SUI / SUTA (State Unemployment Insurance)

State Unemployment Insurance (SUI), also called SUTA, is a state-level employer payroll tax that funds unemployment benefits. Each state sets its own taxable wage base and rate schedule. New employers receive a standard rate; established employers are experience-rated.

In most states, a PEO files SUI under its own account, which can be advantageous for clients with high turnover (PEO experience rating may be more favorable) and disadvantageous for very stable clients with strong individual ratings. A handful of states use client-level reporting and require account portability planning during PEO transitions.