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Do You Have to Register for SUTA Before Running Your First Payroll?

Are you getting ready to pay your first employee?

Not sure if you need to sign up for SUTA before you do it?

You’re in the right place. We’ll explain exactly when and why SUTA registration is required—so you don’t make a mistake that could cost you time or money.

In this article, you’ll learn what SUTA is, who needs to register, how it works in different states, and what steps to take if you’re just getting started. We’ll keep it simple and help you feel confident moving forward.

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What Is SUTA and Why Do Employers Need to Register?

SUTA stands for State Unemployment Tax Act. It’s a payroll tax that most employers must pay. This money goes into your state’s unemployment fund, which helps workers if they lose their job.

How SUTA Compares to FUTA (Federal Unemployment Tax)

You might also hear about FUTA, which is the Federal Unemployment Tax Act. That’s a similar tax, but it’s collected at the federal level. Both SUTA and FUTA are paid by employers—not employees—and they work together to support unemployment insurance programs.

Who Has to Register for SUTA Before Running Payroll?

Whether or not you need to register for SUTA depends on how you’re set up and how you pay yourself or others.

SUTA Requirements If You’re Hiring W-2 Employees

If you’re an employer with one or more employees (not independent contractors), you must register for SUTA in the state where your employees work.

Each state has its own rules, but most require you to register before you run your first payroll. This way, the state can track and collect unemployment taxes from you correctly.

Do Contractors or Owner-Operators Need SUTA Registration?

If you’re self-employed and don’t have employees, you may not need to register for SUTA.

But here’s where it gets tricky:

  • Some owner-operators or independent contractors hire help, like other drivers or office support.
  • If that’s the case, and you need to pay them as employees (not 1099 contractors), then you need to register for SUTA.

If you’re not sure which one you are, it’s a good idea to talk to a payroll or a tax professional. Getting your worker classification wrong can lead to fines and back taxes.

SUTA Laws Vary by State: What You Need to Know

Each state has its own SUTA rules—including when you must register, how to apply, and how much tax you’ll owe.

Some states let you skip registration until you hit a certain number of employees or payroll amount. Others require it right away, even for just one employee.

To find your state’s rules, visit your state’s department of labor or workforce agency website.

How to Register for SUTA in Your State

If your state requires it, registering for SUTA is usually pretty simple. Here’s what the process often looks like:

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This image shows a large, dark blue circle with the number "2" in the center, depicted in white. The design is simple, resembling a badge or button. The contrast between the dark background and the white number gives it a clean and bold appearance.
This image shows a large, dark blue circle with the number "3" in the center, depicted in white. The design is simple, resembling a badge or button. The contrast between the dark background and the white number gives it a clean and bold appearance.

Visit Your State’s Unemployment Website

Search for your state’s unemployment insurance employer registration page. You’ll usually register through your department of labor or revenue.

Gather Your Business Information

You’ll need:

  • Your business name and address
  • Your Federal Employer Identification Number (FEIN)
  • Names of any owners or officers
  • A description of your business and what kind of work your employees do

Complete the SUTA Registration Application

Some states allow online registration. Others may require paper forms.

Once you’re approved, you’ll get an account number. This is how the state tracks your payments.

What If You Skip SUTA Registration?

If you don’t register for SUTA when required, you could face:

  • Penalties and interest for late payments
  • Back taxes owed for unpaid quarters
  • Delays in setting up payroll services

Even worse, not having a SUTA account can cause payroll errors or legal issues with your state.

Take the Stress Out of Payroll Tax Registration

In most cases, yes, you do need to register for SUTA before running your first payroll, especially if you’re hiring W-2 employees. The sooner you get it set up, the smoother your payroll process will be.

Starting payroll can feel overwhelming. Between taxes, accounts, and state rules, it’s easy to miss a step—and SUTA registration is one of the most common ones.

If handling payroll taxes feels like too much to juggle, we’ve got you covered.

Learn how we take care of all your payroll taxes—SUTA included. From registration to filings and payments, it’s all part of our service.

Read our article “The Problem with Payroll Tax Management”

At Superior Trucking Payroll Service, we make sure your payroll is done right—so you don’t have to stress about tax forms, due dates, or state rules. We handle everything behind the scenes, so you can stay focused on your business.

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Written by Melisa Bush

With over 15 years of experience in the trucking industry, Melisa is well-versed in the complexities of trucking payroll and adept at navigating special circumstances. Before joining Superior Trucking Payroll Service, Melisa worked at a trucking company, where she managed driver miles and expenses for a fleet of 50 trucks. This hands-on experience gives her unique insight into the challenges our clients face when preparing their payroll data.

Melisa’s top priority is customer service. She strives to treat each client as an individual with genuine needs, rather than just another number in the system. Her goal is to alleviate the burdens of our clients and make their daily operations smoother.