Louisiana Contractors License Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for your Louisiana Contractors License Exam with multiple choice questions. Each question includes hints and detailed explanations to enhance your understanding. Improve your chances of passing the exam on your first attempt.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

When must employers pay state and federal unemployment tax?

Only when total wages exceed $1,000
When wages paid exceed $1,500 per quarter or have at least one employee for 20 weeks
When a seasonal employee is hired
Annually, regardless of wages

The correct answer is: When wages paid exceed $1,500 per quarter or have at least one employee for 20 weeks

Employers are required to pay state and federal unemployment tax when their wage payments exceed certain thresholds. Specifically, the correct choice signifies that if an employer pays more than $1,500 in any quarter or employs at least one worker for 20 weeks in a year, they must contribute to unemployment tax. This regulation ensures that employers are supporting unemployment insurance programs, which provide benefits to workers who lose their jobs. The threshold of $1,500 per quarter reflects the standard condition set by the IRS, while the stipulation of having an employee for 20 weeks emphasizes the need for continuous employment, which helps establish a workforce baseline for unemployment tax liability. Understanding this criterion is essential for compliance with both state and federal regulations regarding unemployment tax responsibilities. The other options do not accurately reflect the criteria for unemployment tax liability, as they either set incorrect thresholds or misinterpret the obligations related to employment status or seasonality.