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What is SUI?

How does state unemployment insurance work?

Who is eligible for state unemployment insurance?

State Unemployment Insurance (SUI)

State unemployment insurance, or SUI for short, is a state tax program funded by employers.

What is SUI? 

SUI provides unemployed individuals with short-term financial assistance while they look for another job. SUI is an employer payroll tax, which means it’s not deducted from an employee’s pay. The amount an employer will be required to pay varies from state to state.

How does state unemployment insurance work? 

Employers must set up a state tax account with the state’s unemployment agency. After they have an account number, they must make SUI payments based on state requirements. If an employer has employees in multiple states, they’ll need to pay SUI for each state they have an employee in. SUI payment frequency and amounts vary across states. Employers should check their state unemployment agency's updates for updated requirements.

Who is eligible for state unemployment insurance? 

Any workers who’ve involuntarily lost their jobs at no fault of their own are eligible for state unemployment insurance if they meet their state’s requirements.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.
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