Employment and Training Administration
Washington, D. C. 20210










March 31, 2004












Office of Workforce Security




Selected Data from Form ETA 581, Contribution Operations for the Quarter Ending September 30, 2002


Attached is a summary of selected ETA 581 data and associated charts and tables. These data were reported by state workforce agencies for their unemployment insurance tax programs for the quarter ending September 30, 2002.

If there are questions concerning this information bulletin, contact Bill Whitt at 202-693-3219.


Slected Data from Form ETA 581
Quarter Ending September 30, 2002
Subject Employers - Nationally
Contributory Employers
Reimbursing Employers
Total All Employers

Status Determination Promptness
90 Days or Less
180 Days or Less
New Employers 215,300 82.9% 91.9%
Successor Employers 33,289 60.0% 81.4%

Employer Report Filing
  % Filed Timely % Secured % Resolved
Contributory Employers 88.2% 92.3% 96.9%
Reimbursing Employers 88.7% 92.3% 94.3%

Beginning Balance
707.8 million     
     New Receivables
495.2 million
Amount Liquidated
490.9 million     
     Declared Uncollectable
9.9 million
Removed Due to Age
60.1 million     
     Ending Balance
642.2 million

Audit Activity
Audits Completed
     Average Hrs Per Audit
7.4 hours
Large Employer Audits
     Average Qtrs Audited
4.5 qtrs
Change Audits

Total Wgs. Under Rep
440.8 million     
     Contributions Under Rep
6.0 million
Total Wgs. Over Rep
98.5 million     
     Contributions Over Rep
1.2 million
Approx. Net Change
342.3 million     
     Approx. Net Change
4.8 million
Number of employees misclassified as independent contractors:


Selected Data from Form ETA 581
Quarter Ending September 30, 2002

Subject Employers

As of September 30, 2002, the number of employers subject to state unemployment compensation laws rose to 6,954,498, an increase of 9,810 over the quarter ending June 30, 2002, and an increase of 73,720 over the quarter ending September 30, 2001. These totals include an estimate of 3,600 employers for the Virgin Islands.

During the months of July, August and September 2002, states reported either terminating or inactivating 236,768 accounts. This is a decrease of 7,529 from the quarter ending June 30, 2002, but an increase of 11,152 compared to the quarter ending September 30, 2001.

Status Determination Promptness

Status determinations establishing liability for new employers totaled 215,300, of which 82.9% were completed within 90 days or less from the end of the quarter in which the employer met the liability threshold. The promptness rate increased to 91.9% for the 180 day timeframe. Only one state failed to meet the 60% objective for the 90 day timeframe. Scores for the 180 Day measure ranged from a low of 73.6% to a high of 98.7%.

Successorship determinations for the quarter totaled 33,289, a decline from the 37,364 reported for the quarter ending 6/30/2003. States averaged completing 81.4% of the determinations within 180 days. Performance declined for both the 90 day (down 13.4%) and the 180 day (down 2.0%) measures when compared to the quarter ending June 30, 2002. An unusually low report of 5.7% from New Jersey was a factor in the decline of the 90 day national average.

See Table 1, Status Determination Promptness.

Filing Reports - Contributory and Reimbursing Employers

The 52 reporting states anticipated receiving 6,842,399 second quarter contribution and wage reports from contributing employers during this reporting period (July, August and September), of which 88.2 % were actually filed by the state's due date. Most states have a due date of July 31 for the second quarter reports. By the end of the reporting period (September 30) 92.3% of employers had submitted their reports either voluntarily or as a result of state enforcement actions. North Dakota had the highest compliance rate, reporting that 99.9% of their employers filed reports timely.

The "resolved" measure indicates, as of the end of September 2002, the status of reports that were due during the quarter ending March 31, 2002. Nationally, 96.9% of the reports that were due during January, February or March 2002 were filed timely, filed late during the reporting period or resolved through delinquency action taken by states to secure the reports. The resolved percentage fell from 97.4% for the June 30, 2002 reporting period to 96.9% for the September 30 period.

Reimbursing employers filed 92.3% of the 90,345 reports that became due during the September 30 reporting period. Of the 90,120 reports that were due during the preceding quarter (March 30) 94.3% were filed (resolved) by September 30, 2002. Sixteen states reported "resolved" percentages in excess of 100%. This is possible because during the (approximately) five months following the due date (for most states April 30) of the report, states set up new employers who also have reports due for the quarter in question. When those new reports are filed the total often exceeds the original number of reports that were considered due.

Please see:
Table 2, Filing Reports - Contributory Employers and
Table 3, Filing Reports - Reimbursing Employers


Past due contributions and reimbursements totaled $642,238,858 at the end of September 2002, a decrease of $56,423,074 from the quarter ending June 30, 2002 and a decrease of $62,392,911 from the quarter ending September 30, 2001. Twenty-nine states reported a reduction in their receivables during the quarter. Notable percentage reductions occurred in New Hampshire (down 74%), New York (down 29%), and Connecticut (down 28%). During the quarter $495,228,441 was determined receivable, $490,899,405 was collected, $9,858,437 was declared uncollectable and $60,075,448 was removed from receivables balances due to age.

See Table 4, Collection Activities

The distribution of receivables by age shows 38.7% at 6 months or less, 12.5% at "9 months" (expressed more clearly, 12.5 % of the money that became due during the months of October, November and December 2001 - 9 months back, is still uncollected), 9.1% at "12 months," 11.6% at "15 months" and 28.0% at "over 15 months." The "over 15 months" age group increased 7.2% from the quarter ending June 30, 2002.

See Table 5, Percent Distribution of Age of Receivables

Audit Activity

States audited records of 28,491 employers during the quarter, of which 781 were large employer audits. Large employers have at least 100 employees or at least one million dollars in payroll. Total audit production for the March 31 quarter declined by 804 audits from the previous quarter. For the quarter ending September 30, 2001, 30,257 audits were completed. The average time required for completing an audit was 7.4 hours and the average number of quarters audited was 4.5 quarters.

Through the audit program a total of 30,488 workers were discovered misclassified as independent contractors. This total is up 6.4% from the 28,546 reported in the June 30 quarter and up 17.8% from the 25,076 misclassifications discovered in the September 30, 2001 quarter. Misclassifications ranged from zero in several states to a high of 4,909 in Ohio.

See Table 6, Audit Activity

Discrepancies in either wages or contributions due were discovered in 12,135 of the 28,491 audits that were completed for a change rate of 42.6%. Maine reported the highest discrepancy rate, 190 of their 195 audits were discrepant for a change rate of 97.4%. The audits revealed that total wages were under reported by $440,781,022 and over reported by $98,487,954 making a gross change in total wages of $539,268,976. Nationally the audits completed during the quarter ending September 30, 2002, resulted in a net increase in contributions due of $4,807,750 or about $169 average per audit.

See Table 7, Audit Change in Total Wages and Contributions


Chart 1 - National Averages Status Determinations Promptness QE 9/30/2002
Chart 2 - Filing Employer Contribution Reports QE 9/30/2002
Chart 3 - Age of Receivables % Comparison: QE 6/30/2002 to QE 9/30/2002
Chart 4 - Audit Results Employees Misclassified as Independent Contractors QE 9/30/2002