Information for Employers
Reporting the incorrect amount of jobs credit on withholding return?
If the amount of jobs credit is reported incorrectly, employers must file amended returns for all periods covered in their jobs credit agreement.
If an employer has been paying 100% withholding to the Iowa Department of Revenue but 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 Credit (ACE): Up to 10% of the gross program job wage.
Targeted Jobs Tax Credit (TJC): 3% of the gross wages paid to employees.
NOTE: The withholding return on eFile & Pay has separate reporting lines for NJC and SJC.
Employee withholding tax return information is filed electronically through eFile & Pay on this Web site or by telephone at 1-800-514-8296.
Questions
Questions about jobs credit? Contact Russ Shumate
Questions about eFile & Pay? Contact the Taxpayer Services
07/21/11