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

CLASSIFICATION

 

CORRESPONDENCE SYMBOL

TEURA

ISSUE DATE

May 24, 1995

RESCISSIONS

None

EXPIRATION DATE

May 31, 1996

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 30-95

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

MARY ANN WYRSCH
Director
Unemployment Insurance Service

 

SUBJECT

:

Comparative Data on FUTA Receipts by State and Amounts Returned to States

  1. Purpose. To provide tables for fiscal years 1981 through 1993 showing Federal Unemployment Tax Act (FUTA) receipts by State and the amounts returned to the States for program administration and benefit payments.

  2. References. UIPL 25-86 and Changes 1 and 2.

  3. Background. There has been considerable interest among State Employment Security Agencies (SESAs) in seeing a comparison of FUTA receipts by State to amounts returned to the States in past years. The Unemployment Insurance Service (UIS) previously published this data for fiscal years 1973-88 in UIPL 25-86, UIPL 25-86, Change 1, and UIPL 25-86, Change 2. This UIPL reissues the series back to 1981 and updates it to 1993.

    Since actual data on FUTA receipts by State does not exist, it is necessary to estimate these data using wage and employment data from the ES202 report. For this publication, UIS has revised its methodology for estimating FUTA receipts. The FUTA data for all States and for all years back to 1981 have been re-estimated. Therefore, the previously published data should no longer be used.

    When comparisons are made between FUTA receipts and amounts returned, it is important to recognize that $7.6 billion of the FUTA receipts for FY 1981-87 were used to repay general revenue loans for Federal benefits paid prior to FY 1981. Also, certain items, particularly postage costs and National Activities expenditures, are not reflected in the State data. These items total approximately $1.9 billion for the FY 1981-93 period. Both of these factors serve to reduce the apparent proportion of FUTA receipts returned to States.

  4. Action Required. Please distribute to appropriate staff.

  5. Inquiries. Direct inquiries to the appropriate Regional Office. Data may be obtained on diskette by contacting Mike Miller of the National Office at 202-219-8640.

  6. Attachment.