Unemployment is a basic feature of every economy, as described by many researchers. However, it is not that we have no solution. Since centuries, unemployment has been a great problem for us to which we are now also dealing with. It is not a mere problem, it' a global problem which is generally discussed in our macro economic theory. Government is playing a great role in this respect. Various policies and programmes have been implemented to come out from this hell. State unemployment tax system is also playing a vital role in this respect. As in this modern world, business is given top priority in developing an economy and so it is the duty of the businessperson to care for their employees, which could achieve nothing.

State unemployment taxes and tax rates have been based on various tax requirements by the state authority. Generally, different states follow different tax polices according to its position. It is based on the experience of the employees as well as the number of employees working in the organisation. Although tax rates on which the tax is being based keeps changing. Inexperienced employers are charging a normal rate. Employers must contribute to the state unemployment fund if they are generally paying a huge amount of wages and are employing regularly.

State unemployment tax department. To find your state unemployment tax department you can visit internet or can also enquiry in the labour department.

Each state regulates its own unemployment tax rate system according to its needs.

In many cases, state unemployment taxes have been imposed directly on the employers, which cannot be kept back from employees. Recently few states can withhold some of the taxes from the employees.

Small restrictions, in many states if you are in contact with the unemployment system you are necessarily liable to pay the tax. In many states, vast tests are applying for taxability. People falling in these are bound to pay the tax maybe they are not interested to pay the tax.

Calculating the tax, it is a simple task. Multiply the wages you pay to each employee with the tax rate. The state has a limit that one should pay in relation to any employee. The state tax liability in relation to the employee expires if the employees wage for the calendar year crosses the limit.

State employment taxes and tax rates are given to each employer each year. The state follows a system in which it can detect the relevant tax rate for the year. The system imposes higher taxes to the employers whose workers mostly fall in the criteria of involuntary unemployment and lower taxes to the employers whose employees are less prone to involuntary unemployment.

 In contrast, people new to the system who have appointed their employees are required to pay a fixed amount of tax until they become experienced and contribute to the state unemployment compensation programme.

To conclude, the policy of collecting funds through state unemployment tax rate system from the employers is a safe way to protect the employees from being unemployed and it also secures our nation.