1. If a state is subject to a credit reduction, its employers will pay a(n) _____ FUTA rate in comparison to the previously effective rate.

Variable

Identical

Higher

Lower

2. Currently the employer's Social Security tax:

is the same as the employee's Social Security tax.

can be any of the above.

is less than the employee's Social Security tax

is greater than the employee's Social Security tax

3. Which of the following is an accurate statement about SUTA tax?

Every state designates a taxable earnings threshold over which SUTA tax is not levied.

SUTA tax rates differ from one employer to another, but do not change from year to year.

The SUTA tax rate is based on the number of layoffs and an employer has experienced.

SUTA tax paid by an employer is typically less than FUTA tax paid for the same period.