1. Purpose.To provide additional guidance to states concerning the amendments to Federal law designed to prohibit "SUTA Dumping."
2. Reference. Public Law (P.L.) No. 108-295, the "SUTA Dumping Prevention Act of 2004," signed by the President on August 9, 2004; the Social Security Act (SSA); the Internal Revenue Code (IRC), including the Federal Unemployment Tax Act (FUTA); and Unemployment Insurance Program Letters (UIPLs) 30-04, 14-84, and 29-83, Change 3.
3. Background. UIPL 30-04 informed states of the amendments to Federal unemployment compensation (UC) law made by P.L. No. 108-295, the "SUTA Dumping Prevention Act of 2004." P.L. 108-295 amended the SSA by adding Section 303(k) to establish a nationwide minimum standard for curbing SUTA dumping. States will need to amend their UC laws to conform with the new legislation.
Since the issuance of UIPL 30-04, the Department of Labor has received requests for clarification and other questions on the Federal SUTA dumping requirements. This UIPL is issued to respond to these requests and questions. As was UIPL 30-04, it is a question and answer (Q&A) format. States are especially directed to Q&As 1, 2, 14, and 15, which include additions and modifications to the draft legislative language provided with UIPL 30-04.
4. Action. State administrators should distribute this advisory to appropriate staff. States must adhere to the requirements of Federal law contained in this advisory.
5. Inquiries. Questions should be addressed to your Regional Office.
6. Attachment.
QUESTIONS AND ANSWERS (Q&As)
| RESCISSIONS | EXPIRATION DATE |
| None | Continuing |