Unemployment Insurance Tax (FUTA/SUTA): Oklahoma

Federal law and guidance on this subject should be reviewed together with this section.

Authors: Alan L. Rupe and Aaron Sauerwein, Kutak Rock LLP

Summary

• Oklahoma uses the IRS's 20-factor test to determine who is an employee for state unemployment insurance (SUI) tax purposes. See The IRS 20-Factor Test of Employment Status.
• The law defines wages for SUI purposes as all compensation for personal services, including salaries, commissions, bonuses and the cash value of all compensation paid in any medium other than cash, and all compensation that is considered to be wages under the federal Internal Revenue Code. The annual total SUI tax rate is based on a range of rates. See SUI Taxable Wages; Contribution Rates.
• The Oklahoma anti-SUTA dumping law mirrors the federal SUTA Dumping Prevention Act. Under state law, employers that knowingly attempt to manipulate businesses to get a lower tax rate are liable for serious penalties. See SUTA Dumping.
• An employer that is required to make unemployment insurance contributions must file quarterly reports. In addition, employers that operate more than one establishment in Oklahoma must submit Multiple Worksite Reports. See Quarterly Reporting Requirements; Multiple Worksite Reporting.
• Employers are required to respond to requests for information from the Oklahoma Employment Security Commission (OESC) within 10 days. See Requests for Information.
• If an individual has been overpaid unemployment benefits, the OESC has the right to collect the amount by sending a Notice of Levy to the individual's employer. An employer that fails to comply with a notice will be liable to the OESC for an amount up to the amount owed by the employee, including accrued interest and the cost of serving the notice. See Benefit Overpayments.
• All employers in Oklahoma must maintain certain records for four years and keep them available for inspection by the state Employment Security Commission. See Recordkeeping Requirements.