### Question
Can you define what educational service agency means?


### Answer
**Educational service agency** is defined as the following in *26 U.S.C. § 3304*:

> a governmental agency or governmental entity which is established and operated exclusively for the purpose of providing such services to one or more educational institutions,


(v) with respect to services to which section 3309(a)(1) applies, if such services are provided to or on behalf of an educational institution, compensation may be denied under the same circumstances as described in clauses (i) through (iv), and


(vi) with respect to services described in clause (ii), clauses (iii) and (iv) shall be applied by substituting “may be denied” for “shall be denied”, and


  

(B) payments (in lieu of contributions) with respect to service to which section 3309(a)(1) applies may be made into the State unemployment fund on the basis set forth in section 3309(a)(2)

#### Citation:
  - *26 U.S.C. § 3304*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 23-FEDERAL UNEMPLOYMENT TAX ACT**

