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State Unemployment Insurance (SUI)

SUI is complicated and minor mistakes could result in major financial penalties. Using the Paychex state unemployment insurance service, which is integrated with Paychex payroll to alleviate administrative burdens, can help simplify a mandatory need. We are constantly monitoring the latest SUI regulations, so you have the most-up-to-date information. 

Gain Peace of Mind

The Paychex state unemployment insurance service offers thorough administration and statement monitoring, which can help you promptly respond to claims, avoid fines, and retain rights to appeal.

  • Support with monitoring improper claims and erroneous charges 

  • In-depth benefit charge and financial statements audit 

  • Annual claim activity reports 

  • Assistance with unemployment benefit issues 

  • Representation at claims hearings* 

Reduce Your Risk of Improper Claims and Charges with Paychex's Benefit Charge Audit

The U.S. Department of Labor has reported** that businesses have improperly paid billions of dollars in unemployment benefits, largely due to overpayments. We know how hard you work, and we want to help protect the business's earnings. That's why part of our SUI service includes conducting an in-depth benefit charge audit that can help you continually monitor improper claims and erroneous charges, and help preserve your hard-earned money. The process includes:

  • Verifying the validity of all charges
  • Ascertaining that you have not exceeded your maximum liability
  • Confirming that individuals are eligible for benefits, sufficient earnings were reported, and benefit amounts have been properly calculated
  • Reporting erroneous charges to appropriate state agencies
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Seamlessly Integrate with Your Payroll 

Managing responsibilities around unemployment doesn't have to be a burden, and you don't have to handle associated paperwork and insurance statements manually. Instead, integrate our SUI service with Paychex payroll to enjoy the convenience of: 

Increased Efficiencies

Monitor and track claims paperwork as well as unemployment insurance premiums more easily and accurately, including the ability to run reports for in-depth audits and annual claims activity.

Improved Claims Accuracy

Integration helps confirm that you're being charged correctly for claims. 

Ease of Mind

Rest easy knowing that the business's unemployment insurance payments are automatically calculated and accurately paid on both state and federal levels. 

Support from our SUI specialists

With so many regulations constantly changing, you might find yourself in need of more information. Our knowledgeable SUI specialists at Paychex are prepared to answer your questions on topics from separation documentation to pre-hearing procedures and other unemployment benefit issues.

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FAQs on State Unemployment Insurance

  • What is SUI?

    What is SUI?

    State unemployment insurance (SUI) provides workers who are laid off or terminated from their jobs without cause a safety net that can be used to support them as they look for a new job. 

  • How are SUI rates determined and calculated?

    How are SUI rates determined and calculated?

    It is a complicated formula that is unique to each business based on the experience of each business with turnover and payment of unemployment claims. An individual's SUI rate is determined by taking a percentage of that worker's earnings in the most-recent calendar year, not to exceed the state maximum amount of tax allowed. Assess your potential savings on SUI premiums with our calculator. 

  • What is the responsibility of an employer in regard to SUI tax?

    What is the responsibility of an employer in regard to SUI tax?

    Employers are responsible for SUI taxes and making the deposit to the state. You use a worker's taxable wage base and the tax rate schedule of the state in which the employee resides to determine unemployment taxes. SUI taxes are calculated by multiplying the taxable payroll by the state tax rate assigned to your business. 

  • What responsibilities do employers have related to SUI?

    What responsibilities do employers have related to SUI?