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State Unemployment Insurance (SUI)

What is the SUI Tax Rate?

State unemployment insurance tax rates (SUI)—also known as state unemployment tax (SUTA)—are part of the payroll taxes small business owners are responsible for funding. SUI gives short-term benefits to employees who lose their jobs due to a layoff, force reduction or other non-conduct-related reasons. Employees who quit their jobs or get fired for cause aren’t eligible for state unemployment benefits.

The SUI tax is a percentage of your employees’ wages, paid to the state where the work takes place. A small business owner with employees who work in different states will pay SUI tax to each state in which employees work.

Calculating SUI Taxes

SUI tax rates, tax rate ranges and unemployment tax wage bases vary by state and industry. Different states may also add surcharges and other fees.

For example, if a state mandates a wage base of $11,000, it means the small business owner is responsible for paying SUI taxes up to that $11,000; any wages an employee earns after that are exempt from SUI taxes. Like the Federal Unemployment Tax (FUTA), most states have SUI taxes as an employer only tax, meaning employees are not required to pay these taxes.

What Impacts SUI Tax Rates?

The SUI tax rate is different for each business. A company's SUI tax rate is determined by how many former employees file for unemployment. The more who file, the higher the rate. Unless separated for cause, it’s easy for an employee to receive unemployment benefits. Be sure to hold and document employee performance reviews, record employee job performance milestones—both favorable and unfavorable—and document any employee conduct violations to keep your SUI tax rate as low as possible. If you don’t already have a written code of conduct business policies, it’s time to consider adding an employee handbook. Streamline business management, save time, and support your compliance efforts with alerts and customized templates, guides and handbooks.

Two Steps to Calculate SUI

  • Check the SUI Tax Rates chart below
  • Taxable Wage Base x Tax Rate = SUI
    $5,000 (State Wage Base)x 4.8% Tax Rate = $240 (SUI tax per employee)

SUI is just one tax required to process employee payroll. A small business owner must also calculate and pay federal, state, and local payroll taxes, including Social Security, Medicare and FUTA—plus, prepare and file the appropriate tax forms.

Handling payroll in-house may appear to save money. In reality, it can be time-consuming, complicated, and fraught with compliance risks. Plus, the time you spend processing payroll diverts your attention from your business, customers, and employees. Learn more about SurePayroll small business and household employer automated payroll solutions.

State Unemployment Insurance (SUI) Tax Rates

Alabama

SUI Tax Rate: 0.14%-5.4%

Alaska

SUI Tax Rate: 1%-5.4%

Arizona

SUI Tax Rate: 0.05%-14.03%

Arkansas

SUI Tax Rate: 0.2%-10.1%

California

SUI Tax Rate: 1.5%-6.2%

Colorado

SUI Tax Rate: 0.81%-12.34%

Connecticut

SUI Tax Rate: 1.1%-7.8%

Delaware

SUI Tax Rate: 0.4%-5.4%

Florida

SUI Tax Rate: 0.10%-5.4%

Georgia

SUI Tax Rate: 0.04%-8.10%

Hawaii

SUI Tax Rate: 0.2%-5.8%

Idaho

SUI Tax Rate: 0.281%-5.4%

Illinois

SUI Tax Rate: 0.750%-7.850%

Indiana

SUI Tax Rate: 0.5%-9.4%

Iowa

SUI Tax Rate: 0.0%-7.0%

Kansas

SUI Tax Rate: 0.16%-6.0%

Kentucky

SUI Tax Rate: 0.3%-9.0%

Louisiana

SUI Tax Rate: 0.09%-6.2%

Maine

SUI Tax Rate: 0.00%-5.75%

Maryland

SUI Tax Rate: 0.30%-7.50%

Massachusetts

SUI Tax Rate: 0.83%-12.65%

Michigan

SUI Tax Rate: 0.06%-10.3%

Minnesota

SUI Tax Rate: 0.1%-9.0%

Mississippi

SUI Tax Rate: 0.20%-5.60%

Missouri

SUI Tax Rate: 0.0%-9.24%

Montana

SUI Tax Rate: 0.00%-6.12%

Nebraska

SUI Tax Rate: 0.0%-5.4%

Nevada

SUI Tax Rate: 0.25%-5.4%

New Hampshire

SUI Tax Rate: 0.1%-7.5%

New Jersey

SUI Tax Rate: 0.4825%-6.2825%

New Mexico

SUI Tax Rate: 0.33%-6.4%

New York

SUI Tax Rate: 2.1%-9.9%

North Carolina

SUI Tax Rate: 0.06%-5.76%

North Dakota

SUI Tax Rate: 0.08%-9.6%

Ohio

SUI Tax Rate: 0.4%-10.1%

Oklahoma

SUI Tax Rate: 0.3%-9.2%

Oregon

SUI Tax Rate: 0.9%-5.4%

Pennsylvania

SUI Tax Rate: 1.419%-14.4684%

Puerto Rico

SUI Tax Rate: 2.0%-5.4%

Rhode Island

SUI Tax Rate: 1.10%-9.70%

South Carolina

SUI Tax Rate: 0.06%-5.46%

South Dakota

SUI Tax Rate: 0%-9.35%

Tennessee

SUI Tax Rate: 0.01%-10%

Texas

SUI Tax Rate: 0.25%-6.25%

Utah

SUI Tax Rate: 0.3%-7.3%

Vermont

SUI Tax Rate: 0.4%-5.4%

Virginia

SUI Tax Rate: 0.10%-6.20%

Washington

SUI Tax Rate: 0.00%-8.12%

Washington DC

SUI Tax Rate: 1.9%-7.4%

West Virginia

SUI Tax Rate: 1.5%-8.5%

Wisconsin

SUI Tax Rate: 0.00%-12.00%

Wyoming

SUI Tax Rate: 0.14%-10.00%

This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up to date

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