Suta — Payroll Definition
What is Suta? Clear definition and explanation for payroll professionals, HR managers, and employees.
What is State Unemployment Tax (SUTA/SUI)?
SUTA (State Unemployment Tax Act) or SUI (State Unemployment Insurance) is a payroll tax paid by EMPLOYERS to fund state unemployment benefit programs. In most states, this is an employer-only cost and does NOT appear on your employee paystub (except in Alaska, New Jersey, and Pennsylvania, where employees also contribute). Employer rates vary based on the employer's "experience rating" — companies with more layoffs pay higher rates.