The State Unemployment Tax Act (SUTA) is a state-level payroll tax that employers are required to pay to support unemployment insurance programs. In certain states, employees may also contribute to this tax, though it is primarily the employer’s responsibility.
Understanding SUTA Contributions
SUTA tax rates vary based on factors such as the employer’s industry and unemployment claims history. New businesses typically begin with a standard rate set by the state and may receive adjusted rates over time as more payroll history is established.
Each state sets its own wage base limit — the maximum amount of employee wages that are subject to SUTA tax in a given year. Employers must file SUTA reports and remit payments on a quarterly basis to stay compliant.
Beyond provides tools and resources to help small businesses navigate these state-specific requirements, ensuring timely filing and accurate payroll tax calculations.