State Unemployment Insurance (SUI) taxes are mandatory employer taxes. In most cases, these taxes are owed in the state the employee works in.

State income tax is an employee tax assessed against the employee’s gross taxable wages. In most cases, these taxes are owed in the state the employee lives in.

If an employer hires a worker in a new state or has not yet registered in a state, it is the employer's responsibility to register for all needed tax accounts with the state agency directly. As the payroll provider, we will calculate and withhold taxes on each pay run and remit and file taxes to the agencies directly on the employer's behalf. In order for us to do so, we must have the accurate tax account data on file within the Employer Profile > Profile tab > Tax Info.

Note: This article is not intended as tax advice. We recommend consulting a CPA or tax advisor for specific guidance.