--- title: "Staffing Series Week 3: Understanding FUTA & SUTA Taxes" description: Discover the importance of managing FUTA and SUTA taxes for staffing agencies, including tips to control costs and avoid unexpected tax increases. image: https://www.crradvisors.com/hubfs/AdobeStock_611296662.jpeg --- [Skip to content](https://www.crradvisors.com/blog/staffing-series-week-3-understanding-futa-suta-taxes#main-content) [![CRR](https://www.crradvisors.com/hubfs/CRR.svg)Homepage](https://www.crradvisors.com) - [Home](https://www.crradvisors.com) - [Services](https://www.crradvisors.com/services) - [Audit & Assurance](https://www.crradvisors.com/services/accounting-auditing) - [Business Valuation](https://www.crradvisors.com/business-valuation) - [Client Accounting + Advisory Services](https://www.crradvisors.com/caas) - [Private Client Services](https://www.crradvisors.com/private-client-services) - [Tax for Businesses](https://www.crradvisors.com/tax-services-business) - [Tax for Individuals](https://www.crradvisors.com/tax-services-individual) - [Transaction Advisory](https://www.crradvisors.com/transaction-advisory-services) - [Industries](https://www.crradvisors.com/industries) - [Blog](https://www.crradvisors.com/blog) - [About Us](https://www.crradvisors.com/about-us) - [Team & Careers](https://www.crradvisors.com/about-us) - [CRR Charitable Foundation](https://www.crradvisors.com/crr-charitable-foundation) - [Contact](https://www.crradvisors.com/contact-us) - [Client Tools](https://www.crradvisors.com/client-portal) - [Home](https://www.crradvisors.com) - [Services](https://www.crradvisors.com/services) - [Audit & Assurance](https://www.crradvisors.com/services/accounting-auditing) - [Business Valuation](https://www.crradvisors.com/business-valuation) - [Client Accounting + Advisory Services](https://www.crradvisors.com/caas) - [Private Client Services](https://www.crradvisors.com/private-client-services) - [Tax for Businesses](https://www.crradvisors.com/tax-services-business) - [Tax for Individuals](https://www.crradvisors.com/tax-services-individual) - [Transaction Advisory](https://www.crradvisors.com/transaction-advisory-services) - [Industries](https://www.crradvisors.com/industries) - [Blog](https://www.crradvisors.com/blog) - [About Us](https://www.crradvisors.com/about-us) - [Team & Careers](https://www.crradvisors.com/about-us) - [CRR Charitable Foundation](https://www.crradvisors.com/crr-charitable-foundation) - [Contact](https://www.crradvisors.com/contact-us) - [Client Tools](https://www.crradvisors.com/client-portal) ![](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_611296662.jpeg?width=5370&height=3027&name=AdobeStock_611296662.jpeg) Staffing # Staffing Series Week 3: Understanding FUTA & SUTA Taxes ![Richard Daigle](https://www.crradvisors.com/hs-fs/hubfs/Daigle_Rich_NEW.jpg?width=48&height=48&name=Daigle_Rich_NEW.jpg) ![Mariya Tsanova](https://www.crradvisors.com/hs-fs/hubfs/Images/Company_Photos/Headshots/Tsanova_Mariya.png?width=48&height=48&name=Tsanova_Mariya.png) Richard Daigle, and Mariya Tsanova August 26, 2026 ### The Payroll Taxes Staffing Agencies Often Overlook Because staffing agencies frequently hire large numbers of employees, unemployment taxes can represent a significant, and often underestimated, cost. Federal Unemployment Tax Act (FUTA) taxes fund federal unemployment programs, while State Unemployment Tax Act (SUTA) taxes fund state unemployment benefits. These taxes are generally borne entirely by the employer, not the employee, which makes them easy to overlook until a rate notice arrives. #### Why This Matters Your state unemployment tax rate isn't fixed. It can rise if former employees successfully claim unemployment benefits, and staffing agencies, given typically higher turnover, often see larger swings in their rate than other employers. Over time, an elevated SUTA rate becomes a real, recurring cost of doing business. #### Tips for Managing Costs - Review annual unemployment rate notices as soon as they arrive. - Verify unemployment claims for accuracy before they affect your rate. - Maintain detailed employee records to support claim disputes. - Monitor turnover trends and their impact on future rates. #### Bottom Line Understanding your FUTA and SUTA obligations, and actively managing the factors that affect your rate, helps staffing agencies budget appropriately and avoid surprises when tax notices arrive. ## Share this post [mailto:https%3A%2F%2Fwww.crradvisors.com%2Fblog%2Fstaffing-series-week-3-understanding-futa-suta-taxes](mailto:https%3A%2F%2Fwww.crradvisors.com%2Fblog%2Fstaffing-series-week-3-understanding-futa-suta-taxes) ## Keep reading ### [![](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_808994683.jpeg?width=4823&height=2412&name=AdobeStock_808994683.jpeg) Transaction Advisory Banks Banking What the SBA's New Quality of Earnings Rule Means for Your Next Deal](https://www.crradvisors.com/blog/what-the-sbas-new-quality-of-earnings-rule-means-for-your-next-deal) ### [![Staffing agency employees having a team meeting](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_1876259626.jpeg?width=7936&height=5291&name=AdobeStock_1876259626.jpeg) Staffing Staffing Series Week 4: What Staffing Agency Owners Should Know About the Work Opportunity Tax Credit (WOTC)](https://www.crradvisors.com/blog/staffing-series-week-4-what-staffing-agency-owners-should-know-about-the-work-opportunity-tax-credit-wotc) [![CRR](https://www.crradvisors.com/hubfs/CRR.svg "CRR")](https://www.crradvisors.com) *"CRR" is the brand name under which CRR, LLP and Bridgepoint Alliance, LLC, doing business as CRR Advisors, offer professional services to its respective clients in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations, and professional standards. 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