SUTA Definition

SUTA, or State Unemployment Tax Act, tax is a state tax employers pay to fund unemployment benefits. It is also known as SUI (state unemployment insurance) tax or reemployment tax.

SUTA Extended Definition
Employers (and, in some cases, employees) must pay SUTA tax on each employee’s wages. The SUTA tax rate and wage base varies by state.

An employer’s SUTA rate is also based on their experience and industry. A new rate will be periodically (usually annually) assigned as the employer gains more experience.

Employers need to report their SUTA contributions quarterly.

Last Updated By

Rachel Blakely-Gray | May 01, 2023

Check out Our Payroll Software

Starts at $17/month +$4 per employee (or 1099 contractor)
30-day free trial
Free USA-based support
Free Direct Deposit
Easy to use, but powerful
Very happy customers!

See a Demo