What Is State Unemployment Tax (SUTA/SUI)?

SUTA (State Unemployment Tax Act) or SUI (State Unemployment Insurance) is a payroll tax paid by EMPLOYERS to fund state unemployment benefit programs. In most states, this is an employer-only cost and does NOT appear on your employee paystub (except in Alaska, New Jersey, and Pennsylvania, where employees also contribute). Employer rates vary based on the employer's "experience rating" — companies with more layoffs pay higher rates.

Common paystub code: SUI (employer only in most states)

Where You'll See State Unemployment Tax (SUTA/SUI)

• On your paystub (earnings statement) under earnings, deductions, or taxes
• On your annual W-2 form (or 1099 for contractors)
• In payroll software (ADP, Paychex, Gusto, QuickBooks)
• In employer payroll reports and IRS filings

Related Terms

• Federal Unemployment Tax (FUTA)
• unemployment-benefits
• experience-rating

Generate a paystub showing State Unemployment Tax (SUTA/SUI) clearly with our free paystub generator, or browse the full payroll glossary (44+ terms explained).

This paystub generator is a simulation/mockup tool for personal record-keeping and verification purposes only.