701-46.3(2)Allowance certificate. a.General rules. On or before the date on which an individual commences employment with an employer, the individual shall furnish the employer with a signed Iowa employee’s withholding allowance certificate (IA W-4) indicating the number of withholding allowances which the individual claims, which in no event shall exceed the number to which the individual is entitled. The employer is required to request a withholding allowance certificate from each employee. If the employee fails to furnish a certificate, the employee shall be considered as claiming no withholding allowances. See subrule 46.3(4) for information on Form IA W-4P which is to be used by payers of pensions, annuities, deferred compensation, individual retirement accounts and other retirement incomes to the extent the payments of the retirement incomes are made on or after January 1, 1996. The employer must submit to the department of revenue and finance a copy of a withholding allowance certificate received from an employee if: (1)*The employee claimed more than a total of 14 withholding allowances, or (2)The employee is claiming an exemption from withholding and it is expected that the employee’s wages from that employer will normally exceed $200 per week. *On or after January 1, 1991, the employer is to submit the employee’s allowance certificate to the department of revenue and finance if the employee claimed more than 22 allowances. Employers are required to submit withholding certificates on at least a calendar quarter basis to the following address: Iowa Department of Revenue and Finance Audit and Compliance Division Hoover State Office Building P.O. Box 10456 Des Moines, Iowa 50306 The department will notify the employer whether to honor the withholding certificate or to withhold as though the employee is claiming no withholding allowances. b.Form and content. The “Iowa Employee’s Withholding Allowance Certificate” (IA W-4) must be used to determine the number of allowances that may be claimed by an employee for Iowa income tax withholding purposes. Generally, the greater number of allowances an employee is entitled to claim, the lower the amount of Iowa income tax to be withheld for the employee. The following withholding allowances may be claimed on the IA W-4 form. (1)Personal allowances. An employee can claim one personal allowance or two if the individual is eligible to claim head of household status. The employee can claim an additional allowance if the employee is 65 years of age or older and another additional allowance if the employee is blind. If the employee is married and the spouse either does not work or is not claiming an allowance on a separate W-4 form, the employee can claim an allowance for the spouse. The employee may also claim an additional allowance if the spouse is 65 years of age or older and still another allowance if the spouse is blind. (2)Dependent allowances. The employee can claim an allowance for each dependent that the employee will be able to claim on the employee’s Iowa return. (3)Allowances for itemized deductions. The employee can claim allowances for itemized deductions to the extent the total amount of estimated itemized deductions for the tax year for the employee exceeds the applicable standard deduction amount by $200. In instances where an employee is married and the employee’s spouse is a wage-earner, the total allowances for itemized deductions for the employee and spouse should not exceed the aggregate amount itemized deduction allowances to which both taxpayers are entitled. 46.3(3)Reports and payments of income tax withheld. a.Returns of income tax withheld from wages. (1)Quarterly returns. Except as otherwise provided in 46.3(3)“a”(3) or 46.3(3)“b,” every withholding agent required to deduct and withhold tax on compensation paid for personal services in Iowa shall make a return for the first calendar quarter in which such tax is deducted and withheld and for each subsequent calendar quarter, whether or not compensation is paid therein, until a final return is filed. The withholding agent’s “Quarterly Withholding Return” is the form prescribed for making the return required under this paragraph. Monthly tax payments may also be required or semimonthly tax payments may be required instead of quarterly or monthly reports. See subparagraphs (2) and (3) of 46.3(3)“a.” In some circumstances, only an annual return and payment of withheld taxes will be required; see 46.3 (3)“c.” Payments shall be based upon the tax required to be withheld and must be remitted in full. Payment should not be deferred and should accompany the quarterly return. A withholding agent is not required to list the name(s) of the agent’s employee(s) when filing quarterly returns, nor is the withholding agent required to show on the employee’s paycheck or voucher the amount of Iowa income tax withheld. 701-46.3(422) Forms, returns and reports. 46.3(1)Employer registration. Every employer or payer required to deduct and withhold Iowa income tax must register with the department of revenue and finance by filing an “Application for Withholding Agent’s Identification Number.” The application shall indicate the employer’s or payer’s federal identification number. If an employer or payer has not received a federal employer’s identification number, the employer should obtain one before filing the state application. It must then be filed with the department within 15 days of the date the federal employer’s identification number is assigned. When initial payment of wages subject to Iowa withholding tax occurs late in the calendar quarter, or before the employer’s or payer’s federal employer’s identification number is assigned by the Internal Revenue Service, the application for Iowa withholding agent’s identification number shall be forwarded along with the first quarterly withholding return. The responsible party(ies) shall be listed on the application. Editors Note: I submit that without a properly filed IA W-4 the employer is not authorized to withhold " for Iowa income tax withholding purposes." And yet, not only has the employer (e.g. "withholding agent") been withholding but withholding according to tables most likely according to the federal tables, due in part, to having a federal W-4 "voluntary withholding agreement" (applicable only to Subtitle C "employment taxes" according to the OMB number on the form). Of course there's no way that the state and federal tables are exactly identical. The fact that the employer has no three-digit suffix on it's FEIN also concludes that there has never been a "withholding agent's identification number" issued by the department. This would be conclusive is the legal arena of "presumptions" that: |
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© Paul Revere |