You're Working as a Human Resources Director for a Small

question 103

True/False

You're working as a human resources director for a small company. Part of your job is to assess the company's benefits plan. There are several workers utilizing the company daycare facility. However, the daycare costs the company far more than another benefit might cost, like employing an on-site physician. The on-site physician services are supported by insurance, and the physician actually rents space from the company. Under these circumstances, eliminating the daycare is a balanced decision.

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Definitions:

Estimated Cost

An approximation of the future cost of producing a product, completing a project, or maintaining a service.

FICA Taxes

Taxes paid by both employees and employers to fund Social Security and Medicare, based on a percentage of the employee's earnings.

Federal Unemployment Taxes

Taxes levied by the federal government on employers to fund state workforce agencies and unemployment insurance.

State Unemployment Taxes

Taxes imposed by state governments on employers, based on the amount of wages paid to employees, to fund unemployment compensation benefits.