State Unemployment Tax Act (SUTA) is a employer payroll tax in many states. Only in Pennsylvania, New Jersey, and Alaska, SUTA is paid by both employee and employer and the tax rate vary from state to state. The amount is transferred to the state unemployment fund which is used by employees (s) who are laid off or being terminated without any of their faults. Such employees are eligible to file for unemployment benefits.
SUTA and FUTA were conjointly passed in 1939. The idea to pass the State Unemployment Tax Act was noted as during 1929 and 1933 the world economy was crashed increasing the unemployment in the United States which was reached 25%.
State Unemployment Tax Act (SUTA), State Unemployment Insurance (SUI), and Reemployment Tax are identical. In some states, SUTA is referred to as SUI and in Florida, it is locally known as Reemployment Tax.
Related: Payroll Tax Rates