HomeGlossaryState Unemployment Tax (SUTA/SUI)
Tax Terms

State Unemployment Tax (SUTA/SUI)

Employer-paid tax that funds state unemployment benefits — does NOT appear as an employee deduction.

Common paystub code: SUI (employer only in most states)

Full Definition

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.

Related Terms

Federal Unemployment Tax (FUTA)unemployment-benefitsexperience-rating

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