Final answer:
Worker's Compensation is a state-mandated insurance program, funded solely by employers, who pay a portion of their payroll into state-run funds to cover injured employees.
Step-by-step explanation:
Worker's Compensation is a system in place to help employees who suffer an injury on the job. This compensation is paid for by employers. They are required by law to pay a small percentage of the salaries that they pay into funds. These funds are typically run at the state level and are designed to pay benefits to injured workers. While employers contribute to these funds, they are separate from other types of employee benefits, such as health insurance, retirement plans, and payments to Social Security. Worker's Compensation should not be confused with unemployment insurance, which employers also pay into and provides benefits to workers who lose their jobs without fault and are looking for new employment.