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

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TEURL

ISSUE DATE

September 13, 1983

RESCISSIONS

 

EXPIRATION DATE

September 30, 1984

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 41-83

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

ROYAL S. DELLINGER
Deputy Assistant Secretary

 

SUBJECT

:

Amendments Made by P.L. 98-21 (Social Security Act Amendments of 1983), Which Affect the Federal-State Unemployment Compensation Program

 

  1. Purpose. To advise State agencies of certain amendments made by the subject act to Title III of the Social Security Act (SSA); the Federal-State Extended Unemployment Compensation Act of 1970 (EUCA); Sections 3303(f), 3304(a) and 3306(b) of the Federal Unemployment Tax Act (FUTA).

  2. References. Sections 324 through 329, 515, and 521 through 524 of P.L. 98-21.

  3. Background. The amendments in P.L. 98-21, approved on April 20, 1983, made numerous changes in provisions of the Federal law which impact on State unemployment compensation programs.  Several of the changes made to the Federal law by P.L. 98-21 are being handled in separate unemployment insurance program letters and will not be addressed in this letter.  The changes being treated separately include: 1) the provisions in Sections 501 through 505 of P.L. 98-21 which extended the Federal Supplemental Compensation Act (See General Administration Letter No. 2-83, Change 2), and 2) the provisions in Sections 511 through 514 which relate to the cap on FUTA tax credit reductions, the definition of average employer rates as used for purposes of those provisions, and the provision establishing the due dates for State payment of interest on Title XII loans (See UIPL No. 31-83, issued June 29, 1983).

    4. Amendments Made by Sections 515 and 521-524 of P.L. 98-21 The matters to be addressed herein include those changes made by Sections 515, and 521 through 524 respectively, which provide for:

  4. Explanation of Changes Made by P.L. 98-21.  Attachment I provides explanations and interpretative guidelines for each of the above described amendments made by Sections 515 and 521 through 524 on a section by section basis as well as their effective dates.  Draft language for changes needed in State laws to satisfy the new requirements by reason of the amendments made by sections 521, 522 and 523 of P.L. 98-21 are provided in Attachment III.  (Note: Suggested language is not provided for the amendments in Section 515.)

    In addition to all of the above described provisions, Section 324 through 329 of P.L. 98-21 also amended the definition of "wages" in FUTA.  The applicability of those changes and the manner in which they will be interpreted are the responsibility of the Secretary of Treasury.  However, for the convenience of the States, we are providing the text of the changes made by those sections and a brief explanation in Attachment II to this UIPL.

  5. Action Required. SESAs are requested to take the necessary action to assure consistency of State law with the Federal law requirements as amended by P.L. 98-21.

  6. Inquiries. Inquiries should be directed to your regional offices.

  7. Attachments. 

    1. Explanation and Interpretation of Amendments

    2. Explanation and Text of Amendments Made to Definition of Wages Under FUTA

    3. Suggested Draft Language for Implementation of Sections 521, 522 and 523 of P.L. 98-21