An employee who is laid off from his job files for unemployment insurance. Which of the following accurately describes the management of unemployment funds available to this worker?
A. The funds are managed solely by the state government.
B. The funds are managed solely by the federal government.
C. Employees contribute to a fund that is paid out to eligible unemployed workers.
D. In all but a few states, the total cost is covered by the employer.
E. The funds are managed solely by the county government.
D. In all but a few states, the total cost is covered by the employer.
Unemployment insurance (sometimes called reemployment insurance) funds are managed jointly by state and federal governments. Under the Federal Unemployment Tax Act (FUTA), employers contribute to a fund that is paid out to eligible unemployed workers. Each state also provides unemployment insurance, and credit is given employers against the FUTA tax for amounts paid to the state unemployment fund. The total cost is borne by the employer in all but a few states.
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