{"id":591,"date":"2011-01-06T21:44:33","date_gmt":"2011-01-07T02:44:33","guid":{"rendered":"http:\/\/peopros.com\/index.php\/?p=591"},"modified":"2011-01-06T21:48:32","modified_gmt":"2011-01-07T02:48:32","slug":"what-is-this-thing-called-suta","status":"publish","type":"post","link":"http:\/\/peopros.com\/index.php\/what-is-this-thing-called-suta\/","title":{"rendered":"What is This Thing Called SUTA?"},"content":{"rendered":"<p><a href=\"http:\/\/peopros.com\/wp-content\/uploads\/2011\/01\/EmployeesOnPennyStacks.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/peopros.com\/wp-content\/uploads\/2011\/01\/EmployeesOnPennyStacks-150x150.jpg\" alt=\"What Is This Thing Called SUTA?  How do PEOs Help?\" title=\"What Is This Thing Called SUTA?  How do PEOs Help?\" width=\"150\" height=\"150\" class=\"alignleft size-thumbnail wp-image-592\" \/><\/a><big>&#8220;I<\/big> hear people talking about their SUTA, what is it?&#8221;<\/p>\n<p>&#8220;The state just raised my SUTA rate!  What can I do?&#8221;<\/p>\n<p>&#8220;What can I do about SUTA?&#8221;<\/p>\n<p>&#8220;My Accountant just told me I should consider a PEO because of my SUTA rate increase.&#8221;<\/p>\n<p>Have you wondered what this acronym stands for?<\/p>\n<ul>\n<li>SUTA = State Unemployment Tax Act.  Similarly,<\/li>\n<li>FUTA = Federal Unemployment Tax Act.<\/li>\n<\/ul>\n<p>It is a <b>tax<\/b> assessed on <b>employers<\/b> to fund <b>unemployment benefits.<\/b>  It is often (wrongly) called &#8220;Unemployment Insurance&#8221; or &#8220;SUI.&#8221;<\/p>\n<p>The term SUTA is often used to refer to the employer&#8217;s <b>SUTA rate<\/b>, that is, the percent of payroll that is assessed on that particular employer.<\/p>\n<p>Most states start new businesses at an arbitrary base rate, and they stay at that rate until a significant amount of employment history is acquired.<\/p>\n<p>In Florida, for example, a new business is assigned a SUTA rate of 2.7% of payroll for the first 30 to 33 months.  After this, the rate may fluctuate up or down based on employer experience.  The current maximum in Florida is 5.4%<\/p>\n<p>In contrast, the FUTA rate is a constant 0.8% and does not change per employer.<\/p>\n<p>Both rates have a <b>maximum wage applicability<\/b>.  In Florida, the SUTA rate is only applied to the first $7,000 of each employee&#8217;s wages with that employer.  (FUTA also only applies to the first $7,000.)<\/p>\n<h2>Why is this Important When Considering a PEO?<\/h2>\n<p>When an employer turns his employees over to a PEO (formerly known as an Employee Leasing Company) they now fall under the SUTA rate of the PEO.<\/p>\n<p>Obviously, in some cases, this can be beneficial to an employer who has had an unusually bad experience with unemployment.  It can also be of great assistance to have a Professional Employer Organization to direct the employee hiring and terminations in a way that limits exposure to unemployment claims.<\/p>\n<p>In any case, transferring the responsibility of the Unemployment Claims from the client company to the PEO makes unemployment claims &#8220;somebody else&#8217;s problem.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;I hear people talking about their SUTA, what is it?&#8221; &#8220;The state just raised my SUTA rate! What can I do?&#8221; &#8220;What can I do about SUTA?&#8221; &#8220;My Accountant just told me I should consider a PEO because of my SUTA rate increase.&#8221; Have you wondered what this acronym stands for? SUTA = State Unemployment [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":592,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[20,6,5],"tags":[],"class_list":["post-591","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-hrnews","category-peoservices"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 5.0.0.1 - aioseo.com -->\n\t<meta name=\"description\" content=\"How to understand unemployment tax assessments, including acronyms, calculations and limits.\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"Boss Man\"\/>\n\t<link rel=\"canonical\" href=\"http:\/\/peopros.com\/index.php\/what-is-this-thing-called-suta\/\" \/>\n\t<meta name=\"generator\" content=\"All in One SEO (AIOSEO) 5.0.0.1\" \/>\n\t\t<meta property=\"og:locale\" content=\"en_US\" \/>\n\t\t<meta property=\"og:site_name\" content=\"PEO Pros - Workers&#039; Comp Insurance - PEOs\" \/>\n\t\t<meta property=\"og:type\" content=\"article\" \/>\n\t\t<meta property=\"og:title\" content=\"What is This Thing Called SUTA? - PEO Pros\" \/>\n\t\t<meta property=\"og:description\" content=\"How to understand unemployment tax assessments, including acronyms, calculations and limits.\" \/>\n\t\t<meta property=\"og:url\" content=\"http:\/\/peopros.com\/index.php\/what-is-this-thing-called-suta\/\" \/>\n\t\t<meta property=\"og:image\" content=\"http:\/\/peopros.com\/wp-content\/uploads\/2010\/08\/NetworkingPeople.jpg\" \/>\n\t\t<meta property=\"og:image:width\" content=\"265\" \/>\n\t\t<meta property=\"og:image:height\" content=\"190\" \/>\n\t\t<meta property=\"article:published_time\" content=\"2011-01-07T02:44:33+00:00\" \/>\n\t\t<meta property=\"article:modified_time\" content=\"2011-01-07T02:48:32+00:00\" \/>\n\t\t<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/EmployerNomics\" \/>\n\t\t<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n\t\t<meta name=\"twitter:title\" content=\"What is This Thing Called SUTA? - PEO Pros\" \/>\n\t\t<meta name=\"twitter:description\" content=\"How to understand unemployment tax assessments, including acronyms, calculations and limits.\" \/>\n\t\t<meta name=\"twitter:image\" content=\"http:\/\/peopros.com\/wp-content\/uploads\/2010\/08\/NetworkingPeople.jpg\" \/>\n\t\t<script type=\"application\/ld+json\" class=\"aioseo-schema\">\n\t\t\t{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"BlogPosting\",\"@id\":\"http:\\\/\\\/peopros.com\\\/index.php\\\/what-is-this-thing-called-suta\\\/#blogposting\",\"name\":\"What is This Thing Called SUTA? - PEO Pros\",\"headline\":\"What is This Thing Called SUTA?\",\"author\":{\"@id\":\"http:\\\/\\\/peopros.com\\\/index.php\\\/author\\\/peo_boss\\\/#author\"},\"publisher\":{\"@id\":\"http:\\\/\\\/peopros.com\\\/index.php\\\/#organization\"},\"image\":{\"@type\":\"ImageObject\",\"url\":\"http:\\\/\\\/peopros.com\\\/wp-content\\\/uploads\\\/2011\\\/01\\\/EmployeesOnPennyStacks.jpg\",\"width\":259,\"height\":194,\"caption\":\"What Is This Thing Called SUTA? 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