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What is SUTA?
SUTA, also called SUI, is state unemployment tax. Each state gives each employer its own rate.
What is SUTA?
SUTA, also called SUI, is state unemployment tax. Each state gives each employer its own rate, and StartEase will not approve a payroll without it.
Why does it matter?
State unemployment tax is paid by the employer on each employee's wages, up to a yearly limit. Your state, not StartEase, decides your rate, and StartEase never guesses it.
A wrong or old rate makes every payroll wrong in the same way, and the state can then write to the employer about each one.
The key facts
| Fact | What it means |
|---|---|
| Who pays | The employer, on each employee's wages up to a yearly limit. |
| Who sets the rate | The state workforce agency. Each employer gets its own rate. |
| Where to find it | On the Tax Rate Determination Notice (the name varies by state), sent by the state, usually by mail or in your online account. |
| A rate of 0% | Valid only if the notice says 0%. A blank rate is not the same as zero. |
| Each new year | New-year notices often arrive late. From December 1 your payroll team reminds you to send yours. |
| A temporary rate | If the new notice has not arrived, your payroll manager can use last year's rate as a placeholder. It is recorded with who and when, and lasts 60 days. |
How does it work in StartEase Payroll?
- Open State registrations and select the state.
- Type the Assigned SUTA rate (%) exactly as printed on the notice, with the year it applies to. Enter the unemployment account number too.
- Or send the notice (a PDF or a photo) to your payroll manager, who enters the rate and the year.
- If a red message appears instead, it names the state and says what to enter. See Why can't I approve my payroll?
Common mistakes
- Entering last year's rate in the new year. StartEase stops the payroll when the rate belongs to the wrong year.
- Leaving the rate blank and assuming it means zero.
- Waiting for a late notice and letting the 60-day placeholder run out. The payroll is then blocked until the new notice is entered.
Related guides
Send your state unemployment (SUTA) rate notice, Texas unemployment tax, Wyoming unemployment tax and What is FUTA?
Sources (government sites)
Next: What is FUTA?