Payroll Calculator
How much does our payroll service cost? Get a personalized quote now!
Payroll Terminology
> Payroll Definitions
> Payroll Taxes Definitions
> Payroll Tax Form Definitions
> Payroll Software Definitions
> 401(k) Definitions

SUI Tax Rates for 2014

What is the SUI Tax Rate?

Unfortunately, part of being a wise business owner is knowing when to lay people off. This may save a business money in the long run, but a consequence of doing so is that one's taxes go up. The SUI (State Unemployment Insurance) is a employer-funded tax that gives short-term benefits to those who lost or left their jobs for a variety of reasons. Some of these reasons include, but are not limited to, being laid off, being fired for reasons other than misconduct, or leaving due to health or personal problems.

The amount of SUI a company pays is proportional to the SUI rates they are eligible for. This rate changes depending on the amount of money an employer pays their employees as well as the number of employees laid off. It can range from 0.1% to 15.0977% depending on your employee's salaries as well as the number of former employee's unemployment claims over the last financial year.

What is the SUI Rate for my state?

Use the map below to find your state's current SUI tax rate. We also provide more information about your state's payroll:

SUI Tax Rate:
1.54% - 5.4%

*Rates vary by industry.
**Rate range includes Negative and Positive Fund Employers.
***Rates include surcharges.
****Special rules apply to minimum wage standards for this state. Please refer to state laws.

How do SUI Rates affect my business?

SUI affects businesses because it another tax to pay. If a company lays off too many employees, or if an employee termination is handled improperly, it can mean a fairly high increase in the rate. For example, if a 1000-employee business is bumped up to the next tax rate because of an incorrectly handled employee termination, it can cost them as much as $70,000. The increase will not be as drastic for smaller companies, but the example still stands as a reason to keep SUI rates under control.

There are several steps employers can take to ensure their SUI rates stay relatively low. First, and most importantly, the company can strive to lay off as few employees as possible. The fewer employees that take unemployment benefits, the less the rate will be. Make sure all employees are aware of companies' rules and regulations and take steps to make sure they are following the rules at all times. Document as many of the employee's interactions in the workplace as possible. In the event there is doubt that the employee is eligible for benefits, the documentation collected can be used to verify if they are eligible or not. Businesses should also make sure that all unemployment appeals are made within the specified time frames. If the business is late on filling out appeals paperwork, it is more than likely that the claim will be overturned.

Learn more about SUI Rates:
What You Need to Know About SUI Rates