Tax FAQs

Frequently asked questions about taxes in the staffing industry

Q: I'm going into a new state - what are the state unemployment insurance agency (SUTA) rates and SUTA wage bases?

A: State unemployment insurance taxes are based on a percentage of the taxable wages an employer pays, and it’s up to the state to determine the taxable wage base beyond the $7,000 required federally. For a list of rates and other significant provisions by state, follow this link.

Need to speak to someone in person or mail something in? Here is a list of State Unemployment Tax Agencies.

Further reading on unemployment taxes

Q: Where can I find the Federal and State Wage and Hour Division (WHD) forms?

A: You can find the federal forms here. For the state forms, here is a link to the State Labor Offices.

Q: Does my state have a reciprocal agreement?

A: See this chart of state tax reciprocal agreements.

Q: What is the sales tax rate in my state?

A: Here is a list of state tax rates from the Sales Tax Institute. Many states have local sales tax rates online and the Department of Revenue of your state is a good place to start.

Q: How do I tax fringe benefits?

A: Here is a list of fringe benefits and exceptions from the IRS.

Q: How do I determine a contractor vs an employee?

A: Here is a guide from the IRS on how to classify employees.

Q: How can I try different tax scenarios?

A: There are many free online tools such as Paycheckcity to investigate different scenarios.

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