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Title 42, The Public Health and WelfareRelease 119-110

§1102 Transfers Between Federal Unemployment Account and Employment Security Administration Account

Title 42 › CHAPTER 7 — SOCIAL SECURITY › SUBCHAPTER IX — EMPLOYMENT SECURITY ADMINISTRATIVE FINANCING › § 1102

Last updated Sep 22, 2026|Official source

Summary

If the Treasury finds extra money in the Employment Security Administration account at the end of a fiscal year and that money isn’t kept there or moved to the extended unemployment account, Treasury must move enough of the extra at the start of the next fiscal year into the Federal Unemployment Account to bring that account up to the larger of two amounts: $550 million, or an amount equal to 0.5 percent of all wages that were subject to state unemployment taxes for the calendar year (that 0.5% amount is figured by the Secretary of Labor and given to Treasury). If the Federal Unemployment Account already has more than that larger amount at year end, the extra must be moved into the Employment Security Administration account at the close of the fiscal year. If the Secretary of Labor thinks the three accounts (Employment Security Administration, Federal Unemployment, and Extended Unemployment Compensation) will hit their legal limits next year, he must talk with Treasury and then report to Congress with recommendations.

Full Legal Text

Title 42, §1102

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Determination of excess; amount transferred
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) 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), 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.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

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.

Amendments

1997—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 Subsidiaries

Effective Date

of 1997 Amendment Pub. 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 Amendment Pub. 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 section 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.”

Reference

Citations & Metadata

Citation

42 U.S.C. § 1102

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110