Cost to hire an employee in Iowa
On top of a $50,000 salary, a Iowa employer pays roughly $4,676 in payroll taxes and insurance before benefits, about 9.4% of wages.
Last verified November 2, 2026. Sources: news.bloombergtax.com, oregon.gov.
What a Iowa 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 |
| Iowa unemployment (SUTA) | 1% new employer 0%–5.4% experienced | First $20,400 |
| Workers' compensation | ~$1.21 per $100 | Varies by job class |
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $3,347 | 9.6% | $38,347 |
| $50,000 | $4,676 | 9.4% | $54,676 |
| $75,000 | $6,891 | 9.2% | $81,891 |
| $100,000 | $9,106 | 9.1% | $109,106 |
| $150,000 | $13,536 | 9% | $163,536 |
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.
Iowa vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| Iowa | $20,400 | 1% | $4,676 |
| Illinois | $14,250 | 3.35% | $5,014 |
| Minnesota | $44,000 | 1.4% | $5,328 |
| Missouri | $9,000 | 2.38% | $4,736 |
| Nebraska | $9,000 | 1.25% | $4,540 |
| South Dakota | $15,000 | 1.75% | $4,695 |
| Wisconsin | $14,000 | 3.05% | $5,004 |
Frequently asked questions
- How much does it cost to hire an employee in Iowa?
- On a $50,000 salary, employer payroll taxes and insurance add about $4,676 (9.4%), before benefits, for a total of $54,676.
- What is the Iowa SUTA rate for new employers?
- New employers generally pay 1% on the first $20,400 of each employee's wages. Experienced employers pay between 0% and 5.4%.
- Do Iowa employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.