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Revisions to ETA 581 unemployment contribution operations report
Summary ETA revised the ETA 581 report and related handbooks to remove unused delinquency items, add reporting on unemployment tax-rate manipulation, and count all unreported workers found in audits. Four attachments provide the revised report instructions and technical specifications. ETA lists the letter as Active.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 02-11
Date issued
November 9, 2010
Status
Active
ETA lists this letter Active as of 2026-10-24, and the PDF prints “Continuing” in its expiration field.
Status last verified October 24, 2026
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UIPL02-11acc.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2010/UIPL02-11acc.pdf)
CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION UC – ETA 581 Report Changes
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
OUI/DUIO
U.S. DEPARTMENT OF LABOR
DATE
Washington, D.C. 20210 November 9, 2010
ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 02-11
TO: STATE WORKFORCE AGENCIES
FROM: Jane Oates /s/
Assistant Secretary
SUBJECT: Changes to the Employment and Training Administration (ETA) 581
Contribution Operations Report, and related Handbooks
1. Purpose. To revise: (a) the ETA 581 Contribution Operations report, (b) Employment and
Training (ET) Handbook No. 401, Unemployment Insurance Reports (UIR) Handbook – 4th
Edition, and (c) ET Handbook No. 402, UIR User Manual – 5th Edition. The revisions are
needed in order to change the following reporting requirements on the ETA 581 Contribution
Operations report: (a) delete the items for reporting the number of outstanding contribution
reports and estimated contributions for prior quarters; (b) add items for reporting State
Unemployment Tax Act (SUTA) dumping detection activities; and (c) include all unreported
employees when reporting misclassified employees discovered from audits.
2. References.
Public Law (P.L.) No. 108-295, The “SUTA Dumping Prevention Act of 2004”;
ET Handbook No. 401, 4th Edition, Section II, Chapter 2, ETA 581 Contribution
Operations ;
ET Handbook No. 402, 5th Edition, Appendix A, Report Forms with Data Maps;
ET Handbook No. 402, 5th Edition, Appendix B, ASCII File Format Specifications;
ET Handbook No. 402, 5th Edition, Appendix C, Report Edit Specifications;
Unemployment Insurance Program Letter (UIPL) 29-83, Change 3, Transfers of
Experience;
UIPL No. 15-84, Experience Rating – Identification of the Standard Rate and its
Application to a Single Schedule of Contribution Rates Applicable to a Single Taxable
Wage Base with Respect to a Single Period of Time;
UIPL 34-02, Tax Rate Manipulation – State Unemployment Tax Act (SUTA) Dumping;
UIPL No. 30-04 and UIPL No. 30-04, Change 1, SUTA Dumping – Amendments to
Federal Law affecting the Federal – State Unemployment Compensation Program;
UIPL No. 33-09, Measuring State Effectiveness in Implementing State Unemployment
Tax Act (SUTA) Dumping Detection and Enforcement Procedures;
UIPL No. 30-10, Proposed Effective Audit Measure for State Unemployment Insurance
(UI) Employer Audit Programs
RESCISSIONS EXPIRATION DATE
None Continuing
3. Background. The ETA 581 Contribution Operations report is a comprehensive summary of
each state’s unemployment insurance (UI) tax operations and is essential in providing
quarterly performance data. ETA 581 Contribution Operations report data are used to
monitor and measure program performance and make projections and forecasts in
conjunction with the budgetary process. Since recent employer activities with SUTA
dumping and worker misclassifications have impacted the UI program, the effect of those
activities on state operations needs to be reported on the ETA 581 Contribution Operations
report. In addition, an evaluation of state data on outstanding reports and estimated
contributions due has made those reporting items expendable. Background information on
the report changes follow:
a. Number of outstanding reports and estimated contributions for prior quarters. States
have reported the number of quarters represented by contribution reports outstanding
for all quarters prior to the report quarter in item 12, cell c13a on the report. States
have also calculated and reported an estimate for the UI tax due on those delinquent
quarterly reports in item 13, cell c13b on the report. Since the data collected in the
two cells have never been included in the UI Performs Computed Measures, nor have
the data been included in any other aggregated reports, the cells will be removed from
the ETA 581 Contribution Operations report.
b. SUTA dumping activities. The SUTA Dumping Prevention Act of 2004 was enacted
to curtail an employer tax avoidance practice known as “SUTA dumping”. In SUTA
dumping, employers shift workforce/payroll in order to avoid paying contributions at
higher tax rates. States have amended their UI laws as required by the Act and
implemented procedures for detecting SUTA dumping. Three new cells will be
added to the ETA 581 Contribution Operations report so that states can report their
SUTA dumping activities.
c. Misclassified employees discovered from audits. States have reported the number of
employees misclassified as independent contractors that were discovered through
audits in item 52, cell c69 on the ETA 581 Contribution Operations report. However,
ETA 581 Contribution Operations report instructions have not allowed states to
report other unreported (off-the-books) workers discovered in audits if the employers
did not classify the workers as independent contractors. Since it is important to
discover all unreported workers in audits and not just independent contractors, states
will report all unreported workers discovered in audits on the ETA 581 Contribution
Operations report.
4. Office of Management and Budget (OMB) Approval. The changes to the ETA 581
Contribution Operations report have been approved by OMB according to the Paperwork
Reduction Act of 1995, under OMB approval No. 1205-0178, which expires on
December 31, 2011. Respondents’ obligation to reply to these reporting requirements is
required to obtain or retain benefits (SSA 302(a)). Persons are not required to respond to this
collection of information unless it displays a currently valid OMB control number.
5. Revisions to Form 581. The ETA 581 Contribution Operations report for the report quarter
ended March 31, 2011, will show the following changes:
a. Number of outstanding reports and estimated contributions for prior quarters. The
following items will be removed from the form:
1) Item 12, cell c13a - Number of Outstanding Quarters Prior to Report Quarter;
2) Item 13, cell c13b – Total Estimated Contributions Due
b. SUTA dumping activities. Line 503, “SUTA Dumping” will be added and show the
following items:
1) Item 59, cell c70 – Number of Mandatory Transfers
2) Item 60, cell c71 – Number of Prohibited Transfers
3) Item 61, cell c72 – Total Net Contributions Due
c. Misclassified employees discovered from audits. The name for item 52, cell c69, will
be changed from “Number of Employees Misclassified as Independent Contractors”
to “Number of Employees Misclassified.”
6. Revisions to ET Handbook No. 401, UIR Handbook, 4th Edition. Section II of ET
Handbook No. 401 provides instructions for completing the ETA 581 Contribution
Operations report. As a result of the changes to the ETA 581 Contribution Operations report,
the following changes to Section II of ET Handbook No. 401 have been made:
a. Number of outstanding reports and estimated contributions for prior quarters.
Instructions for items 12 and 13 have been removed from section F, “Item by Item
Instructions.”
b. SUTA dumping activities. Five new definitions have been added to section E,
“Definitions” as shown below. The purpose of the definitions is to clarify the
instructions concerning the new cells for SUTA dumping.
1) Unemployment Experience: Amounts that are used in the state’s computation
of contribution rates for employers in accordance with its system of
experience rating (e.g., benefit payments, benefit wages, contributions,
taxable wages, total wages).
2) Mandatory Unemployment Experience Transfer: Unemployment experience
is transferred between employers as required by the state’s unemployment
compensation law.
3) Prohibited Unemployment Experience Transfer: As required by the state’s
unemployment compensation law, unemployment experience is not
transferred to an employer who acquired a business because the state found
that the employer acquired the business solely or primarily for the purpose of
obtaining a lower rate of contributions.
4) SUTA Dumping: Employer or advisor actions, or inactions, that manipulate
state experience rating systems for the purpose of obtaining a lower
contribution rate assignment than the employer’s unemployment experience
would otherwise allow.
5) SUTA Dumping Investigation: This is a further investigation conducted after
completion of a regular status determination (e.g., new or successorship) to
determine whether unemployment experience must or must not be transferred
between employers. The state initiates a SUTA dumping investigation to
ensure that higher rates of contributions are not avoided through the transfer
or acquisition of a business. Most investigations are identified through the
use of the state’s automated SUTA dumping detection system.
Instructions for the new cell items have been added to section F, “Item by Item
Instructions”, as follows:
Line 503 - SUTA Dumping Detection Activity. Line 503 shows unemployment
experience transfer determinations (mandatory or prohibited) and resulting changes in
contributions due that were identified by a state’s SUTA dumping investigations. A
state investigates employers to ensure that unemployment experience was transferred
as required by law, or not transferred when prohibited by law, so that higher rates of
contributions are not avoided through the transfer or acquisition of a business. The
unemployment experience transfer determinations follow employer attempts to
manipulate experience rating systems for the purpose of obtaining a lower rate of
contributions, or the state’s own failures to apply its law regarding unemployment
experience transfers properly.
1) Item 59. Number of Mandatory Transfers. Enter the number of mandatory
unemployment insurance transfers that were the result of SUTA dumping
investigations and were entered on the state’s system during the report
quarter. Include full and partial mandatory transfers of unemployment
experience. Include all mandatory transfers, even if the transfers did not
result in changes to previously assigned contribution rates.
Note: If a state inactivated/terminated employer accounts under
“continuity of control” provisions in state law as a result of SUTA
dumping investigations, include those employers as mandatory transfers,
(i.e., count the inactivated/terminated accounts).
Do not include mandatory transfers identified in the normal process of
making regular status determinations that resulted in the establishment of
new accounts for successor employers, as well as those employers who
already had an existing account and acquired all or part of the business of
another employer with an existing account. The process of making
regular status determinations normally begins with information received
from employers and other sources outside of the state unemployment
insurance agency.
2) Item 60. Number of Prohibited Transfers. Enter the number of prohibited
unemployment experience transfers that were the result of SUTA dumping
investigations and were entered on the state’s system during the report
quarter. Count all employers who were prohibited from inheriting
unemployment experience, in whole or in part. Count all prohibited
transfers even if previously assigned contribution rates were not changed.
3) Item 61. Total Net Contributions Due. Enter the total amount of
contributions due, less the amount of contributions overpaid, that were the
result of changes to contribution rates during the report quarter due to
mandatory and prohibited transfers reported.
Net contributions are the difference between contributions due on taxable
wages before rates were changed and contributions due on those taxable
wages after the rates were changed. Taxable wages include actual taxable
wages reported by employers and estimated taxable wages for legally
enforceable contributions due. Compute differences on contributions due
on taxable wages, whether or not contributions have been paid.
Do not include net contributions on taxable wages reported or estimated
after the report quarter in which rates were changed, even if the
contributions due were affected by rate changes due to mandatory or
prohibited transfers.
Example: Net Contributions for One Employer.
For the report quarter ending December 31, 2011 – Assumes that annual
rates for CY 2010 and CY 2011 are changed in the fourth quarter of 2011.
Also assumes that the CY 2010 rate is decreased and the CY 2011 rate is
increased from their original rates;
Year/Quarter Contributions Contributions Difference
Due at Old Rate Due at New Rate
2010/q1 $ 8,875 $ 8,300 ($575)
2010/q2 $ 6,300 $ 6,100 ($200)
2010/q3 $ 4,985 $ 4,860 ($125)
2010/q4 $ 3,000 $ 2,900 ($100)
Totals for $23,160 $22,160 ($1,000)
2010
2011/q1 $15,800 $19,550 $3,750
2011/q2 $13,730 $15,980 $2,250
2011/q3 Delinquent when Delinquent when Not
rate changed rate changed Included
2011/q4 Not due when Not due when rate Not
rate changed changed Included
Totals for $29,530 $35,530 $6,000
2011
Summary:
Credits on 2010 quarters: ($1,000)
Contributions due on first two quarters of 2011: $6,000
Total Net Contributions Due included on ETA 581 Report: +$5,000
(Note: Net contributions due on the third and fourth quarters of 2011 are
excluded since taxable wages were not reported before December 31,
2011. Assumes employer will pay contributions on each quarter at the new
contribution rate without adjustments.)
Example: Net Contributions for All Employers.
For the report quarter ending December 31, 2011 – Rates changed and
entered on the state’s system during the fourth quarter of 2011;
Contributions due on all quarters for which rates were changed: $500,000
Credits on all quarters for which rates were changed: ($100,000)
Net contributions reported on the ETA 581 Report: +$400,000
c. Misclassified employees discovered from audits. The instruction for Item 52 has
been revised to: Item 52. Number of Employees Misclassified. Enter the total
number of employees discovered through audits in item 47 that were previously
misclassified by employers. Include all employees that were discovered through
audits, including those reported by employers on IRS form 1099 as well as workers
that were unreported (off-the-books). Count only employees discovered in quarters
that were actually audited as reported in item 48.
7. Revisions to ET Handbook No. 402, UIR Handbook, 5th Edition. ET Handbook No. 402
provides instructions on how states should enter data for the ETA 581 Contribution
Operations report to the National UI Report system. ET Handbook No. 402 has been revised
to reflect the changes to the ETA 581 Contribution Operations report as follows:
a. A revised ETA 581 Contribution Operations report (data map) has replaced the
previous form in Appendix A.
b. The ASCII file format specifications for the new cells have been revised in Appendix
B as follows: Item 59 (cell c70) and item 60 (cell c71) will require the integer data
type. Item 61 (cell c72) will require the decimal data type. See the beginning of
Appendix B for information on data types. The data type specifications for item 12
(cell c13a) and item 13 (cell c13b) have been deleted from the appendix since
reporting for the items will be discontinued.
c. The edit specifications for the new cells have been added to Appendix C. Entries for
item 59 (cell c70) and item 60 (cell c71) can not be negative, nor null. An entry for
item 61 (cell c72) can be negative (enter a minus sign (-)); however, an entry can not
be null.
8. Effective Date. The effective date for implementing the changes to the ETA 581
Contribution Operations report is for the report quarter ending March 31, 2011. A state
which experiences problems gathering and reporting data on SUTA dumping activities for
the first quarter of 2011 may request an extension from its Regional Office in order to begin
reporting data on a subsequent quarterly report. However, all states must begin to report data
on SUTA dumping activities for the quarter ending December 31, 2011.
9. Action Requested. State administrators are requested to distribute this advisory to
appropriate staff for implementation of the reporting changes. In addition, perform the
following handbook maintenance:
a. ET Handbook No. 401 – Remove and destroy Section II, Chapter 2, pages 11-2-1 to 11-
2-23, dated 4/2007, and replace with the attached pages 11-2-1 to 11-2-25, dated
10/2010.
b. ET Handbook No. 402 – Replace Appendix A, pages A-31 and A-32 with the attached
pages A-31 and A-32. Replace Appendix B, page B-17 with the attached page B-17.
Replace Appendix C, page C-19 with the attached page C-19.
10. Inquiries. Questions should be addressed to your Regional Office.
11. Attachments. Revised Section II, Chapter 2 of ET Handbook No. 401 and the following
revised pages from ET Handbook No. 402:
a. Appendix A, pages A-31 and A-32
b. Appendix B, page B-17
c. Appendix C, page C-19
UIPL02-11a1.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2010/UIPL02-11a1.pdf)
UI REPORTS HANDBOOK NO. 401
ETA 581 Contribution Operations
CONTENTS
A. Facsimile of Form .........................................................................................II-2-3
B. Purpose..........................................................................................................II-2-4
C. Due Date and Transmittal .............................................................................II-2-5
D. General Reporting Instructions ...................................................................II-2-5
E. Definitions......................................................................................................II-2-5
1. Report Quarter ........................................................................................II-2-5
2. Active Employer ......................................................................................II-2-5
3. Inactive Employer....................................................................................II-2-6
4. Annual-reporting Employer......................................................................II-2-6
5. Contributions ...........................................................................................II-2-6
6. Subject Employer ....................................................................................II-2-6
7. Contributory Employer ............................................................................II-2-6
8. Reimbursing Employer ............................................................................II-2-6
9. Delinquency Cutoff Date .........................................................................II-2-6
10. Wage Item...............................................................................................II-2-6
11. Due Date .................................................................................................II-2-7
12. Secured Report .......................................................................................II-2-7
13. Resolved Report .....................................................................................II-2-7
14. Status Determination...............................................................................II-2-7
15. Newly Established Account .....................................................................II-2-7
16. Successor ...............................................................................................II-2-7
17. Terminated Employer ..............................................................................II-2-7
18. Receivables.............................................................................................II-2-7
19. Estimate - Contributions Due ..................................................................II-2-7
20. Assessment.............................................................................................II-2-8
21. Final Assessment....................................................................................II-2-8
22. Liquidated Amount ..................................................................................II-2-8
23. Declared Uncollectible.............................................................................II-2-8
24. Aging of Receivables...............................................................................II-2-8
25. Audit ........................................................................................................II-2-8
26. Large Employer Audit..............................................................................II-2-9
27. Change Audit ..........................................................................................II-2-9
28. Misclassified Employee ...........................................................................II-2-9
29. Unemployment Experience………………………………………………… .II-2-9
30. Mandatory Unemployment Experience Transfer .....................................II-2-9
31. Prohibited Unemployment Experience Transfer......................................II-2-9
32. SUTA Dumping ......................................................................................II-2-9
33. SUTA Dumping Investigation ..................................................................II-2-10
F. Item by Item Instructions..............................................................................II-2-10
1. Employer Count ......................................................................................II-2-10
2. Delinquency Cutoff Date, Wage Items ....................................................II-2-10
3. Employer Reports Preceding Quarters-Contributory Employers .............II-2-11
4. Employer Reports Preceding Quarters-Reimbursing Employers ............II-2-13
II-2-1
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UI REPORTS HANDBOOK NO. 401
ETA 581 Contribution Operations
5. Status Determinations .............................................................................II-2-14
6. Receivables - Contributory Employers ....................................................II-2-16
7. Age of Receivables - Contributory Employers.........................................II-2-17
8. Receivables - Reimbursing Employers....................................................II-2-18
9. Age of Receivables - Reimbursing Employers ........................................II-2-19
10. Audit Activity............................................................................................II-2-20
11. SUTA Dumping ......................................................................................II-2-22
12. Comments...............................................................................................II-2-24
II-2-2
10/2010
UI REPORTS HANDBOOK NO. 401
ETA 581 Contribution Operations
A. Facsimile of Form
ETA 581 - CONTRIBUTION OPERATIONS
STATE REGION REPORT FOR PERIOD ENDING
End Quarter Employers Total Number
Delinquency
Wage
Reim- Cutoff Date
Employer Line Contributory Total Items Received
bursement
Count 101
(1) (2) (3) (4) (5)
Contributory Employers Reimbursing Employers
Employer Filing Secured Resolved Filing Secured Resolved
Reports for Timely Timely
201
Preceding
Quarters (6) (7) (8) (9) (10) (11)
Newly Established Employers Successor Employers
Number Time Time Number Time Time
Lapse Lapse Lapse Lapse
<=90 <=180 <=90 <=180
Status (14) (15) (16) (17) (18) (19)
301
Determinations
Inactivations/Terminations
(20)
Total Deter- Declared Removed Total
Beginning mined Liquidated Uncol- End End
Period Receivable lectible Period Period
(21) (22) (23) (24) (25) (26)
Contributory
Employers 401
Receivables
Number Employers
Owing Receivables in (26)
(27)
6 Months Over 15
9 Months 12 Months 15 Months
Age of or Less Months
Contributory 402
Receivables (28) (29) (30) (31) (32)
Reimbursing Total Deter- Declared Removed Total
Employers 403 Beginning mined Liquidated Uncol- End End
Receivables Period Receivable lectible Period Period
(33) (34) (35) (36) (37) (38)
Number Employers
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UI REPORTS HANDBOOK NO. 401
ETA 581 Contribution Operations
Owing Receivables in (38)
(39)
6 Months Over 15
9 Months 12 Months 15 Months
Age of or Less Months
Reimbursing 404
Receivables (40) (41) (42) (43) (44)
Number of Audits
Calendar
Large Change Audits Total Audits Quarters Audited
Employers
(45) (46) (47) (48)
501
Total Wages Audited Hours Spent Number of
Auditing Employees
Pre-Audit Post-Audit Misclassified
(49) (50) (51) (52)
Audit
Activity
Amount Underreported
Total Wages Taxable Wages Contributions
(53) (54) (55)
502
Amount Overreported
Total Wages Taxable Wages Contributions
(56) (57) (58)
Number of Prohibited Total Net
Number of Mandatory Transfers
Transfers Contributions Due
SUTA Dumping 503
(59) (60) (61)
Comments:
O M B No.: 1205-0178 O M B Expiration Date: 12/31/2011 O M B Burden Hours: 8.5 Hours
O M B Burden Statement: These reporting instructions have been approved under the Paperwork reduction Act of 1995. Persons are
not required to respond to this collection of information unless it displays a valid OMB control number. Public reporting burden for this
collection of information includes the time for reviewing instructions, searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information. Submission is required to retain or obtain benefits under SSA
303(a)(6). Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to the U.S. Department of Labor, Office of Workforce Security, Room S-4231, 200 Constitution Ave., NW,
Washington, DC, 20210.
B. Purpose
The ETA 581 report provides information on volume of work and state agency
performance in determining the taxable status of employers and the processing of
wage items; in the collection of past due contributions and payments in lieu of
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UI REPORTS HANDBOOK NO. 401
ETA 581 Contribution Operations
contributions, and delinquent reports; and in field audit activity. The data provide
measures of the effectiveness of the tax program.
C. Due Date and Transmittal
The ETA 581 report for each calendar quarter is due in the Employment and Training
Administration National Office on the 20th day of the second month following the
quarter to which it relates, i.e., May 20, August 20, November 20, and February 20.
This report will be transmitted electronically.
D. General Reporting Instructions
Checking the Report. Entries should be made for all items. If no activity
corresponding to the items occurred during the report period, a zero should be
entered. A report containing missing data can not be sent to the National Office but
can be stored on the state's system. Edit checks can be found in Handbook 402,
Unemployment Insurance Required Reports User’s Manual, Appendix C.
E. Definitions
1. Report Quarter. A calendar quarter (3 months) referenced on ETA reports
covering a state's activities and transactions occurring within or existing as of the
end of the quarter specified.
2. Active Employer. An "employer" (single or multi-unit) who has met a specific
threshold or condition of liability contained in the state’s unemployment
compensation law, is currently registered and required to file contribution and
wage reports (CWRs), and (except for new employers establishing liability within
the 581 report quarter) has reported wages during one or more of the eight
consecutive calendar quarters immediately preceding the ETA 581 report
quarter.
3. Inactive Employer. An employer who does not qualify for termination of
coverage by reason of no longer meeting the state's definition of "Employer" but:
a. has notified the agency it is no longer paying wages and has been granted
permission to suspend filing of quarterly reports, or
b. has been administratively granted permission to suspend filing quarterly
reports by reason of no longer paying wages, or
c. has not reported wages for any of the eight consecutive calendar quarters
immediately preceding the ETA 581 report quarter. For these employers the
effective date for inactivation shall be the last day of the eighth no wage
quarter (or the first day of the ninth quarter depending on state specific
inactivation procedures).
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UI REPORTS HANDBOOK NO. 401
ETA 581 Contribution Operations
Example: Consider an employer who was issued a determination of liability
during the fourth quarter of 2008 and reported some wages in the fourth
quarter of 2008. However, no wages were reported for the first quarter 2009
through the fourth quarter of 2010 (either because of failure to file required
CWRs, “No Payroll” reports, or any combination of these). Assume that a
fourth quarter 2010, No-Payroll CWR was received and processed timely on
January 31, 2011. Under part “c” of the definition of Inactive Employer the
employer would become inactive as of 12/31/2010 (or 1/1/2011 depending on
state-specific inactivation procedures) and therefore would not be included in
the active employer count made on 3/31/2011. This employer would be
counted in Item 20, Inactivations/Terminations for the 3/31/2011 ETA 581
report.
4. Annual-reporting Employer. An employer who is permitted to file contribution
and wage reports on an annual basis.
5. Contributions. The amount of state unemployment taxes, including voluntary
payments, paid or payable into a state unemployment fund by an employer
based on the taxable wages paid to an employee.
6. Subject Employer. An employing unit which has met a threshold or condition of
liability under state unemployment compensation law; also a liable employer or a
covered employer.
7. Contributory Employer. An employer who is required by the state unemployment
compensation law to pay contributions into the state unemployment fund.
Employers of certain classes who are not required to pay contributions but elect
to do so and employers with a 0.0% contribution rate are included in the
definition of "contributory employer."
8. Reimbursing Employer. Certain nonprofit organizations, state or local
government and political subdivisions which elect or are required to pay into the
state unemployment fund a sum in lieu of contributions as provided in the state
unemployment compensation law (usually an amount equal to unemployment
benefits drawn against such an employer account).
9. Delinquency Cutoff Date. The date on which employers who have not submitted
contribution and wage reports for a specific quarter are notified of such by the
mailing of first delinquency notices.
10. Wage Item. A statement of wages for which, as the result of regular processing,
a separate record is kept in a wage record file by employee name or Social
Security Account Number.
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ETA 581 Contribution Operations
11. Due Date (Contribution Report). The date, after which the state can impose
penalty and/or interest, whichever is first applicable.
12. Secured Report. A contribution report which has been received. Unless
received a report is not considered secured even if a final assessment or a ruling
of non-liability has been made.
13. Resolved Report. A contribution report which has been received or resolved by
a final assessment of tax that is legally due and collectible or by a determination
of non-liability.
14. Status Determination. Any recorded administrative action that establishes,
modifies, changes, inactivates or terminates an employing unit's liability as an
employer under the state unemployment compensation law.
15. Newly Established Account. An account for an employing unit which is
determined, for the first time, as meeting the definition of "EMPLOYER" in the
state unemployment compensation law or a previously terminated employing unit
which again is determined as meeting the definition of employer.
16. Successor. An employing unit which has acquired the organization, trade, or
business, in whole or in part, of another employer, and is declared subject as a
successor as of the day on which it meets the requirements of the state
unemployment compensation law for successorship.
17. Terminated Employer. An employer, who may or may not have previously been
granted permission to suspend filing quarterly reports (made inactive), but has
requested and been granted termination of coverage or has administratively
been granted termination of coverage by reason of not meeting the definition of
"EMPLOYER" in the state unemployment compensation law.
18. Receivables.
a. Contributory employers: past due contributions (state unemployment taxes),
not including penalty and interest, which were due and payable with the
employer's contribution report. Receivables include assessments and final
assessments which are legally collectible and enforceable.
b. Reimbursing employers: past due amounts for reimbursable benefit
payments that were charged and billed to reimbursing employers.
19. Estimate - Contributions Due. A calculation of contributions due for which a
quarterly report has not yet been received. Estimates are usually based on past
experience of an employer's account, and may be a "best reasonable
calculation". An estimate may or may not be legally collectible and enforceable
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under the state unemployment compensation law. Estimates for purposes of
item 13 are not receivables for purposes of lines 401 and 402.
20. Assessment. A liability established administratively for contributions due, usually
based on an estimate and charged to an employer account with the expectation
that it will be paid by the employer. For purposes of lines 401 and 402, an
assessment is a receivable only if it is legally collectible and enforceable. It is no
longer an estimate for statistical purposes of item 13.
21. Final Assessment. The same as assessment but requires completion of some
due process (e.g., employer notification and expiration of an appeal period) to be
legally collectible under the state unemployment compensation law.
22. Liquidated Amount. An amount received or an adjustment which cancels a
previously established receivable.
23. Declared Uncollectible (Write off). A receivable amount for which all reasonable
collection efforts have been exhausted and which has been officially written off
and/or authorized for removal from the active accounts receivable file and
transferred to suspense (no further action to be taken).
24. Aging of Receivables. The process of identifying and classifying receivable
amounts according to the length of time such amounts have remained unpaid,
e.g., 6 months or less, 9 months, 12 months, 15 months, over 15 months.
25. Audit. A systematic examination of an employer's books and records, using
generally accepted auditing standards and procedures, covering a specified
period of time during which the employer is liable for reporting under the law or,
is found to be liable as a result of the examination. An audit must:
a. Include an opening interview,
b. Cover a minimum of four calendar quarters (except as specified in ES
Manual, Part V, Section 3675),
c. Verify the business entity as a sole proprietor, partnership, corporation, joint
venture, or other,
d. Document records examined and evidence obtained in tests used to verify
payroll procedure, accuracy and completeness,
e. Document records available and examined and the evidence obtained in the
search for misclassified workers and payments,
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f. Conclude with a close-out conference with the employer or designated
representative or include an explanation if not conducted; and
g. Include a written report stating the auditor's final determination and all facts
contributing to or supporting that final determination.
26. Large Employer Audit. An audit of an employing unit:
a. Reporting wages paid to 100 or more individuals during the current or
preceding calendar year, or
b. Reporting at least $1,000,000 in taxable payroll for the calendar year
preceding the first quarter being audited.
27. Change Audit. An audit resulting in the discovery of wages or taxes not
previously reported or reported incorrectly by the employer. Note: Delinquent
employer reports obtained at the same time an audit is conducted, but are not
related to any quarter covered by the audit, must not be considered in
determining if the audit is a change audit.
28. Misclassified Employee. An employee discovered through an audit that was
previously not reported by the employer to the state for unemployment insurance
purposes. This item would include employees that were reported to the IRS on
IRS form 1099 as an independent contractor, and employees that were
unreported (off-the-books) by the employer.
29. Unemployment Experience. Amounts that are used in the state’s computation of
contribution rates for employers in accordance with its system of experience
rating (e.g., benefit payments, benefit wages, contributions, taxable wages, total
wages).
30. Mandatory Unemployment Experience Transfer. Unemployment experience is
transferred between employers as required by the state’s unemployment
compensation law.
31. Prohibited Unemployment Experience Transfer. As required by the state’s
unemployment compensation law unemployment experience is not transferred to
an employer who acquired a business because the state found that the employer
acquired the business solely or primarily for the purpose of obtaining a lower rate
of contributions.
32. State Unemployment Tax Act (SUTA) Dumping. Employer or advisor actions, or
inactions, that manipulate state experience rating systems for the purpose of
obtaining a lower contribution rate assignment than the employer’s
unemployment experience would otherwise allow.
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33. SUTA Dumping Investigation. This is a further investigation conducted after
completion of a regular status determination (e.g., new or successorship) to
determine whether unemployment experience must or must not be transferred
between employers. The state initiates a SUTA dumping investigation to ensure
that higher rates of contributions are not avoided through the transfer or
acquisition of a business. Most investigations are identified through the use of
the state’s automated SUTA dumping detection system.
F. Item by Item Instructions
1. Employer Count. Items 1, 2, and 3 relate to the count of active employers only.
Do not include inactive or terminated employers. If an annual-reporting
employer becomes inactive or is terminated, such an employer is immediately
excluded from the count of active employers at the end of the quarter in which
the inactivation or termination is effective, as opposed to at the end of the
calendar year in which the inactivation or termination is effective.
Note: To obtain an accurate count of the number of employers at the end of the
ETA 581 report quarter, a computer program (or other reliable tool) must be
used which identifies and counts employers who meet the definitions of active
contributory employer (item 1) and active reimbursing employer (item 2).
Example: For the ETA 581 report quarter ending 3/31/2011, the state must
count the active employers as of 3/31/2011. Employers who either report ‘no
wages’ or fail to file reports or any combination of these, for eight consecutive
CWR quarters (see the definition for Inactive Employer) should be excluded from
the count. The computer run to make the employer count must be set to count
all active contributing and all active reimbursing employers (separately) at the
end of the ETA 581 report quarter.
a. Item 1. Contributory. Enter the number of active contributory employers
subject to the state unemployment compensation law at the end of the report
quarter. Include employers with a 0.0% contribution rate and employers from
certain classes who are not required to pay contributions but have elected to
do so.
b. Item 2. Reimbursing. Enter the number of active reimbursing employers
subject to the state unemployment compensation law at the end of the report
quarter.
c. Item 3. Total. Enter the total number of active employers (sum of items 1 and
2) subject to the state unemployment compensation law at the end of the
report quarter.
2. Delinquency Cutoff Date and Wage Items Received.
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a. Item 4. Delinquency Cutoff Date. Enter the date on which employers, whose
CWRs have not been submitted for the quarter immediately preceding the
ETA 581 report quarter, were notified of such by the mailing of first
delinquency notices.
b. Item 5. Total Number of Wage Items Received. Enter the number of wage
items received and processed during the quarter.
Count "Wage Items" after initial data entry or before or during the quarterly
update of the Wage Record Master File. The quarterly count should be
made consistently at the same point every quarter.
If a wage record is incomplete, e.g., some elements are omitted, count only
those records containing a dollar amount and another element which
positively identifies the worker either by name or Social Security number; or
by employer name or account number. A wage item is counted only once.
Corrected wage items are counted only if they were not previously included.
The percent of change in the number of wage items from the preceding
quarter should be computed. If the percent of change (either increase or
decrease) exceeds the criteria below, data should be checked further and
explained under "Comments."
Number of Wage Items Percent Change
5,000,000 or more 7%
3,000,000 - 4,999,999 10%
Less than 3,000,000 20%
3. Employer Reports for Preceding Quarters - Contributory Employers
a. Item 6. Filing Timely. Enter the number of contributory employers who, as of
the due date, had submitted contribution reports for the quarter preceding the
report quarter. For annual-reporting employers: If the report quarter is not
the quarter in which annual reports are due, include the total number of
annual-reporting employers as of the end of the preceding quarter in the
count of “filing timely” since such employers are considered to have met that
quarter’s reporting requirements, i.e., no reports required. If the report
quarter is the quarter in which annual reports are due, include the number of
annual-reporting employers who, as of the due date for annual reports, had
submitted such reports.
b. Item 7. Secured. Enter the number of contributory employers who, as of the
last day of the report quarter, had submitted contribution reports for the
preceding quarter. If annual reports were not due during the report quarter,
include the number of annual-reporting employers as of the end of the
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preceding quarter. If annual reports were due during the report quarter,
include the number of annual-reporting employers who, as of the last day of
the report quarter, had submitted annual reports. This number includes all
employers whose reports were actually secured (report in hand). Employers
whose report delinquencies were resolved by the issuance of an assessment
or estimate as well as employers found to be no longer liable are not counted
as secured reports, and, therefore, are not counted in this item. This count
includes the number of reports filed timely in item 6.
c. Item 8. Resolved. Enter the number of contributory employers who, as of the
last day of the report quarter, had resolved reports for the second quarter
preceding the report quarter. If annual reports were not due during the
second quarter preceding the report quarter, include the total number of
annual-reporting employers as of the end of the second quarter preceding
the report quarter. If annual reports were due during the second quarter
preceding the report quarter, include the number of annual-reporting
employers who, as of the last day of the report quarter, had resolved reports
for the second quarter preceding the report quarter. Employers whose report
delinquencies were cleared by the issuance of an assessment or estimate, as
well as employers found to be no longer liable are counted as resolved
reports, and therefore, are counted in this item.
Example: For items 6, 7, and 8 assuming that annual reports are due
January 31 of the following year:
For the report quarter ending March 31, 2011;
Timely - Enter in item 6, the number of contributory employers who, as of the
due date, had submitted contribution reports for the quarter ending
December 31, 2010, and the number of annual-reporting employers who had
submitted annual reports for the year ending December 31, 2010, by January
31, 2011,
Secured - Enter in item 7, the number of contributory employers who, as of
March 31, 2011, had submitted contribution reports for the quarter ending
December 31, 2010, and include the number of annual-reporting employers
who, as of March 31, 2011, had submitted annual reports for the year ending
December 31, 2010. Do not include employers to whom assessments have
been issued, or for whom determinations of non-liability have been made.
Resolved - Enter in item 8, the number of contributory employers who, as of
March 31, 2011, had resolved reports for the quarter ending September 30,
2010, and include the total number of annual-reporting employers as of
September 30, 2010. Include employers to whom assessments have been
issued, or for whom determinations of non-liability have been made.
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For the report quarter ending June 30, 2011;
Timely - Enter in item 6, the number of contributory employers who, as of the
due date, had submitted contribution reports for the quarter ending March 31,
2011. Include the total number of annual-reporting employers as of March
31, 2011,
Secured - Enter in item 7, the number of contributory employers who, as of
June 30, 2011, had submitted contribution reports for the quarter ending
March 31, 2011. Include the total number of annual-reporting employers as
of March 31, 2011. Do not include employers to whom assessments have
been issued, or for whom determinations of non-liability have been made.
Resolved - Enter in item 8, the number of contributory employers who, as of
June 30, 2011, had resolved reports for the quarter ending December 31,
2010 and the number of resolved reports for annual-reporting employers for
the year ending December 31, 2010. Include employers to whom
assessments have been issued, or for whom determinations of non-liability
have been made.
4. Employer Reports for Preceding Quarters - Reimbursing Employers.
a. Item 9. Filing Timely. Enter the number of reimbursing employers who, as of
the due date, had submitted required reports for the quarter preceding the
report quarter.
b. Item 10. Secured. Enter the number of reimbursing employers who, as of the
last day of the report quarter, had submitted required reports for the
immediately preceding quarter. Do not include those employers whose
delinquency was resolved because they were found to be no longer liable.
c. Item 11. Resolved. Enter the number of reimbursing employers who, as of
the last day of the report quarter, had submitted required reports for the
second quarter preceding the report quarter. Include those employers whose
delinquency was resolved because they were found to be no longer liable.
Example - For items 9, 10, and 11:
For the report quarter ending June 30, 2011;
Timely - Enter in item 9, the number of reimbursing employers who, as of the
due date, had submitted required reports for the quarter ending March 31,
2011,
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Secured - Enter in item 10, the number of reimbursing employers who, as
June 30, 2011, had submitted required reports for the quarter ending March
31, 2011. Do not include employers, for whom determinations of non-liability
have been made,
Resolved - Enter in item 11, the number of reimbursing employers who, as of
June 30, 2011, had resolved reports for the quarter ending December 31,
2010. Include employers for whom determinations of non-liability have been
made.
5. Status Determinations - Status Determinations Made During Report Quarter.
a. Item 14. Number, Newly Established Employers. Enter the number of status
determinations made during the report quarter based on an employer having
met a specific threshold or condition of liability contained in the state’s
unemployment compensation law, which resulted in the establishment of a
new account. Do not include those determinations which resulted in the
establishment of a new account for a successor employer. Also exclude
status determinations for employers who have been assigned account
numbers in advance of having met a threshold or conditions of liability.
Include status determinations which re-established accounts for previously
inactivated and/or terminated employers.
b. Item 15. Time Lapse - 90 Days or Less, Newly Established Employers. Enter
the number of status determinations in item 14 that were made in 90 days or
less from the end of the quarter in which liability occurred. Count the number
of calendar days from the end of the quarter in which liability occurred to the
date that the status information was officially entered into the state's system.
For previously inactivated and/or terminated employers, count the number of
days from the end of the quarter in which liability re-occurred. If the status
information is entered before the end of the quarter in which liability occurred
or re-occurred, the determination is automatically counted in the 90 days or
less time lapse category.
c. Item 16. Time Lapse - 180 Days or Less, Newly Established Employers.
Enter the number of status determinations in item 14 that were made in 180
days or less from the end of the quarter in which liability occurred. Count the
number of calendar days from the end of the quarter in which liability
occurred to the date that the status information was officially entered into the
state's system. For previously inactivated and/or terminated employers,
count the number of days from the end of the quarter in which liability re-
occurred. This count includes the number of status determinations reported
for the 90 days or less time lapse in item 15.
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d. Item 17. Number, Successor Employers. Enter the number of status
determinations made during the report quarter in which the state's legal
definition of successorship was met and the employer was, thus, classified as
a successor. Include full and partial successorships. Include status
determinations which resulted in the establishment of new accounts for
successor employers, as well as those employers who already had an
existing account and acquired all or a part of the business of another
employer with an existing account.
Example: Employer B, who previously has not been a subject employer,
acquires and continues the business of Employer A. Employer B is
determined to be a successor and is counted in item 17 as a successor
rather than in item 14 as a newly established account.
Employer X, who is registered as an active subject employer, acquires and
continues the business of Employer Y. Employer X is determined to be the
successor to Employer Y and should also be counted in item 17.
e. Item 18. Time Lapse - 90 Days or Less, Successor Employers. Enter the
number of status determinations in item 17 that were made in 90 days or less
from the end of the quarter in which liability as a successor occurred. Count
the number of calendar days from the end of the quarter in which liability
occurred to the date that the status information was officially entered into the
state's system. If the status information is entered before the end of the
quarter in which liability occurred, the determination is automatically counted
in the 90 days or less time lapse category.
f. Item 19. Time Lapse - 180 Days or Less, Successor Employers. Enter the
number of status determinations in item 17 that were made in 180 days or
less from the end of the quarter in which liability as a successor occurred.
Count the number of calendar days from the end of the quarter in which
liability occurred to the date that the status information was officially entered
into the state's system. This count includes the number of status
determinations reported for the 90 days or less time lapse in item 18.
g. Item 20. Inactivations/Terminations: Enter the number of status
determinations made during the report quarter that resulted in the inactivation
or termination of an account, whether made by a person or automatically
made by the system. This number should include all accounts rendered
inactive or terminated during the report quarter because no wages were
reported for eight consecutive quarters. Annual-reporting employers that are
terminated should be counted in the quarter in which the inactivation or
termination is effective, as opposed to at the end of the calendar year in
which the inactivation or termination is effective. Refer to F.1. Employer
Count. Do not include terminations of employers previously inactivated.
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6. Receivables - Contributory Employers. Line 401 shows accounting control
activities during the report quarter in regard to receivables due from contributory
employers. Line 401 covers (as of the last day of the report quarter) all known
receivables due for all calendar quarters prior to the report quarter.
a. Item 21. Total Receivables at the Beginning of Period. Enter the total amount
of known past due contributions at the beginning of the period. This amount
should be equal to item 26 on the previous report.
b. Item 22. Amount Determined Receivable During Report Period. Enter the
amount of contributions determined to be past due during the report quarter
based on contribution reports received without full payment of taxes, audit
findings, adjustments, legally enforceable estimates and assessments and
final assessments. Include all such receivables even though they are paid
later in the quarter, otherwise liquidated or declared uncollectible. Do not
include estimates and assessments which are not legally collectible or
enforceable. Do not include interest and penalties.
c. Item 23. Receivables Liquidated During Report Period. Enter amounts which
were liquidated during the report quarter, other than by being declared
uncollectible, which reduced the amounts in items 21 and 22. Do not include
timely contributions received during the report quarter.
d. Item 24. Receivables Declared Uncollectible During Report Period. Enter
amounts reported in items 21 and 22 that were declared uncollectible and/or
transferred to suspense status during the report quarter. Do not include
amounts previously reported in item 25 (receivables removed from active file
at end of report period) if such amounts were later declared uncollectible.
e. Item 25. Receivables Removed from Active File at End of Report Period.
Enter amounts included in item 21 (total receivables at beginning of period)
that were reported in item 32 (over 15 months - age category) for the two
immediately preceding ETA 581 report periods, but because of state policy,
have not been declared uncollectible.
Example: A receivable amount of $500 attributable to the quarter ending
June 30, 2009 was included in total receivables at the end of report period
(item 26) and, for the first time, reported in the "over 15 months" age
category (item 32) on the ETA 581 report for the quarter ending December
31, 2010. The $500 was not collected or declared uncollectible during the
quarter ending March 31, 2011, and, therefore, was included in total
receivables at the end of report period (item 26) and the "over 15 months"
age category (item 32) for a second report quarter. Since item 26 (total
receivables at the end of report period) on the report for the quarter ending
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March 31, 2011, is the same as item 21 (total receivables at beginning of
report period) on the report for the quarter ending June 30, 2011, the $500
was included in item 21 on the report for the quarter ending June 30, 2011.
The $500 was not collected or declared uncollectible during the quarter
ending June 30, 2011, and had already been reported in the "over 15
months" age category (item 32) on reports for quarters ending December 31,
2001 and March 31, 2011. Therefore, on the report for the quarter ending
June 30, 2011, the $500 is reported in item 25, receivables removed at end
of report period.
f. Item 26. Total Receivables at End of Report Period. Enter the total amount
of past due contributions as of the last day of the report quarter. This amount
should equal Item 21 plus Item 22 minus items 23, 24, and 25 and should be
carried forward to Item 21, Total Receivables at the Beginning of Period, for
the following report.
g. Item 27. Number of Employers Owing Receivables. Enter the number of
employers who owe the amount reported in item 26.
7. Age of Receivables - Contributory Employers. Line 402 separates total
receivables in item 26 by amount and age. The age of receivable amounts
should be calculated from the end of the quarter for which contributions are due,
i.e.: March 31, June 30, September 30, December 31, not the date on which the
amount was established as past due. Negative amounts cannot be entered in
the age categories on this line.
a. Item 28. 6 Months or Less. (2 quarters or less) Enter that part of the amount
in item 26 which, as of the end of the report quarter, was past due for 2 report
quarters or less. Example: On the report for quarter ending June 30, 2011,
enter in item 28 amounts that were past due for quarters ending March 31,
2011 and December 31, 2010.
b. Item 29. 9 Months. (3 quarters) Enter that part of the amount in item 26
which, as of the end of the report quarter, was past due for 3 report quarters.
Example: On the report for the quarter ending June 30, 2011, enter in item
29, amounts that were past due for the quarter ending September 30, 2010.
c. Item 30. 12 Months. (4 quarters) Enter that part of the amount in item 26
which, as of the end of the report quarter, was past due for 4 report quarters.
Example: On the report for the quarter ending June 30, 2011, enter in item
30, amounts that were past due for the quarter ending June 30, 2010.
d. Item 31. 15 Months. (5 quarters) Enter that part of the amount in item 26
which, as of the end of the report quarter, was past due for 5 report quarters.
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Example: On the report for the quarter ending June 30, 2011, enter in item
31, amounts that were past due for the quarter ending March 31, 2010.
e. Item 32. Over 15 Months. (6 quarters or more) Enter that part of the amount
in item 26 which, as of the end of the report quarter, was past due for more
than 15 months; i.e., 6 or more report quarters. Example: On the report for
the quarter ending June 30, 2011, enter in item 32, amounts that were past
due for the quarter ending December 31, 2010, and all prior quarters.
Note: The sum of amounts in items 28 through 32 must equal total
receivables in item 26.
8. Receivables - Reimbursing Employers. Line 403 shows accounting control
activities during the report quarter for past due payments in lieu of contributions.
Line 403 covers (as of the last day of the report quarter) all known past due
payments in lieu of contributions for all calendar quarters prior to the report
quarter.
a. Item 33. Total Receivables at the Beginning of Period. Enter the total
amount of payments in lieu of contributions known to be past due at the
beginning of the period. This figure should be equal to item 38 of the
previous report.
b. Item 34. Amount Determined Receivable During Report Period. Enter the
amount of payments in lieu of contributions determined as past due during
the report quarter based on current billings to reimbursing employers which
are unpaid. Do not report amounts already included in item 33.
c. Item 35. Receivables Liquidated During Report Period. Enter the amount
liquidated during the report quarter which reduced amounts in items 33 and
34 (other than by being declared uncollectible). Do not include timely
payments in lieu of contributions received during the report quarter.
d. Item 36. Receivables Declared Uncollectible During Report Period. Enter
amounts reported in items 33 and 34 that were declared uncollectible and
transferred to suspense status during the report quarter. Do not include
amounts previously reported in item 37 (receivables removed from active file
at end of report period) if such amounts were later declared uncollectible.
e. Item 37. Receivables Removed from Active File at End of Report Period.
Enter amounts included in item 33 (total receivables at beginning of period)
that were reported in item 44 (over 15 months - age category) for the two
immediately preceding ETA 581 report periods, but because of state policy,
have not been declared uncollectible.
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Example: An amount of $600, which was determined receivable during the
quarter ending June 30, 2009, was included in total receivables at the end of
report period (item 38) and, for the first time, reported in the "over 15 months"
age category (item 44) on the ETA 581 report for the quarter ending
December 31, 2010. The $600 was not collected or declared uncollectible
during the quarter ending March 31, 2011, and, therefore, was included in
total receivables at the end of report period (item 38) and the "over 15
months" age category (item 44) for a second report quarter. Since item 38
(total receivables at the end of report period) on the report for the quarter
ending March 31, 2011, is the same as item 33 (total receivables at
beginning of report period) on the report for the quarter ending June 30,
2011, the $600 was included in item 33 on the report for the quarter ending
June 30, 2011. The $600 was not collected or declared uncollectible during
the quarter ending June 30, 2011, and it had already been reported in the
"over 15 months" age category (item 44) on reports for quarters ending
December 31, 2010 and March 31, 2011. Therefore, on the report for the
quarter ending June 30, 2011, the $600 is reported in item 37, receivables
removed at end of report period.
f. Item 38. Total Receivables at End of Report Period. Enter the total amount
of payments in lieu of contributions that were past due as of the last day of
the report quarter. This amount should equal Item 33 plus Item 34 minus
Items 35, 36, and 37 and should be carried forward to Item 33, figure should
be the result of the addition of items 33 and 34 minus items 35, 36, and 37
and should be carried forward to Item 33, Total Receivables at the Beginning
of Period for the following report.
g. Item 39. Number of Employers Owing Receivables. Enter the number of
employers who owe the amount reported in item 38.
9. Age of Receivables - Reimbursing Employers. Line 404 separates total
receivables in item 38 by amount and age. The age of receivable amounts for
reimbursing employers should be calculated from the date payment was due, not
the date on which the amount was determined to be past due. Negative
amounts cannot be entered in the age categories on this line.
a. Item 40. 6 Months or Less. Enter that part of the amount in item 38 which, as
of the end of the report quarter, was past due for 6 months or less.
b. Item 41. 9 Months. Enter that part of the amount in item 38 which, as of the
end of the report quarter, was past due for 9 months or less but more than 6
months.
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c. Item 42. 12 Months. Enter that part of the amount in item 38 which, as of the
end of the report quarter, was past due for 12 months or less but more than 9
months.
d. Item 43. 15 Months. Enter that part of the amount in item 38 which, as of the
end of the report quarter, was past due for 15 months or less but more than
12 months.
e. Item 44. Over 15 Months. Enter that part of the amount in item 38 which, as
of the end of the quarter, was past due for more than 15 months.
Note: The sum of amounts in items 40 through 44 must equal total
receivables in item 38.
10. Audit Activity. Lines 501 and 502 show transactions resulting from activities
which meet the definition of "audit" as specified in Section E. 25. of these
instructions and the requirements of the Field Audit Function in ES Manual, Part
V, Sections 3670-3693. With the exception of item 49, total wages audited: pre-
audit, do not include in amounts underreported or overreported, any wages or
contributions that were reported by an employer before an audit assignment or
that were obtained without resorting to an audit. Wages and contributions
attributed to a delinquent employer report which were obtained through a field
assignment other than an audit, or were obtained at the same time an audit was
conducted but were not within the scope of the audit, should not be reported on
line 502 but should be included in items 22 and/or 23 (contributions), as
appropriate.
a. Item 45. Large Employer Audits. Enter the total number of completed large
employer audits. Item 45 can not be greater than item 47.
b. Item 46. Change Audits. Enter the number of audits in item 46 that were
change audits. Item 46 can not be greater than item 47.
c. Item 47. Total Audits. Enter the total number of audits completed during the
report quarter.
d. Item 48. Calendar Quarters Audited. Enter the total number of quarters
audited as the result of audits reported in item 47. Count only quarters
actually audited. Do not include quarters in which adjustments were made
without auditing.
e. Item 49. Total Wages Audited: Pre-Audit. Enter the amount of pre-audit total
wages originally reported by employers for quarters audited in item 48.
Estimates and/or assessments processed to an employer's account in lieu of
actual reports should be included in this amount.
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UI REPORTS HANDBOOK NO. 401
ETA 581 Contribution Operations
f. Item 50. Total Wages Audited: Post Audit. Enter the amount of total wages
recorded in audit summaries as the result of auditing quarters in item 48.
g. Item 51. Hours Spent in Auditing. Enter the total number of hours (rounded
to the nearest full hour) spent conducting the audits reported in item 47. Do
not include time spent traveling to and from audit sites.
h. Item 52. Number of Employees Misclassified. Enter the total number of
employees discovered through audits in item 47 that were previously
misclassified by employers. Include all employees that were discovered
through audits, including those reported by employers on IRS form 1099 as
well as workers that were unreported (off-the-books). Count only employees
discovered in quarters that were actually audited as reported in item 48.
i. Item 53. Underreported Total Wages. Enter the total amount of
underreported gross wages discovered as a result of quarters audited in item
48. Do not include amounts resulting from adjustments for quarters that were
not actually audited.
j. Item 54. Underreported Taxable Wages. Enter the total amount of
underreported taxable wages discovered as a result of quarters audited in
item 48. Do not include amounts resulting from adjustments for quarters that
were not actually audited.
k. Item 55. Underreported Contributions. Enter the total amount of
underreported contributions discovered as a result of quarters audited in item
48. Do not include penalty and interest. Do not include amounts resulting
from adjustments for quarters that were not actually audited.
l. Item 56. Overreported Total Wages. Enter the total amount of overreported
gross wages discovered as a result of quarters audited in item 48. Do not
include amounts resulting from adjustments for quarters that were not
actually audited.
m. Item 57. Overreported Taxable Wages. Enter the total amount of
overreported taxable wages discovered as a result of quarters audited in item
48. Do not include amounts resulting from adjustments for quarters that were
not actually audited.
n. Item 58. Overreported Contributions. Enter the total amount of overreported
contributions discovered as a result of quarters audited in item 48. Do not
include amounts resulting from adjustments for quarters that were not
actually audited.
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UI REPORTS HANDBOOK NO. 401
ETA 581 Contribution Operations
Note: Amounts reported in items 53 through 58 must represent total
amounts discovered as underreported and overreported for all audits without
regard to the net effect for each individual audit.
Example: The following audit differences were discovered in Audit A:
Underreported Overreported Net
Total Wages $850,000 $1,000,000 $150,000/over
Taxable Wages 500,000 50,000 450,000/under
Contributions 25,000 10,000 15,000/under
To report audit differences from audit A on ETA 581, $850,000 should be
included in item 53, $500,000 in item 54, $25,000 in item 55, $1,000,000 in
item 56, $50,000 in item 57 and $10,000 in item 58. The net differences for
audit A are not to be included on the ETA 581.
11. SUTA Dumping. Line 503 shows unemployment experience transfer
determinations (mandatory or prohibited) and resulting changes in contributions
due that were identified by a state’s SUTA dumping investigations. A state
investigates employers to ensure that unemployment experience was transferred
as required by law, or not transferred when prohibited by law, so that higher
rates of contributions are not avoided through the transfer or acquisition of a
business. The unemployment experience transfer determinations follow
employer attempts to manipulate experience rating systems for the purpose of
obtaining a lower rate of contributions, or the state’s own failures to apply its law
regarding unemployment experience transfers properly.
a. Item 59. Number of Mandatory Transfers. Enter the number of mandatory
transfers that were the result of SUTA dumping investigations and were
entered on the state’s system during the report quarter. Count all employers
who inherited unemployment experience, in full or in part. Include all
mandatory transfers even if the transfers did not result in changes to
previously assigned contribution rates.
Note: If a state inactivated/terminated employer accounts under “continuity of
control” provisions in state law as a result of SUTA dumping investigations,
include those employers as mandatory transfers, (i.e., count the
inactivated/terminated accounts).
Do not include mandatory transfers identified in the normal process of
making regular status determinations that resulted in the establishment of
new accounts for successor employers, as well as those employers who
already had an existing account and acquired all or part of the business of
another employer with an existing account. The process of making regular
status determinations normally begins with information received from
II-2-22
10/2010
UI REPORTS HANDBOOK NO. 401
ETA 581 Contribution Operations
employers and other sources outside of the state unemployment insurance
agency.
b. Item 60. Number of Prohibited Transfers. Enter the number of prohibited
transfers that were the result of SUTA dumping investigations and were
entered on the state’s system during the report quarter. Count all employers
who were prohibited from inheriting unemployment experience, in full or part.
Count all prohibited transfers even if previously assigned contribution rates
were not changed.
c. Item 61. Total Net Contributions Due. Enter the total amount of contributions
due, less the amount of contributions overpaid, that were the result of
changes to contribution rates during the report quarter due to mandatory and
prohibited transfers reported in items 59 or 60.
Net contributions due is the difference between contributions due on taxable
wages before rates were changed and contributions due on those taxable
wages after the rates were changed. Taxable wages include actual taxable
wages reported by employers and estimated taxable wages for legally
enforceable contributions due. Compute differences on contributions due on
taxable wages, whether or not contributions have been paid.
Do not include net contributions due on taxable wages reported or estimated
after the report quarter in which rates were changed, even if the contributions
due were affected by rate changes due to mandatory or prohibited transfers.
Example: Net Contributions Due for One Employer.
For the report quarter ending December 31, 2011 – Assumes that annual
rates for CY 2010 and CY 2011 are changed in the fourth quarter of 2011,
Also assumes that the CY 2010 rate is decreased and the CY 2011 rate is
increased from their original rates;
II-2-23
10/2010
UI REPORTS HANDBOOK NO. 401
ETA 581 Contribution Operations
Year/Quarter Contributions Contributions Difference
Due at Old Rate Due at New Rate
2010/q1 $ 8,875 $ 8,300 ($575)
2010/q2 $ 6,300 $ 6,100 ($200)
2010/q3 $ 4,985 $ 4,860 ($125)
2010/q4 $ 3,000 $ 2,900 ($100)
Totals for 2010 $23,160 $22,160 ($1,000)
2011/q1 $15,800 $19,550 $3,750
2011/q2 $13,730 $15,980 $2,250
2011/q3 Delinquent when Delinquent when Not
rate changed rate changed Included
2011/q4 Not due when Not due when Not
rate changed rate changed Included
Totals for 2011 $29,530 $35,530 $6,000
Summary:
Credits on 2010 quarters: ($1,000)
Contributions due on first two quarters of 2011 $6,000
Total Net Contributions Due included on ETA 581 Report: +$5,000
(Note: Net contributions due on the third and fourth quarters of 2011 are
excluded since taxable wages were not reported before December 31,
2011. Assumes employer will pay contributions on each quarter at the new
contribution rate without adjustments.)
Example: Total Net Contributions Due for All Employers.
For the report quarter ending December 31, 2011 – Rates changed in the
fourth quarter of 2011;
Contributions due on all quarters for which rates were changed: $500,000
Credits on all quarters for which rates were changed: ($100,000)
Total net contributions due reported on the ETA 581 Report: +$400,000
12. Comments. Four lines are available on the electronic submittal system for
comments. Comments are appropriate under the following circumstances:
a. Administrative Factors Affecting Data Reported. Describe any administrative
factors, such as rules and regulations, which may affect the information
reported in such a way that it lacks comparability with data submitted on prior
reports or on current reports submitted by the state agency.
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UI REPORTS HANDBOOK NO. 401
ETA 581 Contribution Operations
b. Legal Factors Affecting Data Reported. Describe any legal factors, such as
new laws or amendments to the state unemployment compensation law,
which may affect the information reported in such a way that it lacks
comparability with data submitted on prior reports or on current reports
submitted by other state agencies.
c. Economic Factors Affecting Data Reported. Describe any economic factors
which substantially affect the data reported by increasing or reducing the
number of status determinations, subject employers, field audits, and amount
of receivables in such a way that the conditions will be reflected in any of the
tabulations prepared.
II-2-25
10/2010
UIPL02-11a2.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2010/UIPL02-11a2.pdf)
Appendix A
TABLE ar581
ETA 581 - CONTRIBUTION OPERATIONS
STATE REGION REPORT FOR PERIOD ENDING
st g_states.region rptdate
End Quarter Employers
Delinquency Total Number Wage
Reim- Cutoff Date Items Received
Employer Line Contributory Total
bursement
Count 101
(1) (2) (3) (4) (5)
c1 c2 c3 c4 c14
Contributory Employers Reimbursing Employers
Employer Filing Secured Resolved Filing Secured Resolved
Reports for Timely Timely
201
Preceding
Quarters (6) (7) (8) (9) (10) (11)
c53 c54 c55 c56 c57 c58
Newly Established Employers Successor Employers
Number Time Time Number Time Time
Lapse Lapse Lapse Lapse
<=90 <=180 <=90 <=180
Status (14) (15) (16) (17) (18) (19)
301
Determinations
c11 c61 c62 c68 c59 c60
Inactivations/Terminations
(20)
c63
Total Deter- Declared Removed Total
Beginning mined Liquidated Uncol- End End
Period Receivable lectible Period Period
(21) (22) (23) (24) (25) (26)
Contributory
Employers 401 c14a c15 c16 c17 c64 c18
Receivables
Number Employers
Owing Receivables in (26)
(27)
c19
6
Over 15
Months 9 Months 12 Months 15 Months
Age of Months
or Less
Contributory 402
Receivables (28) (29) (30) (31) (32)
c43 c44 c45 c46 c47
10/2010
A31
Appendix A
TABLE ar581 (cont’d)
ETA 581 - CONTRIBUTION OPERATIONS
Total Deter- Declared Removed Total
Beginning mined Liquidated Uncol- End End
Period Receivable lectible Period Period
(33) (34) (35) (36) (37) (38)
Reimbursing
Employers 403 c19a c20 c21 c22 c65 c23
Receivables
Number Employers
Owing Receivables in (38)
(39)
c24
6 Months 15 Over 15
9 Months 12 Months
Age of or Less Months Months
Reimbursing 404
Receivables (40) (41) (42) (43) (44)
c48 c49 c50 c51 c52
Number of Audits
Calendar
Large Change Audits Total Audits Quarters Audited
Employers
(45) (46) (47) (48)
501 c25a c28a c25b c26a
Total Wages Audited Hours Spent
Number of Employees Misclassified
Auditing
Pre-Audit Post-Audit
(49) (50) (51) (52)
Audit c66 c67 c29a c69
Activity
Amount Underreported
Total Wages Taxable Wages Contributions
(53) (54) (55)
c37a c38a c39a
502
Amount Overreported
Total Wages Taxable Wages Contributions
(56) (57) (58)
c40a c41a c42a
Number of Mandatory Transfers Number of Prohibited Transfers Total Net Contributions Due
SUTA
503 (59) (60) (61)
Dumping
c70 c71 c72
Comments:
10/2010
A32
UIPL02-11a3.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2010/UIPL02-11a3.pdf)
Appendix B
TABLE ar581
st char(2) c41a integer
rptdate date c42a integer
mods smallint c43 integer
crdate char(12) c44 integer
revdate char(12) c45 integer
mldate char(12) c46 integer
mlflag char(1) c47 integer
cm char(1) c48 integer
hostname char(8) c49 integer
user_id char(8) c50 integer
est char(1) c51 integer
c1 integer c52 integer
c2 integer c53 integer
c3 integer c54 integer
c4 date c55 integer
c11 integer c56 integer
c14a integer c57 integer
c14 integer c58 integer
c15 integer c59 integer
c16 integer c60 integer
c17 integer c61 integer
c18 integer c62 integer
c19a integer c63 integer
c19 integer c64 integer
c20 integer c65 integer
c21 integer c66 decimal(11,0)
c22 integer c67 decimal(11,0)
c23 integer c68 integer
c24 integer c69 integer
c25b integer c70 integer
c25a integer c71 integer
c26a integer c72 decimal(12,0)
c28a integer
c29a integer
c37a decimal(11,0)
c38a integer
c39a integer
c40a integer
10/2010
B-17
UIPL02-11a4.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2010/UIPL02-11a4.pdf)
Appendix C
TABLE: ar581
Errors:
c1 through c72 cannot be NULL
c1 through c3, c11 through c71 cannot be negative
c3 = c1+c2
c4
If rptdate = 3/31/YYYY, then c4 > 1/31/YYYY
If rptdate = 6/30/YYYY, then c4 > 4/30/YYYY
If rptdate = 9/30/YYYY, then c4 > 7/31/YYYY
If rptdate = 12/31/YYYY, then c4 > 10/31/YYYY
c14a = c18 prior rptdate
If rptdate > = 06/30/1990 then c18 = c43+c44+c45+c46+c47
else c18 = c14a+c15-c16-c17-c64
c19a = c23 prior report period
If rptdate >= 06/30/1990 then c23 = c48+c49+c50+c51+c52
else c23 = c19a+c20-c21-c22-c65
c25b >= c25a
c25b >= c28a
c43 – c52 >= 0
c53 <= c54
c55 >= c54 prior report period
c56 <= c57
c58 >= c57 prior report period
c59 – c62
If rptdate >= 3/31/1995, then c59 <= c60 and c59 <= c68
If rptdate >= 3/31/1995, then c60 <= c68
If rptdate >= 3/31/1995, then c61 <= c11 and c61 <= c62
If rptdate >= 3/31/1995, then c62 <= c11
c67 = c66+c37a - c40a
Warnings:
ar581
Data Exception Edits
Cell Percentage Percentage Absolute
Increase Decrease Value
c1 2 5 8000
c3 2 5 8000
c14 110 25 355500
10/2010
C-19
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