From the course: Business Tax Foundations

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

What is SUTA or SUI?

What is SUTA or SUI?

From the course: Business Tax Foundations

Start my 1-month free trial

What is SUTA or SUI?

“

- [Instructor] The State Unemployment Tax Act, better known as SUTA, is a form of payroll tax that all states require employers to pay for their employees. SUTA is a counterpart to FUTA, the federal unemployment insurance program. Like federal unemployment insurance programs, the state unemployment insurance program sets a limit to the wages taxed. So that's known as the taxable wage base. The taxable wage base varies from state to state. Now, as a business, you're going to have to pay SUTA taxes on all of your employees. But you need to be aware that not all states actually refer to the unemployment tax as SUTA. All states have it, but sometimes, a state may call it something else. For example, in Florida, the tax is called the reemployment tax. In other states, it might be referred to as state unemployment insurance, or SUI, SUI. Whatever the case, once you've started a business, and you have employees, you're going to have to go through and register for SUTA. So you'll search for…

Contents