The State Unemployment Tax Act (SUTA) is a payroll tax imposed on employers to fund the state unemployment insurance (SUI) program. This program provides unemployment benefits to workers who have lost their jobs through no fault of their own. The purpose of SUTA is to ensure there are sufficient funds to provide unemployment benefits, supporting workers while they search for new employment. SUTA tax rates range from employer to employer and are determined under the experience rating system. Employers with higher unemployment claims pay higher rates, while those with fewer claims pay lower rates.

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