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

CLASSIFICATION

OWS

CORRESPONDENCE SYMBOL

OWS OIS DUIO

ISSUE DATE

January 19, 2001

RESCISSIONS

None

EXPIRATION DATE

Oct. 31, 2001

DIRECTIVE

:

UI INFORMATION BULLETIN NO. 04-01

 

TO

:

ALL REGIONAL ADMINISTRATORS

 

FROM

:

GRACE A. KILBANE
Administrator
Office of Workforce Security

 

SUBJECT

:

Selected Data from Form ETA 581, Contribution Operations Quarter Ending June 30, 2000

 

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, 2000.

If there are questions concerning this information bulletin, contact Constance I.Peterkin on 202-693-3221.

 

 

 


 

 

 

Selected Data from Form ETA 581
Quarter Ending June 30, 2000

Subject Employers

The number of employers subject to State Unemployment Compensation laws equaled 6,749,993 at the end of the quarter, a 2.2% increase over the number of employers at the end of the same quarter 1-year ago and 61,642 more employers than at the end of March 2000. The count of employers at the end of March 2000 and June 2000 includes an estimate of 3,500 employers for the Virgin Islands, the number of employers as of 12/31/1999 for Montana, and the number of employers as of 9/30/1999 for Puerto Rico.

A total of 228,488 employers were terminated or made inactive during the quarter.

 

Status Determination Promptness

A total of 309,298 status determinations establishing liability for new and successor employers were completed during the quarter. For new employers, 75.4% of 268,926 determinations were made within 90 days or less from the end of the quarter in which the employer became liable. The promptness rate increased to 84.7% for the "180 days or less" measure. In comparison to the preceding quarter, the rates dropped by 4.2 percentage points for the 90-day measure and 3.9 percentage points for the 180-day measure. Forty States exceeded the average for the 90-day measure with Colorado, Idaho, Washington, and Rhode Island at 93% or above. Only three States (NJ, PA, AZ) performed below the 60% annual bench mark. For the 180-day measure, all States except New Jersey (31.8%) and Pennsylvania (50.1%) reported performances above 79% with 10 States reporting scores above 95%.

For successor employers, 71.1% of 40,372 determinations were completed for the 90-day measure and 80.6% for the 180-day measure. Twenty-six States exceeded the national average for the 90-day period with scores above 80% and 21 States performed above the average for the 180-day period with scores greater than 90%. Maryland, Tennessee, Kansas, Minnesota, 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

Contributory employers were expected to submit a total of 6,507,549 contribution and wage reports during the quarter (PR, VI and MT excluded). For States reporting, 85.9% of reports were submitted by the assigned due date (filed timely). By the end of the quarter, up to 91.8% of these reports had been secured through either voluntary filing or additional enforcement efforts. The 97.4% score for the resolved measure, which is a review of report filing for the second prior quarter, is based on the 6,526,494 reports that were due for the quarter ending December 1999. (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.) When compared to the preceding quarter, national performance dropped slightly for the three measures; 1.9 percentage points for "filed timely", 2.1 percentage points for "secured" and 1.1 percentage points for the resolved measure. For "filing timely", 17 States exceeded the national average with scores above 90% including North Dakota (97.1%) and Vermont (95.1%) above 95%. Twenty-one States were above the average for the secured measure with Vermont (99.3%), Texas (99.3%), and Utah (100.8%) above 99%. Twenty-one States' scores exceeded 100% for the resolved measure.

Of 87,670 wage reports expected from reimbursing employers, 87.1% were filed timely and 92.7% were secured by the end of the quarter. Scores ranged from 99.6% (CA) to 57.9% (KY) for the timely measure and from 100.3% (TX) to 59.7% (KY) for the secured measure. A total of 95.4% of 87,991 reports for reimbursing employers were resolved by the end of the quarter with scores ranging from 100.8% in North Dakota to 75.1% in New York.

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

 

Receivables

As of June 30, 2000, past due contributions and reimbursements exceeded $757 million, an increase of $163.2 million over the preceding quarter and $90.8 million over the same quarter 1-year ago. When compared to the preceding quarter, receivable balances increased in 40 States including eight States, New Jersey (62.2%), New York (56.8%), Alabama (67.8%), Georgia (116.2%), Kentucky (63.3%), Oklahoma (61.5%), Texas (57%), and Nebraska (71.8%), reporting increases greater than 50%. Receivable balances dropped in 10 States by amounts ranging from $20 million in California and $6.8 million in Pennsylvania to $1,317 in New Hampshire. During the quarter, almost $1.1 billion in new receivables was established, $848.5 million was collected, $9.3 million was declared uncollectible, and $53.9 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 increased by 16.4 percentage points for the "6 months or less" category, and 4.8 percentage points for the "over 15 months" category. The national increase for age "6 months or less" reflects the exceptional rise in the amount of new receivables ($1.1 billion) established during the quarter. At the State level, the increase is noted in percentages for New York, Alabama, Georgia, Oklahoma, and Nebraska. Amounts in the "9 months", "12 months", and "15 months" categories decreased by 4.5, 6.2 and 0.8 percentage points, respectively. Nationally, 52.6% of receivables were age "6 months or less" while 17.8% were reported in the "over 15 months" category. Exceptions to the national averages were three States reporting less than 20% of receivables at age "6 months or less" and approximately 50% or more for "over 15 months"(DE, SC, IL).

See Table 5 for the percent distribution of receivables by age as of June 30, 2000 for each State.

 

Audit Activity

A total of 30,620 audits of employers' records were completed during the quarter, including 958 audits of large employers. This total is 2,603 more audits than for the preceding quarter and 2,161 more than for the same quarter 1-year ago. The average audit required 7.4 hours to complete and covered 4.5 quarters.

A total of 12,135 audits resulted in a change in the amount of total wages and/or contributions previously reported by employers. A $408.7 million gross change in total wages resulted from underreporting of $311.1 million and overreporting of $97.5 million. Contributions were underreported by $5.9 million and overreported by $1.3 million, for a gross change of $7.2 million and a net change or yield of $4.6 million. Yield per audit ranged from $1,061(UT) to -$75 (AR), with a national average of $151. Yield per audit hour ranged from $181 (UT) to -$15 (AR) for an average of $20.34 per hour.

States reported the discovery of 27,219 employees that were previously misclassified as independent contractors. The numbers ranged from 9 employees in Nebraska to 3,533 employees in New Jersey.

See Tables 6 and 7 for the number of audits, time spent, and change in total wages and contributions, by State.

 

Tables: