Definition
State unemployment insurance tax, charged at a rate that depends on the state, your industry and your layoff history.
SUTA explained
States differ on PEOs: some require the PEO to report under each client's own account and rate, while others allow the PEO to report under its own account. That choice can raise or lower your rate, so ask which method applies in each state you employ in.
Check the SUTA rate in a PEO quote against your state's rate notice.
Where SUTA comes up
Also referenced in: Pass-through costs · Wage base restart