Michigan Nursing Home Administrator (NHA) Practice Exam

Who contributes to the Michigan Employment Security Fund?

1. Employers only

2. Employees only

3. Both employers and employees

4. State and federal governments

The correct answer is: Employers only

The Michigan Employment Security Fund is primarily funded by contributions from employers, which means they pay into the fund to support unemployment benefits for eligible workers. Employers are responsible for remitting unemployment insurance taxes based on their payroll, which helps finance the fund that provides benefits to those who lose their jobs. While employees do not contribute directly to the Michigan Employment Security Fund, they may indirectly influence the fund's stability through the employment tax structure. However, they do not pay into this specific fund in the way that employers do. The involvement of state and federal governments in unemployment funding primarily revolves around supplemental funding or support during economic downturns or crises, rather than a direct contribution to the state's Employment Security Fund. Therefore, the focus is entirely on employers as the sole contributors to the fund, as they are held responsible for its replenishment and overall health through their tax contributions.