What Is the Basis for Determining the Employer's Cost of Unemployment

question 76

Multiple Choice

What is the basis for determining the employer's cost of unemployment compensation?

• A) the type of business and industry and its known seasonal fluctuations in employment
• B) the number of covered employees
• C) the employer's total payroll cost
• D) the number of claims filed by former employees

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Definitions:

Profit-Sharing Plan

A retirement plan that gives employees a share in the profits of the company, often vested over time.

Simplified Method

A straightforward calculation approach, often used for determining the taxable portion of annuity payments or retirement benefits.

Qualified Pension Plan

A retirement plan that meets requirements set forth by the IRS to qualify for favorable tax treatment.

Tax-Deferred

Tax-Deferred refers to investment earnings such as interest, dividends, or capital gains that accumulate tax-free until the investor takes constructive receipt of the gains.