U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TEURL

ISSUE DATE

December 16, 1994

RESCISSIONS

None

EXPIRATION DATE

 

DIRECTIVE

:

UIS INFORMATION BULLETIN NO. 06-95

 

TO

:

ALL REGIONAL ADMINISTRATORS

 

FROM

:

MARY ANN WYRSCH
Director
Unemployment Insurance Service

 

SUBJECT

:

UI Legislation Enacted in the Second Session of the 103rd Congress

 

This mailing includes summaries of three Public Laws that have been enacted since mailing No. 93-02. These are:

P.L. 103-296   Amended the Internal Revenue Code of 2986 giving States the option of excluding from coverage services performed by aliens who are admitted to the United States under a "q" visa.
P.L. 103-387   Authorizes the U.S. Secretary of the Treasury to enter into agreements with States to collect State unemployment taxes from employers of domestic workers by allowing individuals to report wages paid to these workers on Form 1040 of their Federal income tax returns.
P.L. 103-465   Amended the Internal Revenue Code of 1986 to require States to establish a system for withholding Federal income tax from UI benefits, so that withholding can occur at the option of the claimant.

Please address any questions regarding this bulletin to Joseph Hickey on 202-219-5200.

Attachments

 

 

August 1994 (P.L. 103-296, Approved August 15, 1994).

The Social Security Independence and Program Improvements Act of 1994.

Established the Social Security Administration as an independent agency.

Amended Section 3306(c)(19) of FUTA, giving States the option of excluding from coverage services performed by aliens who are admitted to the United States under a "q" visa.

A "q" visa is a temporary visa issued to aliens (for a period not to exceed 15 months) who are participating in an international cultural exchange program providing practical training, employment, and the sharing of the history, culture, and traditions of the country of the alien's nationality and who will be employed under the same wages and working conditions as domestic workers.

The law change will take effect with the calendar quarter following the calendar quarter of enactment.

 

 

October 1994 (P.L. 103-387, Approved October 22. 1994).

The Social Security Domestic Employment Reform Act of 1994.

Authorizes the U.S. Secretary of the Treasury to enter into agreements with States to collect State unemployment taxes from employers of domestic workers by allowing individuals to report wages paid to these workers on Form 1040 of their Federal income tax returns. However, States are not required to enter into agreements with the Secretary of the Treasury.

Any amounts collected under an agreement will be transferred by the Secretary of the Treasury to the account of the State in the Unemployment Trust Fund.

This provision will apply to remuneration paid in calendar years beginning after December 31, 1994.

 

 

December 1994 P.L. 103-465 Approved December 8, 1994).

The Uruguay Round Agreements Act.

Amended Section 3304(a) of FUTA, requiring each State to establish a system for withholding Federal income tax from UI benefits, so that withholding can occur at the option of the claimant.

Claimants will be asked at the time they file their claim whether or not they want Federal income taxes withheld. If a claimant chooses withholding, the amount withheld will be at a flat 15 percent rate.

Amended Section 3304(a)(4) of FUTA, to permit (but does not require) States to allow claimants to elect to have State and local income tax withholding from their benefits.

Administrative expenses for which States can be reimbursed could include the cost of conducting Federal income tax withholding.

The provision is effective for UI benefits paid after December 31, 1996.