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How to Obtain a Refund of Iowa
Withholding
Employers
may no longer use the IA843,
Claim for Refund, to receive a refund of withholding tax.
To
obtain a refund, employers must file a quarterly withholding return.
To receive a refund of Iowa withholding, due to jobs
credit:
- File
an amended quarterly withholding return for each affected quarter
- On
the amended return(s), indicate only the jobs credit earned in that
quarter
- NOTE: Do not combine multiple
quarters of jobs credits
"Catch up" situation?
The
employer should compute the amount of the jobs credit earned for
each quarter. An amended return should
be prepared and submitted for each affected quarter showing the correct
amount of jobs credit for that quarter.
Reporting
the incorrect amount of withholding or jobs credit?
Employers must file amended returns for all periods covered in their
jobs credit agreement and correctly reflect their jobs credit on a quarterly
basis.
If an employer has been paying 100% withholding
to the Iowa Department of Revenue and failing to claim their jobs credits,
amended withholding returns for all affected quarters must be filed.
The amended returns should properly show the amount of jobs credit on
line 3 of the 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. The
amount of the jobs credit should be included on line 3 of the 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 (ACE): Up to 10 percent
of the gross program job wage.
NOTE:
The withholding return on eFile & Pay
has separate reporting lines for NJC and SJC.
Other Credits
Housing
Assistance Credit: 1.5 % of the gross
wages paid to employees participating in the housing assistance
program. Taken
instead of the SJC.
Targeted
Jobs Tax Credit: 3% of the gross wages paid to employees.
Employee withholding
tax return information is filed electronically through eFile & Pay
on this Web site or by telephone at 1-800-514-8296.
Questions on jobs credit? Contact Russ
Shumate
Questions
on eFile & Pay? Contact the
eFile Service Unit
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