What is SUTA dumping? And why should employers care about it?
SUTA Dumping is commonly practiced by some employers to circumvent paying unemployment insurance. To avoid higher tax rates, some companies get multiple account numbers with the state, and shuffle employees around to the account number with the lowest unemployment insurance rate. Another common practice is to buy a business with a lower unemployment insurance rate and shuffle employees to that other business as a way to lower the tax rate. President Bush signed the SUTA Dumping Prevention Act on August 9, 2004, to curb this practice.
