Chapter 23, Section 3306, Subsection (t) · 26 U.S.C. Chapter 23 — FEDERAL UNEMPLOYMENT TAX ACT

Contents

(t)For the purposes of this chapter, the term “self-employment assistance program” means a program under which—

(1)individuals who meet the requirements described in paragraph (3) are eligible to receive an allowance in lieu of regular unemployment compensation under the State law for the purpose of assisting such individuals in establishing a business and becoming self-employed;

(2)the allowance payable to individuals pursuant to paragraph (1) is payable in the same amount, at the same interval, on the same terms, and subject to the same conditions, as regular unemployment compensation under the State law, except that—

(A)State requirements relating to availability for work, active search for work, and refusal to accept work are not applicable to such individuals;

(B)State requirements relating to disqualifying income are not applicable to income earned from self-employment by such individuals; and

(C)such individuals are considered to be unemployed for the purposes of Federal and State laws applicable to unemployment compensation,

as long as such individuals meet the requirements applicable under this subsection;

(3)individuals may receive the allowance described in paragraph (1) if such individuals—

(A)are eligible to receive regular unemployment compensation under the State law, or would be eligible to receive such compensation except for the requirements described in subparagraph (A) or (B) of paragraph (2);

(B)are identified pursuant to a State worker profiling system as individuals likely to exhaust regular unemployment compensation; and

(C)are participating in self-employment assistance activities which—

(i)include entrepreneurial training, business counseling, and technical assistance; and

(ii)are approved by the State agency; and

(D)are actively engaged on a full-time basis in activities (which may include training) relating to the establishment of a business and becoming self-employed;

(4)the aggregate number of individuals receiving the allowance under the program does not at any time exceed 5 percent of the number of individuals receiving regular unemployment compensation under the State law at such time;

(5)the program does not result in any cost to the Unemployment Trust Fund (established by section 904(a) of the Social Security Act) in excess of the cost that would be incurred by such State and charged to such Fund if the State had not participated in such program; and

(6)the program meets such other requirements as the Secretary of Labor determines to be appropriate.

United States Government work; public domain under 17 U.S.C. § 105.

Defined terms · 31

Show every defined term

agricultural labor
has the meaning assigned to such term by subsection (g) of section 3121, except that for purposes of this chapter subparagraph (B) of paragraph (4) of such subsection (g) shall be treated as reading:
American aircraft
means an aircraft registered under the laws of the United States.
American employer
means a person who is—
American vessel
means any vessel documented or numbered under the laws of the United States;
compensation
means cash benefits payable to individuals with respect to their unemployment.
computation date
means the date, occurring at least once in each calendar year and within 27 weeks prior to the effective date of new rates of contributions, as of which such rates are computed.
contributions
means payments required by a State law to be made into an unemployment fund by any person on account of having individuals in his employ, to the extent that such payments are made by him without being deducted or deductible from the remuneration of individuals in his employ.
crew leader
means an individual who—
educational service agency
means a governmental agency or governmental entity which is established and operated exclusively for the purpose of providing such services to one or more educational institutions,
employee
has the meaning assigned to such term by section 3121(d), except that paragraph (4) and subparagraphs (B) and (C) of paragraph (3) shall not apply.
employer
means, with respect to any calendar year, any person who during any calendar quarter in the calendar year or the preceding calendar year paid wages in cash of $1,000 or more for such service.
employment
means any service performed prior to 1955, which was employment for purposes of subchapter C of chapter 9 of the Internal Revenue Code of 1939 under the law applicable to the period in which such service was performed, and (A) any service, of whatever nature, performed after 1954 by an employee for the person employing him, irrespective of the citizenship or residence of either, (i) within the United States, or (ii) on or in connection with an American vessel or American aircraft under a contract of service which is entered into within the United States or during the performance of which and while the employee is employed on the vessel or aircraft it touches at a port in the Uni
guaranteed employment account
means a separate account, in an unemployment fund, maintained with respect to a person (or group of persons) having individuals in his (or their) employ who, in accordance with the provisions of the State law or of a plan thereunder approved by the State agency,
Indian tribe
has the meaning given to such term by section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304(e)), and includes any subdivision, subsidiary, or business enterprise wholly owned by such an Indian tribe.
institution of higher education
means an educational institution in any State which—
nonqualified deferred compensation plan
means any plan or other arrangement for deferral of compensation other than a plan described in subsection (b)(5).
partially pooled account
means a part of an unemployment fund in which part of the fund all contributions thereto are mingled and undivided, and from which part of the fund compensation is payable only to individuals to whom compensation would be payable from a reserve account or from a guaranteed employment account but for the exhaustion or termination of such reserve account or of such guaranteed employment account.
pay period
means a period (of not more than 31 consecutive days) for which a payment of remuneration is ordinarily made to the employee by the person employing him.
pooled fund
means an unemployment fund or any part thereof (other than a reserve account or a guaranteed employment account) into which the total contributions of persons contributing thereto are payable, in which all contributions are mingled and undivided, and from which compensation is payable to all individuals eligible for compensation from such fund.
potential additional taxes
means, with respect to any State for any taxable year, the aggregate amount of the additional tax which would be payable under this chapter for such taxable year by all taxpayers subject to the unemployment compensation law of such State for such taxable year if paragraph (2) of subsection (c) had applied to such taxable year and any preceding taxable year without regard to this subsection but with regard to subsection (f).
reduced rate
means a rate of contributions lower than the standard rate applicable under the State law, and the term “standard rate” means the rate on the basis of which variations therefrom are computed.
reimbursing employer
means any governmental entity or other organization (or group of governmental entities or any other organizations) which makes reimbursements in lieu of contributions to the State unemployment fund.
reserve account
means a separate account in an unemployment fund, maintained with respect to a person (or group of persons) having individuals in his (or their) employ, from which account, unless such account is exhausted, is paid all and only compensation payable on the basis of services performed for such person (or for one or more of the persons comprising the group).
self-employment assistance program
means a program under which—
short-time compensation program
means a program under which—
standard rate
means the rate on the basis of which variations therefrom are computed.
State
includes the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.
State agency
means any State officer, board, or other authority, designated under a State law to administer the unemployment fund in such State.
unemployment fund
means a special fund, established under a State law and administered by a State agency, for the payment of compensation.
wages
includes tips which are—
year
means any 12 consecutive calendar months.