Is the main reason they are motivated to blame performance so that they can avoid paying out disability (edit: unemployment) insurance?
I think you meant unemployment insurance?
Startups without a long history end up in the worst category be default, iirc.
>Again, you are responsible for paying FUTA and SUTA tax for your employees. And when former employees file for unemployment benefits, you are (indirectly) the one footing the bill.
>Benefit payments are charged to your employer tax account, which results in increased state tax rates. The more unemployment claims the state approves, the more you contribute for unemployment taxes.