State Unemployment Tax Act (SUTA)

The State Unemployment Tax Act (SUTA) refers to the state-level laws that require employers to pay unemployment taxes, which fund the state’s unemployment insurance program. Each state administers its own SUTA program within guidelines set by the federal Federal Unemployment Tax Act (FUTA), and the taxes collected are used to provide financial support to employees who become unemployed.

SUTA taxes are paid by employers to their state’s unemployment agency, and the rate is typically determined by factors like the employer’s history of layoffs and the overall health of the state’s unemployment fund.