### Question
How is the term unemployment fund defined?


### Answer
The term **unemployment fund** is defined in *26 U.S.C. § 3306* as the following:

> a special fund, established under a State law and administered by a State agency, for the payment of compensation

#### Citation:
  - *26 U.S.C. § 3306*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 23-FEDERAL UNEMPLOYMENT TAX ACT**

