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New-hire directory cross-matches for UI payment integrity
Summary ETA issued enhanced procedures for states to cross-match unemployment claims against the national and state directories of new hires. The attached procedures address how to act on matches to detect claimants who returned to work and prevent improper payments. State UI integrity and Benefit Accuracy Measurement staff were the intended readers.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 13-19
Date issued
June 7, 2019
Status
Active
ETA’s listing marks this letter Active, and its accessible PDF prints “Rescissions: None” and “Expiration Date: Continuing.”
Status last verified October 24, 2026
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CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION UI
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
U.S. DEPARTMENT OF LABOR OUI/DPM
Washington, D.C. 20210 DATE
June 7, 2019
ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 13-19
TO: STATE WORKFORCE AGENCIES
FROM: MOLLY E. CONWAY /s/
Acting Assistant Secretary
SUBJECT: National Directory of New Hires (NDNH) and State Directory of New Hires
(SDNH) Guidance and Best Practices
1. Purpose. To issue enhanced Recommended Operating Procedures (ROPs) for NDNH and
SDNH Cross-Matching Activity, that expand upon ROPs previously attached to
Unemployment Insurance Program Letter (UIPL) No. 19-11, National Effort to Reduce
Improper Payments in the Unemployment Insurance (UI) Program, by providing additional
guidance and updated best practices on the use of New Hires tools.
2. Action Requested. State Unemployment Insurance (UI) agency administrators are requested
to provide the information in this UIPL and its attachment to UI staff and other appropriate
staff involved in New Hires operations and are advised to: 1) replace the ROPs attached to
UIPL No. 19-11 with the ROPs attached to this UIPL; 2) immediately apply the enhanced
guidance provided in this UIPL and the attached ROPs to improve New Hires cross-match
operations; and 3) use technical assistance opportunities offered by the UI Integrity Center
(https://integrity.naswa.org/contact-us) to institute recommended New Hires practices.
3. Summary and Background.
a. Summary — This UIPL provides enhanced and updated ROPs that focus on targeted
issues associated with New Hires operations that impede New Hires processes and
outcomes in reducing UI improper payments.
b. Background — The UI program has been out of compliance with the Improper Payment
Elimination and Recovery Act (IPERA) of 2010, reporting an improper payment rate that
exceeds 10 percent. This designation triggers additional oversight by Congress, the
Office of Management and Budget (OMB), and the Office of the Inspector General
(OIG). For the 2018 annual reporting period, the U.S. Department of Labor (Department)
reported an estimated improper payment rate of 13.05 percent for the UI program. The
Department is committed to bringing the UI program into compliance and has called on
all states in this effort to reduce UI improper payments to achieve that goal.
RESCISSIONS EXPIRATION DATE
None Continuing
The Department has partnered with states to implement a wide array of national integrity
strategies and to develop tools and share best practices to prevent improper payments and
reduce the improper payment rate. The Department expects states to continue
implementing integrity strategies that focus on targeting the leading root causes of
improper payments, including payments to individuals who continue to claim benefits
after they have returned to work and either fail to report or underreport their earnings,
which result in Benefit Year Earnings (BYE) errors.
Overpayments resulting from BYE errors were the second leading cause of improper UI
benefit payments in 2018. The Strategic Plan for Reducing the Improper Payment Rate,
discussed in UIPL No. 19-11, explains that the strategy of cross-matching with the
NDNH and SDNH, followed by immediate contact with the claimant and employer when
there is a match, is considered one of the most effective improper payment detection
strategies for addressing BYE errors.
In 2017, the OIG conducted an audit to verify the effectiveness of the NDNH cross-match
by states. The OIG issued its audit report on September 27, 2018, Improved Oversight of
States’ Use of New Hire Tools Would Help Reduce Improper Payments,
https://www.oig.dol.gov/cgi-bin/oa_rpts-v4.cgi?s=&y=2018&a=all. The OIG cited
weaknesses in New Hires cross-match operations and concluded that states were
underutilizing New Hires cross-matches.
The ROPs attached to UIPL No. 19-11 outlined best practices to detect and prevent
improper payments using NDNH and SDNH cross-matches for the Benefit Accuracy
Measurement (BAM) program which is used to estimate the UI improper payment rate
and state UI Benefit Payment Control (BPC) programs, which are responsible for
preventing, detecting, and recovering improper payments and detecting and prosecuting
fraud.
4. New Hires Directories. UIPL No. 3-07, Change 1 Use of National Directory of New Hires
(NDNH) in Unemployment Insurance (UI) Benefit Accuracy Measurement (BAM) Audits,
mandated the use of NDNH for the BAM program beginning the week of December 30,
2007, and UIPL No. 19-11, mandated the use of NDNH for BPC related work performed by
BPC or other staff by December 11, 2011.
To strengthen the efficacy of New Hires cross-matches, the Department strongly encourages
states to implement processes and best practices included in this UIPL and the attached
enhanced ROPs. We particularly encourage states to utilize the SDNH in addition to the
NDNH for BPC programs, given that SDNH data is more current and enables states to detect
BYE errors more quickly, thus preventing improper payments.
State Directory of New Hires (SDNH)
It is important for states to understand the advantages of cross-matching against both the
NDNH and the SDNH. Since the SDNH is the state’s internal data source, there is no
limit on the frequency for states to perform this cross-matching. SDNH cross-matching
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can be conducted daily and on any day of the week, while NDNH cross-matching occurs
only once a week. Daily SDNH cross-matching has the potential to prevent or reduce
overpayments by one week or more.
The SDNH database is dynamic. Cross-match information is available shortly after new
or updated information is entered into the SDNH database. Employer-reported New
Hires W-4 information (Internal Revenue Service Form W-4 information regarding
recently hired individuals) will be available in the SDNH for cross-matching five or more
days before it is available in the NDNH. The SDNH database may also contain additional
data elements not found in the NDNH database that could expedite investigations, such as
the employer’s phone number or the employer’s email address. States can use this
information to contact the employer when conducting NDNH investigations. Given these
beneficial aspects, states are strongly encouraged to cross-match with their state SDNH
on a daily basis.
National Directory of New Hires (NDNH)
The NDNH cross-match has essential improper payment detection characteristics. Multi-
state employers (employers that have businesses in more than one state) may report New
Hires W-4 information to any one of the states where their business is located, rather than
in the specific state where the individual was hired. Further, multi-state employers may
elect to report New Hires information to only one state, rather than in all states where
their businesses are located. Since multi-state employers have these reporting options,
the state where the individual was hired may not have the New Hires W-4 information in
their SDNH if the employer is reporting in a different state. NDNH provides states access
to multi-state employer New Hires information that was reported in any and all states.
Additionally, NDNH contains New Hires information submitted by all states. If a
claimant in one state goes to work in another state, this information should be available
through an NDNH cross-match. Finally, NDNH also provides information on Federal
employees because the Federal government reports new hires directly to NDNH.
5. Availability, Accessibility, and Quality of New Hires Data.
A. Employer Compliance with New Hires Data Reporting.
Employers are required to submit New Hires data to the SDNH by a deadline that each
state designates. The Department of Health and Human Services’ Office of Child
Support Enforcement (HHS-OCSE) is the Federal agency that manages the NDNH.
Quarterly reports that are provided to states by HHS-OCSE contain information about
employers that may not have reported new hires. States are strongly encouraged to
review these reports and to remind those employers that appear to be noncompliant of the
requirement to report new hires. In notifying employers of this requirement, states are
encouraged to also include information on how to correctly report New Hires data and its
value in preventing UI improper payments, which helps keep UI employer taxes low.
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Additionally, state UI agencies are encouraged to collaborate with the agency in their
state responsible for the New Hires directories to promote greater employer compliance,
such as having laws or regulations in place to impose monetary or nonmonetary penalties
on employers for failure to report new hires and ensuring enforcement of those penalties.
The Department’s data demonstrate that states that more actively promote and enforce
employer compliance with New Hires reporting have more complete and accurate New
Hires data and, as a result, have lower BYE overpayment rates.
B. Data Quality.
States designate various agencies to oversee the SDNH including receiving employer
New Hires W-4 data and sending it to the NDNH. These agencies include child support
agencies, state workforce agencies (SWAs) (i.e., the state UI agency), state revenue
departments, and any other agency a state may choose to send and receive this data.
Employers and the designated state agency managing the SDNH must follow specific
data submission guidelines and reporting requirements to submit New Hires W-4 records
successfully to the SDNH and to the NDNH. In some cases, employers and state agencies
managing the SDNH are failing to adhere to these requirements. The resulting data errors
can affect the availability of and access to NDNH data for cross-matching. Each
submitting state agency receives a notification report with information about the data
supplied, such as the total number of records the NDNH received and processed, and any
data errors. These reports can help states identify and resolve data quality issues.
Another source of data quality issues is state UI agencies not meeting specific data
requirements when requesting an NDNH cross-match. State UI agencies must follow the
guidelines provided for record layout specifications; otherwise, data submission errors
may occur. If data submission errors occur, they should be corrected and the records
resubmitted for cross-matching, to ensure access to all available NDNH information. See
Sections 4.1 through 4.3 (Employer Input Records, State Input Records, and NDNH
Output Records) of the attached ROPs for guidance on submitting data.
State UI agencies should coordinate with the state agency managing the SDNH to develop
initiatives to conduct employer outreach, provide technical assistance to employers, and
address issues relating to data preparation or processing that might impact data
submission (including the timeliness of submissions to the NDNH) or data reporting
accuracy. If the state UI agency manages the SDNH, it should conduct these actions.
6. Enhanced ROPs. The Department identified several practices at various stages in the New
Hires process that maximize the value of the New Hires information and potentially reduce
the number of successive improper payments over the course of a claim. The enhanced ROPs
being provided with this UIPL expand upon the ROPs originally issued on June 10, 2011, as
an attachment to UIPL No. 19-11, highlight these practices, and provide guidance and
instruction about their use. States should use these enhanced ROPs to assess their current
New Hires procedures; to improve their New Hires detection performance; and to prevent
more UI improper payments. State UI agencies needing to reduce BYE errors are strongly
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encouraged to include the implementation of these enhanced ROPs as part of the Integrity
Action Plan submitted as part of their State Quality Service Plan.
A. New Strategies to Maximize New Hires Cross-Match Outcomes to Bring Down the UI
Improper Payment Rate:
Establishing Date Parameters to Target NDNH Claimant Populations for Cross -
matching — As states prepare to cross-match against the NDNH, they should take
steps to determine which UI benefit records should be selected to request NDNH data,
by parsing claimant data using specific date parameters. Date parameters allow states
to designate specific periods to compare UI benefits weeks to a reasonable period
when the employer may have submitted W-4 information. The Department
recommends states use date parameters to match BPC records against New Hires files
that are 40 days old to compare the most comprehensive data. By requesting a match
of BPC records against New Hires records that extend 40 days prior to the date of the
match, states can optimize the management of BPC New Hires workloads. The 40-
day period was established by taking into account the timeframes permitted for
employers, Federal agencies, the SDNH and the NDNH to report information that
ultimately populates the NDNH. See Section 4.7 (Understanding New Hires
Timeframes) in the attached ROPs. These permitted timeframes isolate the date of
hire and provides a reasonable period within which “hits" (when there is a date of hire
during the same period as UI benefit payments) will potentially occur and are more
likely to be detected. States that set date parameters that extend further, such as 60
days prior or starting from the benefit year beginning date (as is required for BAM)
for BPC, may find that this is a factor that contributes to backlogs and delays in
processing New Hires cases, by generating additional and unnecessary workload.
States should consider the 40-day period as a starting point for matching new claims.
If a claimant received UI benefits and was hired during the 40-day or 6-week period
(the first 6 weeks for the claim), there would be a “hit” when compared against the
NDNH database. Using a date parameter that extends further back would be
unnecessary, and as long as the claimant is receiving UI benefits and a date of hire has
not been identified, the state may continue to include the claimant record in the group
of records sent to NDNH for cross-matching.
Using a Case Management System to Prioritize Cross-Match Results — Once the
population of selected records is sent to the NDNH, workload “hits” are returned to
the state. The “hits” identify claimants who are potentially working and receiving UI
benefits. An automated case management system can help states manage and
organize cross-match workloads by using data analytics to prioritize “hits.” In
addition to setting the priority of “hits,” a case management system may have other
features that improve the efficiency of the cross-match process including comparing
“hit” information with benefit claim information and electronically generating
documents for outreach with claimants and employers. To achieve better outcomes
on “hits,” case management systems allow states to set parameters that can prioritize
“hits” to escalate prevention and detection of overpayments with a greater impact,
such as those with large dollar amounts or involving an excessive number of weeks.
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Another valuable feature in some case management systems used to support state
integrity activities is the identification of duplicate records. Duplication occurs when
New Hires comparisons result in multiple hits that contain the same characteristics.
Section 4.5 (Using Parameters for Workload Management) in the attached ROPs
contains additional guidance on the detection of duplicate records.
Using the SIDES Earnings Verification to Independently Verify Cross-Match Results
— States should make efforts to independently verify New Hires information with
claimants and employers. For the employer, states request an earnings verification to
obtain specific information on days worked and dollars earned. Some states use
electronic systems to allow employers to respond to earnings verification requests.
Electronic systems, such as the State Information Data Exchange System (SIDES)
Earnings Verification module, provide employers the ability to respond
instantaneously and in a standardized format where employers can apply wage
information in a configuration necessary to compute the overpayment amount. States
are encouraged to have a program/system that upon receipt will automatically
compare weekly earning amounts reported by the claimant with the earnings
information reported by the employer. This comparison and the list of potential
weeks affected by potential overpayments or underpayments should be generated and
stored electronically in the claimant’s case file. The BPC staff can use this
information to determine whether an issue exists and conduct further investigation as
needed.
The Department recommends that states implement the SIDES Earnings Verification
module to enhance employer information and to augment New Hires cross-match
investigations. The SIDES Earnings Verification module is managed by the National
Association of State Workforce Agencies (NASWA). The SIDES NASWA team is
available to assist with implementation and technical assistance,
http://www.itsc.org/Pages/sidescontact.aspx.
Using the Continued Claims Process to Independently Verify Cross-Match Results —
To bolster states efforts to independently verify New Hires information with the
claimant, the Department recommends integrating identified New Hires “hits” with
the continued claims process. This practice can be effective in improving the
prevention and detection of improper payment outcomes. While claimants are in
continued claims status, they certify their eligibility for UI benefits. If a claimant is
the subject of a New Hires “hit,” the date of hire reported by the employer, employer
name, address and account number are automatically added to the individual's claim.
When the claimant contacts the agency’s Interactive Voice Response (IVR) system or
files on-line to attempt to certify, a questionnaire is generated. The claimant must
complete the questionnaire prior to certification. Once completed, the claimant may
receive payment and continue to certify for future weeks while the agency concludes
its investigation. This practice helps address nonresponsive claimants by allowing
staff to obtain information prior to claimants certifying to receive additional weeks of
benefits. This practice is most effective when applied to the next continued claim
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certification that is due immediately following a New Hires “hit.” To achieve this, the
state must establish automated business processes for handling continued claim filing
exceptions related to New Hires “hits.” Additionally, the UI agency should document
the claimant’s case to indicate that wage information was obtained, and they should
identify and address any other issues such as a separation or suitable work. Staff
and/or the system should also promptly establish any improper payments or remove
any barriers that were applied to the continued claim process and release any
payments due.
B. Recommended Practices for Immediate Notification, Timely Determinations, and
Investigation Follow-up.
The most important thing that states can do to prevent improper payments related to BYE
errors is to take immediate steps when there is a New Hires cross-match “hit” to ensure
that the claimant is made aware that the state UI agency has received information
indicating that (s)he has returned to work and/or has earnings, and for the state to
commence fact-finding and to adjudicate the issue as quickly as possible. As in the case
with the ROPs issued in 2011, attached to UIPL No. 19-11, the enhanced ROPs provided
with this UIPL instruct states to immediately contact (no later than the next business day)
claimants and employers once a New Hires cross-match “hit” is flagged for investigation.
When data identifying a cross-match “hit” is received states should immediately send a
letter/notice to the claimant and employer identified by the match and provide a deadline
for all parties to respond to the cross-match investigation. ETA continues to encourage
states to adopt these processes.
The notices the state sends to the claimants and to the employers who are identified by the
cross-match results should communicate the relevant claimant and employer
responsibilities. The notice should instruct claimants to report or respond and provide
information by a specific deadline date, and the notice to the employer should clearly
indicate the earnings verification information to be provided by a specific deadline date.
A party’s failure to timely respond and to provide the needed information hinders the
state’s ability to complete an overpayment determination at the earliest point possible.
Therefore, it is important to provide clear instructions and specific deadlines.
If the claimant fails to respond to the notice within the allowed response time, then the
BPC unit must treat the failure to report in accordance with state law or policy. State law
or policy may provide for an open or indefinite denial period or a closed denial period for
the failure to report and/or failure to provide information when directed. If the state law
or policy allows for such a determination then it must be applied. The reporting issue is a
separate determination from the question of earnings and any denial based on reporting
may not begin any sooner than the week in which the claimant failed to report or provide
information. Therefore, after the claimant has been given an opportunity to respond, the
reporting requirement issue may be used to stop payment of benefits for failure to report
or failure to contact the agency for any week until such time that the individual reports or
contacts the agency as directed. The Department reminds states that the failure to report
is not sufficient to make a finding on whether or not any prior weeks of benefits were
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improperly paid. The state is required to make a separate determination based on the
facts to determine whether an overpayment has occurred (UIPL No. 01-16, Change 1,
Q&A #10). Establishing a reporting requirements issue and completing a failure to
report/provide information determination are critical steps in New Hires cross-match
operations to control investigations and ensure payment when due.
In New Hires cross-match investigations, it is essential that sufficient information is
obtained and quickly followed by the immediate completion of a determination.
Although the notice serves as an attempt to obtain information, the Department
recognizes that not all claimants and employers respond to the notice and that this failure
to respond can result in lapses in relevant information. The Department reminds states
that “[i]t is the responsibility of the agency to take the initiative in the discovery of
information. This responsibility may not be passed on to the claimant or the employer”
(Employment Security Manual (ESM), Section 6012, Criteria for Review of State Law
Conformity with Federal Requirements, A. 1.). Because it is the responsibility of the
state unemployment compensation (UC) agency to take the initiative to obtain
information regarding an individual’s claim, independent verification of the information
that is the basis of the overpayment, such as an individual’s return to work, must be
initiated by the state agency. State agency staff must independently verify the information
through the normal required fact-finding process and make the determination of eligibility
based upon that verification (UIPL No. 01-16). As such, states must pursue the relevant
and critical information when encountering non-responsive parties.
To ensure that states are proactive in the discovery of the information critical to
completing a determination on an overpayment, the enhanced ROPs issued with this
UIPL include a new recommendation as part of the New Hires cross-match
investigations: the Department instructs states to make another attempt to obtain
information immediately in those cases where there is no response to the state’s initial
notice. The Department has determined that a second effort to obtain information is
particularly helpful in augmenting investigation outcomes. This new recommendation,
set out in 4.6 of the ROPs, is intended to enhance investigation outcomes and minimize
BYE overpayments. Furthermore, states should work to complete determinations
immediately after deadlines have expired.
UIPL No. 1145, Procedures for the Implementation of the JAVA Decision, describes
requirements imposed on UI agencies, as a result of the U.S. Supreme Court ruling in
California Dept. of Human Resources Development v. Java, 402 U.S. 121 (1971),
regarding when UC is payable. UIPL No. 04-01, Payment of Compensation and
Timeliness of Determinations during a Continued Claim Series, addresses payment of UC
and timeliness of determinations during a continued claim series. UIPL No. 04-01
explains that because individuals in a continued claim series have been determined to be
eligible for UC, benefit payments may not be suspended or delayed pending a
determination on an eligibility issue. UIPL No. 01-16, Change 1, Federal Requirements
to Protect Claimant Rights in State Unemployment Compensation Overpayment
Prevention and Recovery Procedures – Questions and Answers, further explains: “If a
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determination of ineligibility has not been made, a benefit payment must be made by the
end of the week following the week in which an issue is detected. In practice, that means
that states would have at most 7–10 days to make a determination of ineligibility in order
to not issue the benefit payment.” These directives further establish that it is critical that
states complete overpayment determinations promptly, since claimants can continue to
draw UI benefit payments, once the 7–10-day timeframe expires, thereby increasing the
duration and amount of improper payments.
7. Integrity Resources. ETA encourages states to make use of the various integrity resources
discussed in this section to address BYE errors. NASWA operates the UI Integrity Center, a
state-driven source of innovative program integrity strategies to prevent and detect improper
payments and reduce fraud. The Department strongly encourages states to actively use UI
Integrity Center resources designed to reduce improper payments. The UI Integrity Center
continues to develop new products and should be considered a technical assistance resource
for states in addressing integrity-related matters. Among its offerings to states, the Integrity
Center compiles best-promising practices (such as integrating the continued claims process
into the NDNH cross-match); provides a blueprint for state BPC operations using state best
practices; and provides training curriculum for state BPC and integrity staff through its
National Integrity Academy. When identifying potential strategies to address improper
payments, states are also encouraged to use the “Integrity” tab on the UI Community of
Practice (CoP) on the WorkforceGPS website, which is populated with best-promising
practices by the Integrity Center (see https://ui.workforcegps.org). States that require
technical assistance with integrity-related matters may contact UI Integrity Center staff at
https://integrity.naswa.org/contact-us.
8. Employment and Training Administration (ETA) 227 Overpayment Detection and
Recovery Activities Report. The Employment and Training Administration (ETA) 227,
Overpayment Detection and Recovery Activities Report, is the required quarterly report states
use to record data on established overpayments, recovered overpayments, criminal and civil
actions involving fraud overpayments, and the age of overpayments. The ETA 227 report is
vital because it provides information on the improper payment prevention, detection,
recovery, and prosecution activities conducted by the state as part of its BPC operations.
ETA 227 data can be used by states to evaluate and monitor the work performed by
examining fluctuations in quarterly data. ETA 227 data is also important, because it is used
in the computation of integrity-related UI performance measures; therefore, reporting
accuracy is essential.
The NDNH and the SDNH are considered methods of detecting potential overpayments for
investigations that are reported on the ETA 227 report. In addition to reporting NDNH and
SDNH investigations, states report the number of overpayments established using the new
hires detection method and associated overpayment amounts. ET Handbook No. 401, 5th
Edition, contains the ETA 227 reporting instructions. When states conclude investigations
and report quarterly on the NDNH and SDNH outcomes, they must ensure that they are
adhering to ETA 227 reporting instructions and definitions.
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States report NDNH and SDNH data in Section B., Line 210 (for – NDNH) and Line 204 (for
– SDNH), on the ETA 227 report. The Department reminds states that they must ensure that
NDNH data and SDNH data:
1) are reported on the appropriately designated line;
2) are not combined;
3) are not over or under reported; and
4) properly depict the quarterly counts of NDNH and SDNH investigations and amounts
of overpayment determinations — and not quarterly counts of NDNH and SDNH
cross-match “hits.”
State are encouraged to program their systems to separate NDNH and SDNH data to ensure
proper reporting. This automated process allows states to easily identify the source of the
investigation and overpayment, i.e., whether it was from NDNH or SDNH. Identifying the
source should occur when the state receives the cross-match “hit.” By automating this
activity, BPC staff will not have to perform this task. Rather, it will occur routinely as the
state receives “hits.” However, if states rely on staff to distinguish between the two New
Hires cross-match sources, they should ensure that staff are trained and can accurately
identity and code each cross-match appropriately for proper accounting and reporting on the
ETA 227 report.
Section B, of the ETA 227 report, is subject to Data Validation. Data Validation is the
program that compares the data on UI required reports and the data in benefit systems to
ensure such data is consistent, validating report counts and classification accuracy. States
must use Data Validation results to reveal and investigate issues associated with ETA 227
reporting and work to resolve discovered issues. During FY 2019, the Department will
provide interactive webinars to reinforce required reporting and share best practices.
9. Inquiries. Please direct inquiries to the appropriate ETA Regional Office.
10. References.
Improper Payment Information Act (IPIA) of 2002 (P.L. 107-300);
Improper Payment Elimination and Recovery Act (IPERA) of 2010 (P.L. 111-024);
UIPL No. 1145, Procedures for Implementation of the Java Decision, issued November
12, 1971;
UIPL No. 04-01, Payment of Compensation and Timeliness of Determinations during a
Continued Claims Series, issued October 27, 2000;
UIPL No. 3-07, Change 1, Use of National Directory of New Hires (NDNH) in
Unemployment Insurance (UI) Benefit Accuracy Measurement (BAM) Audits, issued
October 31, 2006;
UIPL No. 19-11, National Effort to Reduce Improper Payments in the Unemployment
Insurance (UI) Program, issued June 10, 2011;
UIPL No. 2-12, Unemployment Compensation (UC) Program Integrity – Amendments
made by the Trade Adjustment Assistance Extension Act of 2011 (TAAEA) , issued
December 20, 2011;
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UIPL No. 2-12, Change 1, Unemployment Compensation (UC) Program Integrity -
Amendments made by the Trade Adjustment Assistance Extension Act of 2011 (TAAEA) --
Questions and Answers, issued August 7, 2012;
UIPL No. 2-12, Change 2, Unemployment Compensation (UC) Program Integrity
Provisions - Amendments made by the Trade Adjustment Assistance Extension Act of
2011 (TAAEA) - Combined Wage Claim (CWC) Program Questions and Answers, issued
October 15, 2014;
UIPL No. 8-12, Change 1, Consolidation of the Employment and Training Administration
(ETA) 9000 and ETA 227 Reports, issued July 27, 2015;
UIPL No. 1-16, Federal Requirements to Protect Individual Rights in State
Unemployment Compensation Overpayment Prevention and Recovery Procedures, issued
October 1, 2015;
UIPL No. 1-16, Change 1, Federal Requirements to Protect Claimant Rights in State
Unemployment Compensation Overpayment Prevention and Recovery Procedures –
Questions and Answers, issued January 13, 2017;
Employment and Training (ET) Handbook No. 401, 5th Edition;
ET Handbook No. 301, 5th Edition; and
OIG Audit Report, Report number: 04-18-003-03-315, Improved Oversight of States’ Use
of New Hire Tools Would Help Reduce Improper Payments (September 27, 2018).
11. Attachment.
I. Recommended Operating Procedures for Cross-Matching Activity: National and State
Directories of New Hires (2019).
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Attachment I (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2019/UIPL_13-19_Attachment_I_acc.pdf)
Recommended Operating Procedures For Cross-Matching Activity:
National and State Directories of New Hires
(2019)
Table of Contents
1. PURPOSE ..................................................................................................................................... I-3
2. SCOPE .......................................................................................................................................... I-3
3. RESPONSIBILITIES .................................................................................................................. I-3
4. RECOMMENDED OPERATING PROCEDURES...................................................... I-3 I-17
4.1 EMPLOYER INPUT RECORDS
4.2 STATE INPUT RECORDS
4.3 NDNH OUTPUT RECORDS
4.4 FREQUENCY AND TIMING OF CROSS-MATCHES
4.5 USING PARAMETERS FOR WORKLOAD MANAGEMENT
4.6 KEY ACTIONS
4.7 UNDERSTANDING NEW HIRES TIMEFRAMES
5. APPENDICES ................................................................................................................ A-1 -
APPENDIX A - FIGURE 1 PROCESS FLOW
APPENDIX B - FIGURE 2 PROCESS FLOW
APPENDIX C - FIGURE 3 PROCESS FLOW
APPENDIX D - FIGURE 4 PROCESS FLOW
APPENDIX E - FIGURE 5 PROCESS FLOW
APPENDIX F - SWA INPUT DETAIL RECORD
APPENDIX G - SWA W-4 OUTPUT DETAIL RECORD
APPENDIX H - SWA NOTIFY OUTPUT DETAIL RECORD
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1. PURPOSE
These Recommended Operating Procedures (ROPs) for benefit cross-matching with the
National Directory of New Hires (NDNH) and the State Directory of New Hires (SDNH)
contain key guidelines, procedures, and requirements designed to successfully operate
effective cross-matching programs to prevent, deter, and detect improper payments. The
U.S. Department of Labor (Department) has enhanced these ROPs, (originally issued on
June 10, 2011, as an attachment to Unemployment Insurance Program Letter (UIPL) No.
19-11, National Effort to Reduce Improper Payments in the Unemployment Insurance
(UI) Program) to share additional effective procedures and recently updated best
practices focused on targeting issues associated with states’ New Hires cross-matching
operations. These ROPs replace the original ROPs attached to UIPL No. 19-11. A
summary and reasoning for the enhanced guidelines in this document is provided in the
accompanying advisory – UIPL No. XX-19. The Department strongly encourages states
to use the processes and procedures outlined in these ROPs when conducting NDNH and
SDNH cross-matches.
2. SCOPE
These ROPs are not all-inclusive of the actions and procedures that states may undertake
in order to improve the efficiency and efficacy of cross-match activities. However, the
expectation is for states to use these recommendations provided herein as a model for
results-oriented cross-matching activities. States may add or incorporate other successful
practices not covered in these ROPs.
3. RESPONSIBILITIES
In most state workforce agencies (SWAs), the Benefit Payment Control (BPC) unit is
generally responsible for conducting benefit payment cross-matches against data sources
and are responsible for implementing procedures contained in these ROPs. States should
consider the tasks contained in these ROPs and determine the appropriate BPC, Benefit
Accuracy Measurement (BAM) or other staff to carry out these tasks and functions.
4. RECOMMENDED OPERATING PROCEDURES FOR NEW HIRES CROSS-
MATCHES
This section outlines recommended and required actions and timelines identified as being
key activities in a state’s New Hires cross-matching program.
Overview
4.1 Employer Input Records
Provides instructions on submitting of employer New Hires W-4 information
(Internal Revenue Service W-4 information regarding recently hired individuals)
to the SDNH.
4.2 State Input Records
Provides instructions on submitting state records for the purpose of New Hires
cross-matching.
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4.3 NDNH Output Records
Provides information on NDNH records that are returned to states.
4.4 Frequency and Timing of Cross-Matches
Describes the frequency in which states should submit records for New Hires
cross-matches.
4.5 Using Parameters for Workload Management
Provides information on the effective use of parameters to organize and prioritize
New Hires cross-match hits.
4.6 Key Actions
Describes the key follow-up actions that states should take upon receiving NDNH
and SDNH responses.
4.7 Understanding New Hires Timeframes
Describes critical activities and timeframes associated with the New Hires cross-
match process.
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Procedures
4.1 Employer Input Records – The new hires employee data that employers send to
the SDNH are referred to as employer input records. The employer input records
contain information regarding newly hired and rehired individuals that states will
submit to populate New Hires directories. Employers send a W-4 form or an
equivalent form, for each newly hired individual that contains required data
elements to the SDNH. The W-4 form is available on the Internal Revenue
Service (IRS) website https://www.irs.gov/pub/irs-pdf/fw4.pdf. Employer input
records also include quarterly wage information that states are required to submit
to NDNH. In addition to the employer input records, states are required to submit
Unemployment Insurance (UI) claims information to the NDNH. These records
are all critical for state cross-matching and child support enforcement purposes.
Employer input records submitted to the SDNH are subsequently submitted to the
NDNH by the state agency designated to manage the SDNH and the records must
be formatted properly to guarantee successful submission. The NDNH will reject
individual or groups of employer input records that are formatted incorrectly and
return them to the state as errors in a response file. Corrections to employer input
records may require the state agency managing the SDNH process to follow-up
with employers. Errors left uncorrected by states or employers can prevent the
records from being included in the NDNH database and may reduce the amount
of data accessible to states. UI state agencies should coordinate and direct the
state agency managing the SDNH process to pursue errors made by submitting
employers and the state, apply corrections and resubmit records to the NDNH.
Data submission requirements for employer input records are established by the
Department of Health and Human Services’ Office of Child Support Enforcement
(HHS-OCSE) and are described in the NDNH Guide for Data Submissions,
https://www.acf.hhs.gov/css/resource/ndnh-guide-for-data-submission (Note:
Naming conventions established by HHS-OCSE may differ from those
established by the Department; therefore, states should refer to descriptions
provided by each agency for clarification).
Types of data submission issues that result in errors include missing dates of hire,
missing employer addresses, missing or partial employer or employee names,
missing or nonnumeric Social Security Numbers (SSNs), and missing Federal
Employer Identification Numbers (FEINs). Other data submission issues that can
result in the rejection or prevention of a state’s record submission to the NDNH
database may include significant reductions or increases in the volume of records
submitted by the state and state’s internal system edits that set higher submission
standards (for example, requiring additional data elements not required for record
submission to NDNH) and can prevent record submission entirely. The
Department recommends that for NDNH input record submissions, states:
Review the accompanying advisory section 5B Availability, Accessibility,
and Quality of New Hires Data;
Use the HHS-OCSE’s NDNH Guide for Data Submission:
https://www.acf.hhs.gov/css/resource/ndnh-guide-for-data-submission;
Review employer records to ensure they are accurate/in the correct format
and contain all required data elements;
Report all required data elements in records submitted to SDNH;
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Perform outreach to employers that fail to submit records in the proper
format, apply corrections, and resubmit corrected records;
Provide technical assistance to employers on formatting guidelines;
Ensure the volume of records is consistent with each submission, since
record volumes are compared against historic norms; and
Ensure that state system edits are in place to validate the data required for
the NDNH submission, but are not severely restrictive to prevent the
submission of employer records to the SDNH.
In addition to HHS-OCSE data submission guidelines, there are certain reporting
requirements, established by the Social Security Act, relative to employers’
submission of New Hires data to the SDNH. Each employer will furnish a report
that contains the following information for the employee: name, address, SSN,
and the date of hire. Although the state UI agency may not be directly involved in
receiving New Hires information from the employer, the UI agency should still
educate employers on the requirements for New Hires reporting. To reinforce
these requirements, the Department highly recommends that states include in the
letter/notice that is sent to the employer as part of the conduct of a New Hires
investigation, an educational component that advises employers: 1) of the
definition of the date of hire; 2) to report the date of hire of an individual; and 3)
to report individuals who have been rehired (rehires). Rehires are employees who
have temporarily separated from the employer for a period of 60 days or more.
The “date of hire” is the date on which services for remuneration were first
performed by the new employee.
When a rehired employee returns to work, the employer is required to report the
employee as a new hire even if the individual is returning in the same job capacity
held previously. Rehire reporting must include the date of hire (the date the
employee first performed services for remuneration following a break in service
of 60 days or more). State UI agencies should conduct ongoing employer
education and/or engagement that may include using other methods of
communication such as reminders on agency websites, information supplied in
employer guides, etc.
4.2 State Input Records – State input records refers to records that states send to the
NDNH and SDNH to match against the information in each directory. States send
a SWA Input Detail Record (Appendix F) to the NDNH for each claimant to
generate a cross-match request. The SWA Input Detail Record layout is used to
define the cross-match parameters that determine the type of information returned
to states following the cross-match. Similar to the employer input records, cross-
match request record layouts must meet specific data submission guidelines that
are defined in the SWA Input Detail Record layout. The Department advises
states to follow SWA Input Detail Record layout instructions to prevent data
submission issues and ensure essential information is returned. Additionally,
states should:
Submit records for cross-matching through their state designated hub so
that the SWA Input Detail Records arrive at the NDNH each Friday by
3:00 p.m., Eastern Time;
Submit records for cross-matching each week for the NDNH;
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Submit records for cross-matching each day for the SDNH; and
Ensure that record formats are correct and contain all required data
elements.
To run an efficient NDNH operation, states need practices in place to contend
with increasing workloads. States construct SWA Input Detail Records and
submit them to NDNH each week to cross-match new and existing claims.
Whether and when a claimant is selected for cross-matching can be determined by
isolating key UI claim characteristics. To prepare records for cross-matching,
states should complete a record construction process using claim characteristics to
determine the population of claimant records submitted to the NDNH. Record
construction allows states to focus on cross-matching claimants that meet an
established selection criteria and minimizes inflated NDNH workloads. The
following section describes how to identify the population of claimants for cross-
matching and several parameters that the state must address during record
construction.
A. Selection of the Claimant Population for NDNH Cross-Matching –
State certification policies, payment lag times, determination timeliness issues,
and the NDNH timeframes (the amount of time it takes for information to
populate and be available in the NDNH) create the need for a “reach-back period”
for constructing SWA Input Detail Records. The “reach-back period” refers to
the period or days prior to the date that cross-match will be conducted. The
“reach-back period” allows states to compare prior UI benefit weeks to the New
Hires directory information submitted by employers, to determine if claimants
worked and earned wages during the same period that UI benefits were paid. The
“reach-back period” is the critical component that the Department recommends
states use to determine which claimants should be matched against the NDNH
directory. For the “reach-back period,” the state first determines whether a
claimant has received a payment within the past 40 days. Selecting claimants that
have received a payment (compensated weeks) within the past 40 days compared
to selecting claimants who have only certified for benefit weeks within the past 40
days will help states manage workloads and prioritize “hits.”
Filtering out claimants with no compensated weeks refines the cross-match
parameters and provides a sensible approach to workload management, since
states are attempting to detect weeks worked and weeks paid. Matching against
individuals who only certified during the 40-day period increases the number of
NDNH record submissions and NDNH outcomes that require filtering to
determine whether investigation is needed. If the claimant has received payment
within 40 days, then their name and SSN must be included with that week’s
submission file to the NDNH and a SWA Input Detail Record is created for that
claimant. The 40-day period takes into account the timeframes allowed for the
employers, the SDNH, and the NDNH to submit data elements that populate the
NDNH. These timeframes are described in section 4.7 (Understanding New Hires
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Timeframes). Employer data submission timeframes may vary based on state law
or policy.
Table 1 (below) provides an example of the process for selecting claimants for
cross-matching while factoring in the “reach-back period.” As demonstrated in
Table 1, states parse claimant data for cross-matching by applying certain filters.
This filtering process should be automated to eliminate the need for BPC or other
state staff to perform this function. This automated file construction process
should include the following fields as shown in the columns in Table 1:
1. Record Construct and Transmit Date – This cell is the date that records
are compiled for submission to the NDNH. The Department recommends
that states construct their records on Thursday for transmission to the
NDNH on Friday. Constructing records on Thursday takes into account
state payment cycles and provides for the inclusion of benefits paid
through Thursday of the week’s record submission to the NDNH
occurring on Friday.
2. Record Construct and Transmit Day of Week – This cell reflects the
day of week (Thursday) when records are compiled for submission to the
NDNH.
3. NDNH Cross-Match Date Always Occurs on Friday – This cell reflects
the Friday date of the week’s submission.
4. SWA Cross-Match Day of the Week – This cell should always be
Friday. HHS-OCSE requires the submission of records to the NDNH for
cross-matching by Friday, 3:00 pm Eastern Time. Records submitted to
HHS-OCSE after this deadline will not be matched until the following
Friday.
5. Weeks Compensated in Last 40 days? (Y/N) – Did the claimant receive
UI payments in the last 40 days, “Y” for Yes or “N” for No. This 40-day
period represents the “reach-back period.”
6. If Week Compensated = “Y” for a Given SSN – This cell directs the
state to create a SWA Input Detail Record for claimants in receipt of UI
payments in the last 40 days, which is the “reach-back period.”
7. W-4 From Date = Record Construct Date – 46 Days – The W-4 From
Date is a field in the SWA Input Detail Record. It is used to insert the
beginning period for which the cross-match should occur. W-4 From date
should be 47 days prior to the cross-match date (Record Construct Date
minus 46 days).
8. W-4 From Date Day of the Week = Benefit Week Beginning (BWB)
Day – If a state constructs their records on Thursday, the W-4 From date
day of the week will always be Sunday. In most states, this is also the day
of the week when the benefit week begins.
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Table 1
1. 2. 3. 4. 5. 6. 7. 8.
W-4
If Week
Record NDNH SWA Weeks From
Compen-
Record Construct Cross- Cross- Compen- Date Day
sated =
Construct and Match Date Match sated in W-4 From of the
“Y” for a
and Transmit Always Day of Last 40 Date = Record week =
Given
Transmit Day of Occurs on the Days? Construct Date BWB
SSN
Date Week Friday Week (Y/N) - 46 Days Day
1/10/2019 Thursday 1/11/2019 Friday Y If “Y” 11/25/2018 Sunday
create
1/17/2019 Thursday 1/18/2019 Friday Y SWA 12/2/2018 Sunday
1/24/2019 Thursday 1/25/2019 Friday Y Input 12/9/2018 Sunday
Detail
1/31/2019 Thursday 2/1/2019 Friday Y Record 12/16/2018 Sunday
Each row in Table 1 represents a claimant that has received at least one UI payment
within the last 40 days. The table also contains a number of dates/days to consider,
since the NDNH process is very time sensitive. For more information about
timeframes, refer to section 4.7 (Understanding New Hires Timeframes).
B. SSN-Name Verification – The SWA Input Detail Record contains several fields.
Many of the fields are “Optional” and some are designated as “Required.” However, a
state’s decision on whether to populate certain fields can have significant consequences
on the information returned from NDNH.
As mentioned, a state constructs a SWA Input Detail Record for each claimant selected
during the automated filtering process. The “Optional” field, field name Verification
Request Indicator, notifies the NDNH on whether a state is requesting SSN-name
verifications against the Social Security Administration (SSA) database. If states enter
“Y,” the SSN-name verification is requested. Any record that fails verification is
eliminated from the cross-match and the verification result is returned in the Reject
Code field on the SWA Notify Output Detail Record. The NDNH performs the SSA
verification regardless of whether “Y” is entered and unverified SSN-name
combinations are rejected from the cross-match. If a state selects “N” in the
Verification Request Indicator field, the state is choosing not to be notified that the
records failed verification and that the records were eliminated from the cross-match.
The Department advises states to select “Y” in the Verification Request Indicator, to
conduct SSN-name verifications, for all BPC records. This action ensures states are
notified by the NDNH of unverifiable SSN-name combinations. States should review
records eliminated from the cross-match, resolve the issues if possible, and resubmit the
record(s) for cross-match. For example, an SSN-name combination submitted by the
state could differ from the one on file with the SSA (e.g., due to marriage, divorce,
adoption, or a misspelled name). Records that could not be verified may also be an
indicator of identity theft or the fraudulent use of an SSN.
C. Request a Match of In-State Records – Another “Optional” field in the SWA
Input Detail Record is the W-4 Same State Data Indicator. The Department suggests
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that states enter ‘Y’ in the W-4 Same State Data Indicator field to ensure that claimant
records are cross-matched against New Hires records submitted to the NDNH by its
own state/state employers. By selecting this option, states are provided an opportunity
to match against New Hires information that an employer reported late (after the
required reporting period) or information that was resubmitted to NDNH to correct
errors.
Another reason to include in-state requests concerns the “reach-back period” for SDNH
cross-matches. While there is a recommended “reach-back period” for the NDNH (40
days), states set their own “reach-back period” for the SDNH. In some cases, states are
reaching back for a shorter duration. By requesting in-state cross-matching through
NDNH, states are afforded New Hires information that may not be detected during the
state designated SDNH “reach-back period.”
There is a potential that states will encounter some of the same records identified in the
SDNH. However, the existence of duplicates is a characteristic of the NDNH process
and can occur at various stages. Duplication issues should be managed by applying an
automated routine that filters out duplicate records – see discussion in section 4.5
(Using Parameters for Workload Management).
D. W-4 From Date – As discussed in section A (Selection of the Claimant Population
for NDNH Cross-Matching), the W-4 From Date is a field that states should apply
when filtering claimants for cross-matching. The W-4 From Date is an “Optional” field
in the SWA Input Detail Record that instructs states to provide a date that will represent
the beginning period to conduct the cross-match comparison. This date is one of two
dates that form the critical 40-day “reach-back period,” where the NDNH completes a
comparison that identifies employer W-4 records that were processed during the period.
The Department recommends that states provide a date in W-4 From Date field that
designates the beginning of the 40-day “reach-back period.” Providing a W-4 From
Date will ensure that records are matched against employer provided W-4 records that
were processed starting from the W-4 From Date specified by the state. If this field is
left blank or if an invalid date is provided, the cross-match will be limited to comparing
W-4 records from two weeks prior to the match date.
E. W-4 Through Date – The “Optional” W-4 Through Date field, in the SWA Input
Detail Record, is the second of the two dates that form the critical 40-day “reach-back
period.” The W-4 Through Date allows states to request (for a given SSN) the return of
all available W-4 records processed by the NDNH for a period that begins on the W-4
From Date and ends on the W-4 Through Date. The Department recommends that
states populate the W-4 Through Date with a date that is no earlier than the date of the
cross-match (Friday). By using the date of the cross-match, states will match the most
up-to-date information available. States may also leave this field blank to ensure the
entire “reach-back period” is requested, since the W-4 Through Date will default to end
on the date of the cross-match (Friday).
4.3 NDNH Output Records – NDNH output records refer to the cross-match information
records that the NDNH returns to the state in response to the request submitted in the
SWA Input Detail Records. The NDNH returns two records to the state: the SWA W-4
Output Detail Record (described in Appendix G) and the SWA Notify Output Detail
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Record (described in Appendix H). The SWA W-4 Output Detail Record is also known
as the “hit” file. The “hit” file contains the results of a state’s cross-match request
including SSN-name verification results and the date of hire. The date of hire is a
critical element since it can assist states in organizing cross-match results and
establishing parameters for prioritizing “hits” that require investigation. When the “hit”
file is received, states can use the date of hire as a starting point for comparing weeks
compensated, to narrow down the weeks affected by the “hit.” The date of hire can
also be used to review claimant certification responses that were provided during the
week the claimant was hired and subsequent to that date. Certification responses can
reveal how a claimant responded to questions regarding having worked and earned
wages, to identify potential fraud or a claimant’s failure to report earnings. If the New
Hires record received from the NDNH does not contain the date of hire, the W-4 From
Date should be used instead to organize cross-match results.
The SWA Notify Output Detail Record is used to provide states with an
acknowledgement that the cross-match request was received and in the Reject Code
field it notifies states of any errors that occurred. Errors occur when records contain
insufficient name information, the SSN was missing or invalid, or the SSN-name
combination submitted was unverifiable. These errors cause records to be eliminated
from the match process. States should work to correct errors and resubmit records to
NDNH.
4.4 Frequency and Timing of Cross-Matches – SDNH input records are generally
expected to be submitted on a daily basis since these files are updated daily. NDNH
input records are generally expected to be submitted on a weekly basis (each Friday
before 3:00 pm, Eastern Time). States should ensure that records are submitted to the
NDNH each Friday by 3:00 pm, Eastern Time, because records submitted after 3:00 pm
will not be processed (cross-matched) until the following Friday. HHS-OCSE performs
the NDNH cross-match on Friday and any records submitted by states for cross-
matching before Friday are not matched until that time.
4.5 Using Parameters for Workload Management – Effective automation allows states
to effectively manage workloads with the innovative use of parameters to perform
various functions. Parameters can be used to narrow the scope of the information in the
cross-match results returned by HHS-OCSE. Workload management through the
effective use of parameters helps to identify duplicate records, identify “hits” requiring
investigation, or prioritize the work (“hits”) by screening out matches that do not
require immediate action. Many states use automated case management systems to
perform these tasks thereby eliminating the need for these activities to be performed
manually by BPC staff.
There are different types of parameters states should apply for effective workload
management:
Duplicate detection parameters can classify records as identical when they contain
information for the same claimant (i.e., duplicate claimant name and SSN); who was
hired by the same employer (i.e., duplicate employer name, employer address and
FEIN); and who was hired (or rehired) on the same date (i.e., duplicate date of hire or
rehire date). Dual “hit” records are identified when comparing newly received New
Hires data to UI claims information in the UI benefits system to determine if there are
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any identical records that would eliminate the need to investigate the new “hit” due to
an existing staff investigation assignment. The duplication occurs when the same
claimant record is submitted for cross-matching more than once and each submission
results in a cross-match “hit.” States should institute a process to detect duplicate
records to filter out “hits” that have already been assigned to staff for investigation.
Including this parameter prevents this type of duplication that can inflate workloads.
The detection of duplicates function should also be used to ensure that records are
correctly classified as duplicates. This approach to detecting duplicates is particularly
helpful when states match against the SDNH and also in-state records through the
NDNH. In matching against both directories, it is important for the state to consider
the variables that would constitute an actual duplicate record. For example, a state may
have records with similar characteristics, with the exception of the date of hire. These
characteristics may represent an individual who has different dates of hire due to
different periods of employment (e.g., a rehired employee). This differential would
suggest that there would be an individual record for each employment period rather
than one record being characterized as a duplicate and being eliminated from
investigation.
Identifying dates of hire within the “reach back period” is another parameter that states
should apply when the “hit” record is returned. States should review the information
contained in the SWA W-4 Output Record to determine whether a date of hire has been
provided that falls within the “reach-back period,” or if a W-4 was processed during the
“reach-back period.” These date parameters manage “hits” by allowing states to use
the date of hire or W-4 Processed Date as a starting point for comparing weeks
compensated during the “reach-back period” to days that the claimant may have
worked and simultaneously received UI benefit compensation. This comparison can
assist states in determining which records require further investigation. States should
also use date parameters to eliminate records from investigation when there is no
indication of any days worked within the weeks compensated during the “reach-back
period.”
Other characteristics in the “hit” file can be used to set parameters. The Employee State
of Hire, can allow states to identify claimants who worked for a multi-state employer
(employer who has employees in two or more states), if states include this field with the
data elements used to conduct comparisons of cross-match and UI data to identify
potential investigations. States should use the Employee State of Hire field as part of
their established parameters in order to include claimants employed by multi-state
employers in the population of potential investigations.
There are other types of parameters that states can consider for workload management.
These boundaries can help determine whether the claimant-committed fraud, failed to
report earnings, or underreported based on state law. They can also help standardize
the sequence for prioritizing “hits” for investigation. These types of parameters
include:
Did the claimant have a prior fraud overpayment determination?
Did the claimant have a prior non-fraud overpayment determination?
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Did the claimant previously fail to report wage information resulting in an
earnings adjustment of benefit weeks paid?
Did the claimant previously “underreport” earnings resulting in earnings
adjustment of benefit weeks paid?
What responses did the claimant provide, during the continued claims process,
regarding whether they worked and earned wages?
Does the amount of the overpayment constitute fraud based on state law or
policy?
Is the overpayment amount excessive as established by the state law or policy?
Is the overpayment duration excessive as established by the state law or policy?
The Department advises states to immediately apply parameters to cross-match results
as they are received and use all available NDNH data and UI claims data to determine
whether records should be eliminated or considered for potential investigation. The
elimination of duplicate records, selection of “hits” for investigation, and the
prioritization of investigations will allow states to focus on investigations with the most
significant impact to the UI system. States are reminded that circumstances (such as a
minimal number of weeks overpaid (e.g., 1 week) or a minimal dollar amount overpaid
(e.g., $50)) may be used to determine the priority of investigations; however, it should
not be a determining factor for eliminating cases from investigation. Established
parameters also provides states with information to determine outcomes of
overpayment investigations, i.e., a fraud determination, a non-fraud determination or an
earnings adjustment. Review section 6A (New Strategies to Maximize New Hires
Cross-Match Outcomes to Bring Down the UI Improper Payment Rate) in the
accompanying advisory for more information on the use of parameters for workload
management.
States are reminded that when establishing investigations it is important to assign work
to staff with the skills and experience to handle these investigations and any other
issues that may arise (e.g., separation issues or non-separation issues). States should
assign work in a manner to avoid delays in the resolution of all outstanding issues on an
individual’s claim and to ensure payment when due.
4.6 Key Actions – States should ensure the following actions occur during New Hires
cross-match operations:
States are encouraged to process data from the SDNH and the NDNH as soon as it
is received (which is daily for SDNH and weekly (generally, Mondays) for NDNH).
States should identify issues based on “hit” results and designate the Issue
Detection Date (IDD). Many state systems either are programmed to automatically
identify the IDD or are programmed to allow state staff to enter the IDD manually.
The IDD is the date that the state receives the “hit.” The IDD is not the date that
an employer returns the earnings verification notice/request. It is also not the date
the state completes the investigation of the “hit” and/or establishes the
overpayment. See ET Handbook No. 401, 5th Edition, Section V-3 and ET
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Handbook No. 301, 5th Edition, Chapter V, for additional information regarding
IDD.
As states process data, they should determine the sequence of investigations, begin
conducting investigations and complete determinations. The Department reminds
states to refer to and ensure compliance with UIPL No. 1-16 and UIPL No. 1-16,
Change 1, Federal Requirements to Protect Individual Rights in State
Unemployment Compensation Overpayment Prevention and Recovery Procedures
and review the accompanying advisory section 6B (Recommended Practices for
Immediate Notification, Timely Determinations, and Investigation Follow-up).
States are strongly encouraged to take immediate action and send a letter/notice on
the same day as the cross-match result is received (or no later than the next business
day) to claimants and employers identified by the NDNH or SDNH “hits.” Since
state laws and policies vary regarding the repercussions for committing fraud
(criminal prosecution, etc.) and the ineligibility period for failure to report or
provide information, states should modify the sample notice (below) to reflect state
specific information.
Sample Notice for Claimants:
IMPORTANT NOTICE ABOUT YOUR UNEMPLOYMENT BENEFITS
Agency records indicate that you received unemployment insurance benefits for a
period of time during which you may have also been employed. Employer information
has been received that indicates you are working or have worked and earned wages.
We are contacting this employer for a breakdown of actual wages for each week in
question in order to assist this agency in determining whether a benefit payment issue
exists. Such an issue exists if wages were earned during the same period/week(s) that
you received benefits.
During each week that you are claiming benefits, you are required to inform this
agency of your employment status. If you are working, you must report any and all
wages earned. Please note: Reporting of wages is required for the week(s) in which
such wages are earned, not delayed until the wages are paid. Working, earning wages
and failing to report such work and earnings while filing for unemployment insurance
benefits may constitute FRAUD. Individuals may be criminally prosecuted, fined
and/or imprisoned for committing fraud and will be required to repay any benefits
determined to be overpaid.
We need you to respond to this notice by (insert date/time). Please contact this agency
by calling (xxx) xxx-xxxx. If you fail to respond within the required response
timeframes, you may be held ineligible for benefits until you respond and provide the
information requested. Additionally, you will be prevented from completing (filing)
your weekly (or biweekly) certifications.
States are strongly encouraged to notify affected claimants that they are required to
report or required to contact the state UI agency, preferably before the date of the next
I-14
continued claim certification, in order to resolve the issue.
States should use the continued claims filing system to manage claimants that fail to
report or contact the agency in response to the notice (see section 6A (New Strategies
to Maximize New Hires Cross-Match Outcomes to Bring Down the UI Improper
Payment Rate)) in the accompanying advisory. The Department recommends two
practices:
1. Program the continued claim filing system to allow an adjudicator or BPC
staff to intervene to speak to claimants who have been identified as potentially
working (based on NDNH/SDNH matches).
2. Program the continued claim filing system to automatically add the date of
hire reported by the employer, employer name, address and account number to
an individual's claim when they have been identified as potentially working
(based on NDNH/SDNH matches), and have the system generate a
questionnaire that the claimant must complete before filing their certification.
These practices allow states to conduct necessary fact-finding and resolve the issue
with the claimants at the time the claimant attempts to file their next weekly (or
biweekly) claim certification. In some cases, this intervention will give states an
opportunity to gather information from a claimant even earlier than the due date of
the claimant response to the agency’s notice/letter.
States are strongly encouraged to notify appropriate employers that the state is
seeking earnings information and require responses within a specified period of time
(for example, within 7 business days). The Department recommends that states use
an electronic system to expedite the transmission of the earnings verification from the
employer to the state.
States should capture the employer provided wage information in a benefits system
and run an automated program to compare claimant certified earnings to the employer
reported earnings. The automated system should have the capability to calculate
differences between weekly values, identify weeks with differences, and flag a
potential overpayment or underpayment. This type of activity can be performed by a
case management system (see section 6A (New Strategies to Maximize New Hires
Cross-Match Outcomes to Bring Down the UI Improper Payment Rate)) in the
accompanying advisory.
States should make an immediate additional attempt to obtain information from any
claimants or employers that fail to respond to the initial letter/notice. Review section
6B (Recommended Practices for Immediate Notification, Timely Determinations, and
Investigation Follow-up) in the accompanying advisory.
States should conclude investigations promptly after the allotted response deadline
has elapsed and issue an appropriate determination based on the responses or lack of
responses. Determinations may include denials for failure to report or failure to
contact the agency, as required under the state’s UI law (lack of responses from both
parties prevents a determination based on NDNH matches since these are generally
needed to complete an independent verification of the NDNH data).
I-15
4.7 Understanding New Hires Timeframes –
Activity Timeframe
Required to be made no later than 20 days after the date the employer
Employers report W-4 (New hires the employee; or in the case of an employer transmitting reports
Hires) data to the SDNH magnetically or electronically, by 2 monthly transmissions (if necessary)
no less than 12 days, no more than 16 days apart.
New Hires data received from Within 5 business days of receiving W-4 New Hires reports from
employers entered into the SDNH employers, states must enter these reports into the SDNH database.
If employers and the SDNH adhere to minimum reporting timeframes,
New Hires data could be available in the SDNH in 20 days or earlier.
However, if the maximum timeframes described for SDNH are used, a
Timeframe For New Hires
total of 25 days may lapse before SDNH information is available for
information to be available for
matching. If the employer and SDNH use the maximum amount of time
cross-matching in the SDNH
allotted for reporting and recording new hires, a claimant may have
worked between 21 and 25 days (or later) before New Hires information
is available for matching.
SDNHs transmit New Hires data Within 3 business days after the New Hires data is entered into the
to the NDNH SDNH, the state must furnish the New Hires data to the NDNH.
New Hires data from Federal
New Hires data must be entered into the NDNH within 2 business days
agencies and SDNHs entered into
upon receiving the data.
the NDNH
If employers, Federal agencies, the SDNH and the NDNH adhere to
minimum reporting timeframes, New Hires data could be available in the
NDNH in 25 days or earlier. However, if the maximum timeframes
Timeframe For New Hires described for NDNH are used, a total of 30 days may lapse before NDNH
information to be available for information is available for matching. If the employer, Federal agencies,
cross-matching in the NDNH the SDNH, and the NDNH use the maximum amount of time allotted for
reporting and recording new hires, a claimant may have worked between
26 and 30 days (or later) before New Hires information is available for
matching.
For BPC, the Department recommends that the state requests a cross-
match for all claimants who have received payment within the past 40
days. This allows for the business steps shown above and takes into
State constructs and submits its consideration the weekly or biweekly certification processes and time lags
cross-match request daily to the associated with the claim. The 40-day “reach-back period” also accounts
SDNH for payment delays due to other issues that result in temporary
ineligibility and a claimant being paid benefits later in the benefit year.
State requests the return of all new hires reported to SDNH from 47 days
prior to the cross-match date for each individual SSN.
State constructs and submits its For BPC, the Department recommends the state request a cross-match for
cross-match request every week all claimants who have received payment within the past 40 days. This
to the NDNH. State may transmit allows for the business steps shown above and takes into consideration
multiple requests (input records) the weekly or biweekly certification processes and time lags associated
in a week. with the claim. The 40-day “reach-back period” also accounts for
payment delays due to other issues that result in temporary ineligibility
NDNH will cross-match requests and a claimant being paid benefits later in the benefit year. State requests
received during the prior 7 days if the return of all new hires reported to NDNH from 47 days prior to the
the state submits the request cross-match date for each individual SSN.
I-16
Activity Timeframe
before 3:00 pm, Eastern time on
Friday. For BAM, the state requests the return of all audited claimants starting
from the benefit year beginning date through 30 days after the end of the
key week. At least one request must be transmitted to NDNH 30 days
after the end of the key week. See UIPL No. 03-07, Change 1, for BAM
cross-match parameters.
NDNH returns summary and NDNH sends transmittal, summary, and error data to the submitting
transmittal data, including error Federal or state agency and/or SDNH (agency), as appropriate, within 4
reporting, to the submitter business days of the system receiving the data.
NDNH matching information is transmitted to the state within 2 business
Report matches from the NDNH
days of the match. The earliest information would be available is on the
to the state
following Sunday or Monday after the cross-match occurs.
State eliminates duplicate records from the dataset (Same SSN, employer,
State processes the NDNH/SDNH
hire date, etc.) on the date of receipt of the information from
records that are returned
NDNH/SDNH.
State compares cross-match State software determines whether weeks are compensated after the hire
outcomes to compensated weeks date (or W-4 From Date if hire date is not provided). If the claimant
and determines “hits” requiring reports work in the weeks identified, the state may verify earnings
investigation reported on the date of receipt of the NDNH/SDNH information.
State simultaneously sends a letter/notice to the claimant and a request for
State begins investigation earnings verification to the employer no later than the next business day
following receipt of the information from the NDNH/SDNH.
If feasible, the state requires the claimant to contact the agency to resolve
the issue prior to the date of filing the next continued claim for benefits,
State manages delays and or to complete a questionnaire prior to filing the next continued claim.
nonresponsive claimants and The employer is required to provide information within a specified time
employers (e.g., 7 business days), preferably using an electronic system to accelerate
responses. Without delay, the state makes an additional attempt to
nonresponsive claimants and employers to obtain needed information.
A written determination is made and processed promptly following the
State concludes investigation
deadline for the requested information, as appropriate.
I-17
Appendices
This section contains the appendices to the Recommended Operating Procedures for Cross-
Matching Activity, which include various flow charts that illustrate NDNH and SNDH technical
operations and tables describing record layout formats that are used for NDNH and SDNH file
transfers. The flow charts and tables are provided in order to assist state technology staff with
New Hires cross-match system programming and benefit system integration.
Appendix A: Figure 1 Process Flow – State New Hires Workflow Overview
This figure depicts the steps involved in New Hires operations -- beginning with states’
transmission of records to NDNH and SDNH through the completion of cross-matching
“hits” investigation.
Appendix B: Figure 2 Process Flow – New Hires Cross-match Hits – Applying Parameters
This figure depicts the steps involved for states to apply parameters and eliminate
duplicate cross-match “hits’ once cross-match results are received from NDNH and
SDNH.
Appendix C: Figure 3 Process Flow – Generate Claimant Letter/Notice and Distribute Staff
Assignments
This figure depicts activities states should undertake to adjudicate overpayments selected
for investigation once the claimant letter/notice is generated.
Appendix D: Figure 4 Process Flow – Generate Employer Letter/Notice and Process
Employer Responses
This figure depicts the activities states should undertake to adjudicate overpayments
selected for investigation once the employer letter/notice is generated.
Appendix E: Figure 5 Process Flow – Electronic Earnings Verification (EV)
This figure depicts state activities that may be involved when using an electronic system
to receive and verify employer wage information.
Appendix F: SWA Input Detail Record
This table presents the record layout format used by states to submit individual claimant
records to NDNH for cross-matching.
Appendix G: SWA W-4 Output Detail Record
This table presents the record layout format used by the NDNH to return cross-match
information and SSN-name verification outcomes to states.
Appendix H: SWA Notify Output Detail Record
This table presents the record layout format used by the NDNH to provide an
acknowledgement to states that the cross-match request was received and to notify the
state of any errors that occurred during the NDNH process.
Appendix A
Figure 1 Process Flow – State New Hires Workflow Overview
Identify Claimants for
NDNH or SDNH
Cross-Matching
1.
Generate Input Generate Input
Records for SDNH Records for NDNH
Request Request
2a. 2b.
STATE NEW HIRE NATIONAL NEW HIRE
3a. 3b.
Correct SSN-Name
Combination Errors and
RECEIVE CROSS-
Resubmit for Cross-match
18. MATCH RESULTS
4.
SSN-Name Combination, Apply Various
Assign for Staff Review Parameters
17. 5.
No Weeks affected based on
priority parameters Identify Weeks Affected
END Based on Date of Hire
19. 6.
Set Issue and Generate
Earnings Verification Form
7.
Automatically Generate Claimant Automatically Generate Employer
Contact Required To Report Letter And Concurrent Processing Letter, Attach Earnings
Imbed Report Flag In Continued Claim Verification (EV) Form, and/or the
System Process for Electronic EV
8. 9.
Process Paper Responses and Investigator
Compares Information and/or Comparison
Completed by Case Management System
(or similar system)
Make an additional attempt to nonresponsive
claimants and/or employers
10.
Select Determination
Type
11.
No Issue, No weeks
Complete Earnings
Conduct Non- Address Failure to affected, No other
Conduct Fraud Adjustment and Send
Fraud Report or Provide Issues, No Further
Investigation Notice to Claimant
Investigation Information Action
12. 16.
13. 14. 15.
Issue Determination and/
or Adjust Benefits
20.
A-2
Appendix B
Figure 2 Process Flow – New Hires (NH) Cross-match Hits – Applying Parameters
NH Cross-match
returns a hit
to UI
1.
Apply Parameters and Detect
Duplicates in UI Benefit System
Using Automation
2.
Incomplete
Employer
Address
3.
Yes
No
Duplicate
4.
Yes
No
Eliminate No Further
Weeks
Record(s) from Action
affected
Investigation
5. No Needed
6.
Yes
Check for prior fraud or earnings
related non fraud determinations
7.
Check for prior earnings
adjustments
8.
Set Issue Type,
Assign to Staff,
Imbed Reporting Flag in
Continued Claim Process
9.
Concurrent Processing
Information Requests
A 10. B
11. 12.
Generate Claimant Letter/ Generate employer request (notice)
Required to Report Notice for Earnings Verification (EV)
or Provide Process for Electronic EV
A-3
Appendix C
Figure 3 Process Flow –
Generate Claimant Letter/Notice and Distribute Staff Assignments
A
Generate claimant contact letter/
Required to report notice
1.
Select Issue Type Flag Next Continued
3. Claim (e.g., via
phone, webpage) to
Direct Claimant to
Update Claimant Appropriate Staff
Case File 2.
4.
Assign to Staff Skilled
in Special Programs Special
(e.g., Trade) Program
6. 5.
Yes
No
Prior
Fraud or Earnings
Related Non
Fraud Determination Yes
7.
No
Less Than
Exceeded State Law/
State Law/Policy Prior
Policy Fraud
Fraud Threshold earnings
Threshold, Generate
9. adjustments Yes
No Fraud Issue
8.
10.
Yes
Generate Non Fraud Issue Contact
or a Potential Earnings Letter /Request
Adjustment Due Date Elapsed
11. 12.
No
Generate (or continue) failure
to report or failure to provide
Make an additional
information determination No Claimant
attempt to obtain
(apply ineligibility period Responded
information
according 13.
15.
to state law/policy).
14.
No
No Yes
Adequate
Information
Claimant
provided to
responded
resolve potential
16.
issues
17.
Yes
Yes
Resolve Issues
close investigation
18.
A-4
Appendix D
Figure 4 Process Flow– Generate Employer Letter/Notice and Process Employer Responses
B
Determine Request Type / Response
Generate Electronic
Methodology Letter Required –
Earnings Verification
depends if employer is machine to machine
(EV) Request or paper
respondent based determined or other
EV form
based on lookup table
1.
2.
Check for and
Assign EV Resolve Any
SWA is Yes Potential Yes
Information to UI Other Pending
Employer Issues
Supervisor Issues (as
3. 5.
4. appropriate)
6.
No
Special
Program Yes Close any open
8. related
No assignments
7.
Mail out Employer Process for No Further
Electronic EV or EV form Action
9. Needed
No Further
Action
Needed
Update Claimant
Case File
10.
No Generate
Make an additional attempt to Employer No failure to report
Employer obtain information or failure to
Responded with
responded Phone or other employer provide
Adequate
11. No request information
Information
12. record
13. 14.
Yes
Yes
Adequate
Employer No If Sufficient
Information Provided Process Employer Earning Information
EVF Verification Information Resolve
15. and compare against issues and
claimant weeks close
Yes 16. investigation
17.
A-5
Appendix E
Figure 5 Process Flow – Electronic Earnings Verification (EV)
Check for EV Response
at Broker
1.
Make an additional attempt to obtain
No information when EV response is not
Response completed
Completed 3.
2.
Yes Parse ASCII or XML File and create
a Earnings verification Record for a
Insert Record into Earning Verification Table given employer, SSN and Issue
for comparison against claims record 4.
5.
Generate Separation Issue ,
Sep Assign to Staff,
Issue Initiate request for Separation
6. Yes information
7.
Electronic comparison of earnings verification weekly No weeks affected, close
values against claimant certification weeks values , identify other pending issues (as
weeks at issue, and generate notice of potential appropriate), update case file
overpayment or underpayment to reflect there is no issue
8. 9a.
No
Check for existing staff assigned Reset continued
issues Claim process
10. reflecting that there is
no issue
Yes 9b.
Current Generate earnings
Open Issue related issue, attempt to
assignment exist resolve or assign to staff
11. 13.
Yes No
Exceeds State Weeks appended
Law/Policy to issue, used determine
Fraud Threshold if fraud, nonfraud or earnings
12. adjustment
14.
Yes
Notify Adjudicator
of Earnings Data
Arrival
15.
A-6
Federal Parent Locator Service Appendix F
National Directory of New Hires SWA Input Detail Record
SWA INPUT HEADER RECORD
Alpha/
Field Name Location Length Numeric Comments
Submitter Identifier 1-3 3 A/N Required
This field uniquely identifies the submitter of the request file
and must contain the characters ‘SWA’.
Record Identifier 4-6 3 A/N Required
This field must contain the characters ‘HDR’.
Submitting State Code 7-8 2 A/N Required for State Submitters
This field must contain the 2-digit numeric state FIPS code
of the state submitting the transaction.
Date Stamp 9-16 8 A/N Required
This field must contain the input file transmission date. This
must be in the Year 2000-compliant format of
CCYYMMDD.
Filler 17-24 8 A/N This field may be used for future enhancements. For the
current version, this must be spaces.
Batch Number 25-32 8 N Optional
This field may contain the unique number assigned by the
submitter to identify the batch of transactions submitted.
Batch numbers are not edited for uniqueness. It is the
responsibility of the submitter to ensure that a unique batch
number is used for each submission.
Filler 33-200 168 A/N This field may be used for future enhancements. For the
current version, this field must be spaces.
A-7
Federal Parent Locator Service Appendix F
National Directory of New Hires SWA Input Detail Record
SWA INPUT DETAIL RECORD
Alpha/
Field Name Location Length Numeric Comments
Submitter Identifier 1-3 3 A/N Required
This field uniquely identifies the submitter of the request file and
must contain the characters ‘SWA’.
Record Identifier 4-6 3 A/N Required
This field must contain the characters ‘MCH’.
SSN 7-15 9 A/N Required
This field must contain a nine-digit Social Security number (SSN).
If this field is spaces, contains any alphabetic characters, is all zeros,
all sixes or all nines, then the record will be eliminated from the
match and notification will be returned on the Output Error Detail
Record.
Verification Request 16 1 A/N Optional
Indicator This field must contain one of the following values to indicate if the
submitter is requesting verification of the person’s SSN and Name
combination:
‘Y’ – SSN/Name verification is requested. Verification will be
performed using SSA SSN verification routines. If verification fails,
the record will be eliminated from the match and the verification
result will be returned on the Output Error Detail Record.
‘N’ – SSN/Name verification is not requested and the submitter is
certifying that this SSN/Name combination has been verified using
SSA SSN verification routines prior to the match request.
Default is ‘Y’.
A-8
Federal Parent Locator Service Appendix F
National Directory of New Hires SWA Input Detail Record
SWA INPUT DETAIL RECORD
Alpha/
Field Name Location Length Numeric Comments
Person First Name 17-26 10 A Required
This field must contain at least one alphabetic character or the record
will be eliminated from the match and notification will be returned
on the Output Error Detail Record.
This field may contain hyphens.
Person Middle Name 27-36 10 A Optional
This field must contain alphabetic characters or spaces. This field
may contain hyphens.
Person Last Name 37-56 20 A Required
This field must contain at least two alphabetic characters or the
record will be eliminated from the match and notification will be
returned on the Output Error Detail Record. This field may contain
hyphens.
Passback Data 57-76 20 A/N Optional
This field may be used by the submitter for identifying information
and will be returned on the corresponding output match detail or
error record.
W-4 Match Indicator 77 1 A/N Optional
This field indicates if a state wants to match the submitted SSN to
NDNH W-4 data. This field must contain a space or an ‘N’.
‘N’ – Do not match the submitted SSN to NDNH W-4 data.
‘ ‘ – A space in this field indicates that the submitted SSN will be
matched to NDNH W-4 data.
Default is ‘ ‘ space.
A-9
Federal Parent Locator Service Appendix F
National Directory of New Hires SWA Input Detail Record
SWA INPUT DETAIL RECORD
Alpha/
Field Name Location Length Numeric Comments
W-4 Same State Data 78 1 A/N Optional
Indicator This field indicates if the submitter is requesting W-4 data submitted
to the NDNH by their state. This field must contain a space or one
of the following values:
‘Y’ - Return matches where the submitter is the same as the W-4
submitting state.
‘N’ – Do not return matches where the submitter is the same as the
W-4 submitting state.
Default is ‘N’.
W-4 From Date 79-86 8 A/N Optional
If this field contains a date in CCYYMMDD format, match only W-
4 records processed from this date forward, dependent upon the W-4
Through Date.
If this field contains spaces or an invalid date, match all available W-
4 records from two weeks prior to the match, dependent upon the W-
4 Through Date.
W-4 Through Date 87-94 8 A/N Optional
If this field contains a date in CCYYMMDD format and the W-4
indicator is ‘Y’, match only W-4 records processed through this
date, dependent upon the W-4 From Date.
If this field contains spaces or an invalid date, match all available W-
4 records, dependent upon the W-4 From Date.
A-10
Federal Parent Locator Service Appendix F
National Directory of New Hires SWA Input Detail Record
SWA INPUT DETAIL RECORD
Alpha/
Field Name Location Length Numeric Comments
QW Match Code 95 1 A/N Optional
This field must contain one of the following values to indicate if the
submitter is requesting QW data and the type of match requested:
‘N’ – QW matching is not requested.
‘R’ – QW matching is requested based on Reporting Period.
Default is ‘N’.
QW Same State Data 96 1 A/N Optional
Indicator This field indicates if the submitter is requesting QW data submitted
to the NDNH by their state. This field must contain one of the
following values:
‘Y’ – Return matches where the submitter is the same as the QW
submitting state.
‘N’ – Do not return matches where the submitter is the same as the
QW submitting state.
Default is ‘N’.
QW From Reporting 97-101 5 A/N Optional
Period If this field contains a reporting quarter in QCCYY format and the
QW match code is ‘R’, match only QW records containing this
calendar year reporting period forward, dependent upon the QW
Through Reporting Period.
If this field contains spaces or an invalid date and the QW Match
Code is ‘R’, match all available QW records, dependent upon the
QW Through Reporting Period.
Valid quarter values (Q) are 1, 2, 3, or 4.
A-11
Federal Parent Locator Service Appendix F
National Directory of New Hires SWA Input Detail Record
SWA INPUT DETAIL RECORD
Alpha/
Field Name Location Length Numeric Comments
QW Through 102-106 5 A/N Optional
Reporting Period If this field contains a reporting quarter in QCCYY format and the
QW Match Code is ‘R’, match only QW records up through this
calendar year reporting period, dependent upon the QW From
Reporting Period.
If this field contains spaces or an invalid date and the QW Match
Code is ‘R’, match all available QW records, dependent upon the
QW From Reporting Period.
Valid quarter values (Q) are 1, 2, 3, or 4.
Filler 107-200 94 A/N This field must contain spaces.
SWA INPUT TRAILER RECORD
Alpha/
Field Name Location Length Numeric Comments
Submitter Identifier 1-3 3 A/N Required
This field uniquely identifies the submitter of the request file and
must contain the characters ‘SWA’.
Record Identifier 4-6 3 A/N Required
This field must contain the characters ‘TRL’.
Data Record Count 7-17 11 N Required
This field must contain the number of records in the transmission,
including the header and trailer records.
Filler 18-200 183 A/N This field may be used for future enhancements. For the current
version, this should be spaces.
A-12
Federal Parent Locator Service Appendix G
National Directory of New Hires SWA W-4 Output Detail Record
SWA W-4 OUTPUT DETAIL RECORD
Alpha/
Field Name Location Length Numeric Comments
Submitter Identifier 1-3 3 A/N This field will contain the data submitted on the Input Detail
Record.
Record Identifier 4-6 3 A/N This field will contain the characters ‘W4M’.
SSN 7-15 9 A/N This field will contain the data submitted on the Input Detail
Record.
Verification Request 16 1 A/N This field will contain the information used in the match process.
Indicator ‘Y’ - SSN/Name verification was performed.
‘N’ – SSN/Name verification was not performed.
Filler 17-21 5 A/N This field will contain spaces.
Person First Name 22-31 10 A/N This field will contain the data submitted on the Input Detail Record
with special characters removed.
Person Middle Name 32-41 10 A/N This field will contain the data submitted on the Input Detail Record
with special characters removed.
Person Last Name 42-61 20 A/N This field will contain the data submitted on the Input Detail Record
with special characters removed.
Filler 62-71 10 A/N This field will contain spaces.
W-4 Processed Date 72-79 8 A/N This field will contain the date the W-4 record was processed by
OCSE in the Year 2000-compliant format of CCYYMMDD.
W-4 Employee First 80-95 16 A/N This field will contain the Employee First Name as provided on the
Name W-4 record submitted to the NDNH.
W-4 Employee Middle 96-111 16 A/N If present, this field will contain the Employee Middle Name as
Name provided on the W-4 record submitted to the NDNH.
W-4 Employee Last 112-141 30 A/N This field will contain the Employee Last Name as provided on the
Name W-4 record submitted to the NDNH.
W-4 Employee Street 142-181 40 A/N If present, this field will contain the Employee Street Address Line
Address Line 1 1 as provided on the W-4 record submitted to the NDNH.
A-13
Federal Parent Locator Service Appendix G
National Directory of New Hires SWA W-4 Output Detail Record
SWA W-4 OUTPUT DETAIL RECORD
Alpha/
Field Name Location Length Numeric Comments
W-4 Employee Street 182-221 40 A/N If present, this field will contain the Employee Street Address Line
Address Line 2 2 as provided on the W-4 record submitted to the NDNH.
W-4 Employee Street 222-261 40 A/N If present, this field will contain the Employee Street Address Line
Address Line 3 3 as provided on the W-4 record submitted to the NDNH.
W-4 Employee City 262-286 25 A/N If present, this field will contain the Employee City as provided on
the W-4 record submitted to the NDNH.
W-4 Employee State 287-288 2 A/N If present, this field will contain the Employee State as provided on
the W-4 record submitted to the NDNH.
W-4 Employee Zip 289-293 5 A/N If present, this field will contain the Employee Zip Code as provided
Code on the W-4 record submitted to the NDNH.
W-4 Employee Zip 294-297 4 A/N If present, this field will contain the Employee Zip Code Extension
Code Extension as provided on the W-4 record submitted to the NDNH.
Employee Foreign 298-299 2 A/N If present, this field will contain the Employee Foreign Country
Country Code Code as provided on the W-4 record submitted to the NDNH.
Employee Foreign 300-324 25 A/N If present, this field will contain the Employee Foreign Country
Country Name Name as provided on the W-4 record submitted to the NDNH.
Employee Foreign Zip 325-339 15 A/N If present, this field will contain the Employee Foreign Zip Code as
Code provided on the W-4 record submitted to the NDNH.
Employee Date of Hire 340-347 8 A/N If present, this field will contain the Employee Date of Hire as
provided on the W-4 record submitted to the NDNH.
Employee State of Hire 348-349 2 A If present, this field will contain the Employee State of Hire as
provided on the W-4 record submitted to the NDNH.
A-14
Federal Parent Locator Service Appendix G
National Directory of New Hires SWA W-4 Output Detail Record
SWA W-4 OUTPUT DETAIL RECORD
Alpha/
Field Name Location Length Numeric Comments
Federal EIN 350-358 9 A/N If present, this field will contain the Federal Employer Identification
Number (FEIN) as reported on the NDNH W-4 record. Values are
000000001 through 999999999, or spaces.
State EIN 359-370 12 A/N If present, this field will contain the state Employer Identification
Number (EIN) as reported on the NDNH W-4 record. Values are
A through Z, 0 through 9, or spaces.
Department of Defense 371 1 A/N (DOD only) If present, this field will contain the information on the
Code (DOD) record submitted. The valid values are:
A – Active duty employees
C – Civilian employees
P – Pension/Retired employees
R – Reserve employees
Employer Name 372-416 45 A/N If present, this field will contain the Employer Name as provided on
the W-4 record submitted to the NDNH.
Employer Street 417-456 40 A/N If present, this field will contain the Employer Street Address Line 1
Address Line 1 as provided on the W-4 record submitted to the NDNH.
Employer Street 457-496 40 A/N If present, this field will contain the Employer Street Address Line 2
Address Line 2 as provided on the W-4 record submitted to the NDNH.
Employer Street 497-536 40 A/N If present, this field will contain the Employer Street Address Line 3
Address Line 3 as provided on the W-4 record submitted to the NDNH.
A-15
Federal Parent Locator Service Appendix G
National Directory of New Hires SWA W-4 Output Detail Record
SWA W-4 OUTPUT DETAIL RECORD
Alpha/
Field Name Location Length Numeric Comments
Employer City 537-561 25 A/N If present, this field will contain the Employer City as provided on
the W-4 record submitted to the NDNH.
Employer State 562-563 2 A/N If present, this field will contain the Employer State as provided on
the W-4 record submitted to the NDNH.
Employer Zip Code 564-568 5 A/N If present, this field will contain the Employer Zip Code as provided
on the W-4 record submitted to the NDNH.
Employer Zip Code 569-572 4 A/N If present, this field will contain the Employer Zip Code Extension
Extension as provided on the W-4 record submitted to the NDNH.
Employer Foreign 573-574 2 A/N If present, this field will contain the Employer Foreign Country
Country Code Code as provided on the W-4 record submitted to the NDNH.
Employer Foreign 575-599 25 A/N If present, this field will contain the Employer Foreign Country
Country Name Name as provided on the W-4 record submitted to the NDNH.
Employer Foreign Zip 600-614 15 A/N If present, this field will contain the Employer Foreign Zip Code as
Code provided on the W-4 record submitted to the NDNH.
Employer Optional 615-654 40 A/N If present, this is the address where an employer receives child
Street Address Line 1 support wage withholding orders. This is a number, street name,
Employer Optional 655-694 40 A/N rural route or post office box, city, state, and zip code. This may be
Street Address Line 2 a foreign address.
Employer Optional 695-734 40 A/N
Street Address Line 3
Employer Optional 735-759 25 A/N
City
Employer Optional 760-761 2 A/N
State
Employer Optional 762-766 5 A/N
Zip Code
A-16
Federal Parent Locator Service Appendix G
National Directory of New Hires SWA W-4 Output Detail Record
SWA W-4 OUTPUT DETAIL RECORD
Alpha/
Field Name Location Length Numeric Comments
Employer Optional 767-770 4 A/N
Zip Code Extension
Employer Optional 771-772 2 A/N
Foreign Country Code
Employer Optional 773-797 25 A/N
Foreign Country
Name
Employer Optional 798-812 15 A/N
Foreign Zip Code
Filler 813-814 2 A/N This field will contain spaces.
Passback Data 815-834 20 A/N This field will contain the data submitted on the Input Detail
Record.
W-4 Match Indicator 835 1 A/N This field will contain information that was used in the match.
‘Y’- W-4 match was performed.
W-4 Same State Data 836 1 A/N This field will contain information that was used in the match.
Indicator ‘Y’ - Return matches where the submitter is the same as the W-4
submitting state.
‘N’ – Do not return matches where the submitter is the same as the
W-4 submitting state.
A-17
Federal Parent Locator Service Appendix G
National Directory of New Hires SWA W-4 Output Detail Record
SWA W-4 OUTPUT DETAIL RECORD
Alpha/
Field Name Location Length Numeric Comments
W-4 From Date 837-844 8 A/N This field will contain the date in CCYYMMDD format that was
used as the beginning process date for the W-4 match process.
This field will contain spaces when the match was performed using
the earliest available data from the NDNH.
W-4 Through Date 845-852 8 A/N This field will contain the date in CCYYMMDD format that was
used as the ending process date for the W-4 match process.
This field will contain spaces when the match was performed using
the most recent available data on the NDNH.
Filler 853-908 56 A/N This field will contain spaces.
Transmitter Agency 909-917 9 A/N If the submitter of the W-4 record was a federal agency, this field
Code will contain the Federal Employer Identification Number (FEIN) or
the FIPS code of the Federal agency that submitted the data to the
NDNH. Valid values are the FEIN or the letter ‘A’ followed by a
valid four-digit FIPS code.
Transmitter State 918-919 2 A/N If the submitter of the W-4 record was a state or territory, this field
Code will contain the state or territory that transmitted the data to the
NDNH. Valid values are the numeric FIPS code of the state or
territory, or spaces.
Transmitter State or 920-977 58 A/N This field will contain the descriptive name of the Federal agency or
Agency Name state that submitted the data to the NDNH.
Filler 978-1000 23 A/N This field will contain spaces.
A-18
Federal Parent Locator Service Appendix H
National Directory of New Hires SWA Notify Output Detail Record
SWA NOTIFY OUTPUT DETAIL RECORD
Field Name Location Length Alpha/ Comments
Numeric
Submitter Identifier 1-3 3 A/N This field will contain the data submitted on the Input Detail Record.
Record Identifier 4-6 3 A/N This field will contain the characters ‘ERM’.
SSN 7-15 9 A/N This field will contain the data submitted on the Input Detail Record.
Verification Request 16 1 A/N This field will contain the information used in the match process.
Indicator ‘Y’ – SSN/Name verification was performed.
‘N’ – SSN/Name verification was not requested.
Person First Name 17-26 10 A/N This field will contain the data submitted on the Input Detail Record with
special characters removed.
Person Middle Name 27-36 10 A/N This field will contain the data submitted on the Input Detail Record with
special characters removed.
Person Last Name 37-56 20 A/N This field will contain the data submitted on the Input Detail Record with
special characters removed.
Passback Data 57-76 20 A/N This field will contain the data submitted on the Input Detail Record.
Filler 77-150 74 A/N This field will contain spaces.
Reject Code 151 1 A/N This field will contain one of the following values:
‘N’ - the Input Detail Record contained insufficient name information. The
record was eliminated from the match.
‘S’ - the SSN was missing or invalid. The record was eliminated from the
match.
‘U’- the SSN/Name combination submitted did not verify using SSA SSN
verification routines. The record was eliminated from the match.
Filler 152-1000 849 A/N This field will contain spaces.
A-19
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