State Unemployment Taxes
Accounting glossary · Understand, connect, apply
State unemployment taxes are US state-level employer taxes supporting unemployment insurance, subject to each state’s rules. Some jurisdictions also require employee contributions.
Example
An employer records the applicable state unemployment tax as part of payroll-related costs and liabilities.
Remember the difference
Do not assume all states use the same rate, wage base or contribution rules. Distinguish state tax from federal FUTA.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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