State Unemployment Insurance (SUI) Tax

State Unemployment Insurance, or SUI, tax is a state payroll tax that helps fund unemployment benefits for eligible workers who lose their jobs.

Employers generally pay SUI tax on wages up to the state’s taxable wage base, although rules vary by state. An employer’s rate may be influenced by factors such as its industry, claims history, and experience rating. Businesses operating in multiple states need to determine where unemployment wages should be reported and keep state account information current.