COVID-19 & Iowa Unemployment Tax Payment Extension

By April 8, 2020May 1st, 2020COVID-19, Uncategorized

Governor Kim Reynolds has approved a measure extending the deadline for submitting first-quarter unemployment tax payments to July31, 2020, the Iowa Department of Workforce Development announced today.  However, the extension will only apply to employers with 50 or fewer employees.  Eligible employers also must be in good standing with no delinquencies in quarterly payments.

Unemployment tax and wage reports will remain due on April 30, 2020 as normal, but the Department is allowing for an extension to submit the tax payment until July 31, 2020.

To qualify for the extension, the employer must be current on all quarterly tax payments before the 1st quarter of 2020 regardless of whether or not they are seeking an extension of tax payment. All employers must file Quarterly Employers Contribution and Payroll Report electronically by 4:30 on April 24th to avoid late report filing penalty.

Payments for Q1 would be due when Q2 payments are due; July 31, 2020.  No interest or penalties will accrue for delayed payments for the eligible group.  The extension of payment deadline without interest is not a holiday or forgiveness and the taxes will be due July 31, 2020.  Employers still need to file their quarterly reports, which contain employee wage data necessary to compute benefit eligibility and amounts to be paid.

For an employer who elects to take advantage of the extension, please contact the IA DWD  Tax division at either 1-888-848-7442 or by sending an email to Q1tax@iwd.iowa.gov.  The DWD recommends sending an email versus a phone call as there is a high call volume during this time that may lead to extended wait times.  Employers must notify the DWD of intent to delay payment by Friday, April 24th at 4:30 pm.

Our office will be monitoring these situations closely and will send out additional announcements or make postings on our website (http://covid19.thomas-and-company.com/covid-19/) as we become aware of new developments.

Josh Kendall

Author Josh Kendall

More posts by Josh Kendall