§ 502.
Payments
to
States;
computation
of
amounts
(a) Certification of amounts
The Secretary of Labor shall from time to
time certify to the Secretary of the Treasury for
payment to each State which has an unemploy-
ment compensation law approved by the Sec-
retary of Labor under the Federal Unemploy-
ment Tax Act, such amounts as the Secretary of
Labor determines to be necessary for the proper
and efficient administration of such law during
the fiscal year for which such payment is to be
made, including 100 percent of so much of the
reasonable expenditures of the State as are at-
tributable to the costs of the implementation
and
operation
of
the
immigration
status
verification
system
described
in
section
1320b–7(d) of this title. The Secretary of Labor’s
determination shall be based on (1) the popu-
lation of the State; (2) an estimate of the num-
ber of persons covered by the State law and of
the cost of proper and efficient administration
of such law; and (3) such other factors as the
Secretary of Labor finds relevant. The Secretary
of Labor shall not certify for payment under
this section in any fiscal year a total amount in
excess of the amount appropriated therefor for
such fiscal year.
(b) Payment of amounts
Out of the sums appropriated therefor, the
Secretary of the Treasury shall, upon receiving
a
certification
under
subsection
(a),
pay,
through the Fiscal Service of the Department of
the Treasury and prior to audit or settlement by
the Government Accountability Office, to the
State agency charged with the administration of
such law the amount so certified.
(c) Mailing costs
No portion of the cost of mailing a statement
under section 6050B(b) of the Internal Revenue
Code of 1986 (relating to unemployment com
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Authority boundary: historical or unconfirmed source not current law verified.
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Page 2120
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 501
well as under 42 U.S.C. 434 and, not later than 5 years
after Dec. 17, 1999, to transmit to the appropriate con-
gressional committees a written report presenting the
results of the Comptroller General’s study conducted
pursuant to 42 U.S.C. 434 and a recommendation as to
whether the demonstration authority authorized under
42 U.S.C. 434 should be made permanent.
SUBCHAPTER III—GRANTS TO STATES FOR
UNEMPLOYMENT COMPENSATION ADMIN-
ISTRATION
§ 501. Use of available funds
The amounts made available pursuant to sec-
tion 1101(c)(1)(A) of this title for the purpose of
assisting the States in the administration of
their unemployment compensation laws shall be
used as hereinafter provided.
(Aug. 14, 1935, ch. 531, title III, § 301, 49 Stat. 626;
Apr. 19, 1939, ch. 73, 53 Stat. 581; Pub. L. 86–778,
title V, § 524(a), Sept. 13, 1960, 74 Stat. 982.)
Editorial Notes
AMENDMENTS
1960—Pub. L. 86–778 struck out provisions prescribing
specific sums for fiscal years 1936–1939 and for each fis-
cal year thereafter and inserted provisions relating to
amounts
made
available
pursuant
to
section
1101(c)(1)(A) of this title.
1939—Act Apr. 19, 1939, provided increased appropria-
tion for fiscal year ending June 30, 1939, and for each
fiscal year thereafter.
§ 502.
Payments
to
States;
computation
of
amounts
(a) Certification of amounts
The Secretary of Labor shall from time to
time certify to the Secretary of the Treasury for
payment to each State which has an unemploy-
ment compensation law approved by the Sec-
retary of Labor under the Federal Unemploy-
ment Tax Act, such amounts as the Secretary of
Labor determines to be necessary for the proper
and efficient administration of such law during
the fiscal year for which such payment is to be
made, including 100 percent of so much of the
reasonable expenditures of the State as are at-
tributable to the costs of the implementation
and
operation
of
the
immigration
status
verification
system
described
in
section
1320b–7(d) of this title. The Secretary of Labor’s
determination shall be based on (1) the popu-
lation of the State; (2) an estimate of the num-
ber of persons covered by the State law and of
the cost of proper and efficient administration
of such law; and (3) such other factors as the
Secretary of Labor finds relevant. The Secretary
of Labor shall not certify for payment under
this section in any fiscal year a total amount in
excess of the amount appropriated therefor for
such fiscal year.
(b) Payment of amounts
Out of the sums appropriated therefor, the
Secretary of the Treasury shall, upon receiving
a
certification
under
subsection
(a),
pay,
through the Fiscal Service of the Department of
the Treasury and prior to audit or settlement by
the Government Accountability Office, to the
State agency charged with the administration of
such law the amount so certified.
(c) Mailing costs
No portion of the cost of mailing a statement
under section 6050B(b) of the Internal Revenue
Code of 1986 (relating to unemployment com-
pensation) shall be treated as not being a cost
for the proper and efficient administration of
the State unemployment compensation law by
reason of including with such statement infor-
mation about the earned income credit provided
by section 32 of the Internal Revenue Code of
1986. The preceding sentence shall not apply if
the inclusion of such information increases the
postage required to mail such statement.
(Aug. 14, 1935, ch. 531, title III, § 302, 49 Stat. 626;
Aug. 10, 1939, ch. 666, title III, § 301, 53 Stat. 1378;
1946 Reorg. Plan No. 2, § 4, eff. July 16, 1946, 11
F.R. 7873, 60 Stat. 1095; 1949 Reorg. Plan No. 2,
§ 1, eff. Aug. 20, 1949, 14 F.R. 5225, 63 Stat. 1065;
Pub. L. 98–369, div. B, title VI, § 2663(b)(1), July
18, 1984, 98 Stat. 1165; Pub. L. 99–603, title I,
§ 121(b)(3), Nov. 6, 1986, 100 Stat. 3390; Pub. L.
102–318, title III, § 302(a), July 3, 1992, 106 Stat.
297; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat.
814.)
Editorial Notes
REFERENCES IN TEXT
The Federal Unemployment Tax Act, referred to in
subsec. (a), comprised subchapter C (§§ 1600 to 1611) of
chapter 9 of the Internal Revenue Code of 1939. Chapter
9 of the 1939 Code was repealed (subject to certain ex-
ceptions) by section 7851(a)(3) of the Internal Revenue
Code of 1954, Title 26. The Internal Revenue Code of 1954
was redesignated the Internal Revenue Code of 1986 by
Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095. The Fed-
eral Unemployment Tax Act also comprises chapter 23
(§ 3301 et seq.) of the Internal Revenue Code of 1986. For
table of comparisons of the 1939 Code to the 1986 Code,
see Table I preceding section 1 of Title 26, Internal Rev-
enue Code. See also section 7852(b) of Title 26 for provi-
sion that references in any other law to a provision of
the 1939 Code, unless expressly incompatible with the
intent thereof, shall be deemed a reference to the cor-
responding provision of the 1986 Code.
AMENDMENTS
2004—Subsec. (b). Pub. L. 108–271 substituted ‘‘Govern-
ment Accountability Office’’ for ‘‘General Accounting
Office’’.
1992—Subsec. (c). Pub. L. 102–318 added subsec. (c).
1986—Subsec. (a). Pub. L. 99–603 inserted at end of
first sentence ‘‘, including 100 percent of so much of the
reasonable expenditures of the State as are attrib-
utable to the costs of the implementation and oper-
ation of the immigration status verification system de-
scribed in section 1320b–7(d) of this title’’.
1984—Subsec. (b). Pub. L. 98–369 substituted ‘‘the Fis-
cal Service of the Department of the Treasury’’ for
‘‘the Division of Disbursement of the Treasury Depart-
ment’’.
1939—Subsec. (a). Act Aug. 10, 1939, substituted ‘‘Fed-
eral Unemployment Tax Act’’ for ‘‘sections 1101–1110 of
this title,’’ and inserted ‘‘efficient’’ before ‘‘administra-
tion’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1992 AMENDMENT
Pub. L. 102–318, title III, § 302(b), July 3, 1992, 106 Stat.
297, provided that: ‘‘The amendment made by sub-
section (a) [amending this section] shall take effect on
the date of the enactment of this Act [July 3, 1992].’’
EFFECTIVE DATE OF 1986 AMENDMENT
Pub. L. 99–603, title I, § 121(c)(2), Nov. 6, 1986, 100 Stat.
3391, provided that: ‘‘The amendments made by sub-
Page 2121
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 503
1 So in original. Probably should be ‘‘Unemployment Trust
Fund’’.
section (b) [enacting section 1437r of this title, amend-
ing this section and sections 303, 603, 1203, 1353, and
1396b of this title, section 2025 of Title 7, Agriculture,
and section 1096 of Title 20, Education, and amending
provisions set out as a Puerto Rico, Guam, and Virgin
Islands note under section 1383 of this title] take effect
on October 1, 1987.’’
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–369 effective July 18, 1984,
but not to be construed as changing or affecting any
right, liability, status, or interpretation which existed
(under the provisions of law involved) before that date,
see section 2664(b) of Pub. L. 98–369, set out as a note
under section 401 of this title.
REPORT ON METHOD OF ALLOCATING ADMINISTRATIVE
FUNDS AMONG STATES
Pub. L. 102–164, title III, § 304, Nov. 15, 1991, 105 Stat.
1061, as amended by Pub. L. 102–318, title V, § 533, July
3, 1992, 106 Stat. 317, provided that:
‘‘(a) IN GENERAL.—The Secretary of Labor shall sub-
mit to the Congress, before December 31, 1994, a com-
prehensive report setting forth a proposal for revising
the method of allocating grants among the States
under section 302 of the Social Security Act [42 U.S.C.
502].
‘‘(b) SPECIFIC REQUIREMENTS.—The report required by
subsection (a) shall include an analysis of—
‘‘(1) the use of unemployment insurance workload
levels as the primary factor in allocating grants
among the States under section 302 of the Social Se-
curity Act [42 U.S.C. 502],
‘‘(2) ways to ensure that each State receive not less
than a minimum grant amount for each fiscal year,
‘‘(3) the use of nationally available objective data
to determine the unemployment compensation ad-
ministrative costs of each State, with consideration
of legitimate cost differences among the States,
‘‘(4) ways to simplify the method of allocating such
grants among the States,
‘‘(5) ways to eliminate the disincentives to produc-
tivity and efficiency which exist in the current meth-
od of allocating such grants among the States,
‘‘(6) ways to promote innovation and cost-effective
practices in the method of allocating such grants
among the States, and
‘‘(7) the effect of the proposal set forth in such re-
port on the grant amounts allocated to each State.
‘‘(c) CONGRESSIONAL REVIEW PERIOD.—The Secretary
of Labor may not revise the method in effect on the
date of the enactment of this Act [Nov. 15, 1991] for al-
locating grants among the States under section 302 of
the Social Security Act [42 U.S.C. 502], until after the
expiration of the 12-month period beginning on the date
on which the report required by subsection (a) is sub-
mitted to the Congress.’’
Executive Documents
TRANSFER OF FUNCTIONS
For transfer of functions of other officers, employees,
and agencies of Department of Labor, with certain ex-
ceptions, to Secretary of Labor, with power to delegate,
see Reorg. Plan No. 6 of 1950, §§ 1, 2, eff. May 24, 1950, 15
F.R. 3174, 64 Stat. 1263, set out in the Appendix to Title
5, Government Organization and Employees.
Functions of Federal Security Administrator with re-
spect to unemployment compensation transferred to
Secretary of Labor by Reorg. Plan No. 2 of 1949, set out
in the Appendix to Title 5.
Section 1 of Reorg. Plan No. 2 of 1949, also provided
that functions transferred by this section shall be per-
formed by Secretary of Labor, or subject to his direc-
tion and control, by such officers, agencies, and em-
ployees of Department of Labor as he shall designate.
‘‘Administrator’’ substituted for ‘‘Board’’ by section 4
of Reorg. Plan No. 2 of 1946, set out in the Appendix to
Title 5.
§ 503. State laws
(a) Provisions required
The Secretary of Labor shall make no certifi-
cation for payment to any State unless he finds
that the law of such State, approved by the Sec-
retary of Labor under the Federal Unemploy-
ment Tax Act [26 U.S.C. 3301 et seq.], includes
provision for—
(1) Such methods of administration (includ-
ing after January 1, 1940, methods relating to
the establishment and maintenance of per-
sonnel standards on a merit basis, except that
the Secretary of Labor shall exercise no au-
thority with respect to the selection, tenure of
office, and compensation of any individual em-
ployed in accordance with such methods) as
are found by the Secretary of Labor to be rea-
sonably calculated to insure full payment of
unemployment compensation when due; and
(2) Payment of unemployment compensation
solely through public employment offices or
such other agencies as the Secretary of Labor
may approve; and
(3) Opportunity for a fair hearing, before an
impartial tribunal, for all individuals whose
claims for unemployment compensation are
denied; and
(4) The payment of all money received in the
unemployment fund of such State (except for
refunds of sums erroneously paid into such
fund and except for refunds paid in accordance
with the provisions of section 3305(b) of the
Federal Unemployment Tax Act [26 U.S.C.
3305(b)]), immediately upon such receipt, to
the Secretary of the Treasury to the credit of
the unemployment trust fund 1 established by
section 1104 of this title; and
(5) Expenditure of all money withdrawn from
an unemployment fund of such State, in the
payment of unemployment compensation, ex-
clusive of expenses of administration, and for
refunds of sums erroneously paid into such
fund and refunds paid in accordance with the
provisions of section 3305(b) of the Federal Un-
employment Tax Act [26 U.S.C. 3305(b)]: Pro-
vided, That an amount equal to the amount of
employee payments into the unemployment
fund of a State may be used in the payment of
cash benefits to individuals with respect to
their disability, exclusive of expenses of ad-
ministration:
Provided
further,
That
the
amounts specified by section 1103(c)(2) or
1103(d)(4) of this title may, subject to the con-
ditions prescribed in such section, be used for
expenses incurred by the State for administra-
tion of its unemployment compensation law
and public employment offices: Provided fur-
ther, That nothing in this paragraph shall be
construed to prohibit deducting an amount
from unemployment compensation otherwise
payable to an individual and using the amount
so deducted to pay for health insurance, or the
withholding of Federal, State, or local indi-
vidual income tax, if the individual elected to
have such deduction made and such deduction
was made under a program approved by the
Secretary of Labor: Provided further, That
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
There is hereby imposed on every employer (as defined in section 3306(a)) for each calendar year an excise tax, with respect to having individuals in his employ, equal to 6 percent of the total wages (as defined in section 3306(b)) paid by such employer during the calendar year with respect to employment (as defined in section 3306(c)).
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 3301. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 3301. Rate of tax
There is hereby imposed on every employer (as
defined in section 3306(a)) for each calendar year
an excise tax, with respect to having individuals
in his employ, equal to 6 percent of the total
wages (as defined in section 3306(b)) paid by such
employer during the calendar year with respect
to employment (as defined in section 3306(c)).
(Aug. 16, 1954, ch. 736, 68A Stat. 439; Pub. L.
86–778, title V, § 523(a), Sept. 13, 1960, 74 Stat. 980;
Pub. L. 87–6, § 14(a), Mar. 24, 1961, 75 Stat. 16;
Pub. L. 88–31, § 2(a), May 29, 1963, 77 Stat. 51; Pub.
L. 91–373, title III, § 301(a), Aug. 10, 1970, 84 Stat.
713; Pub. L. 92–329, § 2(a), June 30, 1972, 86 Stat.
398; Pub. L. 94–455, title XIX, § 1903(a)(11), Oct. 4,
1976, 90 Stat. 1808; Pub. L. 94–566, title II, § 211(b),
Oct. 20, 1976, 90 Stat. 2676; Pub. L. 97–248, title II,
§ 271(b)(1), (c)(1), Sept. 3, 1982, 96 Stat. 554, 555;
Pub. L. 99–514, title XVIII, § 1899A(42), Oct. 22,
1986, 100 Stat. 2960; Pub. L. 100–203, title IX,
§ 9153(a), Dec. 22, 1987, 101 Stat. 1330–326; Pub. L.
101–508, title XI, § 11333(a), Nov. 5, 1990, 104 Stat.
1388–470; Pub. L. 102–164, title IV, § 402, Nov. 15,
1991, 105 Stat. 1061; Pub. L. 103–66, title XIII,
§ 13751, Aug. 10, 1993, 107 Stat. 664; Pub. L. 105–34,
title X, § 1035, Aug. 5, 1997, 111 Stat. 937; Pub. L.
110–140, title XV, § 1501(a), Dec. 19, 2007, 121 Stat.
1800; Pub. L. 110–343, div. B, title IV, § 404(a), Oct.
3, 2008, 122 Stat. 3860; Pub. L. 111–92, § 10(a), Nov.
6, 2009, 123 Stat. 2988; Pub. L. 115–141, div. U, title
IV, § 401(b)(37), Mar. 23, 2018, 132 Stat. 1204.)
Editorial Notes
AMENDMENTS
2018—Pub. L. 115–141 substituted ‘‘equal to 6 percent
of the total wages (as defined in section 3306(b)) paid by
such employer during the calen
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 3301. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Interstate and foreign commerce** No person required under a State law to make payments to an unemployment fund shall be relieved from compliance therewith on the ground that he is engaged in interstate or foreign commerce, or that the State law does not distinguish between employees engaged in interstate or foreign commerce and those engaged in intrastate commerce.
**(b) Federal instrumentalities in general** The legislature of any State may require any instrumentality of the United States (other than an instrumentality to which section 3306(c)(6) applies), and the individuals in its employ, to make contributions to an unemployment fund under a State unemployment compensation law approved by the Secretary of Labor under section 3304 and (except as provided in section 5240 of the Revised Statutes, as amended (12 U.S.C., sec. 484), and as modified by subsection (c)), to comply otherwise with such law. The permission granted in this subsection shall apply (A) only to the extent that no discrimination is made against such instrumentality, so that if the rate of contribution is uniform upon all other persons subject to such law on account of having individuals in their employ, and upon all employees of such persons, respectively, the contributions required of such instrumentality or the individuals in its employ shall not be at a greater rate than is required of such other persons and such employees, and if the rates are determined separately for different persons or classes of persons having individuals in their employ or for different classes of employees, the determination shall be based solely upon unemployment experience and other factors bearing a direct relation to unemployment risk; (B) only if such State law makes provision for the refund of any contribution
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 3305. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 3305. Applicability of State law
(a) Interstate and foreign commerce
No person required under a State law to make
payments to an unemployment fund shall be re-
lieved from compliance therewith on the ground
that he is engaged in interstate or foreign com-
merce, or that the State law does not distin-
guish between employees engaged in interstate
or foreign commerce and those engaged in intra-
state commerce.
(b) Federal instrumentalities in general
The legislature of any State may require any
instrumentality of the United States (other
Page 2808
TITLE 26—INTERNAL REVENUE CODE
§ 3305
than an instrumentality to which section
3306(c)(6) applies), and the individuals in its em-
ploy, to make contributions to an unemploy-
ment fund under a State unemployment com-
pensation law approved by the Secretary of
Labor under section 3304 and (except as provided
in section 5240 of the Revised Statutes, as
amended (12 U.S.C., sec. 484), and as modified by
subsection (c)), to comply otherwise with such
law. The permission granted in this subsection
shall apply (A) only to the extent that no dis-
crimination is made against such instrumen-
tality, so that if the rate of contribution is uni-
form upon all other persons subject to such law
on account of having individuals in their em-
ploy, and upon all employees of such persons, re-
spectively, the contributions required of such
instrumentality or the individuals in its employ
shall not be at a greater rate than is required of
such other persons and such employees, and if
the rates are determined separately for different
persons or classes of persons having individuals
in their employ or for different classes of em-
ployees, the determination shall be based solely
upon unemployment experience and other fac-
to
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 3305. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority**
(1) **In general** — The Commissioner of Social Security (in this section referred to as the “Commissioner”) shall develop and carry out experiments and demonstration projects designed to promote attachment to the labor force and to determine the relative advantages and disadvantages of—
(A) various alternative methods of treating the work activity of individuals entitled to disability insurance benefits under [section 423 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section423&num=0&edition=prelim) or to monthly insurance benefits under [section 402 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section402&num=0&edition=prelim) based on such individual’s disability (as defined in [section 423(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section423/d&num=0&edition=prelim)), including such methods as a reduction in benefits based on earnings, designed to encourage the return to work of such individuals;
(B) altering other limitations and conditions applicable to such individuals (including lengthening the trial work period (as defined in [section 422(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section422/c&num=0&edition=prelim)), altering the 24-month waiting period for hospital insurance benefits under [section 426 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section426&num=0&edition=prelim), altering the manner in which the program under this subchapter is administered, earlier referral of such individuals for rehabilitation, and greater use of employers and others to develop, perform, and otherwise stimulate new forms of rehabilitation); and
(C
Stored review status: release_metadata_unconfirmed. The source passage cites 42 U.S.C. § 434. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 434. Demonstration project authority
(a) Authority
(1) In general
The Commissioner of Social Security (in
this section referred to as the ‘‘Commis-
sioner’’) shall develop and carry out experi-
ments and demonstration projects designed to
promote attachment to the labor force and to
determine the relative advantages and dis-
advantages of—
(A) various alternative methods of treat-
ing the work activity of individuals entitled
to disability insurance benefits under sec-
tion 423 of this title or to monthly insurance
benefits under section 402 of this title based
on such individual’s disability (as defined in
Page 2117
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 434
1 So in original. Probably should be ‘‘section’’.
section 423(d) of this title), including such
methods as a reduction in benefits based on
earnings, designed to encourage the return
to work of such individuals;
(B) altering other limitations and condi-
tions applicable to such individuals (includ-
ing lengthening the trial work period (as de-
fined in section 422(c) of this title), altering
the 24-month waiting period for hospital in-
surance benefits under section 426 of this
title, altering the manner in which the pro-
gram under this subchapter is administered,
earlier referral of such individuals for reha-
bilitation, and greater use of employers and
others to develop, perform, and otherwise
stimulate new forms of rehabilitation); and
(C) implementing sliding scale benefit off-
sets using variations in—
(i) the amount of the offset as a propor-
tion of earned income;
(ii) the duration of the offset period; and
(iii) the method of determining the
amount of income earned by such individ-
uals,
to the end that savings will accrue to the
Trust Funds, or to otherwise promote the ob-
j
Stored review status: historical_2024_not_currentness_verified. The source passage cites 42 U.S.C. § 434. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Certification of amounts** The Secretary of Labor shall from time to time certify to the Secretary of the Treasury for payment to each State which has an unemployment compensation law approved by the Secretary of Labor under the Federal Unemployment Tax Act, such amounts as the Secretary of Labor determines to be necessary for the proper and efficient administration of such law during the fiscal year for which such payment is to be made, including 100 percent of so much of the reasonable expenditures of the State as are attributable to the costs of the implementation and operation of the immigration status verification system described in [section 1320b–7(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1320b–7/d&num=0&edition=prelim). The Secretary of Labor’s determination shall be based on (1) the population of the State; (2) an estimate of the number of persons covered by the State law and of the cost of proper and efficient administration of such law; and (3) such other factors as the Secretary of Labor finds relevant. The Secretary of Labor shall not certify for payment under this section in any fiscal year a total amount in excess of the amount appropriated therefor for such fiscal year.
**(b) Payment of amounts** Out of the sums appropriated therefor, the Secretary of the Treasury shall, upon receiving a certification under subsection (a), pay, through the Fiscal Service of the Department of the Treasury and prior to audit or settlement by the Government Accountability Office, to the State agency charged with the administration of such law the amount so certified.
**(c) Mailing costs** No portion of the cost of mailing a statement under section 6050B(b) of the Internal Revenue Code of 1986 (relating to unemploy