1984 deficit reduction act clarification

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| U.S. Department of Labor | CLASSIFICATION |
| Employment and Training Administration | UI |
| Washington, D.C. 20213 | |
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| | CORRESPONDENCE SYMBOL |
| | TEURL |
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| | DATE |
| | January 23, 1985 |
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| RECISSIONS | EXPIRATION DATE |
| | October 31, 1985 |
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| DIRECTIVE | : | UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 01-85, Change 1 |
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| TO | : | ALL STATE EMPLOYMENT SECURITY AGENCIES |
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| FROM | : | BERT LEWIS |
| | | Administrator |
| | | for Regional Management |
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| SUBJECT | : | Amendments Made by P.L. 98-369, (The Deficit Reduction Act of 1984), Which Affect the Federal-State Unemployment Compensation Program |
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1. Purpose. To provide clarifications to UIPL 1-85 with regard to the income and eligibility verification procedures mandated by P.L. 98-369.

2. Reference. UIPL 1-85

3. Background. UIPL 1-85 transmitted information on the amendments made by P.L. 98-369 (The Deficit Reduction Act) which affect the Federal-State Unemployment Compensation Program. Questions have arisen about two provisions in P.L. 98-369, Section 2651, "Eligibility and Verification Procedures."

4. Clarifications. The first question relates to independent verification of information received from another agency and is covered in subsection (8) of UIPL 1-85, Due Process, page 11. This subsection provides an explanation of the requirements of Section 1137(c). This Section applies the independent verification requirement only to unearned income information obtained from IRS.

   The second question concerns the requirement of quarterly wage reporting. Page 12 of the UIPL describes the actions required of States having wage-record systems and States with wage-request systems. The last sentence should be revised to read:

   "For other States either a change in State law to require quarterly wage reporting for UI purposes, or establishment of quarterly wage reporting outside of the UI system is required. The requirement may be waived if the Secretary of Labor determines that the State has in effect an alternative system which is as effective and timely for purposes of providing employment related income and eligibility data as quarterly wage reporting."

5. Action Required. Administrators are requested to advise appropriate staff of these clarifications.

6. Inquiries. Questions should be directed to appropriate regional staff.