15794 Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Notices

produce wire harnesses and had

decreased sales and production and

employment declines in the relevant

period.

Other findings show that a major

customer of Wirekraft is importing wire

harnesses from Mexico in the relevant

period.

The intent of the Department’s

certification is to include all workers

who were adversely affected by

increased imports.

Accordingly, the Department is

amending the Mishawaka, Indiana

certification to include workers at

Marion, Ohio.

The amended notice applicable to

NAFTA—00293 is hereby issued as

follows:

All workers of the Wirekraft Industries,

Inc., Mishawaka, Indiana and Wirekraft

Industries’ Burcliff Industries in Marion,

Ohio who became totally or partially

separated from employment on or after

December 8, 1993 are eligible to apply for

NAFTA–TAA under section 250 of the Trade

Act of 1974.

Signed at Washington, DC, this 17th day of

March 1995.

Victor J. Trunzo,

Program Manager, Policy and Reemployment

Services Office of Trade Adjustment

Assistance.

[FR Doc. 95–7484 Filed 3–24–95; 8:45 am]

BILLING CODE 4510–30–M

[NAFTA—00362]

Wirekraft Industries, Inc., Burcliff

Industries, Marion, OH; Termination of

Investigation

Pursuant to Title V of the North

American Free Trade Agreement

Implementation Act (Pub. L. 103–182)

concerning transitional adjustment

assistance, hereinafter called (NAFTA–

AA), and in accordance with section

250(a), subchapter D, chapter 2, title II,

of the Trade Act of 1974, as amended

(19 USC 2273), an investigation was

initiated on February 9, 1995 in

response to a petition filed on behalf of

workers at Wirekraft Industries, Inc.—

Burcliff Industries in Marion, Ohio. On

March 16, 1995 an amendment was

made to NAFTA–TAA–00293 to include

all workers of Wirekraft Industries,

Inc.—Burcliff Industries in Marion,

Ohio. Because the subject workers have

been included in the amendment

certification of NAFTA–TAA–00293,

further investigation in this case would

serve no purpose, and the investigation

has been terminated.

Signed at Washington, DC, this 17th day of

March 1995.

Victor J. Trunzo,

Program Manager, Policy and Reemployment

Services, Office of Trade Adjustment

Assistance.

[FR Doc. 95–7485 Filed 3–24–95; 8:45 am]

BILLING CODE 4510–30–M

Federal-State Unemployment

Compensation Program:

Unemployment Insurance Program

Letters Interpreting Federal

Unemployment Insurance Law

The Employment and Training

Administration interprets Federal law

requirements pertaining to

unemployment compensation as part of

its role in the administration of the

Federal-State unemployment

compensation program. These

interpretations are issued in

Unemployment Insurance Program

Letters (UIPLs) to the State Employment

Security Agencies (SESAs). The UIPL

described below is published in the

Federal Register in order to inform the

public.

UIPL 17–95

Public Law 103–465, commonly

known as the legislation on ‘‘GATT’’—

The General Agreement on Tariffs and

Trade, included a provision that affects

the Federal-State unemployment

compensation program. Under this

legislation, States will be required to

deduct and withhold Federal income

tax from unemployment compensation

if the individual so elects. In addition,

State will have the option of

withholding State and local income

taxes from unemployment

compensation if the individual elects to

have such actions taken. This UIPL

explains the change in unemployment

compensation law, discusses its

effective date and provides model

language for States to use in amending

State unemployment compensation law.

Dated: March 17, 1995.

Doug Ross,

Assistant Secretary of Labor.

U.S. Department of Labor

Employment and Training

Administration, Washington, DC

20210

Classification UI

Correspondence Symbol TEURL

Date: February 28, 1995

Directive: Unemployment Insurance

Program Letter No. 17–95

To: All State Employment Security

Agencies

From: Mary Ann Wyrsch, Director,

Unemployment Insurance Service

Subject: Withholding of Income Tax

From Unemployment

Compensation—Amendments Made

by Public Law 103–465

1. Purpose. To advise State agencies

of the provisions of Public Law (P.L.)

103–465 pertaining to the withholding

of Federal, State and local income taxes

from unemployment compensation

(UC).

2. References. The Internal Revenue

Code of 1986 (IRC), as amended,

including the Federal Unemployment

Tax Act (FUTA); Title III of the Social

Security Act (SSA); Section 702 of P.L.

103–465; Section 301 of P.L. 102–318;

31 U.S.C. Section 6503 as amended by

P.L. 101–453; 31 C.F.R. Part 205; and

Unemployment Insurance Program

Letters (UIPLs) 25–89, 45–89 and 45–92.

3. Background. On December 8, 1994,

the President signed into law P.L. 103–

465. Although the short title of this law

is the ‘‘Uruguay Round Agreements

Act,’’ it is commonly known as the

legislation on ‘‘GATT’’—the General

Agreement on Tariffs and Trade. Under

this legislation, States will be required

to deduct and withhold Federal income

tax from UC if the individual so elects.

In addition, States will have the option

of withholding State and local income

taxes if the individual so elects. This

UIPL addresses these new provisions

pertaining to income tax withholding.

Rescissions: None.

Expiration Date: February 28, 1996.

4. Discussion.

a. In General. The ‘‘withdrawal

standard’’ of Section 3304(a)(4), FUTA,

and Section 303(a)(5), SSA, limits

withdrawals (with specified exceptions

not relevant here) from a State’s

unemployment fund to payments of

‘‘compensation.’’ The term

‘‘compensation’’ is defined in Section

3306(h), FUTA, as ‘‘cash benefits

payable to individuals with respect to

their unemployment.’’ Due to its

restrictive nature, the withdrawal

standard has prohibited States from

deducting and withholding any form of

income tax from payments of UC. For a

detailed discussion of the limitations on

the use of unemployment fund moneys,

refer to UIPL 25–89 (54 FR 22973 (May

30, 1989)) which transmitted the

Secretary’s decision in a conformity

proceeding involving the deducting and

withholding of State UC taxes from UC

and UIPL 45–89 (55 FR 1886 (January

19, 1990)) concerning permissible

deductions from UC.

P.L. 103–465 amends Federal law to

provide for ‘‘voluntary withholding’’—

that is, withholding at the taxpayer’s

election—of income taxes from a variety

of payments made pursuant to Federal