The rate that a state assigns reflecting a company's stability or instability in employing workers is the:
A) Pay rate.
B) Tax withholding rate.
C) FICA rate.
D) Credit rating.
E) Merit rating.

Question

Quizplus · Accepted Answer

The merit rating is a rating assigned by a state to reflect a company's stability or instability in employing workers. It is used to determine the company's unemployment insurance tax rate, meaning that companies with higher merit ratings generally have lower rates and those with lower merit ratings have higher rates. Therefore, E is the correct answer.

The Rate That a State Assigns Reflecting a Company's Stability