Cost to hire an employee in Indiana
On top of a $50,000 salary, a Indiana employer pays roughly $4,460 in payroll taxes and insurance before benefits, about 8.9% of wages.
Last verified November 2, 2026. Sources: oui.doleta.gov, oregon.gov.
What a Indiana employer pays
| Cost | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% net | First $7,000 |
| Indiana unemployment (SUTA) | 2.5% new employer 0.5%–7.4% experienced | First $9,500 |
| Workers' compensation | ~$0.71 per $100 | Varies by job class |
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $3,206 | 9.2% | $38,206 |
| $50,000 | $4,460 | 8.9% | $54,460 |
| $75,000 | $6,550 | 8.7% | $81,550 |
| $100,000 | $8,640 | 8.6% | $108,640 |
| $150,000 | $12,820 | 8.5% | $162,820 |
Benefits usually cost more than taxes. The BLS Employer Costs for Employee Compensation survey puts benefits at roughly 30% of total compensation in private industry. Add your health plan cost in the calculator to include it.
Indiana vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| Indiana | $9,500 | 2.5% | $4,460 |
| Illinois | $14,250 | 3.35% | $5,014 |
| Kentucky | $12,000 | 2.7% | $4,571 |
| Michigan | $9,000 | 2.7% | $4,560 |
| Ohio | $9,000 | 2.85% | $4,464 |
Frequently asked questions
- How much does it cost to hire an employee in Indiana?
- On a $50,000 salary, employer payroll taxes and insurance add about $4,460 (8.9%), before benefits, for a total of $54,460.
- What is the Indiana SUTA rate for new employers?
- New employers generally pay 2.5% on the first $9,500 of each employee's wages. Experienced employers pay between 0.5% and 7.4%.
- Do Indiana employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.