Iowa Withholding Tax Return and Jobs Credits

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.

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.

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. Returns that include withholding credits must be filed on the Web.

Questions


Questions about jobs credit? Contact Russ Shumate

Questions about eFile & Pay? Contact the Taxpayer Services