SUTA (State Unemployment Tax)
SUTA is the state payroll tax funding unemployment benefits; PEO arrangements can change whose rate and account your wages are reported under.
States apply an unemployment tax rate to wages up to a state-specific annual wage base. Rates can reflect an employer’s benefit-charge history, new-employer rules, state schedules, and other adjustments, so both the rate and wage base must be checked for the effective year.
PEO reporting methods vary by state and can vary within a state. Florida, for example, allows a PEO regular method and a client-level method. Ask which account, assigned rate, effective rate charged, and experience treatment apply in each state, including after the relationship ends.