Use of the Interstate Telecommunication Network (INTERNET) to Send and Receive Request for Wage Transfers and Report on Determinations for Combined Wage Claims

U.S. Department of Labor
Employment and Training Administration
Washington, D.C. 20210
Classification: UI/INTERNET
Correspondence symbol: TEUMI
Issue date: January 5, 1993
Rescissions: None
Expiration date: January 31, 1994
Directive: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 12-93
To: ALL STATE EMPLOYMENT SECURITY AGENCIES
From: BARBARA ANN FARMER, Administrator for Regional Management
Subject: Use of the Interstate Telecommunication Network (INTERNET) to Send and Receive Request for Wage Transfers and Report on Determinations for Combined Wage Claims

1. Purpose. To advise State Employment Security Agencies (SESAs) that effective April 5, 1993, all communication of Request for Transfer of Wages (and responses), Form IB-4, and Report on Determination of Combined Wage Claim, Form IB-5, by hard copy, will cease. As of April 5, 1993, all SESAs must be operational on computer applications necessary to telecommunicate this data via INTERNET.

2. References. Section 3304(a)(9)(B) of the Internal Revenue Code, as amended; 20 CFR 616; ET Handbook No. 399; UIPL No. 55-89; and UIPL No. 11-91.

3. Background. To address the need for prompt communication of wage transfer requests and responses for claims filed under the Interstate Arrangement for Combining Employment and Wages, a software package to telecommunicate the requests and responses using the INTERNET was distributed in September 1989. States were previously requested in UIPL No. 55-89 to be operational on the TC-IB4 application as of April 2, 1990. The TC-IB4 application was subsequently updated to address additional needs, identified by the States, and re-released in August 1990.

   The Report on the Determination of a Combined Wage Claim, Form IB-5 (TC-IB5), is an integral part of the combined wage program. This report is used by a paying State to advise a transferring State of its potential benefit liability and to advise a transferring State when wages are returned and need to be restored to the wage file and made available. It is extremely important to use this report to return wages immediately so that they may be available for use for a substitute claim that may result from a combined wage claim cancellation or ineligibility. It is also important that States process the incoming TC-IB5s before incoming initial claims (TC-IB1s) to prevent the substitute initial claim from resulting in an ineligible monetary determination because the wages have not been restored. This application was distributed in December 1990, and SESAs were requested to implement the new automated procedure by April 1, 1991.

   Before and after the distribution of the TC-IB4 and TC-IB5 applications, several meetings were held with State representatives to explain the requirements, provide assistance and answer any installation questions. Additionally, SESAs were and continue to be allocated special funding for data processing support of the automation necessary to telecommunicate data under the interstate and combined wage program procedures. During the past year, all States have been contacted by the Regional Offices and offered on-site assistance. Yet some SESAs have not requested assistance and have not installed the required applications necessary to telecommunicate the data. SESAs' failure to telecommunicate the required data is having an adverse affect on all other States as they must continue to maintain a manual system in order to handle requests and responses to and from such States.

4. Requirement for Conformity and Compliance. Section 3304(a)(9)(B) of the Federal Unemployment Tax Act requires States to participate in any combined wage claim arrangement approved by the Secretary of Labor (in consultation with the State agencies). 20 CFR 616.13, in pertinent part, implements this arrangement by providing that:

   • Each State agency will cooperate with every other State agency by implementing such rules, regulations, and procedures as may be prescribed for the operation of this [combined wage] arrangement.

   Effective April 5, 1993, electronic data communication, as described in Section 5, is the prescribed procedure for handling wage transfer requests and responses, and reports on the determination of combined wage claims.

5. Action Required. State Administrators are requested to take the necessary actions to ensure that effective April 5, 1993:

   a. all requests for wage transfers are sent and received via INTERNET;

   b. all responses to wage transfer requests are sent and received via INTERNET;

   c. all reports on the disposition of transferred wages (IB-5) are sent and received via INTERNET; and

   d. the use of hard copy forms for these purposes are discontinued.

6. Inquiries. Questions regarding this directive should be directed to the respective Regional Office.

7. Attachments. None