SUE tax Law and Legal Definition

State unemployment taxes are paid to the state workforce office or state department of labor. Most states base unemployment taxes on the federal tax requirements. A few states have different requirements for when unemployment taxes must be paid. Employers are liable to pay state unemployment taxes if:

Employed one or more individuals who worked at least 20 (not necessarily consecutive) calendar weeks during the current or preceding tax year or

Paid at least $1,500 in employee wages during any quarter. If an employee wage pool exceeds $1,500 in November of a given year, employer is required to pay federal unemployment taxes for that entire year - not just for November and December - as well as for the next year.