The rate that a state assigns reflecting a company's stability or instability in employing workers is the:
A)FICA rate.
B)Tax withholding rate.
C)Pay rate.
D)Credit rating.
E)Merit rating.

Question

Quizplus · Accepted Answer

The rate that a state assigns reflecting a company's stability or instability in employing workers is the merit rating. This rating is used to determine the amount a company will pay for its unemployment insurance tax. A company with a high merit rating, indicating low turnover and few layoffs, will pay a lower tax rate than a company with a low merit rating, indicating high turnover and frequent layoffs.

The Rate That a State Assigns Reflecting a Company's Stability