Series # :
  ETAOP 2008-05
Title :
  Evaluation of State Implementation of Section 303(K), Social Security Act
Subtitle :
  "SUTA Dumping" Final Report
Release Date :
Abstract :

Public Law 108-295, the “SUTA Dumping Prevention Act of 2004” was signed August 9, 2004 by President Bush.  The law amended section 303(k) of the Social Security Act (SSA) by establishing a minimum nationwide standard for curbing an unemployment compensation tax rate manipulation scheme known as “SUTA dumping,” and required the Secretary of Labor to conduct a study of state implementation, and report the findings to Congress.  SUTA dumping refers to practices that some employers and financial advisors engage in to manipulate state experience rating systems to pay lower state unemployment insurance taxes than their unemployment experience would otherwise allow.


The report provides information on state actions to meet the requirements of the law and operating guidance, and presents recommendations provided by select states regarding the need for further Congressional action to improve the effectiveness of section 303(k) of the SSA.  The data collection for the study consists primarily of information regarding implementation activities between January and September 30, 2006.  The information and data presented in this report represent a snapshot in time when most states were still in the implementation process.  Accordingly, while every state enacted conforming legislation, the available data are too limited to conclusively assess the effectiveness of the Act.  However, the data do offer useful information on preliminary trends identified during the implementation process. 


Publication Author(s)
The Urban Institute
  • Wayne Vroman
  • Michael Ye
Coffey Communications, LLC
  • Lester Coffey
  • Lawrence Chimerine
  • E. A. "Rett" Hensley
  • Richard Sullivan
  • William Sullivan
Full Text Document(s)
Additional Information

Hard copy available: No