Unfortunately, part of being a wise business owner is knowing when to lay people off. This may save a business money in the long run, but a consequence of doing so is that one's taxes go up. The SUI (State Unemployment Insurance) is an employer-funded tax that gives short-term benefits to those who lost or left their jobs for a variety of reasons. Some of these reasons include, but are not limited to, being laid off, being fired for reasons other than misconduct, or leaving due to health or personal problems.

The amount of SUI a company pays is proportional to the SUI rates they are eligible for. This rate changes depending on the amount of money an employer pays their employees as well as the number of employees laid off. It can range from 0.1% to 15.0977% depending on your employee's salaries as well as the number of former employee's unemployment claims over the last financial year.

SUI Tax Rates

· Alabama

SUI Tax Rate: 0.65% - 6.8%

· Alaska

SUI Tax Rate: 1.00% - 5.4%

· Arizona

SUI Tax Rate: 0.05% - 12.76%

· Arkansas

SUI Tax Rate: 0.4% - 14.3%

· California

SUI Tax Rate: 1.5% - 6.2%

· Colorado

SUI Tax Rate: 0.62% - 8.15%

· Connecticut

SUI Tax Rate: 1.9% - 6.8%

· Delaware

SUI Tax Rate: 0.3% - 8.2%

· District of Columbia

SUI Tax Rate: 1.6% - 7.0%

· Florida

SUI Tax Rate: 0.1% - 5.4%

· Georgia

SUI Tax Rate: 0.04% - 5.4%

· Hawaii

SUI Tax Rate: 0.00% - 5.6%

· Idaho

SUI Tax Rate: 0.393% - 5.4%

· Illinois

SUI Tax Rate: 0.525% - 6.925%

· Indiana

SUI Tax Rate: 0.5% - 7.4%

· Iowa

SUI Tax Rate: 0.0% - 7.5%

· Kansas

SUI Tax Rate: 0.20% - 7.60%

· Kentucky

SUI Tax Rate: 0.4% - 9.25%

· Louisiana

SUI Tax Rate: 0.1% - 6.2%

· Maine

SUI Tax Rate: 0.06% - 5.46%

· Maryland

SUI Tax Rate: 0.3% - 7.5%

· Massachusetts

SUI Tax Rate: .83% - 12.65%

· Michigan

SUI Tax Rate: .06% - 10.3%

· Minnesota

SUI Tax Rate: 0.2% - 9.1%

· Mississippi

SUI Tax Rate: 0.2% - 5.60%

· Missouri

SUI Tax Rate: 0.0% - 8.37%

· Montana

SUI Tax Rates: 0.13% - 6.30%

· Nebraska

SUI Tax Rate: 0.0% - 5.4%

· Nevada

SUI Rate Tax: 0.25% - 5.4%

· New Hampshire

SUI Tax Rate: 0.1% - 7.5%

· New Jersey

SUI Tax Rate: 0.5% - 5.8%

· New Mexico

SUI Tax Rate: 0.33% - 5.4%

· New York

SUI Tax Rate: 1.3% - 9.1%

· North Carolina

SUI Tax Rate: 0.06% - 5.76%

· North Dakota

SUI Tax Rate: 0.30% - 10.74%

· Ohio

SUI Tax Rate: 0.3% - 9.0%

· Oklahoma

SUI Tax Rate: 0.1% - 5.5%

· Oregon

SUI Tax Rate: 0.9% - 5.4%

· Pennsylvania

SUI Tax Rate: 2.3905% - 11.0333%

· Rhode Island

SUI Tax Rate: 0.89% - 9.49%

· South Carolina

SUI Tax Rate: 0.06% - 5.46%

· South Dakota

SUI Tax Rate: 0.0% - 9.35%

· Tennessee

SUI Tax Rate: 0.01% - 10.0%

· Texas

SUI Tax Rate: 0.46% - 6.46%

· Utah

SUI Tax Rate: 0.1% - 7.1%

· Vermont

SUI Tax Rate: 1.1% - 7.7%

· Virginia

SUI Tax Rate: 0.11% - 6.21%

· Washington

SUI Tax Rate: 0.13% - 7.73%

· West Virginia

SUI Tax Rate: 1.5% - 8.5%

· Wisconsin

SUI Tax Rate: 0.0% - 12.0%

· Wyoming

SUI Tax Rate: 0.287% - 8.78%

We also provide more information about your state's payroll.

*Rates vary by industry.

**Rate range includes Negative and Positive Fund Employers.

***Rates include surcharges.

****Special rules apply to minimum wage standards for this state. Please refer to state laws.

How do SUI Rates affect my business?

SUI affects businesses because it's another tax to pay. If a company lays off too many employees, or if an employee termination is handled improperly, it can mean a fairly high increase in the rate. For example, if a 1000-employee business is bumped up to the next tax rate because of an incorrectly handled employee termination, it can cost them as much as $70,000. The increase will not be as drastic for smaller companies, but the example still stands as a reason to keep SUI rates under control.

There are several steps employers can take to ensure their SUI rates stay relatively low. First, and most importantly, the company can strive to lay off as few employees as possible. The fewer employees that take unemployment benefits, the less the rate will be. Make sure all employees are aware of companies' rules and regulations and take steps to make sure they are following the rules at all times. Document as many of the employee's interactions in the workplace as possible. In the event there is a doubt that the employee is eligible for benefits, the documentation collected can be used to verify if they are eligible or not. Businesses should also make sure that all unemployment appeals are made within the specified time frames. If the business is late on filling out appeals paperwork, it is more than likely that the claim will be overturned.

Z3N Payroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.

This website contains articles posted for informational and educational value. Z3N Payroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Z3N Payroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.