What is State Unemployment Tax?
All states require some sort of unemployment tax from which they fund unemployment benefits. In most states the tax is paid solely by the employer, and the remittance and accompanying forms are due on a quarterly basis.

Many states are now using the quarterly unemployment tax vehicle to also collect some version of a training tax for displaced worker placement.

Several states require withholding from the employee for unemployment, disability or both. This is paid and reported on the quarterly form, which includes the employer's portion of the taxes. The employer is responsible for payment of these taxes whether or not they were able to collect them from the worker.