Future Business Leaders of America (FBLA) Accounting Practice Test

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the FBLA Accounting Test with practice quizzes and comprehensive questions. Each question is designed to help deepen your understanding and enhance your readiness for the exam. Are you ready to excel?

Practice this question and more.

What is the purpose of unemployment taxes?

To fund retirement plans for employees
To provide funds for workers temporarily out of work
To cover health insurance costs for employees
To increase state revenues

The correct answer is: To provide funds for workers temporarily out of work

Unemployment taxes are designed primarily to provide funds for workers who find themselves temporarily out of work. When employees are laid off or lose their jobs for reasons that are not their fault, the unemployment insurance program helps support them financially while they search for new employment. This safety net is crucial for stabilizing the economy during downturns by helping maintain consumer spending, thereby reducing the likelihood of more significant economic deterioration. The collected unemployment taxes contribute to a pool of funds that states use to pay out unemployment benefits to eligible individuals. This essential function of unemployment taxes underscores their role in workforce stability and social security for those facing job loss.