U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210
December 9, 2002
December 31, 2003
UI INFORMATION BULLETIN NO. 03-03
ALL REGIONAL ADMINISTRATORS
Selected Data from Form ETA 581, Contribution Operations for the Quarter Ending June 30, 2002
Attached is a summary of selected ETA 581 data with associated charts and tables. This data was reported by state workforce agencies for their unemployment insurance tax programs for the quarter ending June 30, 2002.
If there are questions concerning this information bulletin, contact Constance I. Peterkin on 202-693-3221.
|Percent Completed within:|
|Total Determinations||90 days or less||180 days or less|
|Percent Filed Timely||Percent Secured||Percent Resolved|
|Beginning Balance||$658.9 million||New Receivables||$696.1 million|
|Amount Liquidated||$572.6 million||Declared Uncollectible||$10.2 million|
|Removed Due to Age||$73.6 million||Ending Balance||$698.7 million|
|Total Number of Audits||29,295||Average per Audit:|
|No. Large Employer Audits||894||Quarters Audited||4.6|
|No. Change Audits||12,538||Hours Spent Auditing||7.1|
|Change in Total Wages:||Change in Contributions:|
|Underreported||$565.0 million||Underreported||$7.3 million|
|Overreported||$84.6 million||Overreported||$1.1 million|
By the end of June 2002, the number of employers subject to state unemployment compensation laws rose to 6,944,688, an increase of 38,612 over the quarter ending March 31, 2002, and 79,925 over the quarter ending June 30, 2001. These totals include an estimate of 3,600 employers for the Virgin Islands. During the quarter, accounts for 244,297 employers were terminated or inactivated.
Status Determination Promptness
Status determinations establishing liability for new employers totaled 234,520, of which 83.1% were completed within 90 days or less from the end of the quarter in which the employer first became liable. The promptness rate increased to 90% for the “180 days or less” period. Compared to the preceding quarter, approximately 7,500 less determinations were made but performance improved for both the 90-day and 180-day measures by 1.9 and 2.0 percentage points, respectively. With the exceptions of Massachusetts (58.5%) and Vermont (57.2%), all states performed above 60% for the 90-day measure, including 35 states with scores above 80%. Rhode Island (96.7%) and Kansas (95.6%) performed above 95% while Arkansas improved to 73.2% from its 56.4% score for the preceding quarter. Scores ranged from 71.9% to 98.6% for the 180-day measure. Massachusetts, Vermont, and Missouri performed below 80% while Rhode Island (98.1), Georgia (95.5%), Colorado (98.6%), Kansas (97.4%), and Washington (96%) performed above 95% for the 180-day measure.
Of the 37,364 successor status determinations made during the quarter, 73.4% were completed within 90 days or less from the end of the quarter in which the employer became liable as a successor. An additional ten percent of such determinations, up to 83.4%, were completed by the 180-day period. The number of successor status determinations were 561 less than for the preceding quarter but performance improved by 3.2 percentage points for the 90-day measure and 1.4 percentage points for the 180-day measure. Ten states exceeded 90% for both measures and an additional 11 states exceeded 90% for the 180-day measure.
See Table 1 for each states score for status determination promptness.
Filing Reports Contributory and Reimbursing Employers
At 6,804,061, the number of contribution and wage reports expected from contributory employers was approximately 20,600 less than for the preceding quarter. The number of reports filed by the due date (timely) equaled 86.2% of total reports expected. By the end of the quarter, an additional 5.4% of reports were received as the results of voluntary filing or additional state enforcement efforts for a score of 91.6% for “secured” reports. In comparison to the preceding quarter, the percent of reports filed timely and “secured” decreased by 0.9 and 1.8 percentage points, respectively. Thirty-nine states exceeded the average for filing timely, including Alabama at 93% and North Dakota at 99.5%. For “secured” reports, 22 states performed above 95%, while 28 other states were between 82% and 95%, and 2 remaining states, New Jersey (75.7%) and Puerto Rico (73.3%), scored within the 70th percentile.
The “resolved” measure indicates, as of the end of June 2002, the status of reports that were due during the quarter ending December 31, 2001. The 97.4% score represents a cumulative percentage of an expected 6,824,664 reports that were filed timely, received but not timely, or resolved through a delinquency action. This score is a slight improvement (0.4 percentage points) over the preceding quarter. State performance ranged from 79% for Puerto Rico to 107.1% for North Dakota. Twenty-three states exceeded 100% for the “resolved” measure. 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 that quarter.
Reimbursing employers filed 87.6% of 90,120 reports by the due date and, by the end of the quarter, up to 92.5% of these reports were secured. Of 89,930 reports that were due during the quarter ending December 2001, 94.3% were resolved by the end of June 2002. When compared to the preceding quarter, performance for “filing timely” improved by 1.8 percentage points while scores for “secured” and “resolved” were exactly the same. Eighteen states exceeded 95% for “filing timely”; four states, Vermont, North Dakota, Texas, and Hawaii were above 100% for “secured”; and nineteen states performed above 100% for the “resolved” measure.
See Tables 2 and 3 for report delinquency scores for contributory and reimbursing employers, by state.
Past due contributions and reimbursements totaled $698.7 million at the end of June 2002, an increase of $39.7 million over the preceding quarter but a decrease of $11.5 million from the same quarter 1-year ago. Receivables decreased in 11 states from both the preceding and 1-year ago quarters. Seventeen other states indicated either an increase or decrease from the preceding or 1-year ago quarter while the remaining 24 states reported increases for both periods. In New Jersey, receivables dropped for both periods, by $16 million from the preceding quarter and $50.5 million from the same quarter 1-year ago. By the end of the quarter, receivables dropped by nearly $17million in California. New York reported the greatest increases from both the preceding quarter, $42.4 million, and the same quarter 1-year ago, $22.6 million. During the quarter, $696.1 million was determined receivable, $572.6 million was collected, $10.2 million was declared uncollectible, and $73.6 million was removed receivable balances due to age.
See Table 4 for collection activities and state receivable balances as of the end of June 2002.
The distribution of receivables by age show 44.1% at “6 months or less”, 9% at “9 months”, 11% at “12 months”, 15.1% at “15months”, and 20.8% at “over 15 months”. The percentage of amounts in the “6 months” and “15 months” categories rose by 13 and 3 percentage points, respectively, from the March 2002 quarter. Amounts dropped in the “9 months” category by 4.6 percentage points, at “12 months” by 7.8 percentage points, and at the “over 15 months” category by 3.6 percentage points. Ten states reported more than 60% of receivables in the “6 months or less” category and less than 14% at “over 15 months”, including New Hampshire (81.4% and 6.1%) and Rhode Island (71.8% and 8.4%). In contrast, Delaware indicated 17% at “6 months or less” and 69.1% at “over 15 months” and Illinois reported 0.5% at “6 months or less” and 36.9% at “over 15 months.”
See Table 5 for the percent distribution of receivables by age as of March 31, 2002, for each state.
States audited records of 29,295 employers during the quarter, which is 1,707 more audits than for the quarter ending March 2002, and 1,679 more than for the same quarter 1-year ago. The 894 audits of large employers represented 3.1% of all audits for the quarter. The average audit was completed in 7.1 hours and covered 4.6 quarters.
A change in the amount of wages and/or contributions previously reported by the employer was discovered in 12,538 audits (42.8%). Total wages were underreported by nearly $565 million and overreported by $84.6 million, which equals a gross change of $649.6 million. Contributions were underreported by $7.3 million and overreported by $1.1 million, for a gross change of $8.4 million and a yield of approximately $6.3 million. Net contributions per audit ranged from -$24 in North Dakota to $1,344 in California, with a national average of $214. Net contributions per audit hour averaged $30 and ranged from -$4 in Maine to $333 in Maryland.
Through audits, 28,546 employees were discovered as being misclassified as independent contractors by employers. This total is 3,240 more employees than were found in the preceding quarter and 4,274 more than for the quarter ending June 2001. The numbers ranged from 2 employees in Oregon to 4,767 employees in California.
See Table 6 for the number of total audits, large employer audits, change audits, average quarters audited, average hours spent auditing, and the number of employees discovered misclassified as independent contractors and the change from prior quarters. See Table 7 for the change in total wages and contributions by state.
Summary of Selected National Data QE 6/30/2002
Status Determination Promptness QE 6/30/2002
Filing Employer Reports QE 6/30/2002
Change in Age of Receivables Balance, QE 3/31/2001 to QE 6/30/2002
Employees Misclassified as Independent Contractors QE 6/30/2000 to QE 6/30/2002
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 and Contributions