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

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TEURA

ISSUE DATE

January 4, 1988

RESCISSIONS

 

EXPIRATION DATE

Continuing

DIRECTIVE

:

MANUAL TRANSMITTAL LETTER NO. 1460

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

DONALD J. KULICK
Administrator
for Regional Management

 

SUBJECT

:

Employment Security Manual, Part III, Sections 0800-0879, ETA 204, Experience Rating Report

1. Purpose. To transmit revised reporting instructions for the ETA 204, Experience Rating Report.

2. Background. The National Office recently has reviewed the subject report and made revisions reflective of current national and State needs and data uses. Changes include reconfiguration of data in Section B and the addition of data elements to Section C. Additional changes of a minor nature were made throughout the section. Accordingly, this manual section is being reissued in its entirety.

The new data elements required in Section C of the ETA 204 form provide the basis for determining an experience rating index (ERI); the index will allow for the evaluation of the extent to which benefits or benefit wages in States are effectively charged. Specifically, the ERI represents the percentage of benefits which are effectively charged to taxable employer accounts and is calculated as follows, using the revised ETA 204:

(1-((IEC + IAC + NNC) / BEN)) * 100

where,

IEC = Ineffective Charges: Section C, Column 8, Total All Subject Accounts

IAC = Inactive Charges: Section B, item 6(a)(2)

NNC = Noncharges: Section B, item 6(b) plus item 7(b)

BEN = Benefits: Section B, item 5 minus item 7(a)

RESCISSIONS EXPIRATION DATE

Continuing

The ERI will be calculated by the National office on an annual basis. The ERI will be published in the Handbook of Financial Data, an Unemployment Insurance Program Letter, the Quarterly Unemployment Insurance Compilation and Characteristics (QUICC), end and other publication deemed appropriate.

3. Effective date. The changes are effective with the report for rate year 1988, due in the national office the 30th day of the fifth month of such rate year.

4. OMB  . These reporting requirements have been approved by the office of Management and Budget according to the Paperwork Reduction Act of 1980 under OMB No. 1205-0164, expiring September 30, 1990.

5. Instructions for Manual Maintenance.