Games offering progressive jackpots and bonus rounds are popular with players, but slots with the best payout rates or payback percentages are considered among the top prizes in the world of gambling. After all, even a couple of extra percentage points can make a major difference when calculating the profitability of an individual slot.
This article examines the definition of “payout percentage” and explains where to find the most generous slot games. While it won’t improve your actual chances of winning, the knowledge that you’re playing a more liberal slot machine should at least boost your confidence.
Printed from the Iowa Racing and Gaming Commission website on December 04, 2020 at 5:16am.Iowa Racing and Gaming Commission website on December 04, 2020 at 5:16am. A slot machine hold percentage is the amount a casino can anticipate earning from a machine over the long run. The study of data from 16 states found Iowa casinos had an average slot hold of 9.37.
What Is a Payback Percentage?
The payback percentage—also known as the payout percentage or return to player—is the amount of money deposited into a slot machine that is eventually paid back to the customer. This percentage is not determined in weeks or months, but rather over the life of the machine.
For example, let’s say that $100,000 is inserted into a slot machine with a 92% payout percentage. According to the RTP (“return to player”), the slot should pay back $92,000 of the wager in the form of wins, while keeping the other $8,000 in profit. Keep in mind, however, that the true payout of a slot machine may take millions of spin to determine.
When a machine’s software is written at the factory, this is when the payback percentage is set in accordance with local laws. For example, slots in New Jersey must be set to pay back a minimum of 83%, while games in Nevada have a lower limit of 75%. On average, the payout percentage for most slots ranges from 82% to 98%.
Slots with a high RTP are known as “loose slots,” while their stingy counterparts are referred to as “tight slots.” Since these figures are rarely reported, it’s difficult for a player to accurately determine whether the machine they’re playing is loose or tight.
In previous years, the RTP was set at the factory and any additional manipulation by the casino required the software to be switched. Thanks to advances in computer technology, many casinos can now remotely manipulate the odds and payout, although they must wait until the machine has been vacant for at least four minutes (no mid-game manipulations).
How to Find the Highest Paying Slot Machine
Casinos love to promote their slots as being loose or easy to win slot machines, but they’re tight-lipped when it comes to actually identifying the machines. In most cases, a few loosest slots are sprinkled into rows of tight machines, which still give the casino the opportunity to brag about all the loose slots they offer.
Unless you happen to have a casino manager in your back pocket, it’s going to be difficult to determine a game’s true payback percentage. Gambling forums and chat rooms are often filled with people who claim to know the RTP for various machines, but you should only trust those sources with impeccable credentials. Otherwise, it’s probably an educated guess or outright lie.
Games with Top Payback / Payout Percentages
While it may be disappointing to hear, a so-called list of loose slot machines is useless. There are a couple of reasons for this, which I will explain below.
Varies by Machine – Just because one slot machine from a certain series pays back 96%, another identical machine may only pay back 89%. These differences aren’t listed by the casino, so the player is left to play a guessing game.
Location – Even if you somehow learn that the fifth machine on the fourth row pays back 97%, it’s only a matter of time before the casino changes its physical location.
Iowa Minimum Pay Back Slot Machines For Sale
When searching for the best RTP, the best strategy is to look at the minimum paybacks allowed by law. Any law-abiding casino cannot go below this number, which at least gives you a worst case scenario for the rate of return. Unfortunately, not all states have a minimum, and establishments aren’t always required to disclose their payback setting (especially Indian casinos, who regulate themselves). Still, I’ve included what meager information I could gather.
- Arizona – 83% minimum payback
- Delaware – Their video lottery terminals must pay between 87% and 95%.
- Kansas – 87% minimum (80% at Indian casinos)
- Louisiana – Casino slots must pay no less than 80% and no more than 99.9%. The minimum return at locations other than casinos is 80%, with a maximum of 94%.
- Maine – 89% minimum payback
- Maryland – 87% minimum payout
- Minnesota – RTP must be between 80% and 95%.
- Nevada – 75% minimum RTP
- New Jersey – 83% minimum payback
- New Mexico – Between 80% and 96%, although Indian casinos have a required minimum of 80%.
- North Carolina – Payout must fall between 83% and 98%.
- North Dakota – Slots carry a minimum return of 80%.
- West Virginia – Carries of minimum requirement of between 80% and 95%.
- Wisconsin – Minimum return of 80%.
Slots with the best payback percentage are highly coveted in the world of gambling, so expect a feeding frenzy whenever a game’s true RTP becomes known. This doesn’t happen very often, though, as casinos love to move machines around to keep savvy patrons guessing. Ultimately, your best chance comes from reading the rules, understanding the pay table, and keeping your expectations in check. Once you meet these requirements, you’re a lot more likely to walk away from the casino with a smile on your face.
Who Must Act as an Iowa Withholding Agent?
Every employer who maintains an office or transacts business in Iowa and who is required to withhold federal income tax on any compensation paid to employees for services performed in Iowa is required to withhold Iowa individual income tax from that compensation. The amount withheld is calculated using the Iowa withholding tables, formulas or percentages.
Registering as an Iowa Withholding Agent
Register with the Internal Revenue Service first to obtain a Federal Identification Number (FEIN) or call the IRS at 1-800-829-4933. There is no fee for registering.
After obtaining a FEIN, Then register online with Iowa or obtain the Iowa Business Tax Registration form (pdf).
Iowa Minimum Pay Back Slot Machines Jackpots
Within 15 days, each new hire and rehire is required to complete and sign an Iowa W-4 (44-019). It must show the number of allowances the employee is claiming for family members, for itemized deductions, for adjustments to income or for the child/dependent care credit. Employees who hold more than one job at a time should consider how the W-4s they complete with each employer will interact. If for any reason the employee does not complete an IA W-4, the employer must withhold at zero allowances. Reference 701 — 46.3(2) Iowa Administrative Code
Employers must keep copies of W-4 forms in their files for at least four years. Reference 701 — 46.3(2)e Iowa Administrative Code
The Iowa W-4 is available online. (The Federal W-4 is available on the IRS website at www.irs.gov)
Who Qualifies for Exemption?
An employee who does not expect to owe tax during the year may file the Iowa W-4 claiming exemption from tax. Persons below the annual income levels shown below are eligible to claim exemption from Iowa withholding:
- A married couple or a head of household with a total income of $13,500 or less.
- A single person with income of $9,000 or less.
- A single person with income of less than $5,000 who is claimed as a dependent on someone else’s Iowa return.
Exemption for persons age 65 or older: (Note: Nonresidents may not claim this exemption.)
- A married couple or a head of household with a total income for the year of $32,000 or less may file for exemption, if at least one spouse (in the case of a married couple) or the head of household is 65 years or older as of December 31 of the year.
- A single person who is 65 years or older as of December 31 of the tax year may file for exemption if their income is $24,000 or less.
Exemption for members of the military and spouses
Members of the armed forces, armed forces military reserve, and the national guard in an active duty status (as defined in Title 10 of the U.S. Code) can exclude from Iowa pay received from the federal government for military service performed.
Military spouses may be exempt from Iowa income tax on wages if:
- Their spouse is a member of the armed forces present in a state other than their home state in compliance with military orders;
- They are present in a state other than their home state solely to be with their spouse;
- They maintain their domicile in their home state, and
- Military orders must station the member of the armed forces in the state of Iowa
Iowa Centralized Employee Registry Form
Any employer doing business in Iowa who hires or rehires an employee must submit the Centralized Employee Registry Reporting form (the top portion of the Iowa W-4) to the Iowa Department of Human Services (IDHS) within 15 days of the hire or rehire date. Any questions on completing the form should be directed to the Employers Partnering in Child Support (EPICS) Unit at 1-877-274-2580.
The Centralized Employee Registry form may be submitted by:
- Mail - CER, PO Box 10322, Des Moines, IA 50306-0322
- Fax - 1-800-759-5881
- Website - (Centralized Employee Registry Reporting form)
Notice to Independent Contractors
If you are an independent contractor, do not complete a W-4 for Iowa. Instead, you may be required to make estimated payments on your income. See our individual income tax forms web page for estimated payment information, forms and instructions.
Note, however, you also must complete a Centralized Employee Registry form from the Iowa Department of Human Services. The person with whom you are contracted may have a supply of these. Otherwise, call IDHS at 1-877-274-2580 to obtain one or use the top of the IA W-4.
Employee or Independent Contractor?
The Internal Revenue Service (IRS) establishes the criteria for determining if a worker is an employee or an independent contractor. If you have employees and not independent contractors, you must act as a withholding agent on both the federal and state levels. Review the information on the IRS Web page: Independent Contractor (Self-Employed) or Employee?
Wages and Other Employee Compensation
Iowa income tax withholding is applied to the same wages and compensation to which federal withholding applies. Certain payments made by the employer into employee retirement plans or for employee heath insurance are not considered wages and are not included in the calculations of withholding tax. See IRS Publication 15, Circular E, for details.
Supplemental Wages
'Supplemental wages' includes a bonus, overtime pay, commission or other special payment that is made in addition to the regular wage payment. If federal income tax is withheld on a flat rate basis, Iowa income tax is required to be withheld at the rate of 6 percent. However, if the supplemental wage payment is included with the regular wage payment, the two are combined and the withholding tables or formulas are used. Reference 701 — 46.2(3) Iowa Administrative Code
Winnings from Gambling
Iowa tax is required to be withheld at the rate of 5 percent from lottery winnings and winnings from games of skill, games of chance and raffles in excess of $600, pari-mutuel winnings of more than $1,000, and winnings in excess of $1,200 from slot machines on riverboats or at racetracks. Reference 701 — 46.1(1)d Iowa Administrative Code
Agricultural Wages
Wages paid to agricultural labor are subject to withholding for state income tax purposes to the same extent that the wages are subject to withholding for federal income tax purposes.
Nonwage Withholding Requirements
'Nonwage income' includes pensions, annuities, supplemental unemployment benefits, sick pay benefits and other nonwage income payments to Iowa residents. Iowa income tax is generally required to be withheld in cases where federal income tax is withheld. In situations where no federal income tax is withheld, the receiver of the payment may choose to have Iowa withholding taken out.
Withholding on nonwage income may be made at a rate of 5 percent. Withholding agents should be aware that in certain cases the 5 percent rate may be excessive. Payers of nonwage income also have the option of withholding Iowa income tax from these payments on the basis of tables and formulas.
Iowa withholding is not required when payment amounts or taxable amounts of nonwage incomes fall below certain levels, when payments are not subject to Iowa income tax, or when no federal income tax withholding is required on those payments.
Pension and Retirement Income Exclusion (IAW-4P)
A partial exemption is provided for pensions, annuities, self-employed retirement plans, deferred compensation, IRA distributions, and other retirement benefits to qualified individuals.
To qualify you must be 55 years of age or older, disabled or a surviving spouse of an individual who would have qualified. The exemption is up to $12,000 for a joint filing status and up to $6,000 for all other filing statuses. Eligible recipients should complete the IA W-4P (pdf).
State income tax is not required to be withheld if the amount of the distribution is $500 per month or less or if the taxable amount is $500 or less and the person receiving the distribution is eligible for the partial exemption of retirement benefits. In instances where the distribution amount or the taxable amount is more than $500 per month but less than $6,000 for the year, no state income tax is required to be withheld, if the person receiving the distribution is eligible for a partial exemption of retirement benefits. Reference 701 — 46.1(2) and 46.3(4) Iowa Administrative Code
For tax years beginning on or after January 1, 2014, military retirement benefits can be excluded from Iowa individual income tax and withholding. The exclusion also applies to military survivor benefits received under 10 U.S.C. 1447. The exemption is in addition to the general $6,000/$12,000 pension exclusion available for Iowa individual income tax for taxpayers 55 years of age or older.
Nonresident Wage and Salaries
Employers doing business in Iowa are required to withhold Iowa individual income tax from the wages and salaries of nonresident employees working in Iowa at the same rate as for residents.
Exception: See Iowa-Illinois reciprocal agreement later in this publication.
Other Nonresident Income
The payer or withholding agent may withhold on a one-time basis. The following additional types of income to nonresidents are subject to Iowa withholding:
- Compensation paid to entertainers performing in Iowa, but not payments to entertainment corporations.
- Rental payments received from Iowa property.
- Taxable Iowa-source income paid to a beneficiary of an Iowa estate or trust.
- Iowa-source income received by a nonresident partner or shareholder of a partnership or S corporation doing business in Iowa.
- Income derived from any business of a temporary nature such as contracts for construction or fees paid for services in Iowa.
Nonresidents Working in Interstate Commerce – Railroads / Airlines / Trucking
Under provisions of federal law, Iowa tax should not be withheld from nonresidents working in Iowa as employees of railroads, airlines, and trucking firms in interstate commerce if they are working in at least one other state. Withholding may be required for the employee’s state of residence or the nonresident employee may be required to make estimated payments to their state of residence.
Iowa-Illinois Reciprocal Agreement
Iowa and Illinois have a reciprocal agreement for individual income tax purposes.
Any wages or salary made by an Iowa resident working in Illinois is taxable only to Iowa and not to Illinois. Any wages or salary made by an Illinois resident working in Iowa is taxable only to Illinois and not to Iowa.
An Iowa resident working for wages or salary in Illinois should complete and file Illinois formIL-W-5-NR “Employee's Statement of Nonresidence in Illinois” with the employer so that the employer will be aware it is appropriate to withhold Iowa income tax. The Iowa resident should also complete an Iowa W-4.
An Illinois resident working for wages or salary in Iowa should complete and file the IA 44-016 “Employee's Statement of Nonresidence in Iowa” with the employer so that the employer will be aware it is appropriate to withhold Illinois income tax.
Iowa will tax any Iowa-source income received by an Illinois resident that is not from wages or salaries. Illinois will tax any Illinois-source income received by an Iowa resident that is not from wages or salaries. Examples of income that are not wages and salaries and, therefore, not covered under the Iowa-Illinois Reciprocal Agreement are Iowa gambling winnings and unemployment compensation for employment in Iowa.
Unemployment Benefit Payments
Recipients of benefits may choose to have state income tax withheld from the benefit payments at a rate of 5 percent. Questions concerning state unemployment are answered by Iowa Workforce Development at 1-866-239-0843.
Exemptions from Iowa withholding follow the guidelines of the Internal Revenue Service, with the following exceptions:
Domestic Workers and Clergy
Domestic workers and clergy are generally excluded from Iowa tax withholding requirements. However, if they anticipate an Iowa tax liability of $200 or more and are not subject to withholding, they may be required to submit quarterly estimated payments.
Interest and Dividends
Interest and dividends are not subject to Iowa withholding.
Film or Television Production - Nonresidents
Wages of nonresidents engaged in film production or television production may not be subject to Iowa withholding tax if an exemption has been filed. Applications for exemption must include:
- Each nonresident employee’s name and permanent address;
- Social Security Number;
- Estimated amounts the employee is to be paid.
Applications for exemption from withholding for nonresident employees engaged in film production or television production should be directed to the Iowa Department of Revenue, Tax Management Division, Compliance Services, Hoover State Office Building, P.O. Box 10456, Des Moines, Iowa 50306.
Agricultural Payments to Nonresidents
Agricultural payments to nonresidents are exempt from Iowa withholding if the withholding agent provides certain information to the Department about the sales of agricultural commodities or products. The following information must be included:
- Name, address, Social Security Number of each nonresident;
- Payments made in the calendar year to the nonresident;
- County or counties in which the nonresident worked, owned or leased property, had products stored or livestock located;
- The type of agricultural commodities or products: commodity credit certificates, grain, livestock, domestic fowl, or others.
Note: Although these types of payments are not subject to Iowa withholding, they are subject to Iowa income tax in most instances.
Filing Frequencies
- Quarterly if you remit less than $6,000 tax per year (less than $500 per month)
- Monthly if you remit $6,000 - $120,000 tax per year ($500 - $10,000 per month)
- Semimonthly if you remit more than $120,000 tax per year (more than $10,000 per month; more than $5,000 semimonthly)
Filing Withholding
Based on their filing frequency, every employer is required to file for each applicable period during the calendar year, even if compensation was not paid during a period. If no wages or compensation was paid during a period, the employer will enter zeroes on the return/deposit for that period.
- Quarterly filers are required to file a quarterly return for each calendar quarter for which they are registered.
- Monthly filers are required to file two monthly deposits and one quarterly return for each calendar quarter.
- Semimonthly filers are required to file six semimonthly deposits and one quarterly return for each calendar quarter.
Withholding returns are submitted electronically through the eFile & Pay system. Once you are registered as a withholding agent, the Department will send you a Business eFile Number (BEN). This number is necessary to access eFile & Pay.
If you were awarded a tax credit certificate for the period being filed, a withholding credit schedule will be provided through eFile & Pay. Each credit claimed against withholding tax is recorded separately on this schedule. Information entered on the credit schedule will be automatically populated on the withholding quarterly return.
Credits that may be claimed against withholding tax are as follows:
- The Iowa New Jobs Training Program Credit (NJC) – This credit is available to businesses to cover the cost of approved training programs entered into with community colleges for new employees hired due to business expansion, the start-up of a new business, or relocation from outside Iowa. The credit equals 1.5% or 3.0% of the gross payroll attributable to the new employees, depending on the achievement of certain wage targets. The credit may only be claimed after payments are made to the community college under terms of the job training agreement. (Iowa Code 260E) The community college gives the credit certificate number to the qualifying business.
- The Supplemental New Jobs Credit (SJC) – Businesses located in an enterprise zone or eligible for the New Jobs and Income Program (NJIP) may also be eligible to receive additional job training credits equal to 1.5% of the gross wages of new employees engaged in approved job training under the 260E program. (Iowa Code 15.331) The community college gives the credit certificate number to the qualifying business.
- The Accelerated Career Education Credit (ACE) – Businesses participating in the program may claim a credit of up to 10.0% of the hiring wage that would be paid to individuals completing approved training by community colleges. (Iowa Code 260G) The community college gives the credit certificate number to the qualifying business.
- The Targeted Jobs Tax Credit (TJC) – This credit is available to employers that created targeted jobs in an urban renewal area and that enter into a withholding agreement with pilot project cities approved by the Iowa Department of Economic Development. The credit is equal to 3.0% of the gross wages paid to employees under the withholding agreement. The employer shall remit the amount of the credit to the pilot project city. The qualifying employer will be given the credit certificate number by the Iowa Department of Revenue.
Remitting the Tax
Several payment options are offered throughEasyPay Iowa.
A withholding agent who fails to withhold and pay to the Department any money required to be withheld and paid is personally, individually and corporately liable to the State of Iowa. If this occurs, the amount of withholding may be assessed against the withholding agent in the same manner as is used to assess personal or corporate income tax.
Visit ourPenalty and Interestpage for more information.
Verified Summary Report
All withholding agents are required to submit a completed Verified Summary of Payments Report (VSP) by February 15. This covers the Iowa income tax withholding payments made in the prior calendar year. The VSP is submitted online through eFile & Pay. Withholding Tax Forms can be found here.
W-2s, W-2Gs, & 1099s
Beginning in 2020 for tax year 2019 and all subsequent tax years, businesses that issued W-2s or 1099s that contain Iowa withholding must electronically file those documents by February 15. If businesses did not withhold any Iowa taxes, filing is not required.
Wage and Tax Statements (W-2)
W-2s must be given to employees on or before the last day of January following the tax year or within 30 days of the time the last wage payment is received if requested by the employee. This statement must contain the name, address and federal employer identification number of the employer; and the name, address and Social Security Number of the employee; the gross amount of compensation paid to the employee during the year and the amount of federal and state tax withheld. Reference 701 — 46.3(3)d Iowa Administrative Code
Employees: If you need a copy of your W-2, first ask your employer. The Department is not able to furnish W-2s. If you are unable to obtain a copy from your employer, here are some other possible options:
- Social Security Administration (SSA) - will provide copies of Forms W-2 for retirement purposes at no charge and for other than retirement purposes for a fee. Call 1–800–772–1213, or visit the SSA website at www.ssa.gov for instructions on how to obtain wage information from the SSA.
- Internal Revenue Service (IRS) – will provide an exact copy of a previously filed and processed tax return with attachments (including Form W-2).
- For the Iowa Department of Revenue, you should complete Form 4506, Request for Copy of Tax Return, and mail it to the address listed in the instructions. A fee will be charged for each tax year requested.
- Social Security Administration (SSA) - will provide copies of Forms W-2 for retirement purposes at no charge and for other than retirement purposes for a fee. Call 1–800–772–1213, or visit the SSA website at www.ssa.gov for instructions on how to obtain wage information from the SSA.
Does the State of Iowa assign its own employer identification number?
Yes; however, the Federal Employer Identification Number is normally used as part of the Iowa withholding number with a 3-digit suffix added for Iowa registration.
I need to register to withhold Iowa tax from employees’ wages, but have not yet received my Federal Employer Identification Number. What will my number be?
Complete the Iowa Business Tax Registration form online, indicate 'Applied for' in the FEIN field.
Is the employer required to match the amount of Iowa income tax withheld from the employees’ wages?
No. There is no matching of withholding of Iowa income tax from the employees’ wages.
How is withholding calculated?
There are two methods of figuring the Iowa income tax withholding. The employer can use either the manual tables or the computer formula. Either method is acceptable. The tables and computer formula are available on the Withholding Tax Information page.
Where does an employer obtain blank W-2s, Iowa W-4s and Iowa W-4Ps?
W-2s may be obtained from the Internal Revenue Service on the IRS website or by calling 1-800-829-3676 or by purchasing them through an office supply/forms business.
When can an employee fill out an Iowa W-4 to change their number of allowances?
An employee can adjust their withholding at any time by providing the employer with a new Iowa W-4.
How can I obtain a refund of Iowa withholding?
To receive a refund of Iowa withholding, file an amended quarterly withholding return(s).
To receive a refund of Iowa withholding due tojobs credit:
- File an amended quarterly withholding return for each affected quarter.
- On the amended return(s), indicate only the jobs credit earned in that quarter.
- If you were awarded a tax credit certificate for the period being filed, a withholding credit schedule will be provided through eFile & Pay. Each credit claimed against withholding tax is recorded separately on this schedule. Information entered on the credit schedule will be automatically populated on the amended withholding quarterly return.
Will I be charged penalty and interest if I don't file on time?
A penalty of 10% will be added to the tax due if the return is not filed by the due date and at least 90% of the correct tax is not paid by the due date.
If the return is filed timely and the tax is not remitted, a penalty of 5% will be added to the tax due if at least 90 percent of the correct tax is not paid by the due date.
The interest rate may change yearly. Interest must be added to delinquent tax at a per month rate, beginning on the due date of the return and accruing each month until you make full payment of all tax, penalty, and interest due.
Visit our Penalty and Interest page for more information.
What should income recipients complete?
Employees must complete the federal W-4 and the Iowa W-4 (pdf).
Page three of the Iowa W-4 is the Centralized Employee Registry (CER) administered by the Iowa Department of Human Services. It was created to assist with the collection of delinquent child support payments and will also help detect unemployment benefits fraud.
Instead of using page three of the IA W-4, you may complete it online at the Department of Human Services website.
If you have questions, contact the CER hotline at 1-877-274-2580.
Employers are required to submit information on any new hire or re-hire to the CER within 15 days of hire.
Pension income
A W-4P (pdf) is available for use by those receiving pensions. Because of the pension exclusion on the Iowa return, many taxpayers may want to use the W-4P to reduce the amount of withholding taken from pension checks.
Why do more allowances result in more Iowa withholding?
In some cases, withholding amounts on the withholding tax table for a given income will actually rise as the number of allowances increases. This is because federal tax is deductible when calculating state tax. Federal tax will decline as the number of allowances increases, resulting in a smaller deduction when calculating Iowa tax. Because of this, state withholding amounts may increase even though the number of allowances claimed increased.
What should I do if I don't receive my withholding payment vouchers?
You may print your payment voucher directly from the eFile & Pay system. Your computer must have Internet Explorer version 5.5 or newer and Acrobat Reader version 6.0.1 or newer.
You may also call or email the Department. Please be sure to provide the tax I.D. number, business name and address, tax period, your Business eFile Number, your name and telephone number, and other pertinent information.
Payment vouchers are not available on the website.
Please note that these vouchers are not returns. Returns must be filed through eFile & Pay.
If you are a semimonthly filer, you are required to pay electronically.
Are Department employees required to abide by any confidentiality laws?
Yes. Please refer to this confidentiality statement of the Taxpayer Bill of Rights for more details.
Do not combine multiple quarters of jobs credits.