Examples
Unemployment insurance is experience rated in the United States; companies that have more claims resulting from past workers face higher unemployment insurance rates. The logic of this approach is that these are the companies that are more likely to cause someone to be unemployed, so they should pay more into the pool from which unemployment compensation is paid. Unemployment insurance is financed by a payroll tax paid by employers. Experience rating in unemployment insurance is described as imperfect, due in large part to the fact that there are statutory maximum and minimum rates that an employer can receive without regard to its history of lay-off. If a worker is laid off, generally the increased costs to the employer due to the higher value of unemployment insurance tax rates are less than the UI benefits received by the worker.
Read more about this topic: Experience Rating
Famous quotes containing the word examples:
“In the examples that I here bring in of what I have [read], heard, done or said, I have refrained from daring to alter even the smallest and most indifferent circumstances. My conscience falsifies not an iota; for my knowledge I cannot answer.”
—Michel de Montaigne (1533–1592)
“Histories are more full of examples of the fidelity of dogs than of friends.”
—Alexander Pope (1688–1744)
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—Bernard Mandeville (1670–1733)