What is SUTA?

State Unemployment Tax Act (SUTA)

Like the federal unemployment tax, this is the state’s version. It’s also known as the Reemployment Tax in Florida, form RT-6 filed quarterly.

All states have the responsibility of paying unemployment benefits to eligible workers who are involuntarily terminated (those laid off other than for gross misconduct or who are furloughed).

To fund this liability, states impose unemployment tax on employers. The tax is figured more like insurance because the rate that employers pay is based on their claims experience. The more claims made by former employees, the higher the tax rate on such employers. Each year, the state informs an employer of its tax rate, which can never be below a minimum amount.