Which of the following is TRUE?

Question

Quizplus · Accepted Answer

The unemployment insurance program is partially experience-rated, which means that the tax rate paid by a firm is partially based on its layoff history. Firms with a higher rate of layoffs will pay a higher tax rate than firms with a lower rate of layoffs. However, the tax rate is also influenced by other factors, such as the overall state of the economy, and is not fully determined by a firm's layoff history. Therefore, option A is incorrect. Option C is incorrect because experience-rating is a feature of the program. Option D is incorrect because firms do not pay an additional tax each time they lay off a worker; rather, their tax rate may be affected by their layoff history.

Which of the Following Is TRUE