MHIC NASCLA Contractors Practice Exam

In Maryland, what is required of employers regarding unemployment insurance?

1. They must report payroll and pay taxes

2. They must provide health insurance

3. They must hire a specific number of employees

4. They must register with the state annually

The correct answer is: They must report payroll and pay taxes

In Maryland, employers are obligated to report payroll and pay taxes concerning unemployment insurance. This requirement ensures that funds are available to support workers who become unemployed through no fault of their own. By reporting payroll, employers contribute to the unemployment insurance fund, which is crucial for providing temporary financial assistance to eligible workers. This reflective practice not only aids in safeguarding the welfare of the workforce but also fosters compliance with state regulations, ensuring proper funding and administration of the unemployment insurance program. The remaining options do not directly pertain to unemployment insurance. Providing health insurance and hiring a specific number of employees are related to separate laws and regulations that do not connect to the unemployment insurance system. Additionally, while employers may need to register with the state for various purposes, annual registration is not specifically mandated for unemployment insurance compliance. Therefore, the emphasis on reporting payroll and paying taxes is vital for both the employer's responsibilities and the support of the broader economic safety net.