SUTA (State Unemployment Tax Act)

Summary Definition: A state-based payroll tax that funds unemployment efforts for those without a job.

What is SUTA?

The State Unemployment Tax Act (SUTA) is a state-based payroll tax that funds unemployment benefits and programs for out-of-work citizens.  

Also known as State Unemployment Insurance (SUI), the amount and rate for a SUTA tax varies by state but is always paid in addition to the Federal Unemployment Tax Act (FUTA) payroll tax.  

SUTA funds are intended to supplement FUTA funds and help prevent citizens from experiencing financial hardship while they actively search for new employment. 


Get Taxes Done Right, Without the Stress

We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.

Payroll Tax Services