Final answer:
Under the Federal Unemployment Tax Act (FUTA), state agencies administer the unemployment insurance program and play a vital role in providing benefits to workers in private businesses. They collect taxes from employers and manage the funds to give benefits to eligible individuals.
Step-by-step explanation:
Under the Federal Unemployment Tax Act (FUTA), state agencies play a crucial role in providing unemployment benefits to workers in private businesses. The FUTA establishes a state-run system of unemployment insurance where workers contribute to a state fund while employed, and then receive benefits when they become unemployed.
State agencies administer the unemployment insurance program, including determining eligibility and processing benefit claims. They collect unemployment taxes from employers and manage the funds to provide benefits to qualifying workers. The amount and duration of benefits vary by state, as each state has its own unemployment insurance program.