SUTA new-employer rate
1%
verified
SUTA wage base
$20,400
verified
Minimum wage
$7.25
verified
Workers' comp (typical)
$1.21/$100
rank 19/51 (1 = priciest)
Minimum wage: No state minimum above federal; federal $7.25 applies.
2What this employee costs you
Frequently asked questions
How much does it cost to hire an employee in Iowa?
A full-time worker at $18.00/hour ($37,440 a year) with 10 PTO days costs about $41,003 a year before benefits: employer payroll tax $2,864, FUTA $42, Iowa unemployment $204 and typical workers' comp $453. That's $20.50 per hour worked.
What is the Iowa SUTA rate for new employers in 2026?
1% on the first $20,400 of each employee's wages (U.S. DOL, January 2026).
What is the Iowa minimum wage in 2026?
$7.25 per hour (federal minimum; no higher state rate). No state minimum above federal; federal $7.25 applies.
How much is workers' comp in Iowa?
The 2024 Oregon premium-rate study puts Iowa's all-industry index rate at $1.21 per $100 of payroll (rank 19 of 51; national median $1.09). Your real rate depends on job class and claims history.
Forming the business first? Iowa LLC cost · S-corp calculator