Iowa State Tax

Employees should use the Iowa Form IA-W4 Employee's Withholding Exemption Certificate.

There is no distinction for marital status for employees who work in Iowa. Iowa payroll taxes are rounded to the nearest dollar.

Sage 100 Contractor still requires a marital status on the state tax calculation. Use the status that applies to each employee below. The status has no effect on the amount of state withholding.

Marital statuses

Status

Description

1-Single

Single Person

2-Married

Married

3-Head of Household

Head of Household

4-Married/Separate

Married Filing Separate

5-Married/Joint

Married Joint

To set up payroll calculations on an employee for Iowa State Tax:

Note: If you do not yet have an income tax withholding calculation for this state, use the 5-3-1 Payroll Calculations window to add it, so it is available in the employee record.

  1. Open 5-2-1 Employees.
  2. Using the data control, select the employee.
  3. Select the Calculations tab.
  4. In the Iowa Income Tax row, enter the following information:
    1. In the Marital column, enter the relevant marital status number.
    2. Enter the annual dollar allowance from the employee's W-4 form in the Annual Allow column.

      If the employee doesn't submit a W-4, the total allowance is $40.

      Note: If there is an amount in the Add W/H column, you need to enter an amount in the Annual Allow column to include the additional amount in the employee’s Iowa state withholding. If there is no amount in this column, the additional withholding will be $0.00.

    3. (Optional) In the Std Allow column, remove any existing value.
  5. Click File > Save.