Iowa Salary Paycheck Calculator

Use Iowa Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.

What Are Payroll Taxes?

Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.

The Social Security tax is paid by both the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.

Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.

Each state also has specific state payroll taxes that must be withheld and paid.

Iowa Payroll Taxes

There are two Iowa employer payroll taxes to keep track of in addition to Social Security and Medicare. 

Employers contribute to a state unemployment tax account (SUTA) and employees pay state income tax.

SUTA

Under SUTA, companies must contribute a portion of payroll taxes to the state’s unemployment program, which pays out benefits to the unemployed until they find a new job or the predetermined benefit runs out.

In Iowa, SUTA is paid on income of $34,800 per employee per year. Rates are based on the employer’s industry and the difference between the amount of unemployment insurance paid from the employer’s account and the SUTA taxes paid.

Find rate information on the state’s Workforce Development Department website. 

State Income Tax

Iowa state income tax rates are based on a graduated scale you can find on the Department of Revenue website. 

Paying Payroll Taxes

Just as you need an EIN to pay federal payroll taxes, in Iowa, you’ll need to register for state withholdings with the Department of Revenue, and for SUTA taxes at the Department of Workforce Development. 

You’ll pay both by logging into these accounts. State withholding taxes are due semi-monthly, monthly, or quarterly depending on the total withheld. SUTA taxes  are due quarterly. 

Your municipality may also require certain tax registrations, so be sure to check with your local government for requirements.

Using a Payroll Tax Service

In Iowa, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.  

You’ll just send over your digital timesheets and relevant information and the service provider will take care of the calculations, payments and taxes, freeing you up to focus on growing your business. 

We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!