Why do we need to request SUTA/SAWB prior to onboarding?

• A. So that our clients won't have to pay double tax
• B. To ensure payroll accuracy
• C. To verify work history
• D. For annual auditing

Answer: (A)

Setting up SUTA/SAWB before onboarding ensures unemployment tax accounts are correctly established with the state agencies from day one. When these accounts are in place and tied to the right employer, wages aren’t taxed twice—once under an old or mislisted account and again under the new one. This prevents double tax and ensures unemployment tax payments and filings go to the correct state authorities, keeping the client compliant from the start. While overall payroll accuracy matters, the specific reason for requesting SUTA/SAWB upfront is to avoid duplicated unemployment tax charges and misallocated tax obligations.