TaxBandits Knowledge Base

What are SUTA taxes?

The State Unemployment Tax Act (SUTA) is the state tax, otherwise known as State Unemployment Insurance(SUI). It is used to help the unemployed in the 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%