Employers are subject to unemployment taxes imposed by both the state governments that have jurisdiction over them and the federal government. Workers compensation is a form of state-based social insurance paid for by employers that provides wage replacement and medical benefits to employees injured in the course of employment. Investigate your states (Alabama) unemployment and workers compensation regulations. Assume you are an owner-employee of an entity that is an S corporation or an entity taxed as an S corporation.

Would your business be required to pay into your states unemployment or workers compensation systems on your behalf? If yes, how would the amount of any such contribution be determined? What factors affect the answer to these questions, if any? Write two to three paragraphs summarizing the results of your research, supported by appropriate sources.