Questions: Which of the following is true about employers reserve in the unemployment fund? Pay less than those with small or no reserve Be more likely to allow unemployment cases Withhold a small percentage of employee earnings Contribute to an employees' earnings

Which of the following is true about employers reserve in the unemployment fund?
Pay less than those with small or no reserve
Be more likely to allow unemployment cases

Withhold a small percentage of employee earnings
Contribute to an employees' earnings
Transcript text: Which of the following is true about employers reserve in the unemployment fund? Pay less than those with small or no reserve Be more likely to allow unemployment cases Withhold a small percentage of employee earnings Contribute to an employees' earnings
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Solution

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Answer

The answer is: Withhold a small percentage of employee earnings

Explanation
Option 1: Pay less than those with small or no reserve

This option is not accurate in the context of unemployment funds. Employers with a larger reserve in the unemployment fund typically have a lower tax rate because they have a history of fewer unemployment claims. Therefore, they do not necessarily pay less in terms of contributions to the fund compared to those with small or no reserve.

Option 2: Be more likely to allow unemployment cases

Employers with a larger reserve are not necessarily more likely to allow unemployment cases. The reserve is a reflection of past unemployment claims and contributions, not a predictor of future behavior regarding unemployment cases.

Option 3: Withhold a small percentage of employee earnings

This option is true. Employers contribute to the unemployment fund by withholding a small percentage of employee earnings. This contribution is part of the unemployment insurance system, which provides benefits to workers who lose their jobs through no fault of their own.

Option 4: Contribute to an employees' earnings

This option is incorrect. Employers do not contribute to an employee's earnings through the unemployment fund. Instead, they contribute to the fund itself, which is used to provide unemployment benefits to eligible workers.

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