U.S. Code
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Title 42
» Chapter CHAPTER 7— SOCIAL SECURITY › Subchapter SUBCHAPTER IX— EMPLOYMENT SECURITY ADMINISTRATIVE FINANCING
42 U.S.C. § 1102
Transfers between Federal unemployment account and employment security administration account
(a) Determination of excess; amount transferredWhenever 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 excessesThe 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) shall be transferred to the employment security administration account as of the close of such fiscal year.
(c) Report to CongressWhenever 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), 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.
(Aug. 14, 1935, ch. 531, title IX, § 902, as added Aug. 5, 1954, ch. 657, § 2, 68 Stat. 669; amended Pub. L. 86–778, title V, § 521, Sept. 13, 1960, 74 Stat. 974; Pub. L. 91–373, title III, § 304(a), (b), Aug. 10, 1970, 84 Stat. 715, 716; Pub. L. 100–203, title IX, § 9154(b)(1), Dec. 22, 1987, 101 Stat. 1330–326; Pub. L. 102–318, title V, § 531(b), July 3, 1992, 106 Stat. 316; Pub. L. 105–33, title V, § 5402(a), Aug. 5, 1997, 111 Stat. 603.)Editorial NotesPrior ProvisionsA 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.
Amendments1997—Subsec. (a)(2). Pub. L. 105–33 substituted “0.5 percent” for “0.25 percent”.
1992—Subsec. (a)(2). Pub. L. 102–318 substituted “0.25 percent” for “five-eighths of 1 percent”.
1987—Subsec. (a)(2). Pub. L. 100–203 substituted “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”.
Subsec. (c). Pub. L. 91–373, § 304(b), added subsec. (c).
1960—Pub. L. 86–778 substituted 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”.
Statutory Notes and Related SubsidiariesEffective Date of 1997 AmendmentPub. L. 105–33, title V, § 5402(b), Aug. 5, 1997, 111 Stat. 603, provided 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.”
Effective Date of 1992 AmendmentPub. L. 102–318, title V, § 531(e), July 3, 1992, 106 Stat. 317, provided that:“(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 1101, 1104, and 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.”
Notes of Decisions
State of Missouri v. Earhart, 111 F.2d 992 (8th Cir. 1940).
“If credit is allowed for the amount of contributions claimed by the State of Missouri, the remaining 10 per centum due the federal government would be $124.”
Quality Coal Co. v. United States, 66 F. Supp. 105 (W.D. Ark. 1946).
· cites it 3× “To encourage the states to shoulder the principal administrative functions essential to handling the local aspects of the unemployment problem, the act provided that the amount of contributions paid by the taxpayer into an unemployment fund under a state law might be credited…”
Davis v. Boston & M. R. Co., 89 F.2d 368 (1st Cir. 1937).
· cites it 4× “The federal government then proceeds under section 902 and 903 of title IX ( 42 U.S.C.A. §§ 1102 , 1103) to retain control over the funds, 90 per cent.”
In re Indep. Auto. Forwarding Corp., 118 F.2d 537 (2d Cir. 1941).
“10, 1939, 42 U.S.C.A. § 1102 . Before the amendment it provided that: "The taxpayer may credit against the tax imposed by § 901 [section 1011 of this chapter] the amount of contributions, with respect to employment during the taxable year, paid by him (before the date of filing…”
Nierotko v. Soc. Sec. Bd., 149 F.2d 273 (6th Cir. 1945).
“§ 1011 (a)], The income tax on employees is to be collected by the employer who is to deduct the amount from the wages “as and when paid” [§ 802(a), 42 U.S.C.A. § 1102 (a)]. These provisions speak in terms of a standard applied to remuneration paid to the employee in pursuance…”
Davis v. Boston & Maine R. R., 17 F. Supp. 97 (D. Mass. 1936).
· cites it 3× “The petitioner charges that Title IX is unconstitutional (1) in that the tax levied is not in fact an excise tax in character, although so named, but is a capricious confiscation, (2) that it is not uniform throughout the United States, and is capricious, (3) it is not to…”
In re Stand. Composition Co., 23 F. Supp. 391 (E.D. Mich. 1938).
“By section 902 of the act, 42 U.S.C.A. § 1102 , it is provided that the taxpayer may credit against the tax so imposed, to the extent *393 of 90 per cent, of the tax, the amount of contributions paid by him prior to the filing of the federal return into an unemployment fund…”
In re Royal-Wilhelm Furniture Co., 23 F. Supp. 993 (W.D. Mich. 1938).
“1102 , 42 U.S.C.A. § 1102 ), which reads: “The taxpayer may credit against the tax imposed by section 1101 of this chapter the amount of contributions, with respect to employment during the taxable year, paid by him (before the date of filing his return for the taxable year)…”
In re Lambertville Rubber Co., 27 F. Supp. 897 (D.N.J. 1939).
“By virtue of 42 U.S.C.A. § 1102 , if these taxes were paid seasonably it could avail itself of a deduction from the taxes due the federal government to the extent of 90% of the taxes paid the state government.”
Chas. C. Steward MacH. Co. v. Davis, 89 F.2d 207 (5th Cir. 1937).
“Section 902 ( 42 U.S.C.A. § 1102 ) allows a taxpayer to take credit up to 90 per cent, of his tax for contributions which he has made to an unemployment fund under the laws of his State if those .”
In re Siegelbaum's Inc., 38 F. Supp. 1009 (D. Conn. 1941).
“42 U.S.C.A. § 1102 . All of the several state laws are substantially the same on points here material, and it would be regrettable if minute differences in phraseology led to practical differences in the operation of a national plan.”
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