Under federal unemployment tax act which of the following describes how do state agencies play a role in providing unemploying benefits to workers in private businesses?
state levy taxes and pay benefits at rates set by the federal government
states collect taxes to cover the costs of administeirng federal unemployment
states determine which employees participate in the federal program
states collect tazes to fund the insurance and they admisister the prgrams
The correct answer is: states collect taxes to fund the insurance and they administer the programs.
Under the Federal Unemployment Tax Act (FUTA), state agencies play a role in providing unemployment benefits to workers in private businesses in the following ways:
1. State levy taxes and pay benefits at rates set by the federal government: State agencies collect taxes from employers to fund the unemployment insurance program, and they also determine the rates at which employers are taxed. These taxes are then used by the states to pay unemployment benefits to eligible workers.
2. States collect taxes to cover the costs of administering federal unemployment: In addition to funding the benefits themselves, the taxes collected by state agencies also cover the costs of administering the federal unemployment program within the state. This includes activities such as establishing eligibility criteria, processing benefit claims, and managing the overall program.
3. States determine which employees participate in the federal program: State agencies have the authority to determine which employees are eligible to participate in the federal unemployment program. This typically includes most workers in private businesses, but specific eligibility requirements may vary from state to state.
4. States collect taxes to fund the insurance and administer the programs: State agencies are responsible for collecting taxes from employers in order to fund the unemployment insurance program. They also have the responsibility of administering the program, which involves managing the funds, processing claims, and providing support to workers and employers alike.
Therefore, the correct answer is: states collect taxes to fund the insurance and they administer the programs.
According to the Federal Unemployment Tax Act (FUTA), state agencies play a crucial role in providing unemployment benefits to workers in private businesses. Here is how each of the options describes the state agencies' role:
1. State levy taxes and pay benefits at rates set by the federal government:
Under FUTA, states are responsible for levying taxes on employers, generally known as state unemployment taxes (SUTA), to finance the unemployment insurance fund. The rates at which these taxes are set may vary by state but must meet the minimum requirements set by the federal government. The collected taxes are then used to pay unemployment benefits to eligible workers.
2. States collect taxes to cover the costs of administering federal unemployment:
In addition to financing the benefits, state agencies also collect taxes from employers to cover the administrative costs associated with offering federal unemployment benefits. This includes managing the unemployment insurance program, processing claims, providing assistance to claimants, and implementing other administrative functions.
3. States determine which employees participate in the federal program:
State agencies have the authority to determine which employees are eligible to participate in the federal unemployment insurance program. They establish criteria, such as minimum earnings or hours worked, for an individual to be considered eligible for benefits. Eligibility determinations are based on the state's unemployment insurance laws, which must conform to the federal guidelines established by FUTA.
4. States collect taxes to fund the insurance and they administer the programs:
As mentioned earlier, state agencies collect taxes (SUTA) from employers to fund the unemployment insurance program. These funds are then used to pay benefits to unemployed workers, finance administrative costs, and maintain the unemployment insurance system. State agencies are responsible for administering the entire program, ensuring compliance with federal regulations, and overseeing the distribution of benefits to eligible individuals.
In summary, under the Federal Unemployment Tax Act, state agencies are responsible for levying taxes, administering the program, determining eligibility, and disbursing benefits to workers in private businesses.