Involuntary and Voluntary Pay Deductions: Iowa
Federal law and guidance on this subject should be reviewed together with this section.
Authors: Stuart R. Buttrick and Tareen Zafrullah, Faegre Drinker Biddle & Reath LLP
Summary
- Employers must begin withholding for child support within 10 days after receiving an income withholding order. Payments must be remitted within seven business days after payday. Certain employers must remit payments electronically. Special rules apply to interstate income withholding orders. An employer must promptly notify the state when an employee is terminated. See Child Support Withholding.
- Iowa limits the amount of disposable income that is subject to creditor garnishment based on how much the employee earns during the year. See Creditor Garnishment Withholding.
- Iowa allows employees to voluntary assign their wages to another to secure a loan or pay a debt. See Voluntary Wage Assignments.
- Individuals with unpaid state taxes may become subject to a tax levy. In Iowa, the limits that apply to creditor garnishments do not apply to tax levies. See Tax Levies.
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