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

CLASSIFICATION

OWS

CORRESPONDENCE SYMBOL

OIS/DFAS

ISSUE DATE

July 20, 2001

RESCISSIONS

None

EXPIRATION DATE

July 31, 2002

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 41-01

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

GRACE A. KILBANE
Administrator
Office of Workforce Security

 

SUBJECT

:

Instructions for Reporting Withholding Information on the ETA 2112

 

  1. Purpose. To clarify instructions in ETA Handbook 401 for completing the ETA 2112.

  2. References. Reports and Analysis Letter (RAL) No. 1 - 01; ET Handbook No. 401, Section II-1, pages 1-8; Unemployment Insurance Program Letter (UIPL) 32-96.

  3. Background. The cited RAL transmitted revised instructions for reporting amounts withheld from benefits to be transferred to the Internal Revenue Service (IRS) for Federal income tax. Clarification was necessary because benefits paid by some States were underreported on the ETA 2112.

    The Department's Office of Chief Financial Officer made manual adjustments to the Department's FY 2000 Consolidated Financial Statements to report the accurate amount of benefits paid, which included amounts transferred to the IRS. Benefit amounts recorded in the Unemployment Insurance Database (UIDB), however, were not corrected to include the withholding amounts. The Department is requesting States to adjust ETA 2112 reports in the UIDB for prior periods to reflect accurately all benefits paid. Not all State ETA 2112 reports are inaccurate. Reports from States that have not used the FEDTAX system are likely accurate.

  4. Action Required. State agencies are to change inaccurate ETA 2112s in the UIDB. Since the FEDTAX system began in January, 1999, States using it should review all ETA 2112s transmitted since that date to ascertain whether withholding amounts were properly reported in accordance with RAL 1 - 01 reporting instructions, i.e., amounts transferred to the IRS for withholding of Federal income tax should be reported on lines 31 through 43 in column F; and line 16F must equal line 44E.

  5. Inquiries. Inquiries regarding this directive should be directed to the appropriate Regional Office.