ISU employees must complete both a Federal (U.S. government) Form W-4 and a State of Iowa Form W-4 in Workday at the start of their employment and when their circumstances change. Form W-4 provides the information ISU needs to withhold the correct amount of U.S. and Iowa income tax from employees' pay. Tax withholding rules are different for employees who are residents of the U.S. for tax purposes and those who are nonresidents of the U.S. for tax purposes. The special rules for nonresident tax withholding are built into the Workday system for Federal government taxes. But students and scholars who are nonresidents for U.S. tax purposes must follow the instructions below to properly complete their State of Iowa Form W-4 in Workday. The purpose of the process described below is to reduce or eliminate additional tax due to the State of Iowa when filing 2026 income tax returns.
Here are the steps to take:
- Determine if you are a nonresident for U.S. tax purposes in 2026. Generally:
- Students are nonresidents for 2026 tax purposes if they arrived in the U.S. for the first time in F or J student status in 2022 or later.
- J-1 scholars are nonresidents if they arrived in the U.S. for the first time in 2025 or later.
- Log into Workday and from your "Benefits and Pay" menu select the "Withholding Elections" oval from the menu across the top of the page. Scroll down to the "State" section.
- Select "Iowa" for your "State" and choose the "IA W-4 - Withholding" option for the "Withholding Form Type."
- If you are a resident for tax purposes stop reading here* and follow the instructions in Workday to complete your Iowa Form W-4.
- If you are a nonresident for tax purposes:
- Select "Other" as your "Marital Status" whether you are married or single.
- If you are a nonresident who will earn less than $9,000 in the U.S. from January 1, 2026, through December 31, 2026:
- Enter "40" in the "Personal Allowances" field.
- Read the Legal Notice and tick the "I Agree" box at the bottom of the screen.
- Do not make any other entries or tick any other boxes on the form.
- Click the blue "OK" button at the bottom of the page to submit your completed Iowa Form W-4.
- If you are a nonresident who will earn $9,000 or more in calendar year 2026:
- Enter "40" in the "Personal Allowances" field on your Iowa Form W-4.
- Enter an "Additional Amount" of $26 at the bottom of your Iowa Form W-4 if you are paid twice a month. If you are paid once each month, enter $52.
- Read the Legal Notice and tick the "I Agree" box at the bottom of the screen.
- Do not make any other entries or tick any other boxes on the form.
- Click the blue "OK" button at the bottom of the page to submit your completed Iowa W-4 form.
Tip: ISU employees should review their Forms W-4 in Workday at the beginning of each calendar year or when their employment circumstances change and make adjustments to their Iowa tax withholding as necessary. For example, if you earned less than $9,000 in 2025, but expect to earn more than $9,000 in 2026, you should update your Iowa Form W-4 in January 2026 accordingly. The "Additional Amount" required on the Iowa W-4 form for those who earn more than $9,000 annually changes every year in January. Please keep your Forms W-4 updated in Workday so the correct amount of Iowa tax can be withheld from your wages.
*Full-time F-1 or J-1 students eligible for the benefits of the tax treaty between India and the U.S. should also disregard the information on this page and follow the instructions in Workday to complete their Iowa Forms W-4.