Describe the Federal Unemployment Tax Act

What will be an ideal response?

In 1935, the U.S. Congress passed the Federal Unemployment Tax Act, which created a state system that provides unemployment compensation to qualified employees who lose their jobs. Under this act, employers pay taxes to the states. These tax dollars are deposited into the federal government's Unemployment Insurance Fund. Each state has an account from which to access the money in the fund. States then set up their own system of allocating these funds, determining such matters as how the amount of compensation is determined and how long it can be collected. Eligibility requirements must also be set, with most states requiring, at minimum, an applicant not to have been fired for just cause or not to have quit voluntarily. Some states' eligibility requirements are more generous than others. For example, although states generally require that employees did not voluntarily quit, some will still allow an employee to receive unemployment if he or she quit because of a compelling reason.