To provide the Department of Labor's (the Department) interpretation of the terms "contract" and "reasonable assurance" as used in sections 3304(a)(6)(A)(i) through (iv) of the Federal Unemployment Tax Act (FUTA). This guidance supersedes the guidance provided in Unemployment Insurance Program Letter (UIPL) No. 04-87 issued on December 24, 1986, and applies to all levels of education for public and non-profit educational institutions, including primary, secondary, and post-secondary education. The Department is issuing this guidance to remind states of the requirements, clarify the definitions of "contract" and "reasonable assurance," and to explain how they apply to situations that were not addressed in UIPL No. 04-87. This guidance also provides an overview of the relevant amendments to section 3304(a)(6), FUTA, to help states understand the historical background and the Department's interpretation of these provisions.