How is unemployment insurance financed?

Name: How is unemployment insurance financed?
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Unemployment insurance is financed by a tax on employers, known as the Federal Unemployment Tax Act (FUTA) tax. This tax is used to fund both state and federal unemployment insurance programs, which provide benefits to eligible workers who have lost their jobs through no fault of their own. The tax rate varies by state and is based on the employer's payroll and history of unemployment claims.

How Is Unemployment Insurance Financed