Utah Contractor Practice Exam

How many employees must an employer have before he/she must make disability insurance deductions?

1. 0

2. 1 or more

3. 2 or more

4. 3 or more

The correct answer is: 1 or more

In Utah, as well as in many other states, the requirement for employers to provide disability insurance deductions is geared towards ensuring that all employees have access to necessary benefits, regardless of the size of the workforce. When the threshold is set at 1 or more employees, it means that any employer with at least one employee is obligated to comply with the regulations regarding disability insurance. This approach supports the idea that even small businesses, which may have only one employee, should contribute to an employee’s financial protection in the event of a disability. It reflects a commitment to social responsibility and the welfare of workers, ensuring that even in small operations, employees are not left without support should unexpected health issues arise. The other choices suggest various minimum employee thresholds that would not reflect the broader intention of providing disability coverage. By establishing the requirement at 1 employee, the law ensures inclusivity and adequate coverage for all workers, reinforcing a safety net within the employment landscape.