SUTA is different from the FUTA tax (i.e. the Federal Unemployment Tax Act) which is a payroll tax employers must pay to the federal government.
Who pays the SUTA tax?
Any U.S.-based business with employees must pay SUTA. The moment you hire your first employee and register as an employer with your state, you’ll have to start making SUTA payments.
In most cases the employer pays SUTA. In Alaska, New Jersey, and Pennsylvania, however, SUTA is partially garnered from an employee’s wages as well.
How often is SUTA tax paid?
Most states require that you pay SUTA every quarter of the calendar year.
In California, for example, quarterly returns for SUTA and other state payroll taxes are due on April 30th, July 31st, October 31st and January 31st.
Make sure to check your state’s tax authority (links below) for exact dates.
How do I register for a SUTA account?
The moment you hire your first employee, the IRS and your state consider you an employer.
This means that in addition to getting an Employer Identification Number (EIN), registering for workers’ compensation insurance and paying certain local taxes, you have to sign up for a SUTA tax account with your state tax authority.
If you’re based in California, for example, you have to start paying SUTA once you’ve paid an employee more than $100 in a calendar quarter.
You’ll pay SUTA to the California Employment Development Department (EDD), which you can register with online using EDD’s e-Services for Business.
How to calculate the SUTA tax
To calculate your SUTA tax payments, you need to know two things:
- your ‘taxable wage base’ per employee
- your state unemployment tax rate
These amounts vary by state, and they’re subject to change.
Each state usually has a standard SUTA tax rate for new employers. If you’ve been an employer for a while (i.e. an ‘experienced’ employer) your state might increase or decrease your company’s individual SUTA tax rate, depending on how many of your former employees file for unemployment
SUTA Tax Calculation Example
Let’s say you run a business in California with three employees. For 2020, the taxable wage base (or ‘taxable wage limit’) in California is$7,000 per employee, and the average SUTA tax is 3.4%.
That means that in 2020, you’ll pay:
$7,000 per employee x 3 employees x 3.4% = $714 in SUTA tax
SUTA rates and wage bases by state for 2021
Because SUTA tax rules vary so much by state, we highly recommend checking your state tax authority’s website to get clear on your state’s SUTA tax rules, rates and wage base.
Here are links to each state’s tax authority, along with SUTA tax rates and wage bases for each state for 2021:
Alabama
Website: Alabama Department of Labor
Taxable wage base: $8,000
Tax rate for new employers: 2.7%
Tax rate for experienced employers: 0.65% to 6.8%
Alaska
Website: Alaska Department of Labor and Workforce Development
Taxable wage base: $41,500
Tax rate for new employers: 1.28%
Tax rate for experienced employers: 1.5 - 5.9%
Arizona
Website: Arizona Department of Economic Security
Taxable wage base: $7,000
Tax rate for new employers: 2.0%
Tax rate for experienced employers: 0.05 - 6.42%
Arkansas
Website: Arkansas Department of Labor
Taxable wage base: $7,000
Tax rate for new employers: 3.1%
Tax rate for experienced employers: 0.3 - 14.2%
California
Website: California Employment Development Department
Taxable wage base: $7,000
Tax rate for new employers: 3.4%
Tax rate for experienced employers: 1.5 - 6.2%
Colorado
Website: Colorado Department of Labor and Employment
Taxable wage base: $13,600
Tax rate for new employers: 1.7% - 5.94%
Tax rate for experienced employers: 0.58 - 7.40%
Connecticut
Website: Connecticut Department of Labor
Taxable wage base: $15,000
Tax rate for new employers: 3.4%
Tax rate for experienced employers: 1.9 - 6.8%
Delaware
Website: Delaware Department of Labor
Taxable wage base: $16,500
Tax rate for new employers: 1.8% - 2.3%
Tax rate for experienced employers: 0.3 - 8.2%
District of Columbia
Website: Department of Employment Services
Taxable wage base: $9,000
Tax rate for new employers: 2.7%
Tax rate for experienced employers: 1.6 - 7%
Florida
Website: Florida Department of Revenue
Taxable wage base: $7,000
Tax rate for new employers: 2.7%
Tax rate for experienced employers: 0.1 – 5.4%
Georgia
Website: Georgia Department of Labor
Taxable wage base: $9,500
Tax rate for new employers: 2.7%
Tax rate for experienced employers: 0.4 - 8.10%
Hawaii
Website: Hawaii Department of Labor
Taxable wage base: $48,100
Tax rate for new employers: 2.4%
Tax rate for experienced employers: 0.01 - 5.6%
Idaho
Website: Idaho Department of Labor
Taxable wage base: $41,600
Tax rate for new employers: 1.0%
Tax rate for experienced employers: 0.255 - 5.4%
Illinois
Website: Illinois Department of Labor
Taxable wage base: $12,740
Tax rate for new employers: 3.125%
Tax rate for experienced employers: 0.625 - 7.25%
Indiana
Website: Indiana Department of Labor
Taxable wage base: $9,500
Tax rate for new employers: 2.5%
Tax rate for experienced employers: 0.5 - 7.4%
Iowa
Website: Iowa Division of Labor
Taxable wage base: $31,600
Tax rate for new employers: 1.0% - $7.5%
Tax rate for experienced employers: 0 - 7.5%
Kansas
Website: Kansas Department of Labor
Taxable wage base: $14,000
Tax rate for new employers: 2.7%
Tax rate for experienced employers: 0 - 7.1%
Kentucky
Website: Kentucky Office of Unemployment Insurance
Taxable wage base: $10,800
Tax rate for new employers: 2.7%
Tax rate for experienced employers: 0.3 - 9.0%
Louisiana
Website: Louisiana Workforce Commission
Taxable wage base: $7,700
Tax rate for new employers: N/A
Tax rate for experienced employers: 0.09 - 6.2%
Maine
Website: Maine Department of Labor Taxable wage base: $12,000 Tax rate for new employers: 1.86% Tax rate for experienced employers: 0 - 5.4%
Maryland
Website: Maryland Department of Labor
Taxable wage base: $8,500
Tax rate for new employers: 2.6%
Tax rate for experienced employers: 0.3 - 7.5%
Massachusetts
Website: Massachusetts Executive Office of Labor and Workforce Development
Taxable wage base: $15,000
Tax rate for new employers: 2.42%
Tax rate for experienced employers: 0.94 - 14.37%
Michigan
Website: Michigan Department of Licensing and Regulatory Affairs
Taxable wage base: $9,000
Tax rate for new employers: 2.7%
Tax rate for experienced employers: 0.06 - 10.3%
Minnesota
Website: Minnesota Department of Labor
Taxable wage base: $35,000
Tax rate for new employers: 1 - 8.9%
Tax rate for experienced employers: 0.2 - 9.1%
Mississippi
Website: Mississippi Department of Employment Security
Taxable wage base: $14,000
Tax rate for new employers: 1.0%
Tax rate for experienced employers: 0.2 - 5.4%
Missouri
Website: Missouri Department of Labor Taxable wage base: $11,500 Tax rate for new employers: 2.376% Tax rate for experienced employers: 0 - 5.4%
Montana
Website: Montana Department of Labor
Taxable wage base: $34,100
Tax rate for new employers: 1 - 2.4%
Tax rate for experienced employers: 0 - 6.12%
Nebraska
Website: Nebraska Department of Labor
Taxable wage base: $9,000
Tax rate for new employers: 1.25%
Tax rate for experienced employers: 0 - 5.4%
Nevada
Website: Nevada Office of the Labor Commissioner
Taxable wage base: $32,500
Tax rate for new employers: 3%
Tax rate for experienced employers: 0.3 - 5.4%
New Hampshire
Taxable wage base: $14,000
Tax rate for new employers: 1.2%
Tax rate for experienced employers: 0.1 - 7.0%
New Jersey
Website: New Jersey Department of Labor
Taxable wage base: $35,300
Tax rate for new employers: 2.8%
Tax rate for experienced employers: 0.4 - 5.4%
New Mexico
Website: New Mexico Department of Workforce Solutions
Taxable wage base: $25,800
Tax rate for new employers: .33 - 5.4%
Tax rate for experienced employers: .33 - 6.4%
New York
Website: New York State Department of Labor
Taxable wage base: $11,600
Tax rate for new employers: 2.5%
Tax rate for experienced employers: 0.6 - 5.76%
North Carolina
Website: North Carolina Department of Labor
Taxable wage base: $25,200
Tax rate for new employers: 1.0%
Tax rate for experienced employers: 0.6 - 5.76%
North Dakota
Website: North Dakota Department of Labor
Taxable wage base: $37,900
Tax rate for new employers: 1.02%
Tax rate for experienced employers: 0.08 - 9.69%
Ohio
Website: Ohio Department of Job and Family Services
Taxable wage base: $9,000
Tax rate for new employers: 2.7%
Tax rate for experienced employers: 0.3 - 9.4%
Oklahoma
Website: Oklahoma Department of Labor
Taxable wage base: $18,700
Tax rate for new employers: 1.5%
Tax rate for experienced employers: 0.1 - 5.5%
Oregon
Website: State of Oregon: Employment Department
Taxable wage base: $42,100
Tax rate for new employers: 2.1%
Tax rate for experienced employers: 0.7 - 5.4%
Pennsylvania
Website: Pennsylvania Department of Labor & Industry
Taxable wage base: $10,000
Tax rate for new employers: 3.689%
Tax rate for experienced employers: 1.2905 - 9.9333%
Rhode Island
Website: Rhode Island Department of Labor and Training
Taxable wage base: $24,000
Tax rate for new employers: 1.06%
Tax rate for experienced employers: .90 - 9.4%
South Carolina
Website: South Carolina Department of Revenue
Taxable wage base: $14,000
Tax rate for new employers: 1.03%
Tax rate for experienced employers: 0.06 - 5.46%
South Dakota
Website: South Dakota Department of Labor and Regulation
Taxable wage base: $15,000
Tax rate for new employers: 0.55%
Tax rate for experienced employers: 0 - 9.35%
Tennessee
Website: Tennessee Labor & Workforce Development
Taxable wage base: $7,000
Tax rate for new employers: 2.7%
Tax rate for experienced employers: 0.01 - 10%
Texas
Website: Texas Workforce Commission
Taxable wage base: $9,000
Tax rate for new employers: 2.7%
Tax rate for experienced employers: 0.31 - 6.31%
Utah
Website: Utah Labor Commission
Taxable wage base: $36,600
Tax rate for new employers: Varies by industry
Tax rate for experienced employers: 0.1 - 7.1%
Vermont
Website: Vermont Department of Labor
Taxable wage base: $16,100
Tax rate for new employers: 1.0%
Tax rate for experienced employers: 0.8 - 6.5%
Virginia
Website: Virginia Department of Labor & Industry
Taxable wage base: $8,000
Tax rate for new employers: 2.51 - 6.21%
Tax rate for experienced employers: 0.11 - 6.21%
Washington
Website: Washington State Department of Labor & Industries
Taxable wage base: $52,700
Tax rate for new employers: N/A
Tax rate for experienced employers: 0.13 - 5.72%
West Virginia
Website: West Virginia Division of Labor
Taxable wage base: $12,000
Tax rate for new employers: 2.7%
Tax rate for experienced employers: 1.5 - 12%
Wisconsin
Website: Wisconsin Department of Workforce Development
Taxable wage base: $14,000
Tax rate for new employers: 3.05%
Tax rate for experienced employers: 0 - 12%
Wyoming
Website: Wyoming Department of Workforce Services
Taxable wage base: $26,400
Tax rate for new employers: Minimum of 1.22%
Tax rate for experienced employers: 0.18 - 8.72%
