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In: Accounting

Question 9 2 pts The experience rate can also be called the payroll deduction rate. charged...

Question 9 2 pts

The experience rate can also be

called the payroll deduction rate.
charged back to the employee at 100%.
collected by the Department of Revenue.
none of the above.

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Question 10 2 pts

The composite rate is comprised of ______ different premiums.

5
4
7
300

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Question 11 2 pts

The required report to L&I must be submitted...

annually
monthly
quarterly
depends on the amount of the liability due.

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Question 12 1 pts

When applying the 160 hour rule employers deduct for vacation, sick or holiday hours.

True
False

Solutions

Expert Solution

Q9)

Experience tax rate refers to a method for determining the contribution rates of individual employers according to the factors specified in the state unemployment compensation code for measuring an employer's experience with respect to unemployment. The experience rate is designed to ensure that an employer has sufficient funds to cover future unemployment disbursements. The Employers are charged a premium if they are facing higher risks according to the experience rate. The loss experience of a particular employer is compared to the loss experience of similar groups of employers. Based on this comparison, an experience modifier is calculated for each employer.

There is no concept of payroll deduction depending on the experience rate and hence it is not called as the payroll deduction rate.

Further, it can be seen in the above description that the experience rate concept is solely linked to the employer and not to the employees. Hence, it cannot be charged back to the employee.

Further, the experience rate cannot be collected by the Department of Revenue as it is not a monetary concept.

Hence, the answer is ‘none of the above’

Q10)

Composite rates comprise of average premium of a particular group of individuals to arrive at the final rate for each individual. There is no particular number for the group to be taken.

However, there is no applicable answer mentioned in your options. Please verify the question

Q11)

The required report to L&I must be submitted Quarterly.

Hence, the answer is ‘quarterly’


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