The Iowa Department of Revenue has issued final regulations extending the deadline for filing the annual Forms VSP, Verified Summary of Payments Report, W- with the Department from January 31 to February 15. SF 2417 also provides for future reductions in the individual income tax rates and the number of tax brackets starting in tax years beginning on or after Januif certain economic targets are met.įorm IA-W-4, Employee's Withholding Certificate, which has not yet been released for 2020, will continue to be used to determine state allowances and deductions.Ī Department webpage provides information regarding the tax reform legislation.Ĭalendar year 2019 Forms W-2 due by February 15, 2020
The maximum withholding tax rate was reduced from 8.98% to 8.53% beginning tax year 2019. With rolling conformity, the IRC is automatically adopted without any action needed by the Iowa state legislature. Rolling conformity with the IRC, rather than a fixed conformity date, begins in 2020.
#IOWA INCOME TAX TABLES 2020 CODE#
Iowa tax reform legislation enacted earlier in 2019 (SF 2417) reduced state income tax rates across the board effective Januand generally conformed Iowa's individual income tax laws to the federal Internal Revenue Code (IRC), including changes under the Tax Cuts and Jobs Act (TCJA), beginning with tax year 2019. Legislation reduces income tax rates for 2019, conforms Iowa law to federal When an employer makes a payment of supplemental wages to an employee and the employer withholds federal income tax on a flat-rate basis, pursuant to Treasury Regulation Section 31.3402(g)-1, state income tax shall be withheld from the supplemental wages at a rate of 6.0% without consideration for any withholding allowances or exemptions. If supplemental wages are paid at any other time, the regular tables or formulas are used in determining the amount of tax to be withheld as if the supplemental wage were a single wage payment for the regular payroll period. If supplemental wages are paid at the same time as regular wages, the regular tables or formulas are used in determining the amount of tax to be withheld as if the total of the supplemental and regular wages were a single wage payment for the regular payroll period. When such supplemental wages are paid, the amount of tax required to be withheld shall be determined using the current withholding tables or formulas. The supplemental withholding rate remains at 6.0% for calendar year 2020, as per Iowa regulations.Ī supplemental wage payment is the payment of a bonus, commission, overtime pay, or other special payment that is made in addition to the employee's regular wage payment in a payroll period. The revisions take effect with wages paid on and after January 1, 2020.Ģ019 was the first revision of the Iowa withholding tables and formulas since April 1, 2006. The Iowa Department of Revenue has released revised income tax withholding tables/formulas and instructions to its website. Iowa releases 2020 withholding tables and instructions 2019 Forms W-2 deadline moved to February 15, 2020
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