Iowa Pay Stub Requirements & Payroll Taxes

Iowa requires a pay stub every payday showing hours, wages and deductions, and keeps the rest close to federal law: a $7.25 minimum wage, no state overtime or adult break rules, and no paid sick leave mandate. Its income tax has been a flat 3.8% since 2025, and 2026 brought employers one of the country's lowest unemployment tax bills, with the taxable wage base cut nearly in half.

It's a general guide, not legal or tax advice. For your specific situation, check the source links below or talk to a licensed payroll, tax, or employment-law professional.

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Is a pay stub required in Iowa?

Iowa employers must provide each employee with a pay stub on every regular payday showing the hours the employee worked, the wages earned, and the deductions made. It may be delivered by mail, secure electronic transmission, in person, or through electronic access with free printing. Payroll records must be kept for at least three calendar years.

Required on every wage statement — Iowa Code § 91A.6:

Hours worked
Wages earned
Deductions made

Penalty for non-compliance (Iowa Code § 91A.6): The Iowa Labor Commissioner directs an employer to comply only after the employer has already paid a wage claim plus liquidated damages, or been assessed a civil money penalty, in connection with a violation; courts may modify or waive the compliance order.

How often must employees be paid?

Wages must be paid in regular installments at least monthly, semimonthly, or biweekly, on consistent, employer-designated paydays. A regular payday may not fall more than twelve days (excluding Sundays and legal holidays) after the end of the pay period it covers, though employer and employee may agree in writing to vary these terms.

Source: Iowa Code § 91A.3

Iowa minimum wage

Iowa's minimum wage is $7.25 an hour, the same as the federal rate.

$7.25 per hour statewide, effective January 1, 2008Iowa law does not allow cities or counties to set a higher minimum wage, so the state rate applies everywhere.

Tipped employees who customarily receive more than $30 a month in tips: a cash wage of at least $4.35 per hour — the tip credit is capped at 40% of the minimum wage — with the employer making up any shortfall below $7.25.

Source: Iowa Code § 91D.1; Iowa Workforce Development

Overtime & double time

Iowa has no state overtime law; overtime is governed by the federal Fair Labor Standards Act.

Trigger	Pay rate
Daily overtime	No daily overtime rule.
Weekly overtime	1.5× the regular rate for hours beyond 40 in a workweek, under the federal FLSA.
7th consecutive workday	No seventh-consecutive-day rule.

Source: Fair Labor Standards Act, 29 U.S.C. § 207

Meal & rest break requirements

Iowa does not require meal breaks for adults. Employees under 16 who work five or more hours in a day must get a break of at least 30 minutes, which may be paid or unpaid.

There is no rest-break requirement for adults. Short breaks of about 5 to 20 minutes that an employer allows are paid time under federal law.

If a break is missed:Iowa owes no premium pay for missed breaks.

Source: Iowa Code § 92.7; 29 C.F.R. §§ 785.18–785.19

Iowa state income tax

Iowa moved to a flat personal income tax structure beginning with tax year 2025: a single 3.8% rate applies to all levels of taxable individual income, replacing the state's former graduated bracket system.

Iowa flat individual income tax rate (2025 and 2026)

Taxable income	Rate
All taxable income	3.80%

Iowa eliminated its graduated tax brackets for tax year 2025 and later, applying one flat 3.8% rate to all taxable income under Senate File 2442 (2024).

Source: Iowa Code § 422.5A; Iowa Dept. of Revenue, "IDR Announces 2025 Individual Income Tax Brackets and Interest Rates"

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Vacation & paid time off (PTO)

Iowa does not require paid vacation, but vacation, holiday, sick leave and severance payments that are due under an agreement or the employer's policy count as wages under the Wage Payment Collection law.

Vacation pay due under an agreement or policy is wages.

"Use-it-or-lose-it" policies:Allowed if the policy says so.

Paid out at termination?Only if the policy, procedure or contract requires it. Employers must give employees a written statement of their vacation policy on written request.

Source: Iowa Code §§ 91A.2, 91A.6

Final paycheck rules

Iowa requires all wages earned up to the time of separation to be paid by the next regular payday, whether the employee quit or was discharged.

Situation	Final wages due
Fired or laid off	By the next regular payday.
Quits or resigns (notice makes no difference)	By the next regular payday — the same as a discharge.

Late final pay:No per-day waiting penalty in the stub sense, but an employer that intentionally fails to pay wages can be liable for the unpaid wages, liquidated damages, and court costs and attorney's fees.

Source: Iowa Code §§ 91A.4, 91A.8

Other Iowa payroll taxes employers should know

Iowa employers pay state unemployment insurance (UI) tax on wages up to an annual taxable wage base that was cut nearly in half for 2026 under recent legislation; Iowa does not impose a separate state disability or paid-family-leave payroll tax.

Tax	Rate	Notes
Unemployment Insurance (UI)	0.000% to 5.400% (Contribution Rate Table D, 2026)	Taxable wage base for 2026 is $20,400 per employee, down from $39,500 in 2025; Table D is the lowest rate table allowed by law and applies for a fourth consecutive year.
State Disability Insurance and Paid Family Leave	None	Iowa has neither programme.

Source: Iowa Workforce Development, Unemployment Insurance Employer Handbook / press release (Sept. 2025)

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Common questions about Iowa pay stubs

What must an Iowa pay stub show?

The hours worked, the wages earned and the deductions made, on every regular payday. It can be mailed, handed over, sent securely by email, or posted online where the employee can print it for free.

Does Iowa allow a lower wage for tipped employees?

Yes, for employees who customarily receive more than $30 a month in tips: the employer may pay as little as $4.35 an hour, but must make up the difference if wages plus tips average below $7.25.

Will my unused vacation be paid when I leave an Iowa job?

Only if your employer's policy or your contract says so. If it does, the payout counts as wages and is due by the next regular payday. You can ask in writing for a copy of the vacation policy.

Does Iowa require paid sick leave?

No. Iowa has no paid sick leave law, and cities and counties cannot require one. Any sick time comes from the employer's own policy.

Guides that go with this page

Iowa's rules decide what has to appear on the stub. These cover what the figures on it actually mean, wherever you work.

What a pay stub is, line by line — Every section of a stub and what each figure means.
Gross pay vs. net pay — Why the amount that reaches your bank is a quarter smaller than your salary.
The extra 0.9% above $200,000 — Why your employer's withholding and what you actually owe can disagree.
Budgeting from take-home pay — Working from real pay dates instead of a salary divided by twelve.

Sources & references

Every figure on this page links back to the primary source below. State and federal payroll rules change — always confirm current-year figures directly with the agency before relying on exact dollar amounts.

Last checked: October 2026. See our editorial standards & sources for how these figures are verified.