What is a SUTA tax?

Answer by  Chaneygirl (1755)

It is a tax on wages by the state. The tax collected is used to pay unemployment benefits in that state.

Answer by  GilFinn (2065)

States don't actually pay you unemployment benefits from the general fund. Instead, a tax on your earnings is placed in an account from which benefits are paid, like Social Security. If laid off, the amount you recieve is based upon how much you have worked/earned, and paid into the account

Answer by  Chaneygirl (1755)

State unemployment tax is a tax on wages employers pay (this could vary by state). There is generally a maximum wage that the unemployment percentage is calculated on and paid quarterly. This tax funds the unemployment benefits people receive in the state.