What is the employer responsible for paying based on employee wages that provides a safety net if employment ends involuntarily?
Answer
Unemployment insurance contributions (FUTA and SUTA)
The obligation to pay state and federal unemployment taxes is directly tied to the employer-employee classification and funds the unemployment safety net for workers who lose their jobs through no fault of their own.
Related Questions
What is the primary factor defining an employee according to the IRS regarding work performance?What federal tax form details an employee's wages and withholdings at year-end?What type of mandatory contribution is the employer responsible for regarding Social Security and Medicare?What term describes the total compensation promised to an employee before any subtractions are made?What constitutes net pay in the context of an employee's salary structure?For Affordable Care Act (ACA) purposes, what generally defines a full-time employee regarding hours worked?What FLSA classification of employee is entitled to minimum wage and overtime pay protections?What is an essential administrative component involving the verification of identity and authorization to work in the United States for an employee?Which components are often included as voluntary deductions that reduce an employee's take-home pay?What is the employer responsible for paying based on employee wages that provides a safety net if employment ends involuntarily?In the breakdown of gross pay distribution, what are tax withholdings considered relative to the earned salary?