Number: RS22077
Title: Unemployment Compensation (UC) and the Unemployment Trust Fund (UTF): Funding UC Benefits
Authors: Christine Scott and Julie M. Whittaker, Domestic Social Policy Division 
Abstract: This report provides a summary of how Unemployment Compensation (UC) benefits are funded through the Unemployment Trust Fund (UTF). The UTF in the U.S. Treasury is designated as a trust fund for federal accounting purposes. Although the UTF is a single trust fund, it has 59 accounts: the Employment Security Administration Account (ESAA), the Extended Unemployment Compensation Account (EUCA), and the Federal Unemployment Account (FUA), 53 state accounts, the Federal Employees Compensation Account (FECA), and 2 accounts related to the Railroad Retirement Board. Federal unemployment taxes are credited to the ESAA; each state's unemployment taxes are credited to the state's unemployment account. Federal taxes pay for administration grants to the states and half of extended UC benefits. State unemployment taxes are dedicated to pay for regular UC benefits and half of extended UC benefits.
Pages: 6
Date: January 31, 2008