The State Unemployment Tax Act (SUTA) is a federal law that allows states to collect taxes from employers to fund unemployment benefits for workers who lose their jobs. Each state administers its own unemployment insurance program, setting tax rates and benefit levels based on local economic conditions. Employers pay SUTA taxes on a portion of their employees' wages, which helps create a safety net for unemployed individuals. The funds collected are used to provide temporary financial assistance to those who are actively seeking new employment, ensuring they have support during their job search.