Which of the following tax programs often has a merit-rating system to encourage employers to provide regular employment for workers?

Question

Quizplus · Accepted Answer

SUTA (State Unemployment Tax Act) often has a merit-rating system to encourage employers to provide regular employment for workers. This means that employers who have a low turnover rate and who retain employees for longer periods of time can receive lower tax rates on their unemployment insurance payments than employers who have high turnover rates. FICA (Federal Insurance Contributions Act) is a payroll tax that funds Social Security and Medicare programs, FUTA (Federal Unemployment Tax Act) is an employer tax that funds state unemployment programs, and workers' compensation insurance is a state-run program that provides benefits to employees who are injured on the job. None of these programs typically have a merit-rating system.

Which of the Following Tax Programs Often Has a Merit-Rating