Question

A merit rating system for SUTA means

A. FUTA will increase.
B. state rates will always be lower.
C. rate varies with employment record.
D. rates cannot change.

Answer 1

Answer is D because the rate can not be changed

Answer 2

The right choice is C. rate varies with employment record.

Explanation:

Some states offer a merit rating system that results in a lower SUTA rate for companies with a stable employment period. The concept is to reward employers that keep employees around with less turn over, the unemployment fund is used less frequently and it costs the system less money so the rate varies with employment record.