Posts filed under the Small Business Taxes category.

Unemployment Tax

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State Unemployment Tax

The State Unemployment Tax Act (SUTA) — also known as “state unemployment insurance” (SUI) — is a payroll tax paid by employers. States place these taxes into their unemployment funds to pay benefits to employees who have separated from their employer. SUTA rates vary by state. The state unemployment agency determines the tax rates annually. Employers with a positive reserve ratio receive the lowest tax rates, while negative-ratio employers may encounter substantially higher rates.

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Payroll Tax Delinquency Penalty

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You are required to pay penalties for undeposited or unpaid employment taxes, and for late payroll tax returns. The IRS will calculate separate penalty for each type of delinquency, and then add up the penalty for each and combine them to determine the total amount.

Liability and negligence penalty for taxes not withheld at all.

The penalty applies when employers fail to withhold taxes at all. This sometimes happens if employees have terminated or have insufficient current wages on which to pay the taxes due to various year-end adjustment items.

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