SUTA Tax

How is the SUTA tax calculated?

SUTA tax rates and wage bases vary by state. Each state has its own taxable wage base, which is the maximum amount of an employee's wages subject to taxation. States also set different tax rate ranges based on industry types and employers' unemployment claims history.

What determines an employer's SUTA tax rate?

An employer's SUTA tax rate primarily depends on their experience rating, which reflects their history of unemployment claims. Companies with fewer layoffs and unemployment claims generally receive lower rates, while those with higher turnover pay more.

When do employers need to pay SUTA tax?

Most businesses are required to pay SUTA tax if they meet specific thresholds. This typically includes employers who pay wages of $1,500 or more in a calendar quarter or have at least one employee for some portion of a day in 20 different weeks during the year. Employers must also pay SUTA tax if they acquire a business from an employer already subject to this tax.

How do employers file and pay SUTA taxes?

Employers generally file SUTA tax returns quarterly through their state workforce agency's website. These filings must include total wages paid, taxable wages up to the state's wage base, the number of employees, and the tax amount due. While specific deadlines vary by state, they typically align with quarterly filing schedules.