Overview

Capital
Des Moines
Currency
United States Dollar (USD)
Date Format
mm/dd/yyyy

Taxes

Employer

Employer Payroll Tax

6.20%
Social Security Tax
1.45%
Medicare Rate
Up To 3.3%
State Taxes
11.77% Total Employment Cost

Minimum Wage

General

Minimum wage is $7.25 per hour.

Payroll Contributions

Social Security

Employer: 6.2%

Pension Fund

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.

Health Insurance

Federal:

Employer: Medicare – 1.45%

Employee: Medicare – 1.45%

Leave

Public Holidays

There are 9 official holidays, however private employers are not required to provide either time off or overtime pay on these days.

Termination

Termination Process

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.

Notice Period

While there is no official period required, the general practice is is 2 weeks.

Severance Pay

Iowa law does not either require or prohibit severance payments. It depends on the employer’s agreement with the employee.

VAT

General

The state sales tax is 6%.

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