What is State Unemployment Tax Act? | Meaning & Definition | Akrivia HCM

Some states use the state Unemployment Tax Act (SUTA) to collect unemployment insurance taxes from businesses that do not pay the tax directly. Each state determines and reports an annual tax, with the federal government controlling certain aspects of how the payments are made. The SUTA depends on whether a business is subject to the Federal Unemployment Tax Act (FUTA), how much it owes in state unemployment tax, and how much paid its employees during the previous year.

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