Unemployment Insurance Tax (FUTA/SUTA): Utah

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

Authors: Elizabeth Dunning, Holland & Hart LLP

Summary

• Utah uses its own test to determine who is an employee for state unemployment insurance (SUI) tax purposes. See Test for Employee 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. The annual total SUI tax rate is based on a range of rates. See SUI Taxable Wages; Contribution Rates.
• Under the Utah anti-SUTA dumping law, employers may not manipulate the experience rating system to receive a lower contribution rate than would otherwise be required. Employers that knowingly attempt to manipulate businesses to get a lower tax rate are liable for serious penalties. See SUTA Dumping.
• Utah law does not permit employers to make voluntary contributions to lower their SUI tax rates. See Voluntary Contributions.
• Wages must be reported for the calendar quarter in which they are paid. Employers are required to file quarterly reports electronically. In addition, employers that operate more than one establishment in Utah may be requested to submit Multiple Worksite Reports. See Quarterly Reporting Requirements; Multiple Worksite Reporting.
• An employer's account will not be relieved of charges for overpayments resulting from the employer's failure to respond as required to agency requests for information. See Benefit Overpayments.
• All employers must keep accurate payroll records for at least three years and be ready to present them for an inspection at any time. See Recordkeeping Requirements.