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

CLASSIFICATION

UIS

CORRESPONDENCE SYMBOL

TEUPDI

ISSUE DATE

November 22, 1999

RESCISSIONS

None

EXPIRATION DATE

November 30, 2000

DIRECTIVE

:

UIS INFORMATION BULLETIN NO. 02-00

 

TO

:

ALL REGIONAL ADMINISTRATORS

 

FROM

:

GRACE A. KILBANE
Administrator
Office of Workforce Security

 

SUBJECT

:

Selected Data from Form ETA 581, Contribution Operations for the Quarter Ending June 30, 1999

Attached is a summary of selected ETA 581 data reported by State Employment Security Agencies (SESAs) for their Unemployment Insurance tax programs for the quarter ending June 30, 1999.

If there are questions concerning this information bulletin, contact Constance I. Peterkin on 202-219-5615, extension 198.

 

 


 

 

Selected Data from Form ETA 581
Quarter Ending June 30, 1999

 

Subject Employers

The number of employers subject to State Unemployment Compensation laws totaled 6,594,841 at the end of the quarter, an increase of 157,348 over the number of employers for the same quarter 1-year ago. This number includes the count of employers as of 9/30/98 for New Jersey and as of 3/31/99 for the District of Columbia. Information on the number of employers for the Virgin Islands is not available and therefore, is not included.

Status Determination Promptness

A total of 273,142 transactions establishing liability for new and successor employers were completed during the quarter. For new employers, 81% of 231,200 determinations were made within 90 days or less from the end of the quarter in which the employer became liable. This rate increased to 89.4% for the 180 days or less measure. Of the 50 States reporting, 14 States performed above the average for the 90-day measure with scores exceeding 88% or more while 7 States exceeded the 180-day measure with scores above 95%. Scores ranged from 19.7% (VA) to 97.2% (KS) for the 90-day measure and from 28.4% (VA) to 99.3% (KS). A total of 71.4% of the 41,942 status determinations for successor employers were completed for the 90-day measure and 81.7% for the 180-day measure. Twenty-four States exceeded the national average for the 90-day period with scores above 81% and 18 States performed above the average for the 180-day period with scores greater than 91%. Puerto Rico, Maryland, South Carolina, Montana, North Dakota, Idaho, and Washington were above 90% for both measures. See Table 1 for each State's score for status determination promptness.

Filing Reports - Contributory and Reimbursing Employers

A total of 6,237,698 contributory employers were expected to submit contribution and wage reports during the quarter (NJ excluded). Nationally, 83.4% of these reports were filed timely, and by the end of the quarter, up to 89.9% had been secured through either voluntary filing or additional enforcement efforts taken by the States. The resolved measure reflects the combined results of voluntary filing, additional enforcement efforts by the States and the use of non-liability determinations and assessments to resolve report delinquencies for employer reports due for the second quarter prior to the ETA 581 report quarter, e.g., the quarter ending December 31, 1998. Therefore, the resolved measure is based on 6,225,796 reports, the number of employers at the end of December 1998. The national score for resolved reports was 94.6%. (Where scores exceed 100%, the number of reports received was greater than the number of employers at the time the count of employers was taken for the December quarter.)

Sixteen States exceeded the national average for reports filed timely at 90% or more while 23 States scored above the average for secured reports at 95% or better and 44 States performed above the average for the resolved measure.

Of the 85,743 wage reports expected from reimbursing employers, 86% were timely and 91.8% were secured by the end of the quarter. Scores ranged from 55.4% (KY) to 99.8% (CA)for the timely measure and from 56.3% (KY) to 101.2% (ND) for the secured measure. A total of 93% of the 85,550 reports for reimbursing employers were resolved by the end of the quarter. Since Massachusetts, Delaware, and Michigan do not require wage reports from reimbursing employer or are a "request" reporting State, the report delinquency measures for reimbursing employers are not applicable to these States.

See Tables 2 and 3 for report delinquency measures for contributory and reimbursing employers.

Receivables

As of June 30, 1999, past due contributions and reimbursements exceeded $596 million, an increase of $82 million over the preceding quarter and $55 million over the same quarter 1-year ago. (The total at the end of June includes amounts for NJ and DC from their last 581 report submitted.) When compared to the previous quarter, receivable balances decreased in eight States, with California (-$6.1M) and Illinois (-$1.8M) reporting the greatest declines. The remaining States showed increases in receivables ranging from $41.2 million (NY) to $10,259 (UT). During the quarter,$669.3 million in new receivables was established,$525.3 million was collected, $17.3 million was declared uncollectible, and $44.6 million was removed from balances due to age. See Table 4 for collection activities and State balances as of the end of the quarter.

In comparison to the preceding quarter, the distribution of receivable amounts by age rose by 15.3 percentage points for the "6 months or less" category, and dropped by 4.8 percentage points for the "12 months" category and approximately 3.5 percentage points for the three remaining age categories (9, 15, and over 15 months). Nationally, 48.4% of receivables were age "6 months or less" while 21.8% were reported in the "over 15 months" category. Exceptions to the national averages were three States reporting 62% or more at age "6 months or less" and less than 14% in the "over 15 months" category (RI, NJ, AK) and four States reporting over 50% in the "over 15 months" category and less than 25% at age "6 months or less" (ME, DE, SC, IL). See Table 5 for the percent distribution of receivables by age as of June 30, 1999, for each State.

Audit Activity

A total of 25,683 audits of employers' records were conducted the during quarter, of which 751 were of large employers. The total number of audits was only 24 less than the number completed for the previous quarter, but 2,915 less than the same quarter 1-year ago. The number of large employer audits dropped by 110 and 128 from the preceding and 1-year ago quarters, respectively. On average, each audit was completed in 7.2 hours and covered 4.6 quarters.

A total of 10,539 audits resulted in a change in the amount of total wages and/or contributions previously reported by employers. A $321.7 million gross change in total wages resulted from underreporting of $275.3 million and overreporting of $46.4 million. Contributions were underreported by $4 million and overreported by $947,667, for a gross change of $4.9 million and a net change or yield of almost $3.1 million. Yield per audit ranged from $1,609 (CA) to -$16 (KS), with a national average of $119. Yield per audit hour ranged from $81 (CA) to -$4 (KS) for an average of $16.56 per hour. See Tables 6 and 7 for the number of audits, time spent, and change in total wages and contributions, by State.

Tables:

Table 1 - Status Determination Promptness

Table 2 - Filing Reports - Contributory Employers

Table 3 - Filing Reports - Reimbursing Employers

Table 4 - Collection Activities

Table 5 - Percent Distribution of Receivables by Age

Table 6 - Audit Activity

Table 7 - Audit Change in Total Wages