State Unemployment Tax Act (SUTA) | Meaning

What is SUTA?

State Unemployment Tax Act (SUTA) is an important tax for payroll that every employee working in the organization must pay. The tax paid by the employees goes to the state unemployment fund. The money is collected from the SUTA when the employees lose their job and become unemployed. 

The state unemployment tax that one must pay will be given to them by the company. The SUTA rate can change anytime; this doesn’t remain fixed for a particular time interval. The SUTA tax varies from state to state. Every stage has its rate of SUTA that the employee has to pay to the SUTA.