Whenever the Secretary of the Treasury determines pursuant to section
1101(f) of this title that there is an excess in the employment security administration account as of the close of any fiscal year and the entire amount of such excess is not retained in the employment security administration account or transferred to the extended unemployment compensation account as provided in section
1101(f)(3) of this title, there shall be transferred (as of the beginning of the succeeding fiscal year) to the Federal unemployment account the balance of such excess or so much thereof as is required to increase the amount in the Federal unemployment account to whichever of the following is the greater:
(1)$550 million, or
(2)the amount (determined by the Secretary of Labor and certified by him to the Secretary of the Treasury) equal to 0.5 percent of the total wages subject (determined without any limitation on amount) to contributions under all State unemployment compensation laws for the calendar year ending during the fiscal year for which the excess is determined.
(b) Unemployment account excesses
The amount, if any, by which the amount in the Federal unemployment account as of the close of any fiscal year exceeds the greater of the amounts specified in paragraphs (1) and (2) of subsection (a) of this section shall be transferred to the employment security administration account as of the close of such fiscal year.
(c) Report to Congress
Whenever the Secretary of Labor has reason to believe that in the next fiscal year the employment security administration account will reach the limit provided for such account in section
1101(f)(3)(A) of this title, and the Federal unemployment account will reach the limit provided for such account in subsection (a) of this section, and the extended unemployment compensation account will reach the limit provided for such account in section
1105(b)(2) of this title, he shall, after consultation with the Secretary of the Treasury, so report to the Congress with a recommendation for appropriate action by the Congress.
A prior section
1102, act Aug. 14, 1935, ch. 531, title IX, § 902,49 Stat. 639, related to credit against tax. For further details, see Prior Law note set out preceding section
1101 of this title.
1997—Subsec. (a)(2). Pub. L. 105–33substituted “0.5 percent” for “0.25 percent”.
1992—Subsec. (a)(2). Pub. L. 102–318substituted “0.25 percent” for “five-eighths of 1 percent”.
1987—Subsec. (a)(2). Pub. L. 100–203substituted “five-eighths” for “one-eighth”.
1970—Subsec. (a). Pub. L. 91–373, § 304(a), inserted, in provisions preceding par. (1), reference to the retention of the entire amount of the excess in the employment security administration account or the transfer to the extended unemployment compensation account as provided in section
1101(f)(3) of this title and, in par. (2), substituted “one-eighth of 1 percent” for “four-tenths of 1 per centum”.
1960—Pub. L. 86–778substituted provisions for transfers between Federal unemployment account and employment security administration account for former provisions crediting the Federal unemployment account with funds and defining “adjusted balance”.
Effective Date of 1997 Amendment
Section 5402(b) ofPub. L. 105–33provided that: “This section [amending this section] and the amendment made by this section—
“(1) shall take effect on October 1, 2001, and
“(2) shall apply to fiscal years beginning on or after that date.”
“(1) In general.—Except as provided in paragraph (2), the amendments made by this section [enacting section
1110 of this title and amending this section and sections
1105 of this title] shall take effect on the date of the enactment of this Act [July 3, 1992].
“(2) Changes in ceiling amounts.—The amendments made by subsection[s] (a)(2) and (b) [amending this section and section
1105 of this title] shall apply to fiscal years beginning after September 30, 1993.”
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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