What is the State Unemployment Insurance (SUI) Rate?
The State Unemployment Insurance rate is a tax rate that employers pay to each state to fund the unemployment insurance benefits. This rate can vary widely from state to state and is usually determined by factors like the employer's industry and experience with former employees claiming unemployment benefits.
How are SUI Rates Determined?
SUI rates are determined by each state's unemployment insurance laws and are influenced by the employer's history of claims (known as "experience rating") and the state's UI trust fund balance. New employers often pay at a standard new employer rate until they have built up a history of claims.
What is a SUI Cap?
A SUI cap refers to the maximum amount of wages per employee that an employer's SUI rate is applied to. This cap also varies significantly by state, affecting the total amount of SUI taxes an employer owes.
Please see a few example SUI Caps below. If you'd like to learn more, please feel free to use our Alberni AI Chat Feature on the Borderless platform!
Florida:
The SUI wage base cap for 2023 is $7,000. Employers are required to pay SUI taxes on the first $7,000 in wages paid to each employee during the year.
Texas:
The SUI wage base cap for 2023 is $9,000. Employers are required to pay SUI taxes on the first $9,000 in wages paid to each employee during the year.
Alabama:
The SUI wage base cap for 2023 is $8,000. Employers are required to pay SUI taxes on the first $8,000 in wages paid to each employee during the year.
Arizona:
The SUI wage base cap for 2023 is $7,000. Employers are required to pay SUI taxes on the first $7,000 in wages paid to each employee during the year.
Massachusetts:
The SUI wage base cap for 2023 is $15,000. Employers are required to pay SUI taxes on the first $15,000 in wages paid to each employee during the year.
Hawaii:
The SUI wage base cap in Hawaii changes annually. Employers are advised to contact the Hawaii Department of Labor and Industrial Relations or consult their UI tax account for the current year's wage base limit.
New York:
The SUI wage base cap for 2023 is $12,000. Employers are required to pay SUI taxes on the first $12,000 in wages paid to each employee during the year.
New Jersey:
The SUI wage base cap for 2023 is $41,100. Employers are required to pay SUI taxes on the first $41,100 in wages paid to each employee during the year.
California:
The SUI wage base cap for 2023 is $7,000. Employers are required to pay SUI taxes on the first $7,000 in wages paid to each employee during the year.
Illinois:
The SUI wage base cap for 2023 is $12,960 for 2023. Employers are required to pay SUI taxes on the first $12,960 in wages paid to each employee during the year.