Employer Payroll Tax
Minimum wage is $7.25 per hour.
Employer:contributes 8.93% of the total payroll per month for the employees pension funds.
Employee:contributes 5.95% of the monthly salary to pension fund.
Employer: Medicare – 1.45%
Employee: Medicare – 1.45%
There are 9 official holidays, however private employers are not required to provide either time off or overtime pay on these days.
Iowa follows “employment at will” doctrine which means both the employee and employer are allowed to terminate the employment at any given time without a reason Therefore at the time of termination, the employer much pay all the necessary wages up to the day of termination.
While there is no official period required, the general practice is is 2 weeks.
Iowa law does not either require or prohibit severance payments. It depends on the employer’s agreement with the employee.
The state sales tax is 6%.