Unemployment Taxes Overview


Unemployment taxes—FUTA (Federal Unemployment Tax Act) and SUTA (State Unemployment Tax Act)—are employer-paid contributions mandated by federal and state laws to fund unemployment insurance programs. These taxes do not appear on employees’ paystubs but are included in your Payroll Register Report, generated by our payroll department for each payroll run. This report provides a detailed view of all payroll-related taxes, including those the employer is required to file and remit.


Why This Is More Noticeable in the First Quarter

Unemployment taxes are assessed only on the initial wages up to the taxable wage base for each employee. As a result:


Additional Details:

Texas SUTA (State Unemployment Tax Act)


State Unemployment Tax (SUTA) in Texas:


FUTA (Federal Unemployment Tax Act)