Registering for eFile & Pay
Do I need to register to use eFile& Pay?
No. Taxpayers do not need to register for eFile & Pay. The department does it for you automatically. This applies to all filers, including current EFT/semi-monthly filers.
Setting Up to Use eFile & Pay
Can I set up my account now?
Once you receive your Business eFile Number, you can go online or call to set up your account. You cannot use the system with out this number.
Using eFile & Pay
Can I use eFile& Pay to file my return but pay with a check?
Yes. If you are paying by check or money order you must use the paper 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. A year's supply of vouchers will be mailed in late December for the next calendar year. If you need a preprinted voucher, contact our department.
Making Payments on eFile & Pay
Can I make a payment on a return before I file it?
No. We require a return to be completed prior to payment being submitted.
Can I make multiple payments on one return?
Yes.
How far into the future can I set up a payment?
When a return is timely filed, the payment can be set up to occur on the due date, no matter what day the return was filed. You cannot file future withholding returns beyond the current quarter.
If the due date falls on a weekend, federal holiday, or legal holiday as defined in Iowa Code section 4.1(34), when is the return due?
The return is due the following business day.
If I choose to pay by ePay (direct debit), when does the transaction need to be submitted to be considered timely?
ePayments must be transmitted by 4pm (CT) on the due date to be considered timely. This is a change from prior department policy, which required EFT payments to be initiated one day prior to the due date.
If I choose to pay by ACH Credit, when does the transaction need to be submitted to be considered timely?
The transaction must be initiated through your own bank on the day prior to the due date.
Amending a Return
How do I amend a return?
If you discover an error on a previously-filed return, you can amend the quarterly return for that period through this application within the three-year statute of limitations. If additional payment is due, payment can be made electronically. Taxpayers who are allowed to pay by mail may use the amended return payment voucher that was included with the vouchers mailed by the department.
Penalty and Interest
Is there a penalty imposed for not timely filing and paying withholding tax?
Penalty for failure to timely file = 10% of the tax due, if 90% of the tax isn't paid by the due date. Penalty for failure to timely pay the tax due = 5% of the tax due, if 90% isn't paid by the due date. If both penalties apply, only the failure to timely file penalty is charged.
If I'm filing late, how do I compute the interest due?
2001, yearly: 11%, monthly: 0.9%
2002, yearly: 10%, monthly 0.8%
2003, yearly: 7%, monthly 0.6%
2004, yearly: 6%, monthly: 0.5%
2005, yearly: 6%, monthly: 0.5%
2006, yearly: 8%, monthly: 0.7%
Interest is computed on an entire-month basis, not daily.
About Iowa Withholding Permits
How do I apply for a withholding permit?
You may apply online for a withholding permit. Your online application will process in approximately three weeks.
Do I have to have a different withholding permit for each business location?
No. You have the option to obtain only one withholding permit for multiple business locations.
How do I cancel a withholding permit?
You may cancel a withholding permit online. Your online cancellation will process in approximately four weeks.
If I change the name of my business, do I have to get a new withholding permit?
If the IRS allows you to keep the same Federal ID# you had before the name change, you keep the same Iowa withholding permit. However, you will need to notify us of the name change. Please change your business registration name information online.
If the IRS requires you to obtain a new Federal ID#, you will cancel the Iowa withholding permit you currently have and apply for a new one.
What are the criteria for the different withholding filing frequencies?
Semi-monthly = more than $10,000 tax/month; Monthly = more than $500 tax/month; Quarterly = less than $500 tax/month.
Unemployment Tax
How do I register for unemployment tax?
Contact Iowa Workforce Development at 515-281-5387 or 1-800-972-2024.
Workers Compensation
How do I register for workers compensation?
Contact Iowa Division of Labor at 515-242-6070 or 1-800-562-4692.
Updated 11/9/04