SUTA Tax

SUTA tax (named for the State Unemployment Tax Act) is a payroll tax that employers pay to fund state unemployment insurance programs for eligible workers. Every state sets its own SUTA tax rates and wage base limits, so tax obligations differ from one jurisdiction to the next.

HR departments must register with their state’s unemployment agency and remit SUTA taxes according to state-specific schedules and requirements. This tax is what provides financial support to employees who lose their jobs through no fault of their own.