Final answer:
Employers are legally required to fund workers' compensation benefits through a percentage of employee salaries. These funds are state-managed and support injured workers.
Step-by-step explanation:
Workers' compensation benefits are primarily funded by employers. Employers are mandated by law to contribute a certain percentage of their employees' salaries into compensation funds. These funds are typically managed at the state level and are designed to provide benefits to workers who sustain injuries while on the job. It is not the responsibility of the state governments, federal government, or insurance providers to directly fund workers' compensation. However, employers may choose to purchase insurance for workers' compensation to help manage this liability.