State unemployment insurance (SUI) tax (for admins)
This article is for admins who need to understand state unemployment insurance (SUI) taxes and how to manage them in Gusto.
Important reminders
Unemployment exemptions
If your company or an employee is exempt from paying state unemployment insurance (SUI), set up the exemption in Gusto.
State registration and third-party authorization (TPA)
If you still need to register or give us access to pay and file, go to this state registration hub. The hub also shows you where to find your assigned unemployment rates if you’ve already registered.
Expand the sections to find information about state unemployment insurance (SUI) taxes. Use CMD + F (or CTRL + F) to search for words in the article.
State unemployment insurance (SUI) provides financial support to workers who lose their jobs. Employers usually pay this tax, though some states also require employee contributions.
Key points:
Your state assigns your unemployment rate after you register for unemployment tax.
Your tax rate depends on your company’s history with unemployment claims and your type of business.
Each state limits how much of an employee’s income it can tax each year. This is called a wage base limit, and it can change every year.
Find state wage bases in the New employer SUI rates tables in the article.
Unemployment deductions and payments
We deduct the SUI tax from each payroll based on the state rate in Gusto. We pay this tax with your quarterly or annual tax filings (quarterly Form 941 or annual Form 944).
Run an Agency payments report to see the payments we make. Learn where to view your tax filings in Gusto.
For info about how to register in your state, search for your state’s name in our Help Center.
How employee moves affect wage base limits and SUI taxes
When an employee moves to a new state, the new state’s unemployment wage base limit applies to that employee:
If the new state’s wage limit is lower than the old state’s limit: Your company will not owe more SUI taxes on that employee in the new state. However, you will not get back any SUI taxes you paid in the old state.
If the new state’s wage limit is higher than the old state’s limit: Your company keeps paying taxes until the employee’s wages reach the new state’s higher wage base limit. Usually, you’ll get credit for the SUI taxes you already paid in the old state.
All states except Iowa, Louisiana, Minnesota, and Montana allow employers to credit wages paid in other states when calculating unemployment taxes.
Some states ask you to report out-of-state wages to claim the credit: AK, AR, DC, FL, IN, MA, MD, MI, NM, OH, and WI (for income tax).
The new state may send a notice requesting additional taxes from your company due to differences in how the new state calculates taxable wages.
Out-of-state wage reporting
States do not have a standard way to collect out-of-state wages after a filing period closes. Some states require you to report wages earned by employees in other states in quarterly wage reports. States may ask you for:
The employee’s name and Social Security number (SSN)
The wages you reported to the previous state within the same year, and the state you paid the taxes to
Extra documents or actions, like special forms or adjusting tax filings, to claim the credit
Employers usually pay state unemployment insurance (SUI) tax to the state where the employee works. However, it may be more challenging to determine the correct state when an employee works in multiple states or lives in one state but works in another.
The US Department of Labor provides rules to help you determine which state’s unemployment law applies. These rules make sure you cover all of an employee’s work under a single state’s unemployment law.
How we determine the SUI tax state
We pay SUI based on the work address listed in Gusto for each employee. If we withhold SUI taxes in the wrong state, update the employee’s work address in Gusto.
How to determine the correct work state to enter in Gusto
Work Location Test (Localization)
If the employee does most of their work in one state, use that state (called the “localized” state) for SUI taxes.
If the employee regularly works in multiple states (watch this video for more information), apply these tie-breakers in this order:
Base of Operations: Where does the employee start their workday or report to?
This is typically the employee’s primary office or worksite.
Direction & Control: Where is the employee’s manager or main office?
This is typically the employer’s main office or where the supervising manager works.
Residence: If the first two tests do not determine a state, use the state where the employee lives.
For more details, see the Department of Labor’s Localization of Work Provisions resource.
After you register with your state, the state’s unemployment tax agency assigns unemployment tax rates to your company. If you do not have your company’s rates yet, enter the “New employer tax rates” from the table below in Gusto until you get your assigned rates.
Enter a temporary “new employer tax rate” in Gusto
Go to the table below and find your state.
Find the new employer rates for the info we request.
If there are multiple rates or a range, choose the lowest rate that applies to your company. When you update the rate later, we’ll reconcile the difference.
Go to Taxes & Compliance.
Click Tax setup.
Scroll to your state’s [State] Tax Setup headline.
Click Manage Taxes.
Click Edit to enter the rates.
As soon as the agency assigns your rates, update the rates in Gusto.
Check your state’s web portal or mail from the agency to find this info. If you need help, contact the agency.
If you do not know if your company must pay the tax, contact the agency. If your company qualifies for an exemption, you can set up exemptions in Gusto.
Glossary terms
The maximum amount of an employee’s income that a state can tax in a calendar year. This can vary by state and even by tax types.
SUI
State unemployment insurance
SDI
State disability insurance
TDI
Temporary disability insurance
TBA
To be announced (we’re waiting on the agency to release the info)
Last updated January 14, 2026. If a box is empty, it means we’re still waiting on agencies to release the missing details.
State
Wage bases (2026)
New employer SUI* rates (2026)
*SUI, unless otherwise noted
Tax rate ranges (2026)
Minimum allowable to maximum allowable
How to enter the rates in Gusto
$8,000
2.70%
0.14–6.74%
Enter the Tax Rate listed in box 6 of your Tax Rate Notice.
Do not include the Employment Security Assessment (ESA).
$54,200
1.5–1.66%
1.5–5.9%
Enter the Total Contribution Rate (Employer + Employee) listed on your Contribution Rate Notice.
$8,000
2.70%
0.03–8.36%
Enter the UI Tax Rate found in the upper right-hand corner of your Determination of Unemployment Tax Rate.
$7,000
1.9%
0.20–10.1%
Enter the "Contribution Rate" listed in the upper right-hand corner of your Rate Statement.
SUI: $7,000
SDI: No limit
3.40%
1.5–6.2%
Enter the "UI contribution rate" listed on your "UI Rate and Reserve Account" letter.
Enter ETT separately.
$30,600
3.05%
Base: 1.53% for general employers
For construction or trades: 1.56%
For heavy construction: 5.7%
Surcharge: 1.35% for general, construction, and trade companies.
For heavy construction: 1.725%
*Support: 0.17% for general employers, construction, and trade companies.
For heavy construction: 0.63%
Base: 0.20–7.34%
Surcharge: 0.1–2.70%
*Support: 0.06–0.81%
Enter the tax rates listed in Item 6, Item 7, and Item 8 of your Tax Rate Notice separately.
*The "Support rate" covers four state-run funds (listed below), and we do not need you to list those funds separately in Gusto. If the state changes any of the four funds, the "Support rate" will be automatically updated.
Employment Support Fund (ESF)
Employment and Training Technology Fund (ETTF)
Benefit Recovery Fund (BRF)
Workforce Development Fund (WDF)
$27,000
1.9%
1.10–9.90%
Connecticut Department of Labor resource.
$14,500
1.0%
0.4–6.3%
Enter the 202X rate listed on your Notice of Unemployment Insurance Assessment Rate.
District of Columbia (Washington D.C.)
$9,000
2.7%
1.9–7.4%
Enter the tax rate listed in Box 2 of the Contribution Rate Notice.
Do not include the Admin Assessment Tax in the SUI rate.
Federal
$7,000
N/A
0.6–6%
N/A
$7,000
2.70%
0.1–5.4%
Enter the tax rate listed under box 7 of your Reemployment Tax Rate Notice.
$9,500
2.70%
0.04%–8.10%
Enter the total tax rate from your Georgia tax rate notice.
Add your unemployment rate and your GAAT rate as one total rate in Gusto.
$64,500
2.40%
0–5.6%
Enter the "Contribution Rate" listed on your Contribution Rate Notice.
Do not include the Employment and Training Assessment (E&T) rate in the SUI rate — we already account for this.
$58,300
UI new employer rate: 0.97%
Admin new employer rate: 0.0%
Workforce new employer rate: 0.03%
0.20176%–5.4%
UI rate: 0.18–5.4%
Admin rate: 0–0.35717%
Workforce rate: 0–0.06303%
Do not include the Workforce rate in the "SUI" rate you enter in Gusto.
Enter the Workforce Development and Admin Rate separately in Gusto.
$14,250
3.35%*
*For Administrative Support & Waste Management NAICS: 3.45%
0.75–7.05%
Enter the total "Contribution Rate" listed on your Rate Determination.
Add the unemployment rate and Fund Building Rate as one total rate in Gusto.
$9,500
2.50%
0.5–9.4%
Enter the "Contribution Rate" from your Employer Tax Rate Notice.
$20,400
Non-construction: 1.0%
Construction: 7%
0.0–5.4%
Enter the "Contribution (tax) Rate" listed on your Notice of Tax Rate.
$15,100
Non-construction: 1.75%
Construction: 5.55%
0.0–6.95%
N/A
$12,000
2.7%
0.3–9.0%
Enter the contribution rate listed on the documentation.
$7,000
0.09–6.20%
0.09–6.20%
Enter the total rate 2026 listed in box 14 on your Louisiana U.I. Contribution Rate for Calendar Year 2026.
$12,000
2.23%
This Includes:
CSSF rate: 0.14%
UPAF rate: 0.17%
0.0–6.29%
Do not include:
The Competitive Skills Scholarship Fund (CSSF) or;
Unemployment Program Administrative Fund (UPAF)
We already account for these rates in Gusto.
$8,500
2.60%
0.30–7.50%
$15,000
Non-construction: 2.42%
Construction: 6.08%
SUI rate: 0.94–14.37%
COVID rate: 0.21–3.2%
Enter your EMAC rate and COVID rate* separately in Gusto.
*The COVID rate ranges from 0.21– 3.2%.
Standard accounts: $9,000
Deliquent accounts: $9,500
2.70%
0.06–10.3%
If you have a delinquent wage base, upload your rate notice in Gusto.
$44,000
Non-construction: 1–8.9%
Construction: 1.63–8.9%
0.4–9.3%
Do not include the following rates in Gusto—we already account for them:
Workforce Assessment Rate
Federal Loan Interest Assessment
Additional Assessment
$14,000
TBA
0–5.4%
Do not include Workforce Investment and Training contribution rate when you enter your SUI rate in Gusto.
$9,000
General employers: 2.376%
Non-profits: 1%
0–10.5%
$47,300
General employers: 1–2.2%
Construction: 2.1%
0.00–9.18%
Do not include the Administrative Fund Tax (AFT) or "Total Rate" when you enter your rate in Gusto — we already account for these.
We'll automatically add the AFT rate to your contribution rate to calculate your Total Rate. Only enter the "Contribution Rate" in Gusto to avoid overpaying taxes.
$9,000
Non-construction: 1.25%
Construction: 5.4%
0–5.4%
Do not include the SUIT rate when you enter the SUI rate in Gusto.
$43,700
2.95%
0.25–5.4%
Do not include the Career Enhancement Program (CEP) rate in the rate you enter in Gusto.
We'll automatically add the CEP rate (0.05%) to the unemployment experience rate you enter.
$14,000
2.70%
0–7.5%
Do not include the administrative contribution rate in your unemployment rate in Gusto.
$44,800
2.8% (this includes the Workforce Development and Supplemental Workforce Funds rate of 0.1175% (until June 30, 2026).
Disability Insurance rate (entered separately): Typically 0.5%
0.5–5.8%
Enter the "Final Unemployment Experience" rate on your tax rate notice, including both the:
UI rate, and
WF rate
Enter the disability rate separately.
$34,800
1.0–2.8%
0.33–6.40%
2026 Wage Base: $34,800.00
New Employer Rate: 1%-1.28%
New Employer Rate (construction): 1.21%
Min/Max: .33% - 6.4%
$17,600
4.10%
1.7–9.5%
Do not enter the:
Re-employment services fund or;
Total rate
We'll automatically add the re-employment services fund rate to the UI rate you enter in Gusto. Combined, they are the "Total rate".
$34,200
1%
0.06–5.76%
N/A
$46,600
Non-construction: 1.03–6.09%
Construction: 9.69%
0.07–9.67%
N/A
$9,000
Non-construction: 2.85%
Construction: 5.85%
0.4–12.75%
Enter the Standard/Total Contribution Rate listed on your Rate Determination.
Note: A Technology and Customer Service Fee of 0.15% applies for 2026-2027.
$25,000
1.50%
0.2–5.8%
N/A
$56,700
2.40%
0.9–5.4%
$10,000
Non-construction: 3.822%
Construction: 10.5924%
1.419–14.4684%
Enter the Total Contribution Rate listed on your Unemployment Compensation (UC) Contribution Rate Notice.
We automatically add the Employee Withholding Contribution, and you should not include it in the rate you enter in Gusto.
Unemployment: $30,800
Disability: $100,000
1.21% (includes 0.21% Job Development Assessment)
0.9–9.4%
Enter the Tax Rate listed on your Notice of Tax Rate.
Do not include Job Development Fund or Temporary Disability rates when you enter the SUI rate in Gusto.
$14,000
1% (or 0.21% including 0.06% Contingency Assessment, whichever is higher)
0.00–5.4%
Do not include the DACA rate when you enter the SUI rate in Gusto.
$15,000
Non-construction:
Year one: 1.2%
Year two: 1%
Construction:
Year one: 6%
Year two: 3%
0–8.52%
We automatically add the Investment Fee, and new employers do not need to pay the Administrative Fee.
$7,000
2.70%
0.01–10%
N/A
$9,000
2.7%, or your NAICS industry average
Include all five component rates:
General Tax Rate (GTR)
Replenishment Tax Rate (RTR)
Obligation Assessment Rate (OA)
Deficit Tax Rate (DTR)
Employment and Training Investment Assessment (ETIA)
$50,700
1.4%
0.1–7.10%
Enter the rate from your Contribution Rate Notice listed under "J: Assigned Contribution Rate."
Your "Assigned Contribution Rate" already includes the social cost of 0.3%. Do not add it separately.
$14,800
Non-construction: 1%
Construction: 2%
Heavy and civil engineering construction: 4.1%
Specialty trade contractors: 2.8%
0.4–5.4%
Note: The agency typically updates rates July 1 of each year.
$8,000
2.50%
0.1–6.2%
Include the following when entering your SUI rate in Gusto:
Pool Cost charge, and;
Fund Building charge
$78,200
Non-construction: 1.28%
Construction: 6%
0.24–8.12%
Do not include the EAF rate when you enter your rate in Gusto.
Include all other lines (such as social cost) from the SUI rate notice.
$9,500
2.7%
1.50–8.50%
$14,000
Non-construction: 3.05% or 3.25%
Construction: 2.9% or 3.10%
0.0–12.0%
Enter the Total Rate listed on your Tax Rate Notice and Schedule.
$33,800
2.7%
0.14–10%
Enter the Assigned UI Tax Rate listed on your tax rate notice.
Last updated January 6, 2025. If a box is empty, it means we’re still waiting on agencies to release the missing details.
State
Wage bases (2025)
New employer SUI* rates (2025)
*SUI, unless otherwise noted
Tax rate ranges (2025)
Minimum allowable to maximum allowable
How to enter the rates in Gusto
$8,000
2.7%
0.14–5.34%
Enter the Tax Rate listed in box 6 of your Tax Rate Notice.
Do not include the Employment Security Assessment (ESA).
$51,700
1.5–1.66%
1.5–5.9%
Enter the Total Contribution Rate (Employer + Employee) listed on your Contribution Rate Notice.
$8,000
2%
0.04–9.72%
Enter the UI Tax Rate found in the upper right-hand corner of your Determination of Unemployment Tax Rate.
$7,000
2%
0.2–10.1%
Enter the “Contribution Rate” listed in the upper right-hand corner of your Rate Statement.
SUI: $7,000
SDI: No limit for 2024
3.4%
1.5–6.2%
Enter the “UI contribution rate” listed on your “UI Rate and Reserve Account” letter.
Enter ETT separately.
$27,200
Base: 1.53% for general employers
For construction or trades: 1.56%
For heavy construction: 5.7%
Surcharge: 1.35% for general, construction, and trade companies.
For heavy construction: 1.725
*Support: 0.17% for general employers, construction, and trade companies.
For heavy construction: 0.63%
Base: 0.64–8.68%
Surcharge: 0.1–2.70%
*Support: 0.07–0.96%
Enter the tax rates listed in Item 6, Item 7, and Item 8 of your Tax Rate Notice separately.
*The “Support rate” covers four state-run funds (listed below), and we do not need you to list those funds separately in Gusto. If the state changes any of the four funds, the “Support rate” will update automatically.
Employment Support Fund (ESF)
Employment and Training Technology Fund (ETTF)
Benefit Recovery Fund (BRF)
Workforce Development Fund (WDF)
$26,100
2.2%
1.10–8.90%
n/a
$12,500
TBA
TBA
Enter the 202X rate listed on your Notice of Unemployment Insurance Assessment Rate.
District of Columbia (Washington D.C.)
$9,000
TBA
TBA
Enter the tax rate listed in Box 2 of the Contribution Rate Notice.
Do not include the Admin Assessment Tax in the SUI rate.
Federal
$7,000
n/a
0.6–6%
n/a
$7,000
2.7%
0.1–5.4%
Enter the tax rate listed under box 7 of your Reemployment Tax Rate Notice.
$9,500
2.7%
TBA
Enter the total tax rate from your Georgia tax rate notice.
Add your unemployment rate and your GAAT rate as one total rate in Gusto.
$62,000
2.4%
0–5.6%
Enter the “Contribution Rate” listed on your Contribution Rate Notice.
Do not include the Employment and Training Assessment (E&T) rate in the SUI rate — we already account for this.
$55,300
UI new employer rate: 0.80%
Admin new employer rate: 0.17%
Workforce new employer rate: 0.03%
UI rate: 0.18–5.4%
Admin rate: 0–0.35717%
Workforce rate: 0–0.06303%
Do not include the Workforce rate in the "SUI" rate you enter in Gusto.
Enter the Workforce Development and Admin Rate separately in Gusto.
$13,916
3.75%
0.75–7.85%
Enter the total “Contribution Rate” listed on your Rate Determination.
Add the unemployment rate and Fund Building Rate as one total rate in Gusto.
$9,500
2.5%
0.5–9.4%
Enter the "Contribution Rate" from your Employer Tax Rate Notice.
$39,500
Non-construction: 1%
Construction: 7%
0–7%
Enter the “Contribution (tax) Rate” listed on your Notice of Tax Rate.
$14,000
Non-construction: 1.75%
Construction: 5.55%
0–6.65%
n/a
$11,700
2.625%
0.225–8.925%
Enter contribution rate listed on documentation.
$7,700
0.09–6.20%
0.09–6.20%
Enter the total rate 2024 listed in box 14 on your Louisiana U.I. Contribution Rate for Calendar Year 2024.
$12,000
2.11%
0–5.97%
Do not include the Competitive Skills Scholarship Fund (CSSF) or Unemployment Program Administrative Fund (UPAF) rates in Gusto – we already account for these.
$8,500
2.6%
0.30–7.50%
$15,000
Non-construction: 2.13%
Construction: 5.459%
SUI rate: 0.83–12.65%
COVID rate: 0.21–3.2%
Enter your EMAC rate and COVID rate* separately in Gusto.
*The COVID rate ranges from 0.21– 3.2%.
$9,000
Standard
$9,500
For delinquent accounts
2.7%
0.06–10.3%
If you have a delinquent wage base, upload your rate notice in Gusto.
$43,000
Non-construction: 1–8.9%
Construction: 1.63–8.9%
0.4–9.3%
Do not include the Workforce Assessment Rate, Federal Loan Interest Assessment, or the Additional Assessment when you enter your rate in Gusto — we already account for these.
$14,000
TBA
0–5.4%
Do not include the Workforce Investment and Training contribution rate when you enter the SUI rate in Gusto.
$9,500
General employers: 2.376%
Non-profits: 1%
0–9%
$45,100
General employers: 1–2.2%
Construction: 2.1%
0–9.18%
Do not include the Administrative Fund Tax (AFT) or "Total Rate" when you enter your rate in Gusto — we already account for these.
We'll automatically add the AFT rate to your contribution rate to calculate your Total Rate. Only enter the "Contribution Rate" in Gusto to avoid overpaying taxes.
$9,000
Non-construction: 1.25%
Construction: 5.4%
0–5.4%
Do not include the SUIT rate when you enter the SUI rate in Gusto.
$41,800
2.95%
0.25–5.4%
Do not include the Career Enhancement Program (CEP) rate in the rate you enter in Gusto.
We’ll automatically add the CEP rate (0.05%) to the unemployment experience rate you enter.
$14,000
1.7%
0–7.5%
Do not include the administrative contribution rate in your unemployment rate in Gusto.
$43,300
3.1% (UI rate and WF rate combined)
July 1, 2024 – June 30, 2025
Disability Insurance rate: Typically 0.5%
Entered separately
1.2–7%
Enter the "Final Unemployment Experience" rate on your tax rate notice, including both the:
UI rate, and
WF rate
Enter the disability rate separately.
TBA
TBA
TBA
TBA
$12,800
4.1%
2.1–9.9%
Do not enter the:
“Re-employment services fund” or;
“Total rate”
We’ll automatically add the re-employment services fund rate to the UI rate you enter in Gusto. Combined, they are the “Total rate”.
$32,600
1%
0.06–5.76%
n/a
$45,100
Non-constructions: 1.03–6.09%
Construction: 9.69%
0.08–9.69%
n/a
$9,000
Non-constructions: 2.7%
Construction: 5.6%
0.4–12.8%
Enter the Standard/Total Contribution Rate listed on your Rate Determination.
$28,200
1.5%
0.3–9.2%
n/a
$54,300
0.9–5.4%
$10,000
Non-construction: 3.822%
Construction: 10.5924%
1.419–14.4684%
Enter the Total Contribution Rate listed on your Unemployment Compensation (UC) Contribution Rate Notice.
We automatically add the Employee Withholding Contribution, and you should not include it in the rate you enter in Gusto.
UI: $29,800
TDI: $89,200
1%
0.79–9.49%
Enter the Tax Rate listed on your Notice of Tax Rate.
Do not include Job Development Fund or Temporary Disability rates when you enter the SUI rate in Gusto.
$14,000
1%
The tax rate for new employers is the tax rate applicable for tax rate class 12 for a given year, or one percent, whichever is higher.
0-5.4%
Do not include the DACA rate when you enter the SUI rate in Gusto.
$15,000
Non-construction:
Year 1: 1.2%
Year 2: 1%
Construction:
Year 1: 6%
Year 2: 3%
0–8.8%
We automatically add the Investment Fee, and new employers do not need to pay the Administrative Fee.
$7,000
2.7%
0.01–10%
n/a
$9,000
2.7%, or your NAICS industry average
Include all five component rates:
General Tax Rate (GTR)
Replenishment Tax Rate (RTR)
Obligation Assessment Rate (OA)
Deficit Tax Rate (DTR)
Employment and Training Investment Assessment (ETIA)
$48,900
Construction: 7.2%
0.2–8.2%
Enter the rate from your Contribution Rate Notice listed under "J: Assigned Contribution Rate."
Your “Assigned Contribution Rate” already includes the social cost of 0.3%. Do not add it separately.
$14,800
Non-construction: 1%
Construction: 2%
Heavy and civil engineering construction: 4.1%
Specialty trade contractors: 2.8%
0.4–5.4%
Note: The agency typically updates rates July 1 of each year.
$8,000
2.5%
0.1–6.2%
Include the Pool Cost charge and the Fund Building charge in the SUI rate when you enter it in Gusto.
$72,800
Non-construction: 1.28%
Construction: 6%
0.24–8.12%
Do not include the EAF rate when you enter your rate in Gusto.
Include all other lines (such as social cost) from the SUI rate notice.
$9,500
TBA
TBA
TBA
$14,000
Non-construction: 3.05% or 3.25%
Construction: 2.9% or 3.10%
0–12%
Enter the Total Rate listed on your Tax Rate Notice and Schedule.
$32,400
Varies based on industry
0.014–8.5%
Enter the Assigned UI Tax Rate listed on your tax rate notice.
State agencies assign your company an unemployment insurance tax rate when you register as an employer. Each year, you will get a new notice with your updated rate. These notices usually arrive between November of the prior year and March of the current year.
⚠️ Important compliance reminder: You must keep your SUI rate up to date in Gusto. If you miss deadlines, the state agency may charge penalties or interest, and your company will need to pay them.
Add a new SUI rate
Tip: Wait until October 1 or later to add rates for the following year.
Follow these steps to enter a new SUI rate from your state notice:
Go to Taxes & Compliance > Tax setup.
If you're using the Gusto mobile app: Instead, tap More and select Taxes & compliance. Tap Setup tax accounts.
Find the state you're editing and select Manage Taxes.
In State Tax Settings, find the Unemployment Tax Rate and select Edit. This may also be called “SUI rate” or “Experience rate”.
Updating only works in states where you have active employees.
You can also view your past rates here.
Select Add a new rate.
If the rate was effective during a prior closed quarter, you may get a tax notice for an amount owed or a refund (depending on whether you underpaid or overpaid).
Enter the percentage from your notice.
Example: If your notice says .055555, enter 5.5555%.
For state-specific entry instructions, check the state registration articles.
Set the Effective Date from the notice.1
Most states: January 1.
New Jersey, Tennessee, Vermont: Use July 1.
New Hampshire: Dates may be Jan 1, Apr 1, Jul 1, or Oct 1, depending on the notice.
Select Save.
Correct a SUI rate or effective date
If you entered the wrong rate or effective date, update it as soon as you have the correct info.
Go to Taxes & Compliance > Tax setup.
If you're using the Gusto mobile app: Instead, tap More and select Taxes & compliance. Tap Setup tax accounts.
Find the state you're correcting and select Manage Taxes.
In State Tax Settings, find the Unemployment Tax Rate and select Edit. This may also be called “SUI rate” or “Experience rate”.
Updating only works in states where you have active employees.
You can also view your past rates here.
Choose Make a correction.
Before each quarter ends, Gusto runs a reconciliation payroll to check for differences between your current SUI rate and past rates.
If we find you underpaid, Gusto will debit your account for the missing amount.
If we find you overpaid, Gusto will refund the extra amount.
If the new rate applies to a quarter that has already closed, you will likely get a notice from the agency:
Underpaid → You must pay the agency.
Overpaid → You will receive a refund.
⚠️ Gusto does not amend unemployment returns for past quarters. You either pay the agency directly or accept the refund.
Enter the correct rate (example: .055555 → 5.5555%) and effective date from your notice.
For state-specific entry instructions, check the state registration articles.
Set the Effective Date from the notice.1
Most states: January 1.
New Jersey, Tennessee, Vermont: Use July 1.
New Hampshire: Dates may be Jan 1, Apr 1, Jul 1, or Oct 1, depending on the notice.
Select Save.
1 Failure to timely update or confirm your State Unemployment Insurance rate may result in additional taxes and penalties being imposed on the taxpayer by the taxing authority or agency.
What happens if you update late
If the update applies to a closed quarter, the agency may issue:
A notice to pay more (if underpaid), or
A refund (if overpaid).
Gusto will not amend unemployment returns for past quarters.
If underpaid → Pay the agency directly.
If overpaid → Accept the refund.
Before the end of each quarter, Gusto runs a reconciliation payroll. If a difference is found:
Gusto will debit your account for underpaid taxes, or
Gusto will refund your account for overpayments.
⚠️ Final compliance reminder: Failure to update or confirm your SUI rate may result in extra taxes and penalties from the agency. The company is responsible for paying these.
Automatic updates from agencies
Some agencies share rate updates directly with Gusto. If we can confirm your rate, we may update it for you. However, it is still your responsibility to:
Confirm your correct rate is entered in Gusto, and
Update it if necessary.
Get help
If you need assistance entering or correcting your rate, message us from the Help (?) icon in your account.
Sometimes, we will not let you enter a state unemployment rate because it’s too low or too high. Check the tables in the New employer SUI rates section in the article to see the correct tax rates for your state.
Tips for entering your rate
Enter the rate assigned to your company for the current year.
Check your rate by contacting the agency or using your online state account.
Change decimal rates to percentages.
Example: 0.05555 should be 5.5555%.
Some agencies have extra tax rates for SUI. Entering them incorrectly can put you outside the acceptable rate range.
Check the tables in the New employer SUI rates section to learn how to enter rates in Gusto.
If a rate that worked before now shows “invalid,” we may show this error due to the “effective date.” Learn how to update the effective date.
State unemployment insurance (SUI) tax notices are to let you know of your new unemployment rate and the day it becomes effective—you should add your unemployment rate and its effective date in Gusto.
What to expect after making a rate update in your Gusto account
If...
Then...
The rate was updated before the effective date listed on the notice.
Gusto will withhold at the new rate starting on payrolls with a check date on or after the effective date you set in Gusto.
The rate was updated mid-quarter with a backdated effective date.
Gusto will run a reconciliation payroll at the end of each quarter to make sure the accurate quarterly payment is made based on the entire quarter’s applicable wages and new rate.
The rate was updated successfully, but the effective date listed is before the date that the current quarter began.
Example: The effective date was January 1, but you did not update the rate in your Gusto account until April 15.
Action needed: Call the agency directly to discuss potential account balances or credits resulting from previous quarters. Because your rate was not updated, taxes may have been withheld incorrectly. To rectify this for the current quarter, Gusto will run a reconciliation payroll.
If there’s an amount due, pay it immediately to avoid additional penalties.
If there’s an overbalance, make sure the rate discrepancy is the only reason for the credit before you request the refund.
If assistance is still needed, you can send the notice to Gusto—agencies will never send these notices to Gusto directly.
Some employers qualify as SUI reimbursable if they’re:
A non-profit
A religious group
A government employer
We do not support government employers marked as Federal Unemployment Tax Act (FUTA) exempt, but you can set FUTA exemptions for all employees.
SUI-reimbursable employers pay the state back for unemployment benefits the state has paid to their former employees, rather than paying quarterly as other companies do. These employers have an account with the state, and the state charges them for the exact amount of benefits it paid (monthly or quarterly).
If you’re not sure if your company qualifies as SUI reimbursable, contact your state agency.
Federal tax setup requirements
To qualify as SUI reimbursable, your Federal Tax Setup section must show:
Company Type: Non-Profit
Special FUTA exemption: You’ve chosen Yes, we are a non-profit 501(c)(3) organization and are exempt from FUTA.
This means your company does not pay FUTA, but still needs to file.
Do not set up a separate company exemption for FUTA. A separate exemption will block the required filings.
Add or edit SUI-reimbursable status for states
If you’re not sure whether you’re SUI reimbursable, have questions about the effective date, or need to find your unemployment rates, contact the state agency. South Carolina employers who are SUI reimbursable should read below for additional requirements.
Make sure you’ve met the Federal Tax Setup requirements above.
Go to Taxes & Compliance.
Click Tax setup.
Scroll to your state’s [State] Tax Setup headline.
Click Manage Taxes.
Scroll to the State tax settings and click Edit next to SUI reimburser.
Choose from the options:
Add a new setting if your company recently became SUI reimbursable.
Make a correction if your company has been reimbursable, but you did not enter that information in Gusto.
Confirm effective dates and make any other required selections.
Click Save.
SUI-reimbursable South Carolina employers
After you tell us that your company qualifies as SUI reimbursable, we may still show the SUI rate and DACA rate in your account. If this happens, we need your help to fix this:
First, contact us. To contact us, sign in to your Gusto account and click the help icon
in the top-right corner of the page.Tell us that your company qualifies as SUI reimbursable in South Carolina, so the DACA rate should not apply.
We’ll set up a company exemption for the DACA tax. This means we will not withhold the tax or pay it to the agency.
Note: We may still show a DACA rate in your account, but we’re not withholding the tax or paying it.
Employees file unemployment claims when their employer lays them off or furloughs them. The unemployment claim alerts the state and the employee’s previous employer that the worker is asking for unemployment benefits.
Reminders
We cannot help you fill out unemployment claims.
If you need more help with unemployment claims, you can upgrade to our Premium service to access HR resources. The HR team provides advice but does not fill out forms for companies.
Make sure the state only charges your company’s unemployment insurance for benefits the state approved due to reasons outside the employee’s control, like a layoff.
Former employees usually file these claims when they believe they lost their job through no fault of their own.
Review these forms quickly and correct any mistakes because unemployment claims can raise your unemployment tax rates in the future.
If the state approves the claim, it pays benefits using taxes the state collected from employers — the state charges those benefits to the employer’s account.
Employer responsibilities when an employee files an unemployment claim
The state sends a notice to the former employer when an employee files a claim. Employers need to check the details of the claim and fix any mistakes, like:
Wages and dates of employment
Type of employment (full-time, part-time, or contractor)
Reason for leaving (laid off, quit, fired, or other)
Whether the employee refused a job offer
Any compensation received (like vacation or severance pay)
If you get a notice, act quickly. If the claim is valid, you can accept it. If it’s not accurate, you can challenge it, but you only have a few days to do so. If you do not take action, the state will usually approve the claim, the employee will get benefits, and the state will charge your company’s account. This could raise your unemployment tax rate in future years.