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U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20213

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TEURA

ISSUE DATE

April 4, 1986

RESCISSIONS

 

EXPIRATION DATE

April 30, 1987

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 25-86

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

BARBARA ANN FARMER
Acting Administrator
for Regional Management

 

SUBJECT

:

Grants to States for Administration of State Unemployment Insurance and Employment Service Programs

 

  1. Purpose. To provide tables showing estimated Federal Unemployment Tax Act (FUTA) collections and corresponding State Grants for Unemployment Insurance (UI) and Employment Service (ES) for fiscal years 1973 to 1984.

  2. Background. The Department of Labor has embarked on an initiative to review the SESA administrative financing system. In that regard requests have been received from SESAs to provide a comparison of FUTA collections by State together with the UI and ES grants provided to each State for the same time period.

  3. Tables Provided. A table is provided for each fiscal year from 1973 to 1984. In addition, a U.S. total summary table is provided. The tables show estimated total FUTA payments and their distribution to the Extended Unemployment Compensation Account (EUCA) and the Employment Security Administration Account (ESAA). The distribution, which is fixed by law, has changed twice since 1973, starting at 90 percent ESAA/10 percent EUCA, then changing in CY 1977 to nine-fourteenths ESAA/five-fourteenths EUCA and in CY 1983 t 60 percent ESAA/40 percent EUCA. The amount available from ESAA for distribution to States for costs of administration is set by law at 95 percent.

    Some confusion my occur as to the amount of FUTA revenue that is attributed to each State because many employers do business in more than one State yet pay their total FUTA in the State where the company headquarters is located. For example, the tax for all of Dupont's operations throughout the United States may be paid in Delaware. Since it is not appropriate to attribute all of that revenue to Delaware, the Department estimates FUTA revenue for each State based on State taxable wages adjusted to the FUTA wage base level. These estimates are then used for any analyses done by the Department.

    Because of the adjustment process used to disaggregate FUTA taxes paid by multi-State employers, FUTA collections by State published by the Internal Revenue Service cannot be used for determining the amount of collections attributable to the various states.

  4. Action Required. None.

  5. Inquiries. Direct inquiries to the appropriate regional office.

  6. Attachments. 

    1. Estimated FUTA/State Grants 1973

    2. Estimated FUTA/State Grants 1974

    3. Estimated FUTA/State Grants 1975

    4. Estimated FUTA/State Grants 1976

    5. Estimated FUTA/State Grants 1977

    6. Estimated FUTA/State Grants 1978

    7. Estimated FUTA/State Grants 1979

    8. Estimated FUTA/State Grants 1980

    9. Estimated FUTA/State Grants 1981

    10. Estimated FUTA/State Grants 1982

    11. Estimated FUTA/State Grants 1983

    12. Estimated FUTA/State Grants 1984

    13. Estimated FUTA/State Grants - U.S. Totals