× Success! Thank You for Downloading Form 941 Guide from TaxBandits! Please check your email now! What is SUTA Tax? State Unemployment Tax Act Charles Hardy | Last Updated: May 21, 2025 Home Do It Yourself Payroll What is SUTA Tax A tedious task for employers is to understand the State Unemployment Tax Act(SUTA) because of the different tax rates in each state. Employers must ensure the states of their employees to calculate the SUTA tax for them. However, Neglecting FUTA can cause legal penalties. Keep on reading to understand more about the SUTA tax and its rates for each state. Let's read more to know about the ins and outs of FUTA taxes. Table of Content: What is SUTA? Who pays the SUTA tax? What is the SUTA wage base? How much is the SUTA tax rate and Wage Base Limits for 2024? How to calculate the SUTA tax? How often is suta tax paid? Frequently Asked Questions Key Takeways: SUTA is the state payroll tax that funds the unemployed in the states. The states decide SUTA tax rates, which vary for each state. Only employers are responsible for paying SUTA tax. What is SUTA? SUTA (State Unemployment Tax Act) is otherwise called State Unemployment Insurance(SUI). It is a state payroll tax used to help the unemployed in the states. Employers are liable for paying SUTA tax, where the taxes paid are deposited to the state government. SUTA supports unemployed workers by offering payments from the SUTA program. SUTA tax rate is different for every state, they decide their own tax rate for SUTA. Check out the SUTA rules and regulations of your state and ensure the state's specific requirements. SUTA might be referred by different names such as: State Unemployment Insurance(SUI) Reemployment tax (e.g., Florida) Employment security tax (e.g., Alaska) Unemployment tax program (e.g., Texas) Who pays the SUTA tax? In most of the states, employers are liable for paying SUTA tax. Employers who run their organization with the employees must pay SUTA tax. They should collect the states of the employees and know the tax rate for their state to remit the SUTA tax to their states. Employers pay SUTA taxes, but three states have an exception. Here they are, along with their employee tax rates: State Employee tax rate 2024 Alaska 0.56% New Jersy 0.425% Pennsylvania 0.07% What is the SUTA wage base? SUTA wage base or taxable wage base is different for every state. SUTA wage base is determined using the following criteria: Some states determine using the employee termination ratio of the state. While others use a percentage of the state's average annual wage. Some follow the FUTA wage base limit. The SUTA wage base is the threshold for employee’s earnings if the employees earn below the wage base employers are responsible for paying the SUTA taxes for their states. How much is the SUTA tax rate and Wage Base Limits for 2024? SUTA wage rates vary for each state, If the employees belong to multiple states then it is necessary for the employer to determine the Unemployment tax rate of each state. The taxable wage base for all the states in the U.S. are listed here State Wage base limit State Wage base limit Alabama $8000 Nebraska $9000 Alaska $49,700 Nevada $40,600 Arizona $8000 New Hampshire $14,000 Arkansas $7000 New Jersey $42,300 California $7000 New Mexico $31,500 Colorado $23,800 NewYork $12,500 Connecticut $25,000 North Carolina $31,400 Delaware $10,500 North Dakota $43,800 District of Columbia $9000 Ohio $9000 Florida $7000 Oklahoma $27,000 Georgia $9500 Oregon $52,800 Hawaii $59,100 Pennsylvania $10,000 Idaho $53,500 Puerto Rico $7000 Illinois $13,590 Rhode Island $29,200/30,700 Indiana $9,500 South Carolina $14,000 Iowa $38,200 South Dakota $15,000 Kansas $14,000 Tennessee $7000 Kentucky $11,400 Texas $9000 Louisiana $7,700 Utah $47,000 Maine $12,000 Vermont $14.300 Maryland $8,500 Virgin Island $31,000 Massachusetts $15000 Virginia $8000 Michigan $9,500 Washington $68,500 Minnesota $42,000 West Virginia $9,521 Mississippi $14,000 Wisconsin $14,000 Missouri $10,000 Wyoming $30,900 Montana $43,000 How to calculate the SUTA tax? To calculate the SUTA tax rate for employers, multiply states' taxable wage base with the employee tax rate. Example Consider a new employee in California, who is working in an organization. The SUTA tax rate is 3.4%(For new employers) and the taxable wage base for California state is $7000 (for 2024). SUTA calculation for the employer is SUTA tax liability = State wage base * tax rate * No.of employees = $7000 * 3.4% * 1 = $238. How often is suta tax paid? Most states are required to pay SUTA tax for every quarter but the requirements for paying SUTA can vary. Due dates for every quarter is listed here: Quarter Due Date Quarter 1 (Jan, Feb, Mar) April 30th Quarter 2 (Apr, May, June) July 31st Quarter 3 (July, Aug, Sept) October 31st Quarter 4 (Oct, Nov, Dec) January 31st (following year) Start Your Journey with TaxBandits FREE Payroll Today! Tailored for small businesses, our free payroll solution comes with zero hidden fees or subscription charges. Easily manage payroll with automated tax calculations, comply with IRS regulations, and ensure your employees are paid accurately and on time. Frequently Asked Questions How do employers pay SUTA tax if their employees belong to multiple states? If employers have employees working in multiple locations, they are required to file SUTA tax in each state. Each employee might have one state to pay SUTA tax. How do you file your SUTA taxes? Each state in the U.S. may have different forms to file the SUTAstate taxes. check the state websites to file the SUTA tax. Is SUTA tax an employer tax? In most states, employers are liable for paying SUTA tax. But, there are exceptions for three states here are they, along with their employee tax rate: Alaska(0.5%) New Jersey(0.425%) Pennsylvania. (0.07%) Who is exempt from paying SUTA tax? Certain organizations, such as Government employers, Religious organizations, and educational institutions are exempt from paying SUTA taxes. How do you report SUTA taxes? SUTA taxes are reported by using the UI (Unemployment Insurance) wage report form. Every state has a separate form to report the taxes. Employers must file this form for every quarter. Still Calculating Payroll Taxes Manually? Automate the process with TaxBandits’ Free Payroll Solution! What’s included for FREE? Run Unlimited Payrolls Accurate Payroll & Tax Calculations Secure Portal for Employee & Contractor Generate Pay Stubs Instantly Includes Bonus & Off-Cycle Payroll Includes Benefits & Retirement Plan Register your Interest Looking to Calculate Payroll Tax for Your Business? Calculate your Payroll for FREE