IDR Issues New Income Withholding Tax Tables for 2024
The Iowa Department of Revenue is issuing updated income tax withholding formulas and tables for 2024. The Department updates withholding formulas and tables when necessary to account for inflation and for changes in individual income tax liability resulting from changes in Iowa law.
New for 2024 - The Iowa withholding formula and the IA W-4 have been revised to accommodate certain changes enacted by the Iowa legislature in 2023 under Senate File 565. Regarding withholding, SF 565 replaced "number of allowances" with "amount of allowances" to be in line with federal withholding.
Because of changes under SF 565 reflected on the 2024 IA W-4 form, employees are encouraged to file an updated Iowa W-4 using the 2024 IA W-4 form. For employees who do not file an updated W-4 using the 2024 IA W-4 form, Paylocity will use $40 as the total allowance amount and $0 as the additional withholding amount when calculating your Iowa withholding amounts.
The Department has updated the online Withholding Estimator to help individuals calculate their 2024 withholding amounts.
To update your tax forms at any time during the year, Navigate to Paylocity Self Service > Pay > More > View Edit Tax Setup.