U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TEUPDI

ISSUE DATE

September 29, 1999

RESCISSIONS

None

EXPIRATION DATE

Continuing

DIRECTIVE

:

ET HANDBOOK NO. 401, 2ND EDITION, CHANGE 19

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

DAVID HENSON
Director
Office of Regional Management

 

SUBJECT

:

Form ETA 581

 

  1. Purpose. To add a new item and update instructions for Form ETA 581, Contribution Operations, Section II, Chapter 2.

  2. References. ES Manual, Part V, Sections 3670-3693 and Manual Transmittal Letter No. 1473 (February 5, 1999).

  3. Background. Effective January 1, 1999, the Field Audit Function (ES Manual, Part V, Sections 3670-3693) was modified to implement recommendations made by a task force convened in June 1998. As a result, Form ETA 581 has been revised to accommodate a new data item related to the frequency of independent contractor misclassifications as required in the Field Audit Function. Form ETA 581 definitions and instructions related to audit activities have been updated to reflect changes in the Field Audit Function. Clarifications to previous instructions have also been made in response to suggestions by State, Regional and National Office staff.

  4. Revisions. The following are changes to Form ETA 581:

    1. On Line 501, a new item 52, Number of Employees Misclassified as Independent Contractors, has been added. Items 46 and 50 on the September 1994 version of the form become items 47 and 46, respectively, on the current revision of the form. Other items on Lines 501 and 502 have been renumbered as appropriate.

    2. A phrase has been added to instructions for items on Lines 501 and 502, stating that all data reported must be derived from audits as defined in the Field Audit Function.

    3. The definition of Audit has been modified by deleting "subject" employer and adding the phrase . . . "or, as a result (of an audit), is found liable".

    4. The phrase, "who has paid or reported wages" has been deleted from the definition of Active Employer.

    5. The phrase, "on an inactive or terminated account" has been deleted from the definition of Declared Uncollectible.

  5. OMB Approval. These reporting instructions are approved by the Office of Management and Budget (OMB) according to the Paperwork Reduction Act of 1980, OMB Approval No. 1205-0178, expiration date: 8/31/2002. Persons (SESAs) are not required to respond to this collection of information unless it displays a currently valid OMB control number. Respondentsí obligation to reply to these reporting requirements are required to obtain or retain benefits (SSA302(a)). Public reporting burden for this collection of information is estimated to average 8.5 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the U.S. Department of Labor, Unemployment Insurance Service, Room S-4516, 200 Constitution Avenue, N.W., Washington, D.C. 20210 (Paperwork Reduction Project 1205-0178).

  6. Effective Date. These revisions will become effective with the report for the quarter ending March 31, 2000, due on May 20, 2000.

  7. Attachment. Revised Chapter 2 of ET Handbook No. 401.

  8. Instructions for Handbook Maintenance.

  9.   Section II  
    Remove and Destroy   Insert
    Chapter 2 (9/94)   Chapter 2 (3/99)