Country Payroll Guide USA – Iowa

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Key Facts

Capital
Des Moines
Date format
mm/dd/yyyy
Currency
United States Dollar (USD)
VAT
the standard rate is 6%

Contributions

Employers

Unemployment (State)
Unemployment (State) - 0% to {{ top} }% (Maximum taxable wages is 32,400 USD)
Unemployment- New Employer (State)
Unemployment - New Employer (State) - 1% (Maximum taxable wages is 32,400 USD)
FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
Total Employment Cost
Total Employment Cost - 13.65% to 21.15%

Employees

FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% +0.9% tax on over $200k (Maximum taxable wages is 142,800 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
Total Employee Cost
Total Employee Cost - 13.65% to 14.55%

Minimum Wage

Minimum Wage
The minimum wage in Iowa is 7.25 USD per hour.

Payroll

Payroll Cycle
Monthly
13th Salary

There are no statutory laws on 13th salary.

Income Tax

Employee Income Tax (1) Single Filer (Federal)
$0 - $9,875 = 10%
Employee Income Tax (2) Single Filer (Federal)
$9,876 - $40,125 = 12%
Employee Income Tax (3) Single Filer (Federal)
$40,126 - $85,525 = 22%
Employee Income Tax (4) Single Filer (Federal)
$85,526 - $163,300 = 24%
Employee Income Tax (5) Single Filer (Federal)
$163,301 - $207,350 = 32%
Employee Income Tax (6) Single Filer (Federal)
$207,350 - $518,400 = 35%
Employee Income Tax (7) Single Filer (Federal)
Over $518,400 = 37%

Employee Income Tax (State)

Employee Income Tax (State) (1)
0 - $1,676 = 0.33%
Employee Income Tax (State) (2)
$1,676 - $3,352 = 0.67% + $5.53
Employee Income Tax (State) (3)
$3,352 - $6,704 = 2.25% + $16.76
Employee Income Tax (State) (4)
$6,704 - $15,084 = 4.14% + $92.18
Employee Income Tax (State) (5)
$15,084 - $25,140 = 5.63% + $439.11
Employee Income Tax (State) (6)
$25,140 - $33,520 = 5.96% + $1,005.26
Employee Income Tax (State) (7)
$33,520 - $50,280 = 6.25% + $1,504.71
Employee Income Tax (State) (8)
$50,280 - $75,420 = 7.44% + $2,552.21
Employee Income Tax (State) (9)
Over $75,420 = 8.53% + $4,422.63

Working Hours

General Working Hours

8-hour days and a 40-hour week.

Overtime

For non-exempt employees, overtime is paid at a rate of 150% of the regular pay in excess of 40 hours per week.

Leave

Paid Time Off

Employers are not legally obliged to provide paid time off.

Public Holidays

10 public holidays.

Sick Days

The FMLA provides certain employees with up to 12 weeks of unpaid, job-protected leave per year or certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child).

Employees are eligible for leave if they have worked for their employer at least 12 months, at least 1,250 hours over the past 12 months, and work at a location where the company employs 50 or more employees within 75 miles.

Whether an employee has worked the minimum 1,250 hours of service is determined according to the Fair Labor Standards Act principles for determining compensable hours or work.

Maternity Leave

Maternity leave falls under the FMLA.

Paternity Leave

Paternity leave falls under the FMLA.

Parental Leave

Falls under the FMLA.

Other Leave

Not applicable.

Termination

Termination Process

Iowa is an “at-will employment” state and this means that an employer or employee can terminate an employment agreement without cause. A written termination letter or reason is not required.

Notice Period

2 weeks.

Severance Pay

Iowa law does not either require or prohibit severance payments. It depends on the employer’s agreement with the employee.

Probation Period

Six months.

Visa

Employment Visa

In general, work visas are based on a specific offer of employment. In most cases, a petition must be filed and approved by the United States Citizenship and Immigration Services (USCIS) before applying for the visa at a U.S. Embassy.