Question

In: Accounting

Federal unemployment compensation tax is a tax that is paid only by employers. True False

Federal unemployment compensation tax is a tax that is paid only by employers.

True

False

Solutions

Expert Solution

The correct answer is

True

Explanation

Federal unemployment compensation tax refer to the tax paid by the employers. Such money is used by the goverment to pay to the workers who heve lost their jobs and unemployment compensation is paid to them. So the correct answer is True , that is only employer contributes to federal Unemployment Compensation tax.


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