State unemployment insurance (SUI) tax

Summary

Use this article to find unemployment rate ranges and wages bases by state, learn how to enter or change your UI rate in Gusto, get the next steps for taking care of unemployment rate notices, and more.

Users Intent

Context Variations

Content

Use the dropdowns below to find information about state unemployment insurance (SUI) taxes. Use CMD + F (or CTRL + F) to search for words in the article.

Important reminders

Unemployment exemptions
- If your company or an employee does not have to pay state unemployment tax (SUTA), set up the exemption in Gusto.
State registration and third-party authorization (TPA)
- If you still need to register or give Gusto access to pay and file, go to the state registration article in this Help Center section. You can also learn where to find your assigned unemployment rates if you've already registered.

What is SUI and when does Gusto pay it?

State unemployment insurance (SUI) gives money to workers who lose their jobs. Employers usually pay this tax, not employees.

A few reminders:

States assign your company your unemployment rates after you register.
- Your tax rate depends on your company's history with unemployment claims and your type of business.
Each state has a limit on how much of an employee's income can be taxed each year. This is called a wage base limit, and it can change every year.
- State wage bases can be found below in 50-state table.

Unemployment deductions and payments

Gusto takes out the SUI tax from each payroll based on the state's rate in Gusto and pays it with your quarterly or annual tax filings (Quarterly Form 941, or Annual Form 944).

Run an “agency payments” report to see the payments we make. Learn where to view your tax filings in Gusto.

For info on how to register in your state, type the state name in our Help Center.

If you have employees who move states (regularly or irregularly)

How employees moving to a new state affects wage base limits and state unemployment insurance (SUI) taxes

If an employee moves to a new state, the new state's unemployment wage base limit applies:

If the new state's wage limit is lower than the old one: They won’t owe more SUI taxes in the new state, but they will not get back any SUI taxes paid in the old state.
If the new state's wage limit is higher: They’ll keep paying taxes until they reach the new state’s higher limit. Usually, they’ll get credit for the SUI taxes already paid in the old state.
- All states, except Iowa, Louisiana, Minnesota, and Montana allow employers to credit wages paid in other states when calculating unemployment taxes.
- Some states ask you to report out-of-state wages to claim the credit: AK, AR, DC, FL, IN, MA, MD, MI, NM, OH, and WI (for income tax).

These nuances can lead to different calculations of taxable wages, and the new state might send a notice asking for more taxes.

Out-of-state wage reporting

There’s no standard way for states to collect out-of-state wages after a filing period closes. Some states want employers to report wages from other states in quarterly wage reports. Some states might ask for:

The employee's name and Social Security Number (SSN).
The wages reported to the previous state within the same year, and which state the taxes were paid to.
Extra documents or actions, like special forms or adjusting tax filings, to claim the credit.

Determine which state unemployment tax is owed to (for employees who work in more than one state)

Most of the time, employers pay State Unemployment Taxes (SUTA) to the state where the employee works. But, if an employee works in multiple states, or lives in a different state than where they work, it's trickier.

The US Department of Labor provides rules to decide which state’s law applies. This means that all of an employee's service for one employer is covered under a single state law.

How does Gusto determine where SUTA is withheld?

Gusto pays SUTA based on the work address an employee has listed in Gusto. If SUTA taxes are being withheld in the wrong state, update an employee’s work address in Gusto.

How to determine the correct work state to enter in Gusto

Work Location Test (Localization)
- If the employee does most of their work in one state, it’s considered the “localized” state and should be used for collecting SUTA taxes.
If work is regularly done in multiple states—use these tie-breakers (applied in this sequence):
- Base of Operations: Where does the employee start their work day, or report to?
  - Typically the primary office, or worksite.
- Direction & Control: Where is their manager or main office?
  - Typically an employer’s main office, or where the supervising manager is located.
- Residence: If the first two do not decide, use the employee’s home state.

For more details, use the Department of Labor’s Localization of Work Provisions resource.

New employer SUI rates—includes tax rate ranges and wage bases by state

After you register with the state, the unemployment tax agency will assign your company unemployment tax rates. If you do not have your company's rates yet, enter the "New employer tax rates" from the table below in Gusto until you get them.

Enter a temporary “new employer tax rate” in Gusto

Go to the table below and find your state.
Find the new employer rates for the info Gusto is asking you for.
- If there's more than one rate, or there's a range, choose the most favorable option for your circumstance. When you update the rate later, we'll reconcile the difference.
Go to the Taxes & Compliance section and select Tax setup.
Scroll to the state, and click Manage taxes.
Click Edit to enter applicable rates.
As soon as the agency assigns your rates, update them in Gusto.
- Check your state's web portal or mail sent from the agency to find this info. If you get stuck, contact the agency.
- If you do not know if you're required to pay the tax, contact the agency. If you need to, you can set up exemptions in Gusto.

Glossary terms

Wage base
- The maximum amount of an employee's income that can be taxed in a calendar year. This can be different for each state, and even for different tax types.
SUI
- State unemployment insurance
SDI
- State disability insurance
TDI
- Temporary disability insurance
TBA
- To be announced (we're waiting on the agency to release the info)

2025 rate info by state

Last updated Jan 6, 2025—we're still waiting on agencies to release the missing details.

State	Wage bases (2025)	New employer SUI* rates (2025) *SUI, unless otherwise noted	Tax rate ranges (2025) Minimum allowable to maximum allowable	How to enter the rates in Gusto
Alabama	$8,000	2.7%	0.14–5.34%	Enter the Tax Rate listed in box 6 of your Tax Rate Notice. Do not include the Employment Security Assessment (ESA).
Alaska	$51,700	1.5–1.66%	1.5–5.9%	Enter the Total Contribution Rate (Employer + Employee) listed on your Contribution Rate Notice.
Arizona	$8,000	2%	0.04–9.72%	Enter the UI Tax Rate found in the upper-right hand corner of your Determination of Unemployment Tax Rate.
Arkansas	$7,000	2%	0.2–10.1%	Enter the Contribution Rate listed in the upper right-hand corner of your Rate Statement.
California	SUI: $7,000 SDI: No limit for 2024	3.4%	1.5–6.2%	Enter the "UI contribution rate" listed on your "UI Rate and Reserve Account" letter. ETT is entered separately.
Colorado	$27,200	Base: 1.53% for general employers For construction or trades: 1.56% For heavy construction: 5.7% Surcharge: 1.35% for general, construction, and trade companies. For heavy construction: 1.725 *Support: 0.17% for general employers, construction, and trade companies. For heavy construction: 0.63%	Base: 0.64–8.68% Surcharge: 0.1–2.70% *Support: 0.07–0.96%	Enter the tax rates listed in Item 6, Item 7, and Item 8 of your Tax Rate Notice separately. *The "Support rate" covers four state-run funds (listed below), and those funds do not need to be listed separately in Gusto. If the state changes any of the four funds, the "Support rate" will update automatically. Employment Support Fund (ESF) Employment and Training Technology Fund (ETTF) Benefit Recovery Fund (BRF) Workforce Development Fund (WDF)
Connecticut	$26,100	2.2%	1.10–8.90%	n/a
Delaware	$12,500	TBA	TBA	Enter the 202X rate listed on your Notice of Unemployment Insurance Assessment Rate.
District of Columbia (Washington D.C.)	$9,000	TBA	TBA	Enter the tax rate listed in Box 2 of the Contribution Rate Notice. Do not include the Admin Assessment Tax in the SUI rate.
Federal	$7,000	n/a	0.6–6%	n/a
Florida	$7,000	2.7%	0.1–5.4%	Enter the tax rate listed under box 7 of your Reemployment Tax Rate Notice.
Georgia	$9,500	2.7%	TBA	Enter the total tax rate from your Georgia tax rate notice. Your unemployment rate and your GAAT rate should be added as one total rate in Gusto.
Hawaii	$62,000	2.4%	0–5.6%	Enter the “Contribution Rate” listed on your Contribution Rate Notice. Do not include the Employment and Training Assessment (E&T) rate in the SUI rate—Gusto already accounts for this.
Idaho	$55,300	UI new employer rate: 0.80% Admin new employer rate: 0.17% Workforce new employer rate: 0.03%	UI rate: 0.18–5.4% Admin rate: 0–0.35717% Workforce rate: 0–0.06303%	Do not include the Workforce rate in the "SUI" rate entered in Gusto. The Workforce Development and Admin Rate are entered separately in Gusto.
Illinois	$13,916	3.75%	0.75–7.85%	Enter the total “Contribution Rate” listed on your Rate Determination. The unemployment rate and Fund Building Rate should be added as one total rate in Gusto.
Indiana	$9,500	2.5%	0.5–9.4%	Enter the "contribution rate" from your Employer Tax Rate Notice.
Iowa	$39,500	Non-construction: 1% Construction: 7%	0–7%	Enter the contribution (tax) rate listed on your Notice of Tax Rate.
Kansas	$14,000	Non-construction: 1.75% Construction: 5.55%	0–6.65%	n/a
Kentucky	$11,700	2.625%	0.225–8.925%	Enter the "Adjusted UI Rate" listed on your Notice of Contribution Rate. The SCUF rate is automatically added by Gusto.
Louisiana	$7,700	0.09–6.20%	0.09–6.20%	Enter the total rate 2024 listed in box 14 on your Louisiana U.I. Contribution Rate for Calendar Year 2024.
Maine	$12,000	2.11%	0–5.97%	Do not include the Competitive Skills Scholarship Fund (CSSF) or Unemployment Program Administrative Fund (UPAF) rates in Gusto–these are already accounted for.
Maryland	$8,500	2.6%	0.30–7.50%	–
Massachusetts	$15,000	Non-construction: 2.13% Construction: 5.459%	SUI rate: 0.83–12.65% COVID rate: 0.21–3.2%	Enter your EMAC rate and COVID rate* separately in Gusto. *The COVID rate ranges from 0.21– 3.2%.
Michigan	$9,000 Standard $9,500 For delinquent accounts	2.7%	0.06–10.3%	If you have a delinquent wage base, upload your rate notice in Gusto.
Minnesota	$43,000	Non-construction: 1–8.9% Construction: 1.63–8.9%	0.4–9.3%	Do not include the Workforce Assessment Rate, Federal Loan Interest Assessment, or the Additional Assessment when entering your rate in Gusto—these are already accounted for.
Mississippi	$14,000	TBA	0–5.4%	Do not include the Workforce Investment and Training contribution rate when entering the SUI rate in Gusto.
Missouri	$9,500	General employers: 2.376% Non-profits: 1%	0–9%
Montana	$45,100	General employers: 1–2.2% Construction: 2.1%	0–9.18%	Do not include the Administrative Fund Tax (AFT) or "Total Rate" when entering your rate in Gusto—this is already accounted for. We'll automatically add the AFT rate to your contribution rate to calculate your Total Rate. Only enter the "Contribution Rate" in Gusto to avoid overpayment of taxes.
Nebraska	$9,000	Non-construction: 1.25% Construction: 5.4%	0–5.4%	Do not include the SUIT rate when entering the SUI rate in Gusto.
Nevada	$41,800	2.95%	0.25–5.4%	Do not include the Career Enhancement Program (CEP) rate in the rate you enter in Gusto. We'll automatically add the CEP rate (0.05%) to the unemployment experience rate you enter.
New Hampshire	$14,000	1.7%	0–7.5%	Do not include the administrative contribution rate in your unemployment rate in Gusto.
New Jersey	$43,300	3.1% (UI rate and WF rate combined) July 1, 2024 – June 30, 2025 Disability Insurance rate: Typically 0.5% Entered separately	1.2–7%	Enter the "Final Unemployment Experience" rate on your tax rate notice, include both the: UI rate, and WF rate The disability rate is entered separately.
New Mexico	TBA	TBA	TBA	TBA
New York	$12,800	4.1%	2.1–9.9%	Do not enter the: "Re-employment services fund" or; "Total rate" Gusto will automatically add the re-employment services fund rate to the UI rate you enter in Gusto. Combined, they are the “Total rate”.
North Carolina	$32,600	1%	0.06–5.76%	n/a
North Dakota	$45,100	Non-constructions: 1.03–6.09% Construction: 9.69%	0.08–9.69%	n/a
Ohio	$9,000	Non-constructions: 2.7% Construction: 5.6%	0.4–12.8%	Enter the Standard/Total Contribution Rate listed on your Rate Determination.
Oklahoma	$28,200	1.5%	0.3–9.2%	n/a
Oregon	$54,300	2.4%	0.9–5.4%
Pennsylvania	$10,000	Non-construction: 3.822% Construction: 10.5924%	1.419–14.4684%	Enter the Total Contribution Rate listed on your Unemployment Compensation (UC) Contribution Rate Notice. The Employee Withholding Contribution is automatically added by Gusto and should not be included in the rate entered in Gusto.
Rhode Island	UI: $29,800 TDI: $89,200	1%	0.79–9.49%	Enter the Tax Rate listed on your Notice of Tax Rate. Do not include Job Development Fund or Temporary Disability rates when entering the SUI rate in Gusto.
South Carolina	$14,000	1% The tax rate for new employers is the tax rate applicable for tax rate class 12 for a given year, or one percent, whichever is higher.	0-5.4%	Do not include the DACA rate when entering the SUI rate in Gusto.
South Dakota	$15,000	Non-construction: Year 1: 1.2% Year 2: 1% Construction: Year 1: 6% Year 2: 3%	0–8.8%	The Investment Fee is automatically added by Gusto, and new employers are not subject to the Administrative Fee.
Tennessee	$7,000	2.7%	0.01–10%	n/a
Texas	$9,000	2.7%, or your NAICS industry average	0.25–6.25%	Include all five component rates: General Tax Rate (GTR) Replenishment Tax Rate (RTR) Obligation Assessment Rate (OA) Deficit Tax Rate (DTR) Employment and Training Investment Assessment (ETIA)
Utah	$48,900	Construction: 7.2%	0.2–8.2%	Enter the rate from your Contribution Rate Notice listed under "J: Assigned Contribution Rate." The social cost rate of 0.3% is included in your "Assigned Contribution Rate" already, do not add it separately.
Vermont	$14,800	Non-construction: 1% Construction: 2% Heavy and civil engineering construction: 4.1% Specialty trade contractors: 2.8%	0.4–5.4%	Heads up: Rates typically get updated by the agency July 1 of each year.
Virginia	$8,000	2.5%	0.1–6.2%	Include the Pool Cost charge and the Fund Building charge in the SUI rate when entering it in Gusto.
Washington	$72,800	Non-construction: 1.28% Construction: 6%	0.24–8.12%	Do not include the EAF rate when entering your rate in Gusto. Include all other lines (such as social cost) from the SUI rate notice.
West Virginia	$9,500	TBA	TBA	TBA
Wisconsin	$14,000	Non-construction: 3.05% or 3.25% Construction: 2.9% or 3.10%	0–12%	Enter the Total Rate listed on your Tax Rate Notice and Schedule.
Wyoming	$32,400	Varies based on industry	0.014–8.5%	Enter the Assigned UI Tax Rate listed on your tax rate notice.

2024 tax rate info table

Last updated Jan 3, 2024.

State	Wage bases (2024)	New employer SUI* rates (2024) *SUI, unless otherwise noted	Tax rate ranges (2024) Minimum allowable to maximum allowable	How to enter the rates in Gusto
Alabama	$8,000	2.7% 0.06% (Employment Security Enhancement Assessment—ESA)	1.4–5.4%	Enter the Tax Rate listed in box 6 of your Tax Rate Notice. Do not include the Employment Security Assessment (ESA).
Alaska	$49,700	1.5–1.66%	1.5–5.9%	Enter the Total Contribution Rate (Employer + Employee) listed on your Contribution Rate Notice.
Arizona	$8,000	2%	0.5–14.03%	Enter the UI Tax Rate found in the upper-right hand corner of your Determination of Unemployment Tax Rate.
Arkansas	$7,000	Jan 1–June 30: 2.025% Jul 1–Dec 31: 2%	Jan 1–June 30: 0.225–10.124% Jul 1–Dec 31: 0.10.1%	Enter the Contribution Rate listed in the upper right-hand corner of your Rate Statement.
California	SUI: $7,000 SDI: No limit for 2024	3.4%	1.5–6.2%	Enter the "UI contribution rate" listed on your "UI Rate and Reserve Account" letter. ETT is entered separately.
Colorado	$23,800	Base: 1.53% for general employers For construction or trades: 1.56% For heavy construction: 5.7% Surcharge: 1.35% for general, construction, and trade companies. For heavy construction: 1.725 Support: 0.17% for general employers, construction, and trade companies. For heavy construction: 0.63%	Base: 0.64–8.68% Surcharge: 0.1–2.70% Support: 0.07–0.96%	Enter the tax rates listed in Item 6, Item 7, and Item 8 of your Tax Rate Notice separately.
Connecticut	$25,000	2.5%	1.1-7.8%
Delaware	$10,500	1.2%	0.3–6.5%	Enter the 2024 rate listed on your Notice of Unemployment Insurance Assessment Rate.
District of Columbia (Washington D.C.)	$9,000	2.7%	1.9–7.4%	Enter the tax rate listed in Box 2 of the Contribution Rate Notice. Do not include the Admin Assessment Tax in the SUI rate.
Federal	$7,000	n/a	0.6-6%	n/a
Florida	$7,000	2.7%	0.1–5.4%	Enter the tax rate listed under box 7 of your Reemployment Tax Rate Notice.
Georgia	$9,500	2.64% (SUI) 0.06% (GAAT) 2.70% (Total tax rate)	0.04–8.1%	Enter the total tax rate from your Georgia tax rate notice. Your unemployment rate and your GAAT rate should be added as one total rate in Gusto.
Hawaii	$59,100	3%	0.2–5.8%	Enter the “Contribution Rate” listed on your Contribution Rate Notice. Do not include the Employment and Training Assessment (E&T) rate in the SUI rate—Gusto already accounts for this.
Idaho	$53,500 (for all rates)	UI contribution rate: 0.98480% Admin rate: 0.20927% Workforce rate: .03693%	UI contribution rate: 0.28160–5.4% Admin rate: 0–0.55811% Workforce rate: 0–0.09849%	Do not include the Workforce rate in the "SUI" rate entered in Gusto. The Workforce Development and Admin Rate are entered separately in Gusto.
Illinois	$13,590	3.95%	0.85–9%	Enter the total “Contribution Rate” listed on your Rate Determination. The unemployment rate and Fund Building Rate should be added as one total rate in Gusto.
Indiana	$9,500	2.5%	0.5–9.4%	Enter the total premium for 2024 listed on your Official MERIT RATE Notice.
Iowa	$38,200	Non-construction: 1% Construction: 7%	0–7%	Enter the contribution (tax) rate listed on your Notice of Tax Rate.
Kansas	$14,000	Non-construction: 2.7% Construction: 6%	0.16–6%
Kentucky	$11,400	2.625%	0.225–8.925%	Enter the "Adjusted UI Rate" listed on your Notice of Contribution Rate. The SCUF rate is automatically added by Gusto.
Louisiana	$7,700	0.09–6.20%	0.09–6.20%	Enter the total rate 2024 listed in box 14 on your Louisiana U.I. Contribution Rate for Calendar Year 2024.
Maine	$12,000	2.04%	0–5.75%	Do not include the Competitive Skills Scholarship Fund (CSSF) or Unemployment Program Administrative Fund (UPAF) rates in Gusto–these are already accounted for.
Maryland	$8,500	2.6%	0.3–7.5%
Massachusetts	$15,000	SUI rate: 1.87% (non construction) Covid recovery rate: 0.751%	0.73–11.3%	Enter your EMAC rate and COVID rate* separately in Gusto. *The COVID rate ranges from 0.293% to 4.469%, which is 40.15% of an employer's corresponding SUI rate.
Michigan	$9,500	Non-construction: 2.7% Construction: 5%	0.06–13.3%
Minnesota	$42,000	1–8.9%	0.10–8.9%	Do not include the Workforce Assessment Rate, Federal Loan Interest Assessment, or the Additional Assessment when entering your rate in Gusto—these are already accounted for.
Mississippi	$14,000	First year: 1% Second year: 1.1% Third year: 1.2%	0–5.4%	Do not include the Workforce Investment and Training contribution rate when entering the SUI rate in Gusto.
Missouri	$10,000	General employers: 2.376% Non-profits: 1%	0–9%
Montana	$43,000	General employers: 1–2.2% Construction: 2.1%	0–9.18%	Do not include the Administrative Fund Tax (AFT) or "Total Rate" when entering your rate in Gusto—this is already accounted for. We'll automatically add the AFT rate to your contribution rate to calculate your Total Rate. Only enter the "Contribution Rate" in Gusto to avoid overpayment of taxes.
Nebraska	$9,000	Non-construction: 1.25% Construction: 5.4%	0–5.4%	Do not include the SUIT rate when entering the SUI rate in Gusto.
Nevada	$40,600	2.95%	0.25–5.4%	Do not include the Career Enhancement Program (CEP) rate in the rate you enter in Gusto. We'll automatically add the CEP rate to the unemployment experience rate you enter.
New Hampshire	$14,000	1.7%	0–7.5%	Do not include the administrative contribution rate in your unemployment rate in Gusto.
New Jersey	$42,300	The ranges below include the U.I. rate and W.F rate: 3.1% July 1, 2024 – June 30, 2025 3.28% July 1, 2023 – June 30, 2024 Disability Insurance rate: Typically 0.5%	1.2–7%	Enter the "Final Unemployment Experience" rate on your tax rate notice, include both the: UI rate, and WF rate The disability rate is entered separately.
New Mexico	$31,700	1–1.25% (most employers will have 1%, 1.15% for construction)	0.33-6.4%
New York	$12,500	4.025%	2.025–9.825%
North Carolina	$31,400	1%	0.06–5.76%
North Dakota	$43,800	Non-construction: 1.09% or 6.08% Construction: 9.68%	0.08–9.68%
Ohio	$9,000	General employers: 2.7% Construction: 5.6%	0.4–13.3%	Enter the Standard/Total Contribution Rate listed on your Rate Determination.
Oklahoma	$27,000	1.5%	0.3–9.2%
Oregon	$52,800	2.4%	0.9–5.4%
Pennsylvania	$10,000	Non-construction: 3.822% Construction: 10.5924%	1.419–14.4684%	Enter the Total Contribution Rate listed on your Unemployment Compensation (UC) Contribution Rate Notice. The Employee Withholding Contribution is automatically added by Gusto and should not be included in the rate entered in Gusto.
Rhode Island	SUI/JDF: $29,200 For the highest rated employers: $30,700 TDI: $87,000	0.79%	SUI: 0.89–9.49% JDF: 0.21%	Enter the Tax Rate listed on your Notice of Tax Rate. Do not include Job Development Fund or Temporary Disability rates when entering the SUI rate in Gusto.
South Carolina	$14,000	0.35%	0-5.4%	Do not include the DACA rate when entering the SUI rate in Gusto.
South Dakota	$15,000	Non-construction (year 1): 1.2% Non-construction (year 2): 1% Construction (year 1): 6% Construction (year 2): 3%	0-8.8%	The Investment Fee is automatically added by Gusto, and new employers are not subject to the Administrative Fee.
Tennessee	$7,000	2.7%	0.01–10%
Texas	$9,000	2.7%	0.25–6.25%	Include all five component rates: General Tax Rate (GTR) Replenishment Tax Rate (RTR) Obligation Assessment Rate (OA) Deficit Tax Rate (DTR) Employment and Training Investment Assessment (ETIA)
Utah	$47,000	Construction: 7.3%	0.3–8.3%	Enter the rate from your Contribution Rate Notice listed under "J: Assigned Contribution Rate." The social cost rate of 0.3% is included in your "Assigned Contribution Rate" already, do not add it separately.
Vermont	$14,300	Non-construction: 1% Construction: 2% Heavy and civil engineering construction: 4.1% Specialty trade contractors: 2.8%	0.4–5.4%
Virginia	$8,000	2.5%	0.1–6.2%	Include the Pool Cost charge and the Fund Building charge in the SUI rate when entering it in Gusto.
Washington	$68,500	New employers will pay 90% of the average rate for all businesses in their respective industries, with the minimum rate being 1.00%.	0.24–8.12%	Do not include the EAF rate when entering your rate in Gusto. Include all other lines (such as social cost) from the SUI rate notice.
West Virginia	$9,521	2.7%	1.5–8.5%
Wisconsin	$14,000	Non-construction: 3.05% or 3.25% Construction: 2.9% or 3.10%	0–12%	Enter the Total Rate listed on your Tax Rate Notice and Schedule.
Wyoming	$30,900	Various by industry	0–8.5%	Enter the Assigned UI Tax Rate listed on your tax rate notice.

2023 tax rate info table

Last updated Jan 31, 2023.

State	Wage bases (2023)	New employer SUI* rates (2023) *SUI, unless otherwise noted	Tax rate ranges (2023) Minimum allowable to maximum allowable	How to enter the rates in Gusto
Alabama	$8,000	2.7% (SUI) 0.06% (ESA)	0.14%-6.24%	Enter the Tax Rate listed in box 6 of your Tax Rate Notice. Do not include the Employment Security Assessment (ESA).
Alaska	$47,100	2.37%	1.51-5.91%	Enter the Total Contribution Rate (Employer + Employee) listed on your Contribution Rate Notice.
Arizona	$8,000	2%	0.07-18.78%	Enter the UI Tax Rate found in the upper-right hand corner of your Determination of Unemployment Tax Rate.
Arkansas	$7,000	3.1%	0.3%-14.2%	Enter the Contribution Rate listed in the upper right-hand corner of your Rate Statement.
California	$7,000 (SUI & ETT) $153,164 (SDI)	3.4% (SUI)	1.5-6.2% (SUI) 0.0%-0.1% (ETT)	Enter the "UI contribution rate" listed on your "UI Rate and Reserve Account" letter. ETT is entered separately.
Colorado	$20,400	1.7%	0.2-10.39%
Connecticut	$15,000	2.8%	1.7-6.6%
Delaware	$10,500	1.2%	0.3-8.2%	Enter the 2023 rate listed on your Notice of Unemployment Insurance Assessment Rate.
District of Columbia (Washington D.C.)	$9,000	2.7%	1.6-7%	Enter the tax rate listed in Box 2 of the Contribution Rate Notice. Do not include the Admin Assessment Tax in the SUI rate.
Florida	$7,000	2.7%	0.1-5.4%	Enter the tax rate listed under box 7 of your Reemployment Tax Rate Notice.
Georgia	$9,500	2.7%	0.04-8.1%	Enter the total tax rate from your Georgia tax rate notice. You do not need to enter your GAAT rate for 2023—that rate no longer exists.
Hawaii	$56,700	4%	0.2-6.2%	Enter the "Contribution Rate" listed on your Contribution Rate Notice. Do not include the Employment and Training Assessment (E&T) rate in the SUI rate—Gusto already accounts for this.
Idaho	$49,900	0.8%	0.1656-5.4%	Do not include the Workforce rate in the "SUI" rate entered in Gusto. The Workforce Development and Admin Rate are entered separately in Gusto.
Illinois	$13,271	3.95%	0.85-8.65%	Enter the total “Contribution Rate” listed on your Rate Determination. The unemployment rate and Fund Building Rate should be added as one total rate in Gusto.
Indiana	$9,500	2.5%	0.5-9.4%	Enter the total premium for 2023 listed on your Official MERIT RATE Notice.
Iowa	$36,100	General: 1% Construction companies: 7%	0-7%	Enter the contribution (tax) rate listed on your Notice of Tax Rate.
Kansas	$14,000	2.7%	0.17-6.4%
Kentucky	$11,100	2.7%	0.225-9%	Enter the "Adjusted UI Rate" listed on your Notice of Contribution Rate. The SCUF rate is automatically added by Gusto.
Louisiana	$7,700	1.93%	0.09-6.2%	Enter the total rate 2023 listed in box 14 on your Louisiana U.I. Contribution Rate for Calendar Year 2023.
Maine	$12,000	1.97%	0%-5.47%	Do not include the Competitive Skills Scholarship Fund (CSSF) or Unemployment Program Administrative Fund (UPAF) rates in Gusto–these are already accounted for.
Maryland	$8,500	2.3% Construction companies: 5.10%	0.3–7.5%
Massachusetts	$15,000	1.45% Construction companies: 5.55%	0.56-8.62%	Enter your EMAC rate and COVID rate* separately in Gusto. *The COVID rate is 12.50% of an employer’s corresponding SUI rate.
Michigan	$9,500	2.7%	0.06-10.3%
Minnesota	$40,000	1%	0.1-9%	Do not include the Workforce Assessment Rate, Federal Loan Interest Assessment, or the Additional Assessment when entering your rate in Gusto—these are already accounted for.
Mississippi	$14,000	1.0%	0-5.4%	Do not include the Workforce Investment and Training contribution rate when entering the SUI rate in Gusto.
Missouri	$10,500	2.511%* *Nonprofit: 1.0%	0-13.2%
Montana	$40,500	1.18%	0%-9.18%	Do not include the Administrative Fund Tax (AFT) or "Total Rate" when entering your rate in Gusto—this is already accounted for. We'll automatically add the AFT rate to your contribution rate to calculate your Total Rate. Only enter the "Contribution Rate" in Gusto to avoid overpayment of taxes.
Nebraska	$9,000	1.25%	0%-5.4%	Do not include the SUIT rate when entering the SUI rate in Gusto.
Nevada	$40,100	2.95%	0.25%-5.4%	Do not include the Career Enhancement Program (CEP) rate in the rate you enter in Gusto. We'll automatically add the CEP rate to the unemployment experience rate you enter.
New Hampshire	$14,000	1.7%	0%-8.5%	Do not include the administrative contribution rate in your unemployment rate in Gusto.
New Jersey	$41,100	3.4% (effective July 1, 2023)	1.2%-7%	Enter the "Final Unemployment Experience" rate on your tax rate notice, which includes both the UI rate and the WF rate.
New Mexico	$30,100	1.0%* *1.06% for those in the agriculture, forestry, fishing, and hunting industries.	0.33%-6.4%
New York	$12,300	3.4%	2.025%–9.825%
North Carolina	$29,600	1.0%	0.06%-5.76%
North Dakota	$40,800	1.13%	0.08%-9.97%
Ohio	$9,000.00	2.7%	0.8%-12.9%	Enter the Standard/Total Contribution Rate listed on your Rate Determination.
Oklahoma	$24,000	1.5%	0.3%-9%
Oregon	$50,900	2.1%	0.1%-5.4%
Pennsylvania	$10,000	3.822%	1.419%-13.6494%	Enter the Total Contribution Rate listed on your Unemployment Compensation (UC) Contribution Rate Notice. The Employee Withholding Contribution is automatically added by Gusto and should not be included in the rate entered in Gusto.
Rhode Island	$28,200 (SUI/JDF) $84,000 (TDI)	0.88% (SUI) 0.21% (JDF) 1.1% (TDI)	0.88%-9.49%	Enter the Tax Rate listed on your Notice of Tax Rate. Do not include Job Development Fund or Temporary Disability rates when entering the SUI rate in Gusto.
South Carolina	$14,000	0.39%	0%-5.4%	Do not include the DACA rate when entering the SUI rate in Gusto.
South Dakota	$15,000	1.20% Construction: 6.00%	0%-9.45%	The Investment Fee is automatically added by Gusto, and new employers are not subject to the Administrative Fee.
Tennessee	$7,000	2.7%	0.01%-10%
Texas	$9,000	2.7%	0.23%-6.23%
Utah	$44,800	Typically, 1.4%* *New employer rates are assigned based on industry average.	0.3-8.3%	Enter the rate from your Contribution Rate Notice listed under "J: Assigned Contribution Rate." The social cost rate of 0.3% is included in your "Assigned Contribution Rate" already, do not add it separately.
Vermont	$13,500	1.0%	0.4-5.4%
Virginia	$8000	2.53%	0.13-6.24%	Include the Pool Cost charge and the Fund Building charge in the SUI rate when entering it in Gusto.
Washington	$67,600	1.29%	0.24-8.12%	Do not include the EAF rate when entering your rate in Gusto. Include all other lines (such as social cost) from the SUI rate notice.
West Virginia	$12,000	2.7%	1.5%-8.5%
Wisconsin	$14,000	Payroll less than $500k: 3.05% Construction: 2.9% Payroll greater than $500k: 3.25% Construction: 3.10%	0-12%	Enter the Total Rate listed on your Tax Rate Notice and Schedule.
Wyoming	$29,100	New employer rates are assigned based on industry.	0-10%	Enter the Assigned UI Tax Rate listed on your tax rate notice.

Add or update (change) your SUI rate and effective date

State agencies assign your company an unemployment insurance tax rate when you register as an employer. Each year, you will get a new notice with your updated rate. These notices usually arrive between November of the prior year and March of the current year.

⚠️ Important compliance reminder: You must keep your SUI rate up to date in Gusto. If you miss deadlines, the state agency may charge penalties or interest, and your company will need to pay them.

Add a new SUI rate

Tip: Wait until October 1 or later to add rates for the following year.

Follow these steps to enter a new SUI rate from your state notice:

Sign in to Gusto.
Go to Taxes & Compliance > Tax setup.
Click Manage Taxes under the applicable state section.
In State Tax Settings, click Edit next to Unemployment Tax Rate (may also be called “SUI rate” or “Experience rate”).
- Updating only works in states where you have active employees.
- You can also view your past rates here.
Click Add a new rate.
- If the rate was effective during a prior closed quarter, you may get a tax notice for an amount owed or a refund (depending on whether you underpaid or overpaid).
Enter the percentage from your notice.
- Example: If your notice says .055555, enter 5.5555%.
- For state-specific entry instructions, check the state registration articles.
Set the Effective Date from the notice.¹
- Most states: January 1.
- New Jersey, Tennessee, Vermont: Use July 1.
- New Hampshire: Dates may be Jan 1, Apr 1, Jul 1, or Oct 1, depending on the notice.
Click Save.

Correct a SUI rate or effective date

If you entered the wrong rate or effective date, update it as soon as you have the correct info.

Sign in to Gusto.
Go to Taxes & Compliance > Tax setup.
Click Manage Taxes under the applicable state section.
In State Tax Settings, click Edit next to Unemployment Tax Rate (may also be called “SUI rate” or “Experience rate”).
- Updating only works in states where you have active employees.
- You can also view your past rates here.
Click Make a correction.
- Before each quarter ends, Gusto runs a reconciliation payroll to check for differences between your current SUI rate and past rates.
  - If we find you underpaid, Gusto will debit your account for the missing amount.
  - If we find you overpaid, Gusto will refund the extra amount.
- If the new rate applies to a quarter that has already closed, you will likely get a notice from the agency:
  - Underpaid → You must pay the agency.
  - Overpaid → You will receive a refund.
- ⚠️ Gusto does not amend unemployment returns for past quarters. You either pay the agency directly or accept the refund.
Enter the correct rate (example: .055555 → 5.5555%) and effective date from your notice.
- For state-specific entry instructions, check the state registration articles.
Set the Effective Date from the notice.¹
- Most states: January 1.
- New Jersey, Tennessee, Vermont: Use July 1.
- New Hampshire: Dates may be Jan 1, Apr 1, Jul 1, or Oct 1, depending on the notice.
Click Save.

1 Failure to timely update or confirm your State Unemployment Insurance rate may result in additional taxes and penalties being imposed on the taxpayer by the taxing authority or agency.

What happens if you update late

If the update applies to a closed quarter, the agency may issue:

A notice to pay more (if underpaid), or
A refund (if overpaid).

Gusto will not amend unemployment returns for past quarters.

If underpaid → Pay the agency directly.
If overpaid → Accept the refund.

Before the end of each quarter, Gusto runs a reconciliation payroll. If a difference is found:

Gusto will debit your account for underpaid taxes, or
Gusto will refund your account for overpayments.

⚠️ Final compliance reminder: Failure to update or confirm your SUI rate may result in extra taxes and penalties from the agency. The company is responsible for paying these.

Automatic updates from agencies

Some agencies share rate updates directly with Gusto. If we can confirm your rate, we may update it for you. However, it is still your responsibility to:

Confirm your correct rate is entered in Gusto, and
Update it if necessary.

Get help

If you need assistance entering or correcting your rate, message us from the in your account.

Rate errors in Gusto—tips for entering your SUI rate

Sometimes, Gusto will not let you enter a state unemployment rate because it is too low or too high. Check the table above to see the correct tax rates for your state.

Tips for entering your rate

Make sure to enter the rate your company got for the current year.
Check your rate by contacting the agency or using your online state account.
Change decimal rates to percentages.
- Example: 0.05555 should be 5.5555%.
Some agencies have extra tax rates for SUI. If you entered them incorrectly, it may have put you out of the acceptable rate range.
- Check the table above to see how to enter rates in Gusto.
If a rate that worked before now shows "invalid," it may be because of the “effective date”. Learn how to update the effective date.

Rate notices—what to do, and what to expect

These notices are to let you know of your new unemployment rate and the day it becomes effective—you should add your unemployment rate and its effective date in Gusto.

What to expect after making a rate update in your Gusto account

If...	Then...
The rate was updated before the effective date listed on the notice.	Gusto will withhold at the new rate starting on payrolls with a check date on or after the effective date you set in Gusto.
The rate was updated mid-quarter with a backdated effective date.	Gusto will run a reconciliation payroll at the end of each quarter to make sure the accurate quarterly payment is made based on the entire quarter’s applicable wages and new rate.
The rate was updated successfully, but the effective date listed is before the date that the current quarter began. Example: The effective date was January 1, but you did not update the rate in your Gusto account until April 15.	Action needed: Call the agency directly to discuss potential account balances or credits resulting from previous quarters. Because your rate was not updated, taxes may have been withheld incorrectly. To rectify this for the current quarter, Gusto will run a reconciliation payroll. If there’s an amount due, pay it immediately to avoid additional penalties. If there’s an overbalance, make sure the rate discrepancy is the only reason for the credit before you request the refund. If assistance is still needed, you can send the notice to Gusto—agencies will never send these notices to Gusto directly.

SUI reimbursable employers (for non-profit companies)

Some employers can be SUI reimbursable if they are:

A non-profit
A religious group
A government employer
- Gusto does not support government employers marking as FUTA exempt, but you can set FUTA exemptions for all employees.

SUI reimbursable employers pay the state back for unemployment benefits paid to their former employees instead of paying quarterly like other companies. These employers have an account with the state and are charged for the exact amount of benefits paid (monthly, or quarterly).

If you’re not sure if you’re SUI reimbursable, contact the state agency.

Federal tax setup requirements

To be “SUI reimbursable” the following must be true in the Federal Tax Setup section of your account:

Company Type: Non-Profit
Special FUTA exemption: You’ve chosen Yes, we are a non-profit 501(c)(3) organization and are exempt from FUTA.
- This means you’re exempt from paying FUTA, but are still required to file.
- Do not set up a separate company exemption for FUTA, it will block the required filings.

Add or edit SUI reimbursable status for states

If you’re not sure if you’re SUI reimbursable, have effective date questions, or need to find your unemployment rates, contact the state agency. South Carolina employers who are SUI reimbursable should read below for additional requirements.

Make sure you've met the Federal Tax Setup requirements above.
Go to the Taxes & Compliance section and click Tax setup.
Scroll to the applicable “[State] Tax Setup” headline.
Click Manage Taxes.
Scroll to the “State tax settings”, and click Edit next to “SUI reimburser”.
Choose from the options:
- Add a new setting if you recently became SUI reimbursable.
- Make a correction if you’ve been reimbursable but did not enter that information in Gusto.
Confirm effective dates, and make any other selections necessary.
Click Save.

South Carolina employers who are SUI reimbursable

After you've let us know you're SUI reimbursable, if you still see a SUI and “DACA” rate listed in Gusto, we'll need your help fixing this:

Contact us from the section of Gusto.
Let us know you’re SUI reimbursable in SC, and the DACA rate should not apply.
We’ll set up a company exemption for the DACA tax. This means we won’t withhold the tax or pay it to the agency.
- Heads up: A DACA rate may still show in Gusto, but we're not withholding the tax or paying it.

Unemployment claims or benefit form questions

Unemployment claims are filed when an employee is laid off or furloughed. This alerts the state and the employee’s previous employer that the worker is asking for unemployment benefits.

Reminders

Gusto cannot help you fill out unemployment claims.
- If you need more help with unemployment claims, you can upgrade to our Premium service so you can benefit from our HR resources. The HR team provides advice but doesn’t fill out forms for companies.
Make sure your company’s unemployment insurance is only being charged for benefits that the state decides were due to reasons outside the employee's control, like being laid off.
- These claims are usually made by ex-employees who believe they lost their job through no fault of their own.
It's important to review these forms quickly and correct any mistakes because unemployment claims can raise your unemployment tax rates in the future.
- If the claim is approved, the state pays benefits using taxes collected from employers, and those benefits are charged to the employer's account.

What happens when an employee files an unemployment claim?

The former employer will get a notice when an employee files a claim. Employers need to check the details of the claim and fix any mistakes, such as:

Wages and dates of employment
Type of employment (full-time, part-time, or contractor)
Reason for leaving (laid off, quit, fired, etc.)
Whether the employee refused a job offer
Any compensation received (like vacation or severance pay)

If you get a notice, act quickly. If the claim is valid, you can accept it. If it’s not accurate, you can challenge it, but you only have a few days to do so. If you don't take action, the claim will usually be approved, the employee will get benefits, and your company’s account will be charged. This could make your unemployment tax rate go up in future years.

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