The Unemployment Trust Fund (UTF) is composed of 59 accounts in the
United States Treasury
The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...
related to unemployment insurance program. Specifically, there are 53 state accounts, 4 federal accounts, and 2 accounts in connection with Railroad Retirement Board.
State accounts
There is one account for each state (plus
District of Columbia
)
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, image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...
,
Puerto Rico
Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and Unincorporated ...
, and the
Virgin Islands
The Virgin Islands ( es, Islas Vírgenes) are an archipelago in the Caribbean Sea. They are geologically and biogeographically the easternmost part of the Greater Antilles, the northern islands belonging to the Puerto Rico Trench and St. Croix ...
). Each state account consists of the contributions and reimbursements collected by the state. Interest earned on these amounts are credited to the state accounts. Money is withdrawn from state accounts mainly to pay unemployment benefits, with limited statutory exceptions.
States sometimes use the term "Unemployment Trust Fund" to refer to their own state account.
Federal accounts
There are four federal accounts in the UTF that are used to provide federal financing.
1. The Employment Security Administration Account (ESAA) is used to fund the administrative costs of the UI system and of other related programs. Virtually all of the income to this account is from
FUTA
Futa may refer to:
Geography
* Futa Pass between Florence and Bologna
*Futa River in Chile
* Futa, Ghana, a community in Ghana
*Futa Tooro, a region along the Senegal River
Acronyms
*Federal Unemployment Tax Act (US)
*Federal University of Techn ...
tax.
2. The Extended Unemployment Compensation Account (EUCA) pays for the federal share (50%) of benefit outlays under the federal-state EB program. EUCA is also used to fund temporary recessionary benefit programs, such as the Emergency Unemployment Compensation (EUC) program.
3. The Federal Unemployment Account (FUA) provides loans to states under Title XII of the
Social Security Act
The Social Security Act of 1935 is a law enacted by the 74th United States Congress and signed into law by US President Franklin D. Roosevelt. The law created the Social Security program as well as insurance against unemployment. The law was pa ...
. All state loan repayments, either voluntary or through
FUTA credit reduction
The Federal Unemployment Tax Act (or FUTA, ) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service. ...
, are deposited in this account, and so are loan interest payments.
4. The Federal Employees Compensation Account (FECA) finances benefit payments to former federal civilian and military employees.
See also
*
Federal Unemployment Tax Act
The Federal Unemployment Tax Act (or FUTA, ) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service. ...
*
FUTA credit reduction
The Federal Unemployment Tax Act (or FUTA, ) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service. ...
External links
Unemployment Trust Fund Reports
Unemployment in the United States