income tax withholding.
Iowa Workforce Development (IWD): Handles unemployment tax.
If you still need to register, see the Register for IA income and unemployment tax on your own section earlier in this article.
Once you add a valid Iowa work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Iowa tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Iowa Tax Setup and select Manage taxes.
Follow the instructions below for each tax type.
Important: If you edit a tax account number after payments or filings have been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.
Next to Withholding Permit Number, click Edit to enter your withholding account number. This will be a nine-digit number that starts with a 3.
Iowa now manages its tax accounts using GovConnectIowa. To access your tax information, you'll need to set up login credentials and enter an access code for GovConnectIowa.
Your previous e-file & Pay login credentials cannot be used in the new GovConnectIowa system.
To get access to your accounts and find your tax account info on GovConnectIowa:
Go to GovConnectIowa.
Select Create a Logon.
Select I am here to request access to existing accounts.
Follow the on-screen steps to enter your information.
Enter the requested account verification information. You only need to verify one account for each business. After verifying one account, you'll have the option to select access to other associated tax accounts for the business.
Account Type
Permit Number
IDR ID, e-file & Pay BEN, or information from a recently filed tax return
Complete your logon setup by following the on-screen steps.
Once complete, an access code and instructions will be mailed to the primary address on file with the agency. Letters are typically mailed the following business day.
After you receive the code, sign back in to your GovConnectIowa account and enter the access code.
If you have questions, call the agency at (515) 281-3114 or (800) 367-3388. If you cannot find your account number, contact the agency at (515) 281-3114.
Next to Tax Deposit Schedule, click Edit to enter your withholding tax deposit schedule.
Your tax deposit schedule will be provided when you register with the Iowa Department of Revenue. If you do not have your tax deposit schedule yet, enter the fastest tax deposit schedule option available in Gusto for the meantime. You can update it later in the same location once you've received your agency-assigned deposit schedule.
If you cannot find your deposit schedule, contact the agency at (515) 281-3114.
Next to Unemployment Account Number, click Edit to enter your unemployment account number.
Your Notice of UI Contribution Rate (Form 65-5306)
Your Employer's Contribution and Payroll Report
If you cannot find your account number, call the agency at (888) 848-7442.
Next to Unemployment Tax Rate, click Edit to enter your unemployment (contribution) tax rate.
Your Notice of UI Contribution Rate sent to you by the Iowa Workforce Development
Rates are updated annually, and new rates are sent out the November before a new rate goes into effect, typically effective January 1.
If you cannot find your rate, call the agency at (888) 848-7442.
If you do not have your assigned rate yet, enter the new employer SUI tax rate for Iowa in Gusto in the meantime. Update it once you receive it.
The Iowa IDR ID (formerly known as the Business e-file Number or BEN) is no longer required in Gusto for Gusto to file and pay taxes, but it can help Gusto troubleshoot tax issues. If you're prompted to enter the number in Gusto, you can find your IDR ID by logging into your GovConnectIowa account.
Power of Attorney (POA), similar to third-party authorization (TPA), is required for the below agency so Gusto can make electronic payments on your behalf:
Iowa Workforce Development (IWD): Handles unemployment tax.
To pay your Iowa taxes, we need a 17-digit ACH credit ID from the state. To get it, your company needs to add Gusto as an authorized agent in your MyIowaUI account. This access also lets us research or fix tax issues for you.
We no longer send Power of Attorney form 68-0092 for this. The Iowa Unemployment Agency recommends giving Gusto access through the portal instead.
Giving Gusto direct access in your MyIowaUI account lets us get your ACH credit ID and research or fix tax issues for you. Follow these steps to set it up:
Sign in to your MyIowaUI account. If you do not have one yet, register first.
On the Employer Home page, find My Quick Links on the left side of the screen.
Under My Quick Links, click Assign Agent.
Enter Gusto's Agent ID: R2437716, then click Next.
Set the Start date, or leave it as today's date. This is usually the date you started using Gusto. You can leave the End date blank β you can end the assignment later if you need to. Click Next.
Check that Gusto's name appears.
Select Power of Attorney as the authorization type.
In the Account Level Role box, find Submit/Change Wage Detail and select its Add checkbox.
Select the checkboxes for any other roles you want Gusto to have. We recommend selecting all of these:
System Administrator
Maintain Account
Manage Payments
Submit/Change Wage Detail
View Correspondence
View Transaction History
Click Complete.
Good to know: When you assign Submit/Change Wage Detail, Wage Detail View comes with it β you do not need to add it separately. The same goes for Manage Payments, which already includes Payment View Only.
Check that the details below match what the agency has on file. They need to match exactly:
Official company name
Official company address
FEIN (Federal Employer Identification Number)
Unemployment Account Number
If you have not finished registering as an employer with the state, we may have trouble getting the ACH credit ID we need to pay your taxes. Complete your registration here, or call the agency at (888) 848-7442. Once you finish, update any related details in Gusto.
Once you authorize us and your details match, we complete your ACH credit enrollment for you. If the agency sends you Form 53-0110 (Application for ACH Credit Transfer), you do not need to fill it out β we handle this step for you.
If both Gusto and your accountant (or partner) fill out the same third-party authorization form, you may accidentally override each other's access.
If your accountant or partner selects All Roles on their Power of Attorney form, this removes Gusto's access. To avoid this, accountants should select only these two roles:
Maintain Account
System Administrator
These give your accountant the access they need to support your company without affecting Gusto's access.
Not sure what access to give your accountant or partner? You can find what each role means in this Agent FAQ, or call the agency at (888) 848-7442.
Use this list to find Iowa's tax forms and where to view each one.
IA 44-095 (Iowa Quarterly Withholding Return)
IA 44-105 (Iowa Department of Revenue and Finance Voucher)
State W-2 (Wage and Tax Statement)
New Hire Report
To view these forms, go to Taxes & compliance, then Tax documents, and select the State tab.
IA 65-5300 (Return/Wage detail Iowa Quarterly Contribution)
To view these filings, sign in to the Iowa agency portal.
To see what we've paid for you, run the Agency payments report.
Use this list to reach Iowa's payroll tax agencies by phone or website. It covers income tax withholding and unemployment insurance.
Phone numbers and links can change. If one does not work, search the agency's official website for the latest contact info.
Income tax withholding β Iowa Department of Revenue (DOR): (515) 281-3114
Unemployment insurance β Iowa Workforce Development (IWD): (888) 848-7442, option 3, then option 7
Learn how to close or reopen tax accounts.