Iowa Employee Cost Calculator (2026)
Last updated: October 2026
Iowa employers pay federal payroll taxes plus Iowa unemployment insurance — a rate assigned individually by the state on the first $20,400.00 of each employee's wages. Use the calculator to see the total cost of a hire.
Your state assigns rates individually — we used 2.7% as a placeholder. Enter your rate in Advanced options.
Total annual cost
$65,332.80
1.09× salary · $5,332.80 on top of wages
Monthly cost
$5,444.40
Loaded hourly cost
$31.41
Per hour actually worked
$32.67
| Wages | $60,000.00 |
| Social Security (6.2%) | $3,720.00 |
| Medicare (1.45%) | $870.00 |
| FUTA (federal unemployment) | $42.00 |
| State unemployment (SUTA) | $550.80 |
| Workers' comp | $150.00 |
| Total annual cost | $65,332.80 |
Estimates for planning purposes only. Not tax, legal or accounting advice. Confirm your rates with your state agency or a payroll professional.
Iowa employer payroll taxes at a glance
| New employer SUTA rate | Assigned individuallyNew employers (other than construction) are assigned an industry-average rate under Rate Table D (0%–5.4%); construction new employers use a separate schedule. |
| Experienced employer SUTA range | 0% – 5.4% |
| SUTA taxable wage base | $20,400.00Cut from $39,500 in 2025 to $20,400 for 2026 by SF 607 (one-third of the statewide average annual wage). |
| Paid family/medical leave program | No |
| State income tax on wages | Yes — employers withhold; not an employer cost |
| Source | Iowa unemployment insurance agencyVerified 2026-10-11 |
What it costs to hire in Iowa
Salary
$40,000.00
Total annual cost
$50,952.80
1.27× salary · SUTA $550.80
Salary
$60,000.00
Total annual cost
$73,132.80
1.22× salary · SUTA $550.80
Salary
$90,000.00
Total annual cost
$106,402.80
1.18× salary · SUTA $550.80
What's different about hiring in Iowa
- Iowa assigns new employers an individual rate rather than a single standard rate — check your rate notice before budgeting.
- Hiring remotely in another state? You generally owe SUTA in the state where the employee works — compare rates in neighboring states below.
Compare neighboring states
Hiring outside the US?
Compare the cost of an international contractor or EOR employee before you commit to a US hire.
See how Deel worksPaying vendors and contractors?
Automate accounts payable and payments so contractor costs stay predictable.
See how BILL worksFrequently asked questions
Sources & methodology
- Iowa unemployment insurance agency
- SSA — Social Security wage base
- IRS Topic 759 — FUTA
- Patriot Software — state unemployment tax rate chart
Last verified: 2026-10-11
Employee cost calculators for other states
- Alabama
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Tax rates are approximate — always verify with your state's revenue department.