What government agency is responsible for collecting State Unemployment Tax?

Study for the Limited Specialty Contractor License (C-61) Exam. Prepare with flashcards and multiple-choice questions that include hints and explanations to boost your confidence. Get ready for your licensing exam!

The Employment Development Department is the correct answer because it is specifically designated as the state agency responsible for administering unemployment insurance programs in California. This includes the collection of State Unemployment Tax from employers, which funds the unemployment insurance system that provides benefits to eligible workers who are unemployed through no fault of their own.

The Department of Labor typically oversees federal labor regulations and broader employment policies, but does not collect state taxes. The California Tax Agency, while related to tax collection, does not specifically focus on unemployment taxes, and its scope is more generalized regarding various state tax issues. The term State Employment Agency is somewhat ambiguous and is not a specific government entity in California responsible for unemployment tax. Hence, the Employment Development Department is the correct and most specific choice in relation to the collection of State Unemployment Tax.

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