NYS Department of Labor benefits - when was the federal unemployment tax act passed during which decade?
I'm doing some research for a paper about unemployment history and need to know during which decade the federal unemployment tax act was passed. I know it affects how NYS Department of Labor gets funding for unemployment benefits but I can't find the exact decade anywhere. My professor wants us to understand the historical foundation of our current UI system. Anyone know the answer?
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Ezra Bates
The Federal Unemployment Tax Act (FUTA) was passed in 1939, so that would be the 1930s decade. It was part of the Social Security Act framework that established the foundation for state unemployment insurance programs like what NYS Department of Labor administers today. The act created the federal-state partnership that funds unemployment benefits.
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Keith Davidson
•Perfect, thank you! That makes sense with the timing of the Great Depression and New Deal programs.
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Ana Erdoğan
yep 1930s is right, my dad always talked about how FDR created all these programs during the depression including unemployment insurance
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Sophia Carson
It's interesting how that 1930s legislation still affects how we file our weekly claims today through NYS Department of Labor. The federal framework requires states to meet certain standards for eligibility and job search requirements, which is why the process is similar across different states but administered locally.
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Elijah Knight
•I never realized the connection between that old law and why I have to do job searches every week for my UI claim. Makes more sense now.
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Brooklyn Foley
Just to add some context for your paper - FUTA established the 6% federal tax on employer payrolls that funds the unemployment system. States that meet federal requirements get a 5.4% credit, so they effectively only pay 0.6% to the federal government. This is how NYS Department of Labor gets the money to pay out benefits to claimants like us.
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