From the course: Business Tax Foundations

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SUTA: Reducing your rate

SUTA: Reducing your rate

From the course: Business Tax Foundations

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SUTA: Reducing your rate

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- [Instructor] Unless you enjoy giving Uncle Sam money, your goal when dealing with business taxes should be to minimize your tax liability, right? One place where this is eminently feasible is SUTA. SUTA is a big tax each quarter, especially for firms with a lot of employees, restaurants, retailers, many service businesses, et cetera. All businesses have their own unique individual SUTA rate. That rate differs depending on the history of your firm. Your goal is to minimize that rate. This is the rates for Connecticut, for example. So what we see is that over the last decade or so, the taxable base for SUTA in Connecticut has been about $15,000. That's fairly typical. We now have three separate rates. The new employer rate is simply the rate that new employers without any history pay. After the first couple of years, the state will decide whether you're a business that tends to fire a lot of people, or has a lot of turnover, in which case you'll have a higher rate, or whether you're a…

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