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Discover everything you need to know about SUTA, an integral aspect of managing your business's payroll and tax responsibilities. Whether you're a small business owner, a human resources professional, or simply seeking a deeper understanding of SUTA, this guide is crafted to offer you essential knowledge and useful resources.

  • What is SUTA?
  • Who Pays SUTA?
  • Why is SUTA Important?
  • Key Components of SUTA
  • State-by-State SUTA Tax Rates and Wage Base Limits for 2024 Key Components of SUTA
  • Streamline Your SUTA Management with SecurePayStubs

What is SUTA?

SUTA stands for State Unemployment Tax Act. It's a payroll tax that employers pay to fund unemployment benefits for workers who have lost their jobs. Each state sets its own SUTA tax rate, which can vary based on factors like the employer's industry, the history of layoffs, and the overall health of the state's unemployment fund. The funds collected from SUTA taxes are used to provide unemployment benefits to eligible workers during periods of unemployment.

Who Pays SUTA?

Employers are primarily responsible for paying SUTA taxes. These taxes are solely the employer's responsibility and are not deducted from employees' wages. However, in Alaska, New Jersey, and Pennsylvania, employees are also required to make SUTA contributions. Understanding SUTA rates and taxable wage bases can help businesses accurately budget for these expenses

Why is SUTA Important?

SUTA is crucial for both employers and employees. For employers, compliance with SUTA regulations ensures legal adherence and avoids penalties. For employees, it provides a safety net in case of job loss by providing temporary financial assistance through unemployment benefits.

Key Components of SUTA:

Tax Rates: States decide how much SUTA tax employers pay. This depends on things like what industry they're in, their past experience with unemployment, and how healthy the state's unemployment fund is.

Taxable Wage Base: Each state sets a maximum limit on wages that can be taxed for SUTA. Wages above this limit don't get taxed.

Reporting and Compliance: Employers need to accurately report wages and pay SUTA taxes to the right state agency. This keeps them in line with the rules, avoiding any penalties.

State-by-State SUTA Tax Rates and Wage Base Limits for 2024

StateEmployer Tax Rate 2024Taxable Wage base
Alabama0.20% to 6.80%$8,000
Alaska1.50% to 5.90%(Employee rate is 0.50)$49,700
Arizona0.05% to 14.03%$8,000
Arkansas0.1% to 10.0%$7,000
California1.5% to 6.2%$7,000
Colorado0.81% to 12.34%$23,800
Connecticut0.1% to 10.0%$25,000
Delaware0.1% to 5.4%$10,500
Florida0.10% to 5.4%$7,000
Georgia0.04% to 8.10%$9,500
Hawaii3.00% to 5.80%$59,100
Idaho0.281% to 5.4%$53,500
Illinois0.850% to 8.650%$13,590
Indiana0.50% to 7.40%$9,500
Lowa0.000% to 9.000%$38,200
Kansas0.16% to 6.00%$14,000
Kentucky0.30% to 9.00%$11,400
Louisiana0.09% to 6.2%$7,700
Maine0.28% to 6.03%$12,000
Maryland0.30% to 7.50%$8,500
Massachusetts1.079% to 15.665%$15,000
Michigan0.06% to 10.3%$9,500
Minnesota0.10% to 8.90%$42,000
Mississippi0.2% to 5.6%$14,000
Missouri0% to 6.75%$10,000
Montana0.00% to 6.12%$43,000
Nebraska0.00% to 5.40%$24,000
Nevada0.25% to 5.40%$40,600
New Hampshire0.1% to 1.7%$14,000
New Jersey1.200% to 7.000%(employee rate is 0.3825)$42,300
New Mexico0.33% to 5.4%$31,700
New York2.1% to 9.9%$12,500
North Carolina0.06% to 5.76%$31,400
North Dakota1.09% to 9.68%$43,800
Ohio0.4% to 10.1%(a mutualized rate of 0.5%)$9,000
Oklahoma0.3% to 9.2%$27,000
Oregon0.9% to 5.4%$52,800
Pennsylvania1.1419% to 10.3734%(employee rate is 0.07%)$10,000
Rhode Island1.1% to 9.7%$29,200
South Carolina0.06% to 5.46%$14,000
South Dakota0% to 9.35%$15,000
Tennessee0.01% to 10%$7,000
Texas0.25% to 6.25%$9,000
Utah0.3% to 7.3%$47,000
Vermont0.40% to 5.40%$14,300
Virginia0.10% to 6.20%$8,000
Washington1.25% to 8.15%$68,500
West Virginia1.50% to 8.50%$9,521
Wisconsin6.4% to 12%$14,000
Wyoming0.00% to 8.50%$30,900

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This article has been updated from its original publication date of May 2, 2024.