State Unemployment Insurance Tax

To properly calculate tax withholding, you must set the state unemployment insurance (SUI) employer rates.

You define them on the payroll statutory unit (PSU) calculation card, and it applies to all associated tax reporting units (TRUs). You can then set overrides for TRUs and individual employees.

What kind of rate info you want to track	How you track it
Employer and employee rates	To enter the SUI rate: Start the Legal Entity Calculation Cards. Enter an effective as-of date. Search for and select for editing an existing PSU calculation card, or create one. In Calculation Card Overview, select Regional. If entries for the state don't already exist, click Create and select the state name. In Calculation Components, select the state's State Unemployment row. In Details, select Enterable Calculation Values on Calculation Cards. Select State Unemployment Employer Experience Rate, and click Edit. Click Create if the row doesn't already exist. In Edit Calculation Values, enter the rate and click OK. Repeat these steps to set the SUI employee rate. Click Save. Note: When you enter a SUI rate for a selected state, you must also provide component details for the state disability insurance (SDI) and state income tax (SIT). For further info, see Configure Organization Calculation Cards for the US in the Help Center.
Wage base rates	The payroll process maintains the state-specific SUI limits when: An employee has a change in their work state It's within the same TRU. This includes granting applicable credit for the wages earned in the other state. Note: Not all states allow this credit. In these cases, the payroll process doesn't calculate the credit. For further info, refer to your state tax authority. After those limits are reached, the payroll process stops the SUI deductions. It automatically adjusts the new state's SUI limit for the SUI wages you paid in the other state. You can override how the process manages SUI wage limit credits at the PSU and TRU levels. For further info, see Limit Credits for State Unemployment Insurance in the Help Center.
Midyear SUI rate changes	For states that regularly perform midyear changes to their SUI tax rates, configure your organization card to use the quarterly self-adjustment method. By checking each quarter individually to determine adjustments, the payroll process maintains the integrity of the calculations before the change. For further info, see Self-Adjustment Methods for Tax Withholding in the Help Center.
Wage limit configuration	Your legislative data group provides the predefined wage limits for state unemployment insurance (SUI). You can override these limits at the payroll statutory unit (PSU) and tax reporting unit (TRU) levels. For further info, see Wage Limits for State Unemployment Insurance in the Help Center.
Tax limit configuration	By default, the payroll process tracks all state taxes with limits at the individual TRU level, such as SUI and SDI. However, you can override this default and track your state-level limit taxes at the parent PSU level. For further info, see Limit Taxes in the Help Center.