EmploymentQuestion 1079 of 1605
Who pays for California's unemployment insurance (UI) program that funds benefits for laid-off workers?
a.Employees, through a mandatory paycheck deduction
b.The injured worker directly
c.The federal government exclusively
d.Employers, through UI payroll taxes on wages (it may not be deducted from employees)
Explanation
California's UI program is funded by employer-paid payroll taxes. Employers may not deduct UI contributions from employees' wages. An employer's UI tax rate is experience-rated, so layoffs and successful benefit claims can raise the employer's future rate.
Law Reference: Unemployment Insurance Code §976; UI taxPractice all 1605 questions free — no signup required.
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