Employing Units

Table of Contents

The Iowa Employment Security Law (Iowa Code 96.1A.14 “Definitions / Employer”) defines an employing unit as an individual (sole proprietor) or type of organization that currently has or previously had in its employ one or more individuals performing service within Iowa. Legal entities based in Iowa, such as a corporation, limited liability company and limited liability partnership must be registered as such with Iowa Secretary of State (SOS). The legal business name registered with IWD must exactly match SOS records.  IWD uses the term “Employer” rather than “employing unit” to set a distinction between Employing Unit and Reporting Unit when describing responsibility and procedures related to MyIowaUI and the Employer’s SUTA account.  Employing unit and Reporting Unit are not interchangeable terms nor are they considered synonymous terms.  

An Employer includes any: 

  • Corporation (domestic or foreign) or insurance company
  • Limited liability company
  • Sole proprietor
  • Partnership
  • State or local government
  • Trust/estate
  • Receiver or trustee in bankruptcy
  • Association 

Employer Responsibilities

Within 30 days after the first date wages are paid to employees working in Iowa or an existing business is acquired, all employers must register a UI tax account with Iowa Workforce Development (IWD) at myIowaUI.org. Based on the information provided, you will find out if you are a liable employer and are required to pay Unemployment Insurance (UI) contributions.  Out-of-state employers must register for a UI tax account as soon as wages have been paid to an employee working in Iowa. 

MyIowaUI – Iowa's Unemployment Insurance (UI) Online Tax System

myIowaUI.org is IWD’s secure online tax system for employers to manage their UI tax accounts.  The system allows an employer or the employer’s authorized third-party agent (TPA) to: 

  • Register a new business electronically
  • Submit quarterly reports electronically
  • Calculate taxable wages and contributions due
  • Schedule payments
  • Submit wage adjustments
  • View historic account information
  • View and update account information
  • Receive and view electronic correspondence
  • Assign agent and roles (employer user access only)
  • A TPA must use his or her registered Agent Account to access and manage their client’s (employer) MyIowaUI account. At no time is an agent to fraudulently represent themselves as the employer or access MyIowaUI through an employer’s user login credentials.  This is considered unauthorized access (ID Theft) and misrepresentation to a government agency.  When discovered, the employer login credentials and assigned agent access will be revoked without notice. Access will not be restored until IWD confirms directly with the employer and receives written confirmation that the third party is authorized to access the employer’s account.

MyIowaUI – Employer Account Information

To protect your rights and to avoid any possible penalties and interest for late filing, it is the employer’s responsibility to ensure that all business contact information is accurate and up to date.   An employer user or an authorized TPA is able to update account information at myIowaUI.org. 

Payroll Records

If you hire individuals in Iowa, it is your responsibility as the employer to maintain accurate payroll records. The records must include the total number of employees as well as the following information for each: 

  • Name
  • Social Security Number
  • Days and calendar weeks worked
  • Earnings for each period employed 

Employers are required to keep records for a minimum of five years after the calendar year in which the wages were paid. If an Employer has more than one physical location, the records must be maintained by location.

Employer’s Contribution & Payroll

  • If the business is found liable, Employer must submit a quarterly wage detail report and make a payment electronically each quarter. Payment must be made by the due date to avoid a late filing penalty and/or interest.
  • The quarterly filing is still required even when you have no employment in a specific reporting quarter.
  • The quarterly report has several functions:
  • Provides a record of wages the Employer has paid each individual worker.  

  • Wages paid are essential to determine the individual employee’s eligibility for UI and to calculate his/her UI weekly benefit amount. 

  • Calculates the total wages and taxable wages paid during the quarter.  

  • Taxable wages paid are a prime factor in determining the Employer’s annual UI tax rate. 

  • Electronically submits your Multiple Worksite Report if you file wages by reporting unit.
  • Employers can make corrections and/or adjust individual wage lines at myIowaUI.org. If a zero wage or no wage report is filed and later requested to be replaced with a quarterly report which has wage records, the original filing will be considered an insufficient report and a penalty will be assessed for late filing.
  • Failure to file a quarterly report by the due date will result in a penalty assessed for late filing. This applies to all employers, regardless of current tax rate or account type. (Iowa Code 96.14 (2))

Reporting Your Employees

  • Generally, wages for UI purposes are reported to the state in which work is performed. 

  • If an employee works exclusively in one state, that is the state to which unemployment tax is reported.
  • If an employee is a multi-state worker, working in two or more states during a calendar quarter, the employee is reported to the state where their base of operations is. Where an employee starts and finishes their work on a regular basis is their base of operations.
  • If an employee moves from job site to job site and there is no base of operations, the employee should be reported to the state where they receive their direction and control.
  • If the employee has no base of operations or the place where services are directed and controlled is not applicable, the employee should be reported to the state where they live, provided that they perform some service in that state.
  • If your employee has been permanently transferred to the state of Iowa from another state, you should report the employee to the other state for wages paid before the transfer and report the employee to Iowa for wages paid after the transfer. If the transfer occurs during the middle of the year, you may use the taxable wages reported to the other state before the transfer to determine the Iowa taxable wages after the transfer.
  • As of July 1, 2025, out-of- state wage credits are not allowed. 

Actions to Take When Selling, Transferring, or Discontinuing Your Business

In these situations, employers must: 

  • Update their account information at myIowaUI.org  under My Quick Links / Change Status (preferred method).
  • Or, file an Employer's Notice of Change form at the time of the status change.