Comprehensive and Detailed Explanation:State Unemployment Tax Act (SUTA) liabilityis determined based onwhere an employee works and receives direction from, not necessarily where a company is incorporated.
Thekey factors for determining SUTA stateinclude:
Base of Operations (Option A)– Where the employee works.
Employee’s Residency (Option B)– If an employee works in multiple states, residency may be considered.
Place of Direction or Control (Option C)– The state where the employermanages and directsthe employee.
Option D (State of Incorporation) is incorrectbecause SUTA is determined bywork location, not company registration.
[Reference:, U.S. Department of Labor – SUTA Tax Reporting Rules, Payroll.org – State Unemployment Tax Guidelines, , ]
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