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American Rescue Plan relief for reimbursing employers
Summary ETA instructed states on American Rescue Plan relief for state and local governments, certain nonprofits and federally recognized tribes that reimburse unemployment costs instead of paying unemployment taxes. For specified 2021 weeks, the law raised the federal relief share from 50 to 75 percent and extended the temporary program. The PDF includes statutory language and worked examples.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 18-20, Change 2
Date issued
March 26, 2021
Status
Active
ETA’s listing marks this change Active, and the PDF prints “Rescissions: None” and “Expiration Date: Continuing.” The temporary relief period ended in 2021.
Status last verified October 24, 2026
Apply this to your situation
This page explains the general guidance. Ask about your specific situation and see what current federal labor law says, with citations.
About this page: The full text below is the official document from U.S. Department of Labor, Employment and Training Administration (ETA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION Unemployment Insurance
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
U.S. DEPARTMENT OF LABOR OUI/DFAS
Washington, D.C. 20210 DATE
March 26, 2021
ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 18-20,
Change 2
TO: STATE WORKFORCE AGENCIES
FROM: SUZAN G. LEVINE
Principal Deputy Assistant Secretary
SUBJECT: American Rescue Plan Act of 2021 (ARPA) – Amendments to the Emergency
Unemployment Relief for State and Local Governmental Entities, Certain
Nonprofit Organizations, and Federally-Recognized Indian Tribes
1. Purpose. To provide states with instructions for implementing the recent statutory changes
to the emergency unemployment relief for state and local governmental entities, certain
nonprofit organizations, and federally-recognized Indian Tribes provided in ARPA, Public
Law (Pub. L.) 117-2, which amends Section 903(i) of the Social Security Act (SSA) (42
U.S.C. § 1103(i)).
2. Action Requested. The U.S. Department of Labor’s (Department’s) Employment and
Training Administration (ETA) requests State Workforce Administrators to provide the
information contained in this Unemployment Insurance Program Letter (UIPL) to appropriate
program and other staff in state workforce systems as they implement the unemployment
insurance (UI)-related provisions that respond to the economic effects of the Coronavirus
Disease 2019 (COVID-19) pandemic.
3. Summary and Background.
a. Summary – On March 11, 2021, the President signed ARPA into law. ARPA amends
Section 903(i) of the Social Security Act (SSA) (42 U.S.C. § 1103(i)) to provide
emergency unemployment relief for state and local governmental entities, certain
nonprofit organizations, and federally-recognized Indian Tribes.
In relevant part, ARPA amends Section 2103 of the Coronavirus Aid, Relief, and
Economic Security (CARES) Act (Pub. L. 116-136), as previously amended by the
Protecting Nonprofits from Catastrophic Cash Flow Strain Act of 2020 (Protecting
Nonprofits Act) (Pub. L. 116-151) and the Continued Assistance for Unemployed
Workers Act of 2020 (Continued Assistance Act) (Pub. L. 116-260).
Most notably, ARPA extends the period of availability of the emergency relief provided
to these reimbursing employers through the week ending on or before September 6, 2021,
and increases the amount of emergency relief for weeks of unemployment beginning after
RESCISSIONS EXPIRATION DATE
None Continuing
March 31, 2021, from 50 percent of compensation paid to 75 percent of compensation
paid.
b. Background – Section 903(i) was added to the SSA (42 U.S.C. § 1103(i)) with the
enactment of the CARES Act, providing emergency relief by way of reimbursement for
amounts owed for paid unemployment compensation (UC) (in lieu of contributions as
state unemployment taxes) by state and local governmental entities, certain nonprofit
organizations, and federally-recognized Indian Tribes (“reimbursing employers”). On
August 3, 2020, the Protecting Nonprofits Act was enacted, which amended Section
903(i), SSA, by changing the method of emergency relief provided to reimbursing
employers, and by making a small number of technical amendments. See UIPL No. 18-
20, Change 1, for additional details. Section 4.a. of UIPL No. 18-20, Change 1, discusses
the transition period for states to move from a reimbursement to reduction methodology.
Initially, Section 903(i) required that reimbursing employers first pay the amount due in
lieu of contributions, and then be reimbursed 50 percent of the amount of UC paid. The
Protecting Nonprofits Act eliminated the requirement in section 903(i), SSA, that the
reimbursing employer must first pay the amount due in lieu of contributions before
obtaining emergency relief under the CARES Act. (See UIPL No. 18-20 for more
information.) Under the Protecting Nonprofits Act, states are required to use the federal
funds provided under Section 903(i), SSA, exclusively to reduce the amount required to
be paid by the reimbursing employer in lieu of contributions. Additionally, the
Protecting Nonprofits Act provided each state with a choice on how to implement the
emergency relief for weeks of unemployment beginning after March 12, 2020, and
ending before the date of enactment, August 3, 2020. (See UIPL No. 18-20, Change 1 for
more information.)
The Continued Assistance Act, enacted on December 27, 2020, extended the applicable
period for emergency unemployment relief through weeks of unemployment ending on or
before March 14, 2021.
The enactment of ARPA on March 11, 2021, further extends the applicable period for
emergency unemployment relief through weeks of unemployment ending on or before
September 6, 2021. Additionally, the amendments made by ARPA increase the amount
of emergency relief for weeks of unemployment beginning after March 31, 2021, from 50
percent of UC paid to 75 percent of UC paid.
This UIPL discusses the amendments made by ARPA and provides operating guidance to
states. Attachment I provides the statutory language. Attachment II provides examples
demonstrating the practical effects of such emergency relief to reimbursing employers.
Tables 1 and 2 in Attachment II display the application to weeks subject to 50 percent
relief and 75 percent relief respectively, and Table 3 displays how the calculations shown
in Tables 1 and 2 work when combined.
4. Guidance. Under the CARES Act, the emergency relief to certain reimbursing employers
was available for weeks of unemployment beginning after March 12, 2020, and ending on or
before December 31, 2020. The Continued Assistance Act extended the period for which
emergency relief was available through weeks of unemployment ending on or before March
14, 2021. ARPA further extends the period during which the emergency relief is available
through weeks of unemployment ending on or before September 6, 2021. In states where the
week of unemployment ends on a Saturday, the last week of unemployment for which
funding is available is the week ending September 4, 2021. In states where the week of
unemployment ends on Sunday, the last week of unemployment for which funding is
available is the week ending on September 5, 2021.
Additionally, the amount of emergency relief for weeks of unemployment beginning after
March 31, 2021, increases from 50 percent of UC paid to 75 percent of UC paid. For states
where the week of unemployment ends on a Saturday, this begins with the week ending on
April 10, 2021. In states where the week of unemployment ends on a Sunday, this increased
amount begins with the week ending on April 11, 2021. Attachment II of this UIPL provides
examples demonstrating the practical effects of such emergency relief to reimbursing
employers.
Error in UIPL No. 14-21. We note an error in UIPL No. 14-21, which summarized Key UI
provisions of ARPA. The error is on Attachment II, page II-2, identifying the “Statutory End
Date” for “Emergency unemployment relief for reimbursing employers (50%)” as “March
31, 20212.” The “Actual Week Ending Date” is correctly shown as “April 3, 2021”;
however, the statute does not contain an explicit “Statutory End Date,” and that cell should
be blank. This supersedes the information about the “Statutory End Date” for this provision
on page II-2 of Attachment II to UIPL No. 14-21.
Amount of Funds Transferred from the Federal unemployment account (FUA) (Section
903(i)(1)(B), SSA) (42 U.S.C. § 1103(i)(I)(B)). Section 903(i)(1)(B), SSA, as amended by
ARPA, authorizes transfers from FUA to state unemployment trust fund accounts for
specified amounts of UC paid by the state attributable to services performed in the employ of
state and local governmental entities, certain nonprofit organizations, and federally-
recognized Indian tribes that opt to make payments in lieu of contributions (i.e., reimbursing
employers). The process for drawing down funds remains unchanged from UIPL No. 18-20,
Change 1; however, the amount of emergency relief for weeks of unemployment beginning
after March 31, 2021 and ending on or before September 6, 2021 increases to 75 percent of
UC paid. The percent for weeks of unemployment beginning on or after March 13, 2020 and
ending on or before March 31, 2021 remains at 50 percent.
Amount of Emergency Relief Provided to the Employer (Section 903(i)(1)(C), SSA) (42
U.S.C. § 1103(i)(1)(C)). The Protecting Nonprofits Act amended Section 903(i)(1)(C), SSA,
to read:
Notwithstanding any other provision of law, funds transferred to the account of a
State under subparagraph (A) shall be used exclusively to reduce the amounts
required to be paid in lieu of contributions into the State unemployment fund
pursuant to such section by governmental entities and other organizations
described in section 3309(a) of such Code. (Emphasis added).
When read in conjunction with Section 903(i)(1)(B), SSA, states may use the federal funds
provided under Section 903(i), SSA, exclusively to reduce the amounts required to be paid in
lieu of contributions for up to one-half (until the increase to 75 percent beginning with weeks
of unemployment beginning after March 31, 2021) of the amount of UC paid.
a. Transition Period for State Administration. The Protecting Nonprofits Act provides
states with a choice in processing emergency relief for weeks of unemployment
beginning after March 12, 2020 and ending before August 3, 2020. States may choose to
(1) bill reimbursing employers, as described in UIPL No. 18-20, for the amount owed in
lieu of contributions and then issue reimbursements using the federal funds provided
under Section 903(i), SSA, or (2) use such federal funds to retroactively reduce the
amounts required to be paid for such weeks as described in UIPL 18-20, Change 1.
States choosing to issue reimbursements as described in UIPL No. 18-20 should follow
the guidance provided in UIPL No. 18-20 as it relates to processing financial transactions
(Section 4.c.) and reporting (Section 4.g.) for such weeks of unemployment.
For all weeks of unemployment beginning on or after August 3, 2020, states must use the
federal funds provided under Section 903(i), SSA, exclusively to reduce the amounts
required to be paid in lieu of contributions as described in UIPL 18-20, Change 1.
b. Update on Processing Financial Transactions. After March 31, 2021, monthly
transfers to the state unemployment trust fund accounts will represent 75 percent of the
benefit disbursements for state and local governmental entities, certain nonprofit
organizations, and federally-recognized Indian tribes reported on lines 33, 34, and 35 of
the ETA 2112 report. Upon receipt of the report, the Department will certify to the
Secretary of Treasury for the transfer of amounts from FUA to the unemployment fund
account of the state in the unemployment trust fund.
Withdrawal from the state unemployment trust fund account can be accomplished by
using the transaction “EMERGENCY US RELIEF” account on Treasury’s Automated
Standard Application for Payments (ASAP) system, or if a state is reducing billings to
reimbursing employers, it may credit the state unemployment trust fund account for the
reduced billings by executing a book transfer of funds from the “EMERGENCY US
RELIEF” to the “STATE UI ACCOUNT”.
Upon expiration of the applicable period for the provisions of Section 903(i), SSA, and
state reconciliation of authorized amounts, unused amounts of transferred funding
remaining in state accounts will be transferred back to FUA.
c. Effect of State Liability Relief Provisions. As described in Section 5.b. of UIPL No.
21-80: “Liability or non-liability of reimbursing employers is to be determined under
principles, as applied in the State law, of attribution of benefits to service in the employ
of particular reimbursing employers as provided in Section 3309(a)(2) of [the Federal
Unemployment Tax Act (FUTA)]. Such principles may be analogous to noncharging,
but they should be implementations under the State law of Section 3309(a)(2).” State
liability relief effectively reduces the “amounts required to be paid” on a state-by-state
basis because of the fact that Section 3309(a)(2), FUTA, determines the “amount” of UC
“attributable” to reimbursing employers under state law, not as the full UC paid, under
UIPL No. 18-20, Change 1.
As explained above in this UIPL, federal funds provided under Section 903(i), SSA, shall
be used exclusively to reduce the amounts required to be paid in lieu of contributions for
up to the appropriate percent of compensation paid. This amount equals 50 percent for
weeks of unemployment beginning on or after March 13, 2020 and ending on or before
March 31, 2021, and 75 percent for weeks of unemployment beginning after March 31,
2021 and ending on or before September 6, 2021. As under the version of Section 903(i),
SSA, before enactment of the Protecting Nonprofits Act, states that choose to relieve
employers of more than the appropriate percent of the amount owed will be required to
return the balance of the federal funds to FUA. The Department encourages states to
contact ETA through the [email protected] inbox (with a copy to the appropriate ETA
Regional Office) for technical assistance as they consider any changes.
d. Federal Government as an Employer. As noted in UIPL No. 18-20, the Federal
Government is not an employer included in Section 3309(a), FUTA (26 U.S.C. §
3309(a)), and, therefore, is not included in the emergency relief under Section 903(i),
SSA. Thus, and except for the limited circumstances discussed in the next paragraph,
Section 903(i), SSA, has no impact on claims under the Unemployment Compensation
for Federal Employees (UCFE) and Unemployment Compensation for Ex-
Servicemembers (UCX) programs.
However, Section 264 of the Continued Assistance Act extended emergency relief to
services attributable to entities created by Pub. L. 85-874, which includes the John F.
Kennedy Center, which is a federal trust instrumentality. This is retroactively effective to
weeks of unemployment beginning after March 12, 2020 (week ending March 21, 2020
for states with a Saturday week ending date, and week ending March 22, 2020 for states
with a Sunday week ending date). States can identify affected benefit costs using the
Federal Identification Code (FIC) 619. This remains unchanged with the enactment of
ARPA.
e. Update on the Applicability to Other UI Provisions in the CARES Act. As noted in
UIPL No. 18-20, Change 1, payments under the federal programs created by the CARES
Act are not covered under this provision because those amounts are not owed by the
reimbursing employer. These include Pandemic Unemployment Assistance (PUA) under
Section 2102 of the CARES Act, Federal Pandemic Unemployment Assistance (FPUC)
under Section 2104 of the CARES Act, and Pandemic Emergency Unemployment and
Compensation (PEUC) under Section 2107 of the CARES Act. These programs do not
result in assessments of payments due in lieu of contributions from employers, and, thus,
payments under these programs are not subject to emergency relief under Section 903(i),
SSA.
To the extent that payment of the first compensable week of regular UC or payment of
Short-Time Compensation (STC) results in the assessment of a payment due in lieu of
contributions under state law, the amount due may be reduced using federal funds
provided under Section 903(i), SSA.
f. Update on the Applicability to Federal Share of Extended Benefits (EB). As noted in
Section 4.f. of UIPL No. 24-20, EB costs attributable to state and local governmental
entities and federally-recognized Indian tribes are not sharable and, thus, not eligible for
federal funding under Section 4105 of the Families First Coronavirus Response Act as set
out in Division D Emergency Unemployment Insurance Stabilization and Access Act of
2020 (EUISAA) (Pub. L. 116-127). However, to the extent that payment of EB results in
the assessment of a payment due in lieu of contributions under state law, the amount due
may be reduced using federal funds provided under Section 903(i), SSA.
As noted in Section 4.d. of UIPL No. 24-20, EB costs attributable to 501(c)(3) nonprofit
organizations are sharable as defined in Section 204 of the Federal-State Extended
Unemployment Compensation Act of 1970 (EUCA) and, thus, a state may qualify for
100 percent federal funding under EUISAA for the weeks of EB attributable to such
service. See Sections 4.d., 4.e., and 4.f. of UIPL No. 24-20, along with Section 4.a. of
UIPL No. 24-20, Change 1, for additional information on 100 percent federal funding of
EB.
g. Reporting. States should report the amount of the federal funds provided under Section
903(i), SSA, that are transferred into the state unemployment trust account on columns C
and E of line 15 in the ETA 2112 report.
5. Inquiries. States should direct inquiries to the [email protected] and copy the appropriate
ETA Regional Office.
6. References.
American Rescue Plan Act of 2021 (ARPA), including Title IX, Subtitle A, Crisis
Support for Unemployed Workers (Pub. L. 117-2);
Protecting Nonprofits from Catastrophic Case Flow Strain Act of 2020 (“Protecting
Nonprofits Act”) (Pub. L. 116-151);
Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. 116-136),
including Title II, Subtitle A, Relief for Workers Affected by Coronavirus Act;
Families First Coronavirus Response Act, including Division D, Emergency
Unemployment Insurance Stabilization and Access Act of 2020 (EUISAA) (Pub. L. 116-
127);
Section 903, Social Security Act (SSA), 42 U.S.C. § 1103;
Federal-State Extended Unemployment Compensation Act of 1970 (EUCA) (26 U.S.C.
3304 note);
Section 3309, Federal Unemployment Tax Act (FUTA), 26 U.S.C. § 3309;
Unemployment Insurance Program Letter (UIPL) No. 14-21, American Rescue Plan Act
of 2021 (ARPA) – Key Unemployment Insurance (UI) Provisions, issued March 15, 2021,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5669;
UIPL No. 24-20, Change 1, Continued Assistance for Unemployed Workers Act
(Continued Assistance Act) of 2020 – Provisions Affecting the Federal-State Extended
Benefits Program, issued December 31, 2020,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7779;
UIPL No. 24-20, Temporary Changes to the Federal-State Extended Benefits (EB)
Program in Response to the Economic Impacts of the Coronavirus Disease 2019
(COVID-19) Pandemic Emergency, issued May 14, 2020,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7132;
UIPL No. 18-20, Change 1, Amendment to the Coronavirus Aid, Relief, and Economic
Security (CARES) Act of 2020 – Emergency Unemployment Relief for State and Local
Governmental Entities, Certain Nonprofit Organizations, and Federally-Recognized
Indian Tribes, issued August 12, 2020,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8149;
UIPL No. 18-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 –
Emergency Unemployment Relief for State and Local Governmental Entities, Certain
Nonprofit Organizations, and Federally-Recognized Indian Tribes, issued April 27, 2020,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5893;
UIPL No. 13-20, Families First Coronavirus Response Act, Division D Emergency
Unemployment Insurance Stabilization and Access Act of 2020, issued March 22, 2020,
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8634; and
UIPL No. 21-80, Secretary’s Decision on Attribution of Benefit Liability to Reimbursing
Employers in Proceedings as to Delaware, New Jersey, and New York, issued February
29, 1980, https://oui.doleta.gov/dmstree/uipl/uipl80/uipl_2180.htm.1
7. Attachment(s).
Attachment I: Statutory Language of Section 9012 of the American Rescue Plan Act of
2021 (Pub. L. 117-2).
Attachment II: Examples of the Impact of Section 903(i) of the Social Security Act
(SSA), as amended by the Protecting Nonprofits from Catastrophic Cash Flow Strain Act
of 2020 (Pub. L. 116-151) and the American Rescue Plan Act of 2021 (Pub. L. 117-2).
1
We note that the link to this document shows an expiration date of February 28, 1981. However, per Training and
Employment Notice No. 15-20, issued January 14, 2021, this remains an active UIPL.
Attachment I to UIPL No. 18-20, Change 2
Statutory Language of Section 9012 of the
American Rescue Plan Act of 2021
(Public Law 117-2)
SEC. 9012. EXTENSION OF EMERGENCY UNEMPLOYMENT RELIEF FOR
GOVERNMENTAL ENTITIES AND NONPROFIT ORGANIZATIONS.
(a) I N G E N E R A L .—Section 903(i)(1)(D) of the Social Security Act (42 U.S.C.
1103(i)(1)(D)) is amended by striking “March 14, 2021” and inserting “September 6, 2021”.
(b) I N C R E A S E I N R E I M B U R S E M E N T R AT E .—Section 903(i)(1)(B) of such Act (42
U.S.C. 1103(i)(1)(B)) is amended—
(1) in the first sentence, by inserting “and except as otherwise provided in this
subparagraph” after “as determined by the Secretary of Labor”; and
(2) by inserting after the first sentence the following: “With respect to the amounts of such
compensation paid for weeks of unemployment beginning after March 31, 2021, and ending on
or before September 6, 2021, the preceding sentence shall be applied by substituting ‘75 percent’
for ‘one-half’.”.
Attachment II to UIPL No. 18-20, Change 2
Examples of the Impact of Section 903(i) of the Social Security Act (SSA), as amended
The following examples show how an employer that makes payments in lieu of contributions is impacted by the amendments to Section 903(i),
SSA, specifically in relation to how the state administers liability relief under state law.
Table 1 applies to weeks of unemployment beginning on or after March 13, 2020 and ending on the last week of unemployment beginning
before March 31, 2021. For states with a Saturday week-ending date, this applies to compensation paid for weeks ending March 21, 2020 to
April 3, 2021. For states with a Sunday week-ending date, this applies to compensation paid for weeks ending March 22, 2020 to April 4, 2021.
Table 1: Weeks of unemployment beginning on or after March 13, 2020 and ending on or before March 31, 2021
Example 1: Example 2: Example 3: Example 4: Example 5:
State provides State provides State provides State provides State provides
50% liability relief 100% liability relief no liability relief 70% liability relief 25% liability relief
Part (1) Amount due from the employer
(a) Compensation paid from state unemployment fund and
$1,000 $1,000 $1,000 $1,000 $1,000
attributable to service with the entity
(b) State liability relief -$500 -$1,000 -$0 -$700 -$250
(c) Subtotal – Amount due in lieu of contributions $500 $0 $1,000 $300 $750
(d) Federal emergency relief to reduce the amount due in lieu of
contributions (available up to one-half of Part (1)(a) but no -$500 $0 -$500 -$300 -$500
more than Part (1)(c))
(e) Amount due from employer (Part (1)(c) minus Part (1)(d)) $0 $0 $500 $0 $250
Part (2) Amount of federal funds available to the state
(a) Funds transferred from Federal Unemployment Account
(FUA) into the state unemployment fund under Section $500 $500 $500 $500 $500
903(i)(1)(B), SSA (equal to one-half of Part (1)(a))
(b) Federal emergency relief to reduce the amount due in lieu of
-$500 -$0 -$500 -$300 -$500
contributions (equal to Part (1)(d))
(c) Amount that state must return to FUA2 $0 $500 $0 $200 $0
2
Section 903(i)(1)(C), SSA, provides that these funds are to be used exclusively to reduce the amounts required to be paid in lieu of contributions. If they are not
used for such purpose, then they must be returned to the Federal Unemployment Account (FUA).
Table 2 applies to weeks of unemployment beginning on after March 31, 2021 and ending on or before September 6, 2021. For states with
a Saturday week-ending date, this applies to compensation paid for weeks ending April 10, 2021 to September 4, 2021. For states with a Sunday
week-ending date, this applies to compensation paid for weeks ending April 11, 2021 to September 5, 2021.
Table 2: Weeks of unemployment beginning on after March 31, 2021 and ending on or before September 6, 2021
Example 1: Example 2: Example 3: Example 4: Example 5:
State provides State provides State provides State provides State provides
50% liability relief 100% liability relief no liability relief 70% liability relief 25% liability relief
Part (1) Amount due from the employer
(a) Compensation paid from state unemployment fund and
$1,000 $1,000 $1,000 $1,000 $1,000
attributable to service with the entity
(b) State liability relief -$500 -$1,000 -$0 -$700 -$250
(c) Subtotal – Amount due in lieu of contributions $500 $0 $1,000 $300 $750
(d) Federal emergency relief to reduce the amount due in lieu of
contributions (available up to 75% of Part (1)(a) but no more -$500 $0 -$750 -$300 -$750
than Part (1)(c))
(e) Amount due from employer (Part (1)(c) minus Part (1)(d)) $0 $0 $250 $0 $0
Part (2) Amount of federal funds available to the state
(a) Funds transferred from Federal Unemployment Account
(FUA) into the state unemployment fund under Section $750 $750 $750 $750 $750
903(i)(1)(B), SSA (equal to 75% of Part (1)(a))
(b) Federal emergency relief to reduce the amount due in lieu of
-$500 -$0 -$750 -$300 -$750
contributions (equal to Part (1)(d))
(c) Amount that state must return to FUA3 $250 $750 $0 $450 $0
3
Section 903(i)(1)(C), SSA, provides that these funds are to be used exclusively to reduce the amounts required to be paid in lieu of contributions. If they are not
used for such purpose, then they must be returned to the Federal Unemployment Account (FUA).
Table 3 displays how the calculations shown in Tables 1 & 2 come together for a single state billing. This includes weeks of unemployment
beginning on after March 31, 2021 and ending on or before March 31, 2021 at the 50 percent relief amount, and weeks of unemployment
beginning after March 31, 2021 and ending on or before September 6, 2021 at the 75 percent relief amount.
Example 1: Example 2: Example 3: Example 4: Example 5:
State provides State provides State provides State provides State provides
50% liability relief 100% liability relief no liability relief 70% liability relief 25% liability relief
Part (1) Amount due from the employer
(a) Compensation paid from (i) for weeks of unemployment
state unemployment fund beginning on or after March 13,
and attributable to service 2020 and ending on the last week $1,000 $1,000 $1,000 $1,000 $1,000
with the entity of unemployment beginning
before March 31, 2021
(ii) for weeks of unemployment
beginning after March 31, 2021
$1,000 $1,000 $1,000 $1,000 $1,000
and ending on or before
September 6, 2021
(b) State liability relief -$1,000 -$2,000 -$0 -$1,400 -$500
(c) Subtotal – Amount due in lieu of contributions $1,000 $0 $2,000 $600 $1,500
(d) Federal emergency relief (i) for weeks of unemployment
to reduce the amount due beginning on or after March 13,
in lieu of contributions 2020 and ending on the last week
-$500 -$0 $500 -$300 -$500
(the sum of d(i) and d(ii) of unemployment beginning
cannot exceed the amount before March 31, 2021 (available
in (c)) up to 50 percent of Part (1)(a)(i))
(ii) for weeks of unemployment
beginning after March 31, 2021
and ending on or before -$500 -$0 $750 -$300 -$750
September 6, 2021 (available up
to 75 percent of Part (1)(a)(ii))
(e) Amount due from employer $0 $0 $750 $0 $250
Part (2) Amount of federal funds available to the state
(a) Funds transferred from Federal Unemployment Account (FUA)
into the state unemployment fund under Section 903(i)(1)(B), SSA $1,250 $1,250 $1,250 $1,250 $1,250
(equal to 50 percent of Part (1)(a)(i) & 75 percent of Part (1)(a)(ii))
(b) Federal emergency relief to reduce the amount due in lieu of
-$1,000 -$0 -$1,250 -$600 -$1,250
contributions (equal to Part (1)(d)(i)&(ii))
(c) Amount that state must return to FUA4 $250 $1,250 $0 $650 $0
4
Section 903(i)(1)(C) provides that these funds are to be used exclusively to reduce the amounts required to be paid in lieu of contributions. If they are not used for
such purpose, then they must be returned to the Federal Unemployment Account (FUA).
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