UIPL_11-17_Acc.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION UI CORRESPONDENCE SYMBOL OUI DFAS DATE January 27 2017 RESCISSIONS None EXPIRATION DATE December 31 201 7 ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 11-17 T O STATE WORKFORCE AGENCIES FROM BYRON ZUIDEMA s Deputy Assistant Secretary S UBJECT Interest R ate on Title XII Advances During Calendar Year CY 2017 1. Purpose. To announce the rate of interest that the U.S. Department of the Treasury Treasury will charge on Title XII advances during CY 201 7. 2. References. Sections 303 and 1202 of the Social Security Act SSA Section 3304 of the Federal Unemployment Tax Act FUTA and 20 CFR part 606.3. Background. The criteria for establishing the rate of interest to be charged on Title XII advances during any CY are described in Section 1202 b 4 SSA 42 U.S.C. 1322 b 4 .4. CY 2017 Interest Rate. Treasury has established the rate above for the quarter ending December 31 2016 to be 2.2124 percent. As such this becomes the rate of interest that will be charge d to repayable Title XII advances during CY 2017 .5. Action Requested. States expecting to request a Title XII advance should take necessary action to establish a mechanism to provide funds for the payment of interest on those advances in accordance with the provisions of Section 1202 b SSA 42 U.S.C 1322 b and subject to the limitations in Section 303 c 3 and 1202 b 5 SSA 42 U.S.C. 503 c 3 and Section 1322 b 5 and Section 3304 a 17 FUTA 26 U.S.C. 3304 a 17 .In summary interest is due and payable each September 30 and may not be paid from the state s unemployment fund or from Federal funds. However there are several provisions for interest relief including Cash flow loans May September delays High unemployment deferrals and High unemployment delays. For further information concerning relief from Title XII interest payments see 20 CFR part 606 subparts D and E. 6. Inquiri es. Questions should be directed to the appropriate Regional Office.