Most states update their state unemployment tax (SUI) rates annually.
You probably received a letter like this one and thought what am I supposed to do with this? Well, you either need to send it you your payroll provider, or update your payroll system to calculate the correct rate.
If you are on our managed payroll service, please send us your notice HERE.
If you process your own payroll, follow these directions:
If you process your payroll on Gusto, follow these steps:
- Click the Company Details tab.
- Under State Tax Setup, click Edit.
- Next to SUI Rate, enter the updated rate.
- Next to Effective Date, select the starting date for the new rate.
- Click Save.
We will start deducting the amount of SUI owed with the new rate on the day of the selected effective date.
Note: If you’ve entered the wrong SUI rate, please update this in your Gusto account as soon as possible. Before the end of the quarter, we will debit for any underpaid SUI tax amounts for payrolls run in the same quarter.
If you process your payroll on Xero, follow these steps: