State Unemployment Tax (SUTA) is a payroll tax that employers pay to fund unemployment benefits for workers who lose their jobs. Each state in the U.S. has its own SUTA rate, which can vary based on the employer's experience with unemployment claims. This tax helps provide financial support to unemployed individuals while they search for new jobs. Employers typically pay SUTA on a percentage of each employee's wages, up to a certain limit. The funds collected are used by state governments to administer unemployment insurance programs, ensuring that eligible workers receive assistance during periods of joblessness.