GLOSSARY

What is the State Unemployment Tax Act? (SUTA)

Updated: November 22, 2024

SUTA definition and meaning

The State Unemployment Tax Act, or SUTA is a payroll tax employers must pay on behalf of their employees to their state unemployment fund. Some states require that both the employer and employee pay SUTA taxes.

 

More about the State Unemployment Tax (SUTA)

An employer’s SUTA rate is based on their experience and industry. A new rate will be periodically (usually annually) assigned as the employer gains more experience. Taxable income limits are set by each state. Employers need to report their SUTA contributions quarterly.

Using SUTA in a sentence

“I cut checks for employee bonuses, but I forgot to take out for SUTA, so I’ll have to gross-up the amount and adjust it in my ledger.”

Terms related to: What is the State Unemployment Tax Act (SUTA)

Articles and resources related to: What is the State Unemployment Tax Act (SUTA)

    LET’S DO THIS

    It’s easy
    to get started

    Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.