In most states,if an employer has very few former employees who collect unemployment compensation,the employer qualifies for a lower state unemployment tax rate.

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This statement is true. Employers who have fewer former employees who collect unemployment compensation are considered to have a lower risk for layoffs or termination and may qualify for a lower state unemployment tax rate. This is part of the unemployment insurance system in most states, which is designed to provide financial support to workers who have lost their jobs due to no fault of their own.

In Most States,if an Employer Has Very Few Former Employees