SUTA, otherwise known as the State Unemployment Tax Act, was created in parallel with the Federal Unemployment Tax Act (FUTA) in 1939 to help reinvigorate the U.S. economy during the Great Depression. Both of these taxes directly support unemployment funds—one at the state level, the other ...
SUTA vs. FUTA tax Properly calculating and paying SUTA taxes is crucial, as it also impacts the amount ofFUTA taxa business must submit. Each business receives a credit toward FUTA taxes based on SUTA tax payments. In general, employers must pay 6% of gross wages, up to a cap of $7,00...