Iowa Insurance Division – EFT (ACH Credit Instructions)
A credit is initiated through your financial institution to the Iowa Insurance Division’s bank account for the tax payment.
Supplemental filing information is sent with the fund transfer using the standard CCD+ format.
If you wish to pursue this option, contact your bank to determine what ACH origination services they offer and the costs. All ACH transaction costs are charged to you.
To be considered timely, the payments must be received by Iowa Insurance Division’s bank no later than the payment due date of the tax period. To ensure the timely receipt of your payment, contact your financial institution to determine when payment should begin. Do not send a transaction through the ACH network, if there is nothing due; ACH is only for tax amounts due.
DUE DATES
If a payment due date falls on a legal holiday or weekend, the tax payment must be received on the first business day after the holiday or weekend. Timely payments are based on the settlement date (the date on which the tax has been credited). Financial institution holidays in other states may vary; make sure to check with your financial institution.
ACH CREDIT DETAIL
For taxpayers choosing the ACH Credit method of payment, the free format data area of the addendum record must be structured according to the Tax Payment (TXP) layout. The TXP conventions must be followed exactly for proper posting of payment. Please contact your financial institution if you need assistance.
NACHA records for CCD+ entries must appear in the following sequence:
- File Header Record
- Company/Batch Header Record
- Entry Detail Record
- Addenda Record (Carries an 80 character free form field)
- Company/Batch Control Record
- File Control Record
To create an ACH file, the Entry Detail Record must include:
- The State’s depository bank, ABA (American Bank Association) Routing Transit Number in the Receiving Bank Number and Check Digit positions. Bank routing number is provided below.
- The Iowa Insurance Division’s EFT ACH Credit Bank Account number (each insurance company will be assigned a unique 17 digit account number as noted below).
BANKING INFORMATION
Bank: Wells Fargo
Bank routing number: 121000248
Account name: IA Insurance Div
Account number: 50100000 + Iowa number (4 digits) + NAIC number (5 digits)
Account type: Checking
Required ACH format: CCD+
Iowa Required ACH Credit Addendum Record Format
Your bank must submit a variable ACH Credit Addendum record in the format shown below.
| Segment Identifier: |
TXP |
3 |
alphanumeric | Start Position 4 |
| Separator: |
* |
1 |
Character | |
| Taxpayer ID: |
XXXXXXXXXXXXXXX |
15 |
alphanumeric | 000000 + NAIC + Iowa Co Code |
| Separator: |
* |
1 |
Character | |
| Tax Type Code: |
XXXXX |
5 |
alphanumeric | |
| Separator: |
* |
1 |
Character | |
| Tax Period End Date: |
YYMMDD |
6 |
numeric date | |
| Separator: |
* |
1 |
Character | |
| Amount Type Code: |
T |
1 |
alphanumeric | Tax Amount Due |
| Separator: |
* |
1 |
Character | |
| Amount: |
$$$$$$$$cc |
2 to 10 |
numeric | |
| Separator: |
* |
1 |
Character | |
| Amount Type Code: |
F |
1 |
alphanumeric | Fee Amount Due |
| Separator: |
* |
1 |
Character | |
| Amount: |
$$$$$$$$cc |
2 to 10 |
alphanumeric | |
| Separator: |
* |
1 |
Character | |
| Amount Type Code: |
R |
1 |
alphanumeric | (Optional) Retaliatory Fee Due |
| Separator: |
* |
1 |
Character | |
| Amount: |
$$$$$$$$cc |
2 to 10 |
alphanumeric | |
| Separator: |
* |
1 |
Character | |
| Amount Type Code: |
P |
1 |
alphanumeric | (Optional) Penalty |
| Separator: |
* |
1 |
Character | |
| Amount |
$$$$$$$$cc |
2 to 10 |
alphanumeric | |
| Taxpayer Verification: |
XXXXXXX |
1 to 6 |
alphanumeric | (Optional) |
| Segment Terminator |
\ |
1 |
Character | |
|
80 Character Maximum |
||||
Segment Identifier serves as the name of the segment. The identifier occupies the first three character positions of the segment and for the Tax Payment Convention it consists of the upper case letters — TXP.
Separator denotes the end of each component or data element in the convention. An asterisk (*) is used as the separator.
Taxpayer ID: This field must not contain hyphens or empty spaces. It 6 leading 0’s + your NAIC Company Code + your Iowa Company number. If you do not have a NAIC number please use 00000
Include leading 0’s
Tax Type Code identifies the type of tax being paid. You will not receive credit for your payment if it is paid under the wrong tax code.
07100 – Insurance Premium Tax
Tax Period End Date is used to provide the necessary information to identify the time period covered by the payment. The tax period end date will be six characters in the YYMMDD format.
Amount Type Code: identifies the type of payment or amount which follows.
T = Tax
F = Fee
R = Retaliatory Fee
P = Penalty
Amount fields: are used to carry the dollar amount(s) being paid. These are 10 digit variable length fields. The amounts entered must sum to the total of the funds transferred. Do not use any dollar signs or decimals in the amount field. Inclusion of amounts are conditional depending on the type of tax(es) being paid. The amount field must always contain cents (cc). Decimal points are not included. The last two digits will be read as the “cents.”
Taxpayer Verification It is the first six letters of your company name.
Examples:
When using all fields for Tax, Fee and Retaliatory fee
TXP*000000123451212*07100*181231*T*1543110*F*20000*R*15000*ABCDE\
When you are paying tax and fee
TXP*000000123451212*07100*181231*T*1543110*F*20000*ABCDE\