Back to Federal guidance
Renewed ETA 581 unemployment tax operations report
Summary ETA provided states a renewed ETA 581 Contribution Operations form and instructions for quarterly unemployment tax reporting. States were told to replace the corresponding section of ETA Handbook 401. The PDF and form approval expired August 31, 2021, although ETA’s listing still says Active.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 12-20
Date issued
March 20, 2020
Status
Unknown
ETA’s listing marks this letter Active, but its PDF prints an expiration date of August 31, 2021 for the ETA 581 collection and the letter. The sources do not reconcile the past date with the listing label.
Status last verified October 24, 2026
Topics
Apply this to your situation
This page explains the general guidance. Ask about your specific situation and see what current federal labor law says, with citations.
About this page: The full text below is the official document from U.S. Department of Labor, Employment and Training Administration (ETA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION UI
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
U.S. DEPARTMENT OF LABOR OUI/DUIO
Washington, D.C. 20210 DATE
March 20,2020
ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 12-20
TO: STATE WORKFORCE AGENCIES
FROM: JOHN PALLASCH
Assistant Secretary
SUBJECT: Renewal of Form ETA 581, Contribution Operations
1. Purpose. The Employment and Training Administration (ETA) is providing a renewed form
ETA 581 Contribution Operations, for State Workforce Agencies and other applicable grant
recipients to document their quarterly Unemployment Insurance (UI) tax program activities.
2. Action Requested. States should replace Section II-3 of Employment and Training
Handbook 401, 6th Edition, with the renewed reporting instructions..
3. Summary and Background.
a. Summary - The Contribution Operations report (ETA 581) is a comprehensive report of
each state's unemployment insurance tax opt;?rations. ETA 581 data are used in
monitoring and measuring program performance and in making projections and forecasts
in conjunction with the budgetary process. A non-substantive change was made to the
ETA 581 report, reflected in the addition of line 504 to the report form, to capture other
state tax avoidance activities that do not meet the Federal definition of SUTA dumping.
States must begin reporting these tax avoidance activities with the report quarter ending
September 30, 2020.
b. Background - The ETA 581 is reviewed for data collection efforts and reporting activity
every three years.
4. 0MB Approval. The Office of Management and Budget (0MB) approved the reporting
requirements for Form ETA 581 according to the Paperwork Reduction Act of 1995 under
0MB Approval Number 1205-0178 on October 28, 2019, which expires on August 31, 2021.
5. Inquiries. Please direct inquiries to the appropriate ETA Regional Office.
6. Attachment. ETA Handbook No. 401, Section II-3, ETA 581 Contribution Operations.
RESCISSIONS EXPIRATION DATE
None August 31, 2021
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
ETA 581 - CONTRIBUTION OPERATIONS
Section II-3
A. Facsimile of Form ................................................................................................................................................3
B. Purpose.................................................................................................................................................................5
C. Due Date and Transmittal ....................................................................................................................................5
D. General Reporting Instructions ............................................................................................................................5
E. Definitions............................................................................................................................................................5
1. Report Quarter.................................................................................................................................................5
2. Active Employer. ............................................................................................................................................5
3. Inactive Employer. ..........................................................................................................................................5
4. Annual-reporting Employer. ...........................................................................................................................6
5. Contributions...................................................................................................................................................6
6. Subject Employer. ...........................................................................................................................................6
7. Contributory Employer....................................................................................................................................6
8. Reimbursing Employer....................................................................................................................................6
9. Delinquency Cutoff Date.................................................................................................................................6
10. Wage Item. ......................................................................................................................................................6
11. Due Date (Contribution Report)......................................................................................................................7
12. Secured Report. ...............................................................................................................................................7
13. Resolved Report. .............................................................................................................................................7
14. Status Determination. ......................................................................................................................................7
15. Newly Established Account. ...........................................................................................................................7
16. Successor.........................................................................................................................................................7
17. Terminated Employer......................................................................................................................................7
18. Receivables .....................................................................................................................................................7
19. Estimate - Contributions Due. .........................................................................................................................7
20. Assessment. .....................................................................................................................................................8
21. Final Assessment.............................................................................................................................................8
22. Liquidated Amount. ........................................................................................................................................8
23. Declared Uncollectible (Write off)..................................................................................................................8
24. Aging of Receivables. .....................................................................................................................................8
25. Audit................................................................................................................................................................8
26. Large Employer Audit.....................................................................................................................................9
27. Change Audit...................................................................................................................................................9
28. Misclassified Employee. .................................................................................................................................9
Section II-3--1
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
29. Unemployment Experience. ............................................................................................................................9
30. Mandatory Unemployment Experience Transfer. ...........................................................................................9
31. Prohibited Unemployment Experience Transfer. ............................................................................................9
32. State Unemployment Tax Act (SUTA) Dumping. ..........................................................................................9
33. SUTA Dumping Investigation.........................................................................................................................9
F. Item by Item Instructions ...................................................................................................................................10
1. Employer Count. ...........................................................................................................................................10
2. Delinquency Cutoff Date and Wage Items Received ....................................................................................10
3. Employer Reports for Preceding Quarters - Contributory Employers...........................................................11
4. Employer Reports for Preceding Quarters - Reimbursing Employers...........................................................13
5. Status Determinations - Status Determinations Made During Report Quarter..............................................13
6. Receivables - Contributory Employers..........................................................................................................15
7. Age of Receivables - Contributory Employers..............................................................................................17
8. Receivables - Reimbursing Employers..........................................................................................................17
9. Age of Receivables - Reimbursing Employers..............................................................................................19
10. Audit Activity................................................................................................................................................19
11. SUTA Dumping ............................................................................................................................................21
12. Tax Avoidance Activities ..............................................................................................................................23
13. Comments .....................................................................................................................................................25
Section II-3--2
07/ 2017
UI REPORT 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
Cutoff Date
Employer Line Contributory Reimbursing Total Items Received
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
(27)
6 Months Over 15
9 Months 12 Months 15 Months
Age of or Less Months
Contributory 402
(28) (29) (30) (31) (32)
Receivables
Total Deter- Declared Removed Total
Beginning mined Liquidated Uncol- End End
Period Receivable lectible Period Period
Reimbursing
Employers 403 (33) (34) (35) (36) (37) (38)
Receivables
Number Employers
Owing Receivables in (38)
Section II-3--3
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
(39)
6 Months 9 Over 15
12 Months 15 Months
Age of or Less Months Months
Reimbursing 404
(40) (41) (42) (43) (44)
Receivables
Number of Audits
Calendar
Large Change Audits Total Audits Quarters Audited
Employers
(45) (46) (47) (48)
501
Total Wages Audited Hours Spent
Number of Employees Misclassified
Pre-Audit Post-Audit Auditing
(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 Mandatory Number of Prohibited
Total Net Contributions Due
Transfers Transfers
SUTA
503
Dumping (59) (60) (61)
Other Tax Number of Mandatory Number of Prohibited
Total Net Contributions Due
Avoidance 504 Transfers Transfers
Activities (62) (63) (64)
Comments:
OMB No.: 1205-0178 OMB Expiration Date: 08/31/2021 OMB Burden Hours: 7.5 Hours
OMB 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 Unemployment Insurance, Room S-4524, 200 Constitution Ave., NW, Washington, DC, 20210.
Section II-3--4
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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 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
Section II-3--5
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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).
Example: Consider an employer who was issued a determination of liability during the
fourth quarter of 2014 and reported some wages in the fourth quarter of 2014.
However, no wages were reported for the first quarter 2015 through the fourth quarter
of 2016 (either because of failure to file required CWRs, “No Payroll” reports, or any
combination of these). Assume that a fourth quarter 2016, No-Payroll CWR was
received and processed timely on January 31, 2017. Under part “c” of the definition of
Inactive Employer the employer would become inactive as of 12/31/2016 (or 1/1/2017
depending on state-specific inactivation procedures) and therefore would not be
included in the active employer count made on 3/31/2017. This employer would be
counted in Item 20, Inactivations/Terminations for the 3/31/2017 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.
Section II-3--6
07/ 2017
UI REPORT HANDBOOK NO. 401
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 under the state unemployment compensation law.
Estimates for purposes of item 13 are not receivables for purposes of lines 401 and 402.
Section II-3--7
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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,
f. Conclude with a close-out conference with the employer or designated representative
or include an explanation if not conducted; and
Section II-3--8
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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, and 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.
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.
Section II-3--9
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
34. Other Tax Avoidance Activities. 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. These
determinations identify tax avoidance practices that do not meet the Federal definition of
SUTA dumping.
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 3/31/2017, the state must count the
active employers as of 3/31/2017. 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.
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.
Section II-3--10
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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 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
Section II-3--11
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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, 2017;
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, 2016, and the
number of annual-reporting employers who had submitted annual reports for the year
ending December 31, 2016, by January 31, 2017,
Secured - Enter in item 7, the number of contributory employers who, as of March 31,
2017, had submitted contribution reports for the quarter ending December 31, 2016,
and include the number of annual-reporting employers who, as of March 31, 2017, had
submitted annual reports for the year ending December 31, 2016. 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,
2017, had resolved reports for the quarter ending September 30, 2016, and include the
total number of annual-reporting employers as of September 30, 2016. Include
employers to whom assessments have been issued, or for whom determinations of non-
liability have been made.
For the report quarter ending June 30, 2017;
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, 2017. Include the
total number of annual-reporting employers as of March 31, 2017.
Section II-3--12
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
Secured - Enter in item 7, the number of contributory employers who, as of June 30,
2017, had submitted contribution reports for the quarter ending March 31, 2017.
Include the total number of annual-reporting employers as of March 31, 2017. 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,
2017, had resolved reports for the quarter ending December 31, 2016 and the number
of resolved reports for annual-reporting employers for the year ending December 31,
2016. 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, 2017;
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, 2017,
Secured - Enter in item 10, the number of reimbursing employers who, as June 30,
2017, had submitted required reports for the quarter ending March 31, 2017. 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,
2017, had resolved reports for the quarter ending December 31, 2016. Include
employers for whom determinations of non-liability have been made.
5. Status Determinations - Status Determinations Made During Report Quarter.
Section II-3--13
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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.
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.
Section II-3--14
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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.
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
Section II-3--15
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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, 2015
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, 2016. The $500 was not collected or declared
uncollectible during the quarter ending March 31, 2017, 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 March 31, 2017, is the same
as item 21 (total receivables at beginning of report period) on the report for the quarter
ending June 30, 2017, the $500 was included in item 21 on the report for the quarter
ending June 30, 2017. The $500 was not collected or declared uncollectible during the
quarter ending June 30, 2017, and had already been reported in the "over 15 months"
age category (item 32) on reports for quarters ending December 31, 2016 and March
31, 2017. Therefore, on the report for the quarter ending June 30, 2017, 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.
Section II-3--16
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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, 2017, enter in item 28 amounts
that were past due for quarters ending March 31, 2017 and December 31, 2016.
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, 2017, enter in item 29, amounts that were past
due for the quarter ending September 30, 2016.
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, 2017, enter in item 30, amounts that were past
due for the quarter ending June 30, 2016.
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. Example: On the
report for the quarter ending June 30, 2017, enter in item 31, amounts that were past
due for the quarter ending March 31, 2016.
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,
2017, enter in item 32, amounts that were past due for the quarter ending December 31,
2015, 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.
Section II-3--17
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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.
Example: An amount of $600, which was determined receivable during the quarter
ending June 30, 2015, 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, 2016. The $600 was not
collected or declared uncollectible during the quarter ending March 31, 2017, 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, 2017, is the same as item 33 (total receivables at beginning of report period) on the
report for the quarter ending June 30, 2017, the $600 was included in item 33 on the
report for the quarter ending June 30, 2017. The $600 was not collected or declared
uncollectible during the quarter ending June 30, 2017, and it had already been reported
in the "over 15 months" age category (item 44) on reports for quarters ending December
31, 2016 and March 31, 2017. Therefore, on the report for the quarter ending June 30,
2017, 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.
Section II-3--18
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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.
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.
Section II-3--19
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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.
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.
Section II-3--20
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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.
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).
Section II-3--21
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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.
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, 2017 – Assumes that annual rates for CY
2016 and CY 2017 are changed in the fourth quarter of 2017, Also assumes that the
CY 2016 rate is decreased and the CY 2017 rate is increased from their original rates;
Year/Quarter Contributions Contributions Difference
Due at Old Rate Due at New Rate
2016/q1 $ 8,875 $ 8,300 ($575)
2016/q2 $ 6,300 $ 6,100 ($200)
2016/q3 $ 4,985 $ 4,860 ($125)
2016/q4 $ 3,000 $ 2,900 ($100)
Totals for 2016 $23,160 $22,160 ($1,000)
2017/q1 $15,800 $19,550 $3,750
2017/q2 $13,730 $15,980 $2,250
Section II-3--22
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
2017/q3 Delinquent when Delinquent when Not
rate changed rate changed Included
2017/q4 Not due when rate Not due when rate Not
changed changed Included
Totals for 2017 $29,530 $35,530 $6,000
Summary:
Credits on 2016 quarters: ($1,000)
Contributions due on first two quarters of 2017 $6,000
Total Net Contributions Due included on ETA 581 Report: +$5,000
(Note: Net contributions due on the third and fourth quarters of 2017 are excluded
since taxable wages were not reported before December 31, 2017. 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, 2017 – Rates changed in the fourth quarter
of 2017;
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. Tax Avoidance Activities. Line 504 shows unemployment experience transfer
determinations (mandatory or prohibited) and resulting changes in contributions due that
were identified by state initiated investigations that do not meet the Federal definition of
SUTA dumping. 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.
The data reported on Line 504 is a subset of employers reported on Line 301.
Item 62. Number of Mandatory Transfers. Enter the number of mandatory transfers that
were the result of subsequent status 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 avoidance investigations, include those
employers as mandatory transfers, (i.e., count the inactivated/terminated accounts).
Section II-3--23
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
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.
Item 63. Number of Prohibited Transfers. Enter the number of prohibited transfers that
were the result of SUTA avoidance 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.
Item 64. 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 62 or
63.
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, 2017 – Assumes that annual rates for CY 2016
and CY 2017 are changed in the fourth quarter of 2017, Also assumes that the CY 2016
rate is decreased and the CY 2017 rate is increased from their original rates;
Year/Quarter Contributions Contributions Difference
Due at Old Rate Due at New Rate
2016/q1 $ 8,875 $ 8,300 $ (575)
2016/q2 $ 6,300 $ 6,100 $ (200)
2016/q3 $ 4,985 $ 4,860 $ (125)
2016/q4 $ 3,000 $ 2,900 $ (100)
Totals for 2016 $23,160 $22,160 $ (1,000)
2017/q1 $15,800 $19,550 $ 3,750
2017/q2 $13,730 $15,980 $ 2,250
2017/q3 Delinquent when Delinquent when Not
rate changed rate changed Included
2017/q4 Not due when rate Not due when rate Not
Section II-3--24
07/ 2017
UI REPORT HANDBOOK NO. 401
ETA 581 - CONTRIBUTION OPERATIONS
changed changed Included
Totals for 2017 $29,530 $35,530 $ 6,000
Summary:
Credits on 2016 quarters: $(1,000)
Contributions due on first two quarters of 2017 $6,000
Total Net Contributions Due included on ETA 581 Report $5,000
(Note: Net contributions due on the third and fourth quarters of 2017 are excluded since
taxable wages were not reported before December 31, 2017. 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, 2017 – Rates changed in the fourth quarter
of 2017;
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 ETA 581 Report: $400,000
13. 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.
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.
Section II-3--25
07/ 2017
What does federal law require in your situation?
Ezel checks current federal labor law against your facts and answers with citations.
Opens in Ezel Pro.
- Checks the law as it stands today, not only this page
- Cites every source it relies on, so you can verify it
- Chat, drafting and research in one workspace