Final answer:
State and federal unemployment taxes are imposed only on employers, not on employees. Employers pay into an unemployment insurance fund, and the federal government requires tax collection on the first $7,000 of wages paid. This system provides benefits to workers who have lost their jobs. The correct option is 2.
Step-by-step explanation:
The statement that state and federal unemployment taxes are imposed on both employers and employees is False. In the United States, these taxes are part of payroll taxes. While employers in every state are required to pay unemployment insurance taxes, which go into a fund to pay benefits to workers who have lost their jobs, these taxes are not imposed on employees. The federal government mandates the tax collection on the first $7,000 in wages paid to each worker. States have the flexibility to set a higher wage limit for tax collection, with 41 states choosing to do so. Benefits duration and amounts may vary, but typically a state limits unemployment benefits to a maximum of 26 weeks.
State and federal unemployment taxes are indeed imposed on both employers and employees. This means that both employers and employees are required to contribute a certain percentage of their wages to the unemployment insurance fund. This tax is used to provide benefits to workers who lose their jobs and are not able to find new jobs for a period of time.