How do I register as a household employer in Iowa?

Start with a federal EIN, then register with Iowa for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with Iowa's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer. If you will withhold Iowa income tax at your nanny's request, register separately with the state revenue department for a withholding account.

What payroll taxes does Iowa charge for a household employee?

Federal FICA and FUTA, Iowa SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. Iowa SUTA: 0% - 7% on a state-specific wage base, with a separate rate for new employers. State income tax withholding is optional unless your nanny elects it on the state W-4.

What are Iowa's minimum wage and overtime rules for nannies?

At least $7.25 an hour for a nanny in Iowa. Iowa sets no rate above the federal floor, so the federal minimum is what binds. Some cities and counties may set a higher floor, so check your locality before you set a rate. Overtime is 1.5x pay for hours over 40 in a week, under the FLSA. Live-in nannies are exempt from FLSA overtime, but not from minimum wage. Source: US DOL, State Minimum Wage Laws.

Can I require my nanny to use direct deposit in Iowa?

No. Iowa does not let an employer require direct deposit, so your nanny has to opt in. Get a written, signed authorization anyway. Federal Regulation E sets the floor, and Iowa adds an employee-consent rule on top.

What records do I need to keep for a Iowa household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. Iowa follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

All State Guides

Iowa Nanny Tax Guide

Iowa recently simplified its tax code to a flat 3.8% rate, making withholding calculations easier. The state has no disability or paid leave mandates.

Iowa household employer quick facts

Applies in Iowa

State income tax withholding
State unemployment

Not in Iowa

Disability insurance
Paid family leave

Minimum Wage

$7.25/hour (federal)

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SUTA Rate Range

0% - 7%

New employers: 1% on the first $20,400 (2026). Iowa Workforce Development

Key things to know

Flat state income tax of 3.8%
Uses federal minimum wage
No disability or paid leave requirements
SUI wage base of $20,400

Iowa Employer Requirements

State Income Tax

Iowa uses a flat 3.8% income tax rate (reduced from prior progressive rates). This makes calculating withholding straightforward.

State Unemployment Insurance

Employers pay SUI tax on the first $20,400 of wages. New employer rate is 1.0%, with rates ranging from 0.0% to 7.0% based on experience.

Workers' Compensation

Iowa requires workers' compensation once your employee earns $1,500 or more from you in a 12-month period. Below that threshold it's optional, but still worth considering for the protection it gives you both.

Iowa household employer questions

What will it cost?

Wondering what you'll actually owe as a Iowa employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of June 2026Sources: Iowa tax agency, IRS Publication 926

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Iowa Nanny Tax Guide

Iowa household employer quick facts

Iowa Employer Requirements

State Income Tax

State Unemployment Insurance

Workers' Compensation

Iowa household employer questions

What will it cost?

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