Contractor Registration Questions and Answers
Which contractors must register with the State?
All individual contractors and businesses performing “construction” work within Iowa must be registered with the Division of Labor if they earn at least $2,000 a year. Individuals or businesses making less than $2,000 a year in “construction” work, or who work only on their own real estate or property, are not required to register. Individual employees of eligible contractors are not required to register.
How do I find out if a contractor is registered?
You may search the database at: http://www.iwd.state.ia.us/contractor.nsf. Complete lists of registered contractors are available on the site. For further assistance, please contact the Division of Labor.
How do you define “construction”?
The definition of “construction” is very broad. Carpenters, electricians, plumbers, roofers, painters and many others are involved in construction. To view a list of the types of work that are included under the definition of “construction” click here.
Do sub-contractors have to be registered?
What if I operate more than one business?
You must register each construction business that has a separate federal identification number.
What are the purposes of contractor registration?
How do I get the application form?
What do I do with the completed registration form?
You must submit the completed form to the Division of Labor with the $50 registration fee and a Certificate of Workers’ Compensation Insurance if you have employees. The Contractor Registration Section, Division of Labor, must be listed as a holder on the certificate. If you already have an unemployment account number (which is different from a federal tax identification number), then notify the Division of Labor of the existing number when submitting your application, and your registration may be completed more quickly. Effective July 1, 2010, a contractor with a home office outside of Iowa must also file a bond.
Could I be exempt from the $50 registration fee?
It is possible to be exempt from paying the $50 registration fee. A self-employed contractor who does not pay more than $2,000 annually in wages to others working with them, and who does not work with or for other contractors in the same phase of construction, may be exempt under Iowa law. If you meet the criteria and do not have to pay the $50 fee, please complete the Fee Exemption Form, have it notarized and include it with your registration.
Do I have to renew my registration number?
Yes. Your registration must be renewed every year. You may renew using the same application form as before, just mark “renewal” where indicated. You will have to fill out the Fee Exemption Form again if you believe you continue to meet the criteria. You will be sent one reminder notice by mail about one month before your registration will expire.
What if the information on my registration changes?
It is your responsibility to complete all forms correctly and to notify the Division of Labor in writing if you have any changes in the information you put on your application such as the name of the business, the owner’s name, business address, telephone number or e-mail address. Failure to do so may subject you to citations and penalties.
Can I keep my same registration number?
So long as you renew your registration on time, you may keep the same registration number with only a change in the year portion of the number.
What if I incorporate my business?
If you first applied as a sole proprietor or partnership and then incorporate your business, you must re-apply as a new business and be issued a new contractor registration number.
Is a bond needed to perform construction work in Iowa?
Out-of-state contractors must submit a $25,000 surety bond when registering. Having a branch office in Iowa does not make you an in-state contractor if your business is principally based outside of Iowa.
What kind of bond must I have?
Bonds must be executed by a surety company licensed to do business in Iowa and issued on an official Division of Labor bond form. Click here to download the bond form.
What is the purpose of the bond?
The bond guarantees that taxes, penalties, and other payments due to the State of Iowa as a result of your contracting job are paid. Only the State and its agencies can collect under the bond for nonpayment.
What happens to the bond after I quit working in Iowa?
After you have completed your work in Iowa, your bonding company must send a written request to the Division of Labor asking that your bond be released.
What are the penalties if I don’t get registered, renew my registration every year or if I don’t get the required bond?
Violators may receive a $500 citation for not being registered, not renewing their registration or failing to get the required bond. A citation up to $5,000 may be imposed for a repeat violation.
If I am issued a citation, can I appeal?
You have 15 working days to file an appeal of a citation from the date you receive the citation. Your appeal will be sent to the Iowa Employment Appeal Board, and they will set a hearing for you to explain why you should not have been cited. If you do not file within the 15 working days, then you do not have any right to appeal or dispute the citation and/or penalty. If you receive a citation and promptly correct the violation, you may be eligible for a penalty reduction.
Are there any other requirements for contractors working in Iowa?
Click here for information on Iowa sales/use tax requirements for construction contractors. You may need to obtain a sales/use tax permit from the Iowa Department of Revenue. For information on state-wide licenses for specific trades such as electricians and plumbers, click here. Contact the city or county government for each project to determine local requirements.
How do I contact the Contractor Registration Program?
Contractor Registration Iowa Division of Labor
Iowa Workforce Development
1000 E. Grand Avenue
Des Moines, IA 50319-0209
Phone: (515) 242-5871
Fax: (515) 725-2427
Toll free: 1-800-562-4692, Ext. 25871