Knowledge (XXG)

SUTA dumping

Source 📝

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In all 50 states, each employer is given a variable "experience" or "unemployment insurance" rate, depending on various factors, including worker retention. Some businesses retain the same employees for years and have a low rate, but other industries, such as construction, tend to have high turnover
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To avoid higher tax rates, some companies get multiple account numbers with a state unemployment insurance agency and shuffle employees around to the account number with the lowest unemployment insurance rate each year. Another common scheme is to buy a business with a lower unemployment insurance
134: 115: 42:'s, for example, is 3.4%); they stay on that rate for a few years, when they are considered "experience rated." 139: 108: 62: 27: 38:
and a corresponding higher rate. New businesses are given a new employer rate, which varies per state (
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is a name commonly used to describe a practice used by some companies doing business in the
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signed the SUTA Dumping Prevention Act on August 9, 2004 to curb the practice.
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rate and to shuffle employees to the other business to pay the lower tax rate.
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Tax avoidance scheme to circumvent unemployment insurance taxes in the US
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taxes, as mandated by the Unemployment Tax Act of 1939. The
89: 63:U.S. Department of Labor Advisory on SUTA Dumping 109: 8: 116: 102: 34:SUTA is for "State Unemployment Tax." 7: 70: 68: 88:. You can help Knowledge (XXG) by 14: 72: 1: 135:Taxation in the United States 161: 67: 84:-related article is a 28:unemployment insurance 26:to circumvent paying 97: 96: 152: 118: 111: 104: 76: 69: 160: 159: 155: 154: 153: 151: 150: 149: 125: 124: 123: 122: 59: 17: 12: 11: 5: 158: 156: 148: 147: 142: 137: 127: 126: 121: 120: 113: 106: 98: 95: 94: 77: 66: 65: 58: 55: 51:George W. Bush 15: 13: 10: 9: 6: 4: 3: 2: 157: 146: 143: 141: 140:Tax avoidance 138: 136: 133: 132: 130: 119: 114: 112: 107: 105: 100: 99: 93: 91: 87: 83: 78: 75: 71: 64: 61: 60: 57:Related links 56: 54: 52: 47: 43: 41: 35: 33: 29: 25: 24:United States 21: 90:expanding it 79: 48: 44: 36: 20:SUTA dumping 19: 18: 129:Categories 49:President 40:California 145:Tax stubs 32:acronym 80:This 86:stub 82:tax 131:: 117:e 110:t 103:v 92:.

Index

United States
unemployment insurance
acronym
California
George W. Bush
U.S. Department of Labor Advisory on SUTA Dumping
Stub icon
tax
stub
expanding it
v
t
e
Categories
Taxation in the United States
Tax avoidance
Tax stubs

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