Iowa PEO Law FAQs

Does Iowa require PEOs to register with the state?

No. Iowa does not have a separate PEO registration or licensing requirement. PEOs operating in the state must follow general business incorporation and insurance rules.

What is Iowa's unemployment insurance (SUI) taxable wage base?

Iowa's SUI taxable wage base is $20,400 per employee. The new employer rate is 1.0% for most industries and 5.4% for the construction industry.

Is workers' compensation mandatory in Iowa?

Yes. Iowa requires employers with one or more employees to carry workers' compensation insurance. Coverage can be obtained through private carriers.

What is the minimum wage in Iowa?

Iowa's minimum wage is $7.25 per hour, which matches the federal minimum wage. Iowa does not have a separate state minimum wage above the federal level.

Does Iowa require paid sick leave?

No. Iowa does not have a statewide paid sick leave mandate. Paid leave benefits are at employer discretion.