Employer of Record & Payroll Services

Employing in Iowa

In Iowa, workers’ rights are protected by numerous employment and labour laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.

Here are the key things you need to know about hiring in Iowa.

Hours of work in Iowa

Work and overtime laws in Iowa are governed by the state’s Division of Labour.

What is considered full-time employment in Iowa?

Under state law, full-time employment is generally deemed to be between 32 and 40 hours per week.

Do pay employees get overtime in Iowa?

Under the federal Fair Labour Standards Act, non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.

Employees are generally (but not always) exempt from overtime if they:

Earn more than the specified state or federal exemption threshold
Perform a role with duties that are
Work in a certified or licensed profession, such as law, accounting, architecture, or engineering

In Iowa, the pay threshold for exemption is currently $684 per week, which is the federal minimum.

Note that the federal pay threshold for exemption is currently being reviewed in the US.

Minimum wage in Iowa

The minimum state wage for private sector employees is $7.25 per hour, which is the federal minimum.

Onboarding timeline in Iowa

We can help you get your new employee started in Iowa fast, with a minimum onboarding time (MOT) of just 2 working days. Note that the MOT is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Remote platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Remote’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll cycle in Iowa

Under state law, employees must be paid at least once per month.

For Remote customers, employee payments are made twice per month in equal instalments, payable in arrears. The first payment is made on the 15th of the month and the second payment is made on the final day of the month. If relevant, bonus payments, commissions, and expense reimbursements are included in the second payment of the cycle.

Competitive benefits package in Iowa

Remote can help you craft a competitive benefits package to attract and retain the best global talent. Our benefits experts understand the trends, requirements, and expectations of the Iowa labour market, allowing your employees to feel appreciated and thrive.

Our benefits packages in Iowa usually include some or all of the following:

Pension / 401k retirement plan

Medical insurance

Vision insurance

Health Saving Plan (HSA)

Long term disability insurance (LTD)

Dental insurance

Life insurance

Flexible Spending Account (FSA)

Are employers required to provide health insurance in Iowa?

Under the federal Affordable Care Act, organizations with a headcount of 50 or more must offer statutory health insurance to their full-time employees.

Many employers also offer some level of supplemental health insurance. While this can lead to a relative rise in employment costs, it’s an essential benefit that ensures your people have access to routine care and are covered in the event of an emergency.

Because Remote is the employer of record (EOR), it’s important for us to offer the same core benefits to all employees to ensure fair and non-discriminatory hiring practices. This protects both your business and ours.

Note that we do not add a markup on any benefits premiums or administration costs.

Are employers required to offer 401k in Iowa?

No. Organizations are not legally required to offer a 401k retirement plan (or any other type of savings plan) to their employees. However, they may choose to offer this benefit as part of their overall compensation package.

Facts & Stats

Nestled in the heartlands of the US, Iowa combines a rich agrarian heritage with political, educational, and cultural significance.

With its endless corn fields, The Hawkeye State is instantly recognisable. But with the iconic Iowa State Fair, the influential first-in-the-nation presidential caucuses, and the growing arts scene in Des Moines, there’s more to Iowa than meets the eye — making it an increasingly desirable location for both employees and employers alike.

Capital City

Des Moines

Currency

United States Dollar
($, USD)

Population size

3,200,000

VAT - standard rate

6%

Grow your team in Iowa with Remote

If you want to hire in Iowa, you’ll need to own a legal entity there — or partner with a global employment solutions provider, like Remote.

We can employ top talent in Iowa on your behalf and manage complex HR tasks such as onboarding, payroll, benefits, and taxes. You can also manage and pay your contractors in Iowa through Remote.

Risks of misclassification

Iowa, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Iowa may lead to fines and penalties for the offending company.

Payroll

43

per employee/month

Powerful, transparent international payroll
Simple self-service platform
Personalised support from dedicated specialists
Adhere to local payroll regulations in every country
Integrated payroll, expense management, and HRIS solution

Contractor Management

44

per contractor/month

Only pay for contractors you actively work with
Work with international contractors
Create, edit, and sign tailored, localised contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility

Employer of Record

1069 915

per contractor/month

Hire without opening a local entity
Guided onboarding
Local payroll paid on time, every time
Built-in security and compliance
Flexible, localised benefits
Offer equity incentives with tax assistance
Dedicated experts for local support

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Easily manage employment in Iowa