What is the SUTA rate in Indiana?

Indiana's SUTA (State Unemployment Tax) rates range from 0.5% to 7.4%, with a typical new employer rate around 1.5%. The SUTA wage base is $9,500 per employee.

Does Indiana have state income tax?

Yes, Indiana has a state income tax. While this is paid by the employee (not the employer), it affects take-home pay and overall compensation planning.

What workers' compensation insurance costs in Indiana?

The average workers' compensation rate in Indiana is approximately 0.85% of payroll. For a $60,000 salary, that's about $510 per year. Rates vary significantly by industry and claims history.

How Much Does It Cost to Hire an Employee in Indiana? (2026)

State-specific payroll taxes, workers' comp, and total employer costs in Indiana.

Total Cost at $60K Salary

$65,285

Cost multiplier: 1.09x

SUTA Rate (Mid)

1.5%

Wage base: $9,500

Workers' Comp Rate

0.85%

Has state income tax

Indiana Employer Tax Details

State-specific payroll obligations for employers

SUTA Rate Range	0.5% – 7.4%
SUTA New Employer Rate (typical)	1.5%
SUTA Wage Base	$9,500
Workers' Compensation (avg)	0.85% of payroll
State Income Tax	Yes

Example Employer Costs in Indiana

Mandatory employer taxes only (no benefits or overhead)

Component	$40,000 Salary	$60,000 Salary	$80,000 Salary
Social Security (6.2%)	$2,480	$3,720	$4,960
Medicare (1.45%)	$580	$870	$1,160
FUTA	$42	$42	$42
SUTA (IN)	$143	$143	$143
Workers' Comp	$340	$510	$680
Total Employer Taxes	$3,585	$5,285	$6,985
Total Cost (salary + taxes)	$43,585 (1.09x)	$65,285 (1.09x)	$86,985 (1.09x)

These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.

How Indiana Compares

Indiana's typical SUTA rate of 1.5% is below the national average of ~1.70%.

Workers' compensation at 0.85% of payroll is below the national average of ~1.20%.

Employee Costs in Other States

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