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

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.

jaegur DeRose · Accepted Answer

Final Answer : E, Explanation :  The term Merit rating refers to the rate that a state assigns to a company reflecting its stability or instability in employing workers. This rate is based on factors such as the company's experience rating, turnover rate, and safety record. The merit rating is used to determine the company's unemployment insurance tax rate, with higher-rated companies paying lower rates and vice versa. Therefore, option E is the correct answer.

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.

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Learning Objectives

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