The State Unemployment Insurance or SUI tax is funded by employers and offers short-term benefits to employees who have lost or left a job for various reasons. Some of these reasons include being laid off, leaving due to health or personal reasons and being fired for reasons other than misconduct. Typically, employees who claim unemployment insurance receive paychecks from their state’s unemployment agency until they’ve found work or reach the end of a state specified period.
Who is Required to Pay Unemployment Tax?
Employers are required to pay federal and state unemployment taxes. Generally, these taxes are not withheld from employee wages. Some states, however, require additional money to be withheld from employee wages for SUI. Tax rates differ by state, but usually, the more former employees who collect unemployment benefits, the higher the SUI tax rate for their former employer.
Never scour the internet again for critical HR information. Paycor’s HR Support Center offers a library of human resources documents, checklists, templates and other tools to ensure you’re using the most up-to-date and compliant materials. And with our On-Demand service, you can get answers from certified HR professionals at a fraction of the cost of consulting a lawyer.
Previous:
Turnover Rates