SUTA- State Unemployment Tax

Even though your state may not have an income tax, it will have an unemployment tax. A list of state unemployment tax agencies, including addresses and phone numbers, is available in the Appendix to IRS Publication 926, Household Employer's Tax Guide which you may download from the IRS website

You must obtain a SUTA, state unemployment tax identification number which is in addition to your federal employer identification number. You will be required to file quarterly unemployment tax returns and pay unemployment taxes to your state. This is in addition to the federal unemployment tax. To obtain your state unemployment tax number, write to your state unemployment office and ask for the form to obtain your unemployment tax identification number.

Payroll, payroll taxes and workers compensation are facts of life for businesses with employees.  While employees may be absolutely critical to the success of your business, they consume valuable resources that increase your cost of doing business. Make a mistake in calculating payroll withholding taxes and/or paying payroll taxes and you have angry employees and the IRS to deal with.

As you proceed with your business planning, you would be wise to consider purchasing a payroll software program to help process your payroll. Take a look at our payroll software program page to get an idea what types of features and reporting capabilities are important before you buy.