State Unemployment Tax (SUTA), also known as State Unemployment Insurance (SUI) or Reemployment Tax in some states, is 

a mandatory state-level payroll tax paid by employers. The funds collected are used to provide temporary financial assistance (unemployment benefits) to eligible workers who lose their jobs through no fault of their own, such as during layoffs

SUTA is calculated as a percentage of each employee’s wages, up to a state-defined taxable wage base. The funds collected are used to support eligible workers while they search for new employment. Employers who pay their SUTA taxes correctly and on time may also qualify for credits toward their Federal Unemployment Tax Act (FUTA) liability, helping reduce overall payroll tax costs.

The SUTA tax rate is an acronym for the State Unemployment Tax Act rate, and it is the percentage by which employers are required to contribute for each employee's wages to maintain state unemployment programs. The rate varies by state and according to the employer, and hence depends on different factors such as the company's track record of unemployment claims. SUTA (State Unemployment Tax Act) is a tax paid by employers and not employees. It is a payroll tax at the state level, which is used to grant unemployment benefits to those workers who lost their jobs in a non-fault manner.