Tax contributions paid by employers are deposited in the District Unemployment Fund, which is an account in the Unemployment Trust Fund in the Treasury of the United States. The District maintains a separate account for each employer. Each year the District Unemployment Fund earns interest from the federal government. The interest earned is credited to each employer account that has a positive reserve (funds credited to the account for contributions and prior years interest exceed charges to the account for payment of benefits). The interest is credited on a pro rata basis that represents the ratio of the credit balance in each individual account to the total of all the credit balances in all employer accounts as of the computation date.
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