Leadership at a high-growth tech company comes with many opportunities to learn, expand, and change the status quo. It also provides key insights into budgetary and business trends leaders should prioritize. Regulatory compliance is an ongoing challenge for organizations; it’s also an issue that’s not going away.

This year, one pivotal act in the spotlight is the State Unemployment Tax Act, or SUTA. As unemployment rates increased in 2020, state funds for unemployment insurance did the opposite. Now, replenishing those funds will partially come from higher employer payroll taxes for many states. In a 2020 article that predicted skyrocketing unemployment claims for businesses, Tax Foundation researcher Jared Walczak noted, “It may well be that no state is fully prepared for unemployment compensation claims on this scale, but some states are substantially better prepared than others.”

2020 has come and gone, but now business leaders are enduring a new tax playing field made more challenging by ongoing compliance complexities and state-specific tax regulations. Financial leaders today should be aware of potential pitfalls and streamline their compliance process, especially regarding taxes.

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