Ch 10 Section Revlew 1.2 (Static) How are unemployment Insurance... LO 10-1| How are unemployment Insurance benefits financed? Multiple Choice The total cost of unemployment (FUTA and SUTA) is shared equally by employees and employers. They are financed by taxing the employee and withnolding from gross earnings. Employers pay the entire tax based on an amount determined by state and federal governments. Congress allocates funds to pay all costs related to unemployment benefits