What Is SUI or SUTA on a Pay Stub? Who Pays It and Why It Appears
Written by the ePaystubs Editorial Team · Last updated: June 2026
SUI or SUTA on a pay stub is the state unemployment tax, which funds benefits for people who lose their jobs. SUI stands for State Unemployment Insurance and SUTA for State Unemployment Tax Act, and they are the same tax. Here is the reassuring part: in almost every state your employer pays it and you see nothing on your stub. If you do see a SUI line, you are most likely in Alaska, New Jersey, or Pennsylvania, and it is normal, not a mistake.
The short version: SUI and SUTA are the same state unemployment tax. Your employer pays it in most states. Only Alaska, New Jersey, and Pennsylvania take an employee share.
This is one of the codes you might find in the deductions area of a stub. For the full list of what each one means, see our guide on pay stub deduction codes. Here we focus on the state unemployment line.
What it stands for: State Unemployment Insurance (SUI) or State Unemployment Tax Act (SUTA).
What it funds: state unemployment benefits.
Who pays: the employer, in almost every state.
When you would see it: mainly in Alaska, New Jersey, or Pennsylvania.
What SUI and SUTA stand for
SUI stands for State Unemployment Insurance, and SUTA stands for State Unemployment Tax Act. They refer to the same thing: the state tax that funds unemployment benefits for workers who lose their jobs through no fault of their own. On a pay stub the line can read SUI, SUTA, UI, or sometimes a bundled label like "SUI/SDI." The wording depends on the state and the payroll system.
Is SUI the same as SUTA?
Yes. SUTA is the name of the law that requires the tax, and SUI is the insurance program it funds. Some states also call it "reemployment tax." If your stub says one and a coworker's says another, you are looking at the same state unemployment tax.
Who pays SUI, you or your employer?
In almost every state, the employer pays SUI, and it does not come out of your paycheck. It is part of the employer's own payroll taxes. Only three states require employees to chip in a share: Alaska, New Jersey, and Pennsylvania. So whether you ever see SUI on your stub comes down to where you work. You can read about the federal-state unemployment system from the U.S. Department of Labor.
Why you may not see SUI on your pay stub (and why that is normal)
If you live and work in one of the roughly 47 states where only the employer pays SUI, you will not see a SUI line at all, because there is nothing to deduct from your pay. That is normal and nothing is wrong. If you do see SUI, you are almost certainly in one of the three states that take an employee share, and that is normal too. Either way, the line (or its absence) is expected behavior, not a payroll error.
The three states with employee SUI: Alaska, New Jersey, and Pennsylvania
These are the states where employees contribute to SUI, so employees there see it as a deduction. The amounts are set by each state and change from year to year, so treat any figure as an example rather than a current rate.
- Pennsylvania uses a small flat employee rate on wages
- Alaska takes an employee share of the total state rate
- New Jersey is a special case with several separate lines (below)
For the current rules where you work, check your state's tax agency or the matching ePaystubs state page. You can browse them all from your state's paystub page, or go straight to one such as the New Jersey paystub page.
New Jersey is a special case
New Jersey employees often see more than one state line, not a single SUI deduction. These can include UI/WF/SWF (the unemployment, workforce, and supplemental workforce funds, which is the SUI piece), DI (state disability insurance), and FLI (family leave insurance). Each has its own yearly cap, and the rates change annually. If you worked for more than one employer and too much was withheld across them, New Jersey has a process to reconcile it when you file your state return. Because the details shift each year, check the New Jersey Department of Labor or the New Jersey state page rather than relying on a fixed figure.
SUI vs SDI (the one people mix up most)
This is the most common confusion, because the two are often printed together as "SUI/SDI." They are different programs. SUI funds unemployment benefits, the income you can claim if you lose your job. SDI funds disability benefits, the income you can claim if you cannot work because of a non-work illness or injury. SUI is mostly employer-paid, while SDI is usually an employee deduction in the states that have it, such as California. For the disability side on its own, see our guide on state disability insurance (SDI).
SUI vs state income tax (SIT)
SUI and state income tax are both "state" lines, but they are not the same. SUI funds unemployment benefits. State income tax (SIT) is the income tax your employer withholds and sends to your state, the same way federal income tax goes to the IRS. For more on that line, see our guide on state income tax withholding (SIT).
| Line | What it funds | Who usually pays |
|---|---|---|
| SUI / SUTA | Unemployment benefits (if you lose your job) | Employer (employee share only in AK, NJ, PA) |
| SDI | Disability benefits (if you cannot work due to illness) | Employee, in states that have it (e.g. California) |
| SIT / SWT | State income tax | Employee |
Why SUI rates vary, and a note on where you work
SUI rates differ from state to state, and for employers they also depend on the company's history of unemployment claims and the state's wage base, so they range widely. Keep any rate you read as an example, and check your state agency for the current number. One thing that trips people up: SUI follows the state where you actually work, not where you live. Income-tax reciprocity agreements between states do not cover unemployment or disability, so someone who lives in one state and works in another can correctly see the work state's SUI or SDI. SUI is also separate from FUTA, the federal unemployment tax, which only employers pay.
A sample SUI line on a pay stub
Here is a short fictional example showing how SUI might appear for an employee in one of the three states. The numbers are made up to illustrate the layout only.
Fictional example, for illustration only
Gross pay$2,000.00
Federal income tax-$210.00
State income tax-$60.00
SUI (employee share)-$1.20
Net pay$1,728.80
The SUI line here is tiny, which is typical for the employee share in the states that have one. In most states this line would not appear at all. If you want to produce a clean stub that lays out the lines clearly, you can create a pay stub that shows them in order. Any stub you create should reflect real, accurate pay.
A quick checklist
When you see (or do not see) SUI on a stub, a short scan covers the basics.
- The label is SUI, SUTA, UI, or a bundled "SUI/SDI"
- Your employer usually pays it, unless you work in Alaska, New Jersey, or Pennsylvania
- It is tied to the state where you work, not where you live
- It funds unemployment, not disability (SDI) or income tax (SIT)
Once you know SUI and SUTA are the same state unemployment tax, the line is easy to place: your employer pays it in most states, you only share it in three, and it is the unemployment cousin of the other state lines on your stub.
Frequently asked questions
What does SUI mean on a pay stub?
SUI means State Unemployment Insurance, the state unemployment tax. It may also show as SUTA or UI.
Is SUI the same as SUTA?
Yes. SUTA is the law that requires the tax, and SUI is the program it funds. They are the same tax.
Is SUI paid by the employee or the employer?
The employer pays it in almost every state. Only Alaska, New Jersey, and Pennsylvania take an employee share.
Why is there no SUI on my pay stub?
In most states the employer pays all of it, so employees see no deduction. Nothing is wrong if SUI is missing from your stub.
Is the SUI on my pay stub a mistake?
Almost certainly not. If you see a SUI deduction, you are most likely in Alaska, New Jersey, or Pennsylvania, the three states with an employee share.
Which states have employee SUI contributions?
Alaska, New Jersey, and Pennsylvania. Employees in other states generally do not see a SUI deduction.
What is the difference between SUI and SDI?
SUI funds unemployment benefits if you lose your job. SDI funds disability benefits if you cannot work due to illness or injury. They are often bundled on a stub as "SUI/SDI."
What is the difference between SUI and state income tax?
SUI funds unemployment benefits. State income tax (SIT) is income tax that your employer withholds and sends to your state.
I work in a different state than I live. Why do I see SUI?
SUI follows the state where you work, not where you live, and income-tax reciprocity agreements do not cover it. So you can correctly see your work state's SUI.