Federal Unemployment Tax Act (FUTA)
 Coalition for Employment Security Financing Reform | ||
| Employment Security Financing: Proposal for Reform | ||
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| The Federal Unemployment Tax Act came into existence over 60 years ago to guarantee financing for a national employment security system. The idea was that employers would pay the cost of administering the new unemployment compensation system along with a national job placement system to help them recruit new workers and to get laid off workers and unemployment compensation claimants into new jobs as quickly as possible. But over the years, some problems have developed. The federal government is still collecting plenty of money from employers to pay for the system, but the dollars are not flowing back to the states that operate the system. A large group of state employment security agencies, employers and organizations have formed the Coalition for Employment Security financing Reform to advocate changes in FUTA.
Legislation has been introduced in the 106th Congress to address and correct this problem. The Employment Security Financing Reform Act of 1999 (S. 462) was introduced by Ohio Senators Mike DeWine and George Voinovich and Mississippi Senator Thad Cochran. This web site provides a link to the draft of the bill, background information on the issue of FUTA reform and updates on the progress of legislative action on the proposal. | ||
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