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

CLASSIFICATION

OIS

CORRESPONDENCE SYMBOL

DUIO

ISSUE DATE

April 4, 2001

RESCISSIONS

None

EXPIRATION DATE

April 30, 2002

DIRECTIVE

:

UI INFORMATION BULLETIN NO. 06-01

 

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 September 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 September 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 September 30, 2000

 

Subject Employers

The number of employers subject to State Unemployment Compensation laws equaled 6,775,640 at the end of September 2000, an increase of 145,417 over the number of employers at the end of the same quarter 1-year ago and 25,647 more employers than at the end of June 2000. The count of employers at the end of June 2000 and September 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 210,832 employers were terminated or made inactive during the quarter.

 

Status Determination Promptness

A total of 266,795 status determinations establishing liability for new and successor employers were completed during the quarter. For new employers, 80.8% of 229,366 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 91.7% for the "180 days or less" measure. In comparison to the preceding quarter, the rates increased by 5.4 percentage points for the 90-day measure and 7.0 percentage points for the 180-day measure. With the exception of New Jersey and Pennsylvania, all States exceeded the 60% annual benchmark for the 90-day measure and the 80% benchmark for the 180-day measure. Nineteen States scored over 85% for the 90-day measure with Rhode Island at 95.6%. For the 180-day measure, 13 States reported performances above 95% with Washington and California at 97.9% and Rhode Island at 98.4%.

For successor employers, 59% of 37,429 determinations were completed for the 90-day measure and 79.6% for the 180-day measure. When compared to the June quarter, the rates for successor determinations dropped by 12.1 and 1.0 percentage points for the 90-day and 180 day measures, respectively. Twenty-three States exceeded the national average for the 90-day period with scores above 70% and 31 States performed above the average for the 180-day period with scores greater than 85%. Only Kansas 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 6,568,518 contribution and wage reports during the quarter (PR, VI and MT excluded). For States reporting, 84.1% of reports were submitted by the assigned due date (filed timely). By the end of the quarter, up to 89.9% of these reports had been secured through either voluntary filing or additional enforcement efforts. The 97.1% score for the resolved measure, which is a review of report filing for the second prior quarter, is based on the 6,506,702 reports that were due for the quarter ending March 2000. (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 March quarter.) When compared to the preceding quarter, national performance dropped slightly for the three measures; 1.8 percentage points for "filed timely," 1.9 percentage points for "secured" and 0.3 percentage points for the resolved measure. For "filing timely," 43 States exceeded the national average including Pennsylvania (94.1%), Alabama (94.7%), and North Dakota (99.1%) above 94%. Forty States were above the average for the secured measure with nine States reporting 98% or greater. For the resolved measure, only three States scored less than 90% and 20 States scored 100% or more.

Of 87,831 wage reports expected from reimbursing employers, 87.7% were filed timely and 93.1% were secured by the end of the quarter. For "filing timely," three States fell below 70% (NY, LA, MN) while 20 States were above 95%. Scores ranged from 101.3% (HI) to 69.1% (LA) for the secured measure. A total of 95.2% of 87,670 reports for reimbursing employers were resolved by the end of the quarter with scores ranging from 109.7% in Hawaii to less than 90% in New York (73.7%), Kentucky (85.1%) and Louisiana (87%).

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

 

Receivables

As of September 30, 2000, past due contributions and reimbursements equaled $698.7 million, $58.8 million less than at the end of June 2000 and $94.5 million more than at the end of the same quarter 1-year ago. In comparison to the preceding quarter, receivable balances decreased in 32 States by amounts ranging from $17,175 to $40.5 million with New York ($40.5M) and California (($18M) reporting the greatest declines. Receivables increased in the remaining States by amounts ranging from $24,500 to $9.3 million (KY). During the quarter, $513.7 million in new receivables was established, $527.3 million was collected, $11.2 million was declared uncollectible, and $34.1 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 decreased by 5.1 percentage points for the "6 months or less" category, 1.3 percentage points for the "12 months" category, and 3.6 percentage points for the "15 months" category. Amounts in the "9 months" and "over 15 months" categories increased by 5.0 and 4.9 percentage points, respectively. Nationally, 47.5% of receivables were age "6 months or less" while 22.7% were reported in the "over 15 months" category. Exceptions to the national averages were New Hampshire, New York, Kentucky, Wyoming, Nebraska and Alaska reporting more than 65% of receivables at age "6 months or less" and 15% or less in the "over 15 months" category. In contrast, Delaware, Utah, and Illinois reported less than 19% of receivables at age "6 months or less" and more than 50% as "over 15 months."

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

 

Audit Activity

A total of 27,518 audits of employers' records were completed during the quarter, including 761 audits of large employers. This total is 3,102 less audits than for the preceding quarter and 1,511 less 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 11,649 audits resulted in a change in the amount of total wages and/or contributions previously reported by employers. A $380.1 million gross change in total wages resulted from underreporting of $311.4 million and overreporting of $68.7 million. Contributions were underreported by approximately $6.0 million and overreported by $1.4 million, for a gross change of $7.4 million and a net change or yield of $4.6 million. Yield per audit ranged from $1,083(AR, one audit ) to -$174 (OH), with a national average of $168. Yield per audit hour averaged $22.64.

Forty-three States reported the discovery of 25,648 employees that were previously misclassified as independent contractors. The numbers ranged from 1 employee in Vermont to 3,958 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: