Definition
SUTA is the State Unemployment Tax Act tax, sometimes called SUI. Employers pay it on each employee's wages up to a state-set wage base, and a few states also collect a small employee share. Each state sets its own rates, and an employer's rate usually depends on its history of unemployment claims, known as its experience rating. New employers typically start at a standard rate. SUTA funds state unemployment benefits and, when paid on time, earns the employer a credit against FUTA.
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This definition is general information, not legal, tax or financial advice. Rules vary by state and change over time.