Rock the 2026 FPC Exam – Master Payroll Fundamentals with Confidence!

The acronym 'SUTA' stands for State Unemployment Tax Act. This act refers to the federal law that allows states to collect unemployment insurance taxes from employers to fund unemployment benefits for workers who have lost their jobs without cause. Each state has its own regulations and rates for SUTA, but it is fundamentally designed to help provide support to unemployed individuals, thereby stabilizing the economy during downturns. Understanding this framework is crucial for payroll professionals, as it impacts employer tax obligations and the benefits available to employees in the event of job loss.