What is SUTA?
State unemployment tax assessment (SUTA) is based on a percentage of the taxable wages an employer pays. Some states apply various formulas to determine the taxable wage base, others use a percentage of the state’s average annual wage, and many simply follow the FUTA wage base.
Requirements for Employers
Each state requires employers to submit quarterly contribution and wage reports containing some or all of the following information:
-
Total wages paid
-
Taxable wages paid
-
Nontaxable wages paid
-
Number of employees each month
-
Gross wages for each employee
-
Taxable/nontaxable wages breakdown for each employee
-
Number of weeks worked by each employee
What is SUTA?
State unemployment tax assessment (SUTA) is based on a percentage of the taxable wages an employer pays. Some states apply various formulas to determine the taxable wage base, others use a percentage of the state’s average annual wage, and many simply follow the FUTA wage base.
How FUTA Affects SUTA
The Federal Unemployment Tax Act (FUTA) requires that each state’s taxable wage base be at least equal to the FUTA wage base of $7,000 per employee, although most states’ wage bases exceed the required amount.
We’ve compiled a list of states’ wage bases in the table below. Be sure to bookmark this page to make year-end processing that much easier.
SUTA Wage Bases
| 2025 | 2024 |
|---|---|
| Alabama: $8,000 | Alabama: $8,000 |
| Alaska: $51,700 | Alaska: $49,700 |
| Arizona: $8,000 | Arizona: $8,000 |
| Arkansas: $7,000 | Arkansas: $7,000 |
| California: $7,000 | California: $7,000 |
| Colorado1: $27,200 | Colorado: $23,800 |
| Connecticut2: $26,100 | Connecticut: $25,000 |
| Delaware: $12,500 | Delaware: $10,500 |
| District of Columbia: $9,000 | District of Columbia: $9,000 |
| Florida: $7,000 | Florida: $7,000 |
| Georgia: $9,500 | Georgia: $9,500 |
| Hawaii: $61,958 | Hawaii: $61,800 |
| Idaho: $55,300 | Idaho: $53,500 |
| Illinois: $13,916 | Illinois: $13,590 |
| Indiana: $9,500 | Indiana: $9,500 |
| Iowa: $39,500 | Iowa: $38,200 |
| Kansas: $14,000 | Kansas: $14,000 |
| Kentucky: $11,700 | Kentucky: $11,400 |
| Louisiana: $7,700 | Louisiana: $7,700 |
| Maine: $12,000 | Maine: $12,000 |
| Maryland: $8,500 | Maryland: $8,500 |
| Massachusetts: $15,000 | Massachusetts: $15,000 |
| Michigan: $9,000 | Michigan: $9,500 |
| Minnesota: $42,000 | Minnesota: $42,000 |
| Mississippi: $14,000 | Mississippi: $14,000 |
| Missouri: $9,500 | Missouri: $10,000 |
| Montana: $45,100 | Montana: $43,000 |
| Nebraska3: $9,000 | Nebraska: $9,000 |
| Nevada: $41,800 | Nevada: $40,600 |
| New Hampshire: $14,000 | New Hampshire: $14,000 |
| New Jersey: $43,300 | New Jersey: $42,300 |
| New Mexico: $31,700 | New Mexico: $31,700 |
| New York4: 12,800 | New York: 12,500 |
| North Carolina: $32,600 | North Carolina: $31,400 |
| North Dakota: $45,100 | North Dakota: $43,800 |
| Ohio: $9,000 | Ohio: $9,000 |
| Oklahoma: $28,200 | Oklahoma: $27,000 |
| Oregon: $54,300 | Oregon: $52,800 |
| Pennsylvania: $10,000 | Pennsylvania: $10,000 |
| Rhode Island5: $29,800 | Rhode Island: $29,200 |
| South Carolina: $14,000 | South Carolina: $14,000 |
| South Dakota: $15,000 | South Dakota: $15,000 |
| Tennessee: $7,000 | Tennessee: $7,000 |
| Texas: $9,000 | Texas: $9,000 |
| Utah: $49,800 | Utah: $47,000 |
| Vermont: $14,800 | Vermont: $14,300 |
| Virginia: $8,000 | Virginia: $8,000 |
| Washington: $72,800 | Washington: $68,500 |
| West Virginia $9,500 | West Virginia $9,521 |
| Wisconsin: $14,000 | Wisconsin: $14,000 |
| Wyoming: $32,400 | Wyoming: $30,900 |
¹ Colorado – The wage base will increase to $30,600 in 2026.
² Connecticut – The wage base will be adjusted annually beginning in 2025.
³ Nebraska – The wage base is $24,000 for employers in the highest UI tax rate group (category 20).
⁴ New York – The wage base will increase to $13,000 in 2026, adjusted annually beginning in 2027.
⁵ Rhode Island – The wage base is $30,700 for employers in the highest UI tax rate group.
How This Affects Your Company
This offset generally applies to all employers, except government entities, nonprofit organizations, and Native American tribes. The FUTA tax liability is not due or reportable until January 31 of the following year.
If your company is not exempt, you may have to pay more FUTA taxes on wages subject to the unemployment tax laws. For example, a 10-employee company subject to a 0.9% reduction, in which each employee makes a minimum of $7,000, will pay an additional $630.00 or $63.00 per employee.
How APS Can Help
Here’s how APS’ system helps simplify SUTA management:
-
Our payroll tax compliance experts handle all of the paperwork and filings for SUTA, keeping you in compliance.
-
We'll update the SUTA wage base for your company once you provide your new wage base information.
-
We'll help with preparation of your quarterly SUTA tax forms and filings.
-
We provide accurate calculations for SUTA payments.
