Selected Data from Form ETA 581
Quarter Ending June 30, 2001
At the end of June 2001, the number of employers subject to state unemployment compensation laws equaled 6,862,321, an increase of 42,595 (0.6%) more employers than at the end of March 2001 and 112,888 (1.7%) more employers than the same quarter 1-year ago. These counts include the latest data available for Montana (12/31/1999) and an estimate of 3,500 employers for the Virgin Islands. Accounts for 237,390 employers were terminated or made inactive during the quarter.
Status Determination Promptness
A total of 277,483 status determinations establishing liability for new and successor employers were completed during the quarter. For new employers, 79.8% of 237,731 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 89.2% for the "180 days or less" measure. In comparison to the preceding quarter, the number of new determinations dropped by 2,400 while the promptness rates went up by 4.6 percentage points for the 90-day measure and 3.3 percentage points for the 180-day measure. For the 1-year ago comparison, approximately 31,200 less determinations were made during the quarter ending June 2001, yet the promptness rates were only 4.4 percentage points greater for both measures. Twenty-three states reported performances above 80% for the 90-day measure and above 90% for the 180-day measure. Promptness rates for Rhode Island, Georgia, Colorado, Utah, Alaska, and Washington exceeded 90% for the 90-day measure and 95% for the 180-day measure. Only four states (Massachusetts, New Jersey, Pennsylvania, Kansas) fell below the annual benchmarks of 60% for the 90-day measure and 80% for the 180-day measure.
Over 70% of the 39,752 status determinations for successor employers were made within the "90-day" period and, by the "180-day" period, up to 81.9% were completed. When compared to the preceding quarter, 1,100 less determinations were made while promptness rates improved by 3.5 percentage points for the 90-day measure and 2.6 percentage points for the 180-day measure. The number of determinations and the promptness rates were stable in comparison to the same quarter 1-year ago. All states performed above 50% for both measures except New Jersey, the District of Columbia, California and New Mexico. New Mexico scored 27.2% for the 90-day measure, then improved to 99.7% for the 180-day measure. Nine states exceeded 90% for both measures with Alaska at 97.9% for the 90-day measure and 100% for the 180-day measure.
See Table 1 for each state's score for status determination promptness.
Filing Reports - Contributory and Reimbursing Employers
Contributory employers were expected to submit over 6.6 million contribution and wage reports during the quarter (Virgin Islands and Montana excluded). Approximately 86.5% of reports were filed by the due date (timely) and, by the end of the quarter, 91.8% of these reports had been secured by either voluntary filing or additional enforcement efforts. The 97.2% rate for the resolved measure, which is a review of report filing for the second prior quarter, is based on the 6,688,593 reports that were due for the quarter ending December 2000. The score for "filing timely" increased by 1.1 and 0.6 percentage points when compared to the preceding and 1-year ago quarters, respectively. Performance for the "secured" and "resolved" measures remained stable. For "filing timely", 37 states performed above the national average including North Dakota at 98.5%. For "secured", 20 states exceeded 95% including Massachusetts at 98.9%, North Dakota at 104.8% and Texas at 99.3%. Nineteen states exceeded 100% for the "resolved" measure. (Where scores exceed 100% for the "resolved" measure, the number of reports received was greater than the count of employers at the time the count was taken for the quarter ending December 2000.)
Of 88,660 wage reports due from reimbursing employers, 87% were filed timely and 92.7% were secured by the end of the quarter. Approximately 95% of 88,364 wage reports for the December 2000 quarter were "resolved" by the end of June 2001. Performance for these measures is unchanged from the preceding and 1-year ago quarters. Thirty-five states exceeded the average for "filing timely", including 18 states at 95% or above. For "secured", all states performed above 85% except New York (70.5%), Puerto Rico (66.4%), and Louisiana (74.9%). Four states scored less than 90% for the "resolved" measure while 17 states performed above 100%.
See Tables 2 and 3 for report delinquency measures for contributory and reimbursing employers.
Past due contributions and reimbursements rose by $76.7 million (12.1%) over the preceding quarter to $713 million, yet dropped by $40.5 million (-5.4%) from the amount at the end of the same quarter 1-year ago. Although total receivables rose at the national level during the quarter, receivable balances declined in 11 states with the District of Columbia ($3.8 million) and California ($9.1 million) reporting the largest drops. Receivables decreased in 24 states when compared to the same quarter 1-year ago. New York's balance increased $20.2 million over the preceding quarter, but decreased by 38.5 million from the 1-year ago quarter. During the quarter, $689.9 million new receivables were added, almost $539.9 million was collected, $15.6 million was declared uncollectible, and $57.7 million was removed from balances due to age.
See Table 4 for collection activities and state receivable balances as of the end of the quarter.
At the end of the quarter, the breakout of receivables by age, show 41.5% at "6 months or less", 10.4% at "9 months", 12.6% at "12 months", 17.3% at "15 months", and 18.2% at "over 15 months". In comparison to the preceding quarter, receivables at "6 months or less" increased by 11.1 percentage points, reflecting the greater difference in new receivables over amounts deducted from the balance ($76.6 million). Amounts in the "9 months", "12 months", "15 months", and "over 15 months" categories decreased by 4.7, 9.4, 5.1 and 3.2 percentage points, respectively. Exceptions to the national averages were Rhode Island, North Carolina and Alaska, reporting over 60% of receivables at "6 months or less" and less than 15% at "over 15 months". In contrast, Illinois, Delaware, and South Carolina reported less than 20% of receivables at "6 months or less" and approximately 50% or more at "over 15 months".
See Table 5 for the percent distribution of receivables by age as of June 30, 2001, for each state.
The number of employers' records audited equaled 27,347, including 780 large employers. This total is a few more audits (18) than for the preceding quarter and 3,273 less audits than conducted for the same quarter 1-year ago. The average audit covered 4.4 quarters and was completed in 7.3 hours.
A change in the amount of wages and/or contributions previously reported by employers was reported in 11,546 audits. Total wages were underreported by $311.8 million and overreported by nearly $61.9 million resulting in a gross change of $373.6 million. Contributions were underreported by $5.1 million and overreported by $1.1 million, for a gross change of $6.2 million and a net or yield of $4 million. Net contributions per audit ranged from $1,888 in Puerto Rico to -$179 in Alabama, with a national average of $145. Net contributions per audit hour averaged $20.
Forty-four states reported the discovery of 25,339 employees that were previously misclassified as independent contractors by employers. The numbers ranged from 3,411 employees in New Jersey to 4 employees in the District of Columbia.
See Tables 6 and 7 for the number of audits, time spent, and change in total wages and contributions, by state.
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