How State Unemployment Insurance (SUI) Affects Your Business

State Unemployment Insurance, or SUI, is a tax on employers that is used to fund state unemployment programs. When employees lose their jobs, they may become eligible under their state's unemployment programs to receive a portion of their wages for a pre-determined period of time.

Individual state unemployment programs differ in how they determine eligibility, responsibilities, and payments within a range of guidelines set by the federal government. Visit the Department of Labor for more about your state's SUI requirements.

Employer Responsibilities

While funds for the state unemployment programs are generated primarily through a tax on employers, the states of Alaska, New Jersey, and Pennsylvania also levy a nominal tax on employees.

Employer tax rates vary by state and typically fall within a range based on the number of unemployment claims associated with your business. The more claims filed, the higher your tax rate becomes.

View SUI Tax Rates

Who is Eligible for SUI Benefits?

To be considered eligible, a former employee must meet state guidelines concerning the following:

• Whether the cause of their unemployment was through no fault of their own
• The amount of wages earned
• The amount of time worked during a "base period," typically four of the past five calendar quarters prior to the SUI claim