Unemployment Tax

Unemployment Tax is a government levy imposed on employers to fund unemployment benefits for workers who lose their jobs. When employees are laid off, these benefits provide temporary financial assistance while they search for new work. The tax is usually a small percentage of each employee's wages and varies by state. Employers pay this tax to ensure a safety net for their workforce, helping to stabilize the economy during downturns. It's important for both employers and employees to understand this system, as it plays a critical role in supporting individuals during periods of job loss.