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?
>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.
Startups without a long history end up in the worst category be default, iirc.