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Revised tax portion of unemployment data validation handbook
Summary ETA transmitted a revised tax portion of its unemployment insurance Data Validation Handbook and instructed states to replace the July 2008 edition. The attached handbook supplies the revised instructions and appendices. ETA still lists this letter as Active, but its printed expiration date was June 9, 2012; current applicability is unclear.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 18-11
Date issued
June 9, 2011
Status
Unknown
ETA lists this letter Active as of 2026-10-24, but the PDF prints an expiration date of June 9, 2012. Current applicability is unclear.
Status last verified October 24, 2026
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About this page: The full text below is the official document from U.S. Department of Labor, Employment and Training Administration (ETA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
UIPL18-11ACC.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2011/UIPL18-11ACC.pdf)
CLASSIFICATION
Unemployment Insurance
EMPLOYMENT AND TRAINING ADMINISTRATION
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
OUI/DPM
U. S. DEPARTMENT OF LABOR
DATE
WASHINGTON, D.C. 20210 June 9, 2011
ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 18-11
TO: STATE WORKFORCE AGENCIES
FROM: JANE OATES /s/
Assistant Secretary
SUBJECT: Revisions to the State Unemployment Insurance (UI) Data Validation
(DV) Handbook, Tax
1. Purpose. To transmit a revision of the Tax portion of ET Handbook No. 361, the UI DV
Handbook.
2. References. ET Handbook No. 361, “UI Data Validation Handbook” (Tax, July 11, 2008);
UIPL 17-10, “Revisions to the State Unemployment Insurance (UI) Data Validation (DV)
Handbook, Benefits,” March 8, 2010; UIPL 01-11, “Issuance of State Unemployment
Insurance Data Validation Operations Guide (ET Operations Guide 411),” October 22, 2010.
3. Background. UI Data Validation is necessary to ensure that data reported by states that are
used to measure performance, to determine administrative funding allocations, to conduct
economic analysis, and for other purposes are accurate and comparable across states. The
Tax portion of the UI DV Handbook has been revised to reflect current policy and program
requirements. The Department issued a revision of the Benefits portion in March 2010. The
authority for the UI DV program (OMB collection No. 1205-0431) has been approved
through July 31, 2011. A three-year extension has been requested.
4. Summary of Handbook Modifications. The Tax portion of the Handbook has been revised
to clarify instructions and refine overall content. The changes are summarized below:
All sections and appendices have been revised to reflect the most recent policy changes
disseminated in previous advisories, which are available on the DV Web site,
http://www.ows.doleta.gov/dv/ .
Appendices E (Duplication Detection Criteria) and F (Record Layouts) have been
eliminated from the Handbook and incorporated into the DV Operations Guide issued in
October 2010. The Guide and these appendices are available on the DV Web site,
http://wdr.doleta.gov/directives/attach/UIPL/UIPL01-11a1.pdf.
RESCISSIONS EXPIRATION DATE
Handbook 361, UI Data Validation Handbook,
Tax (July 11, 2008) June 9, 2012
-2-
Appendices C (Report Validation Summary Reports) and D (FIV Worksheets) have been
eliminated.
A table of contents has been added for Appendix A (Subpopulation Specifications).
5. Action Requested. Copies of the attachment should be distributed to all holders of ET
Handbook No. 361, the “UI Data Validation Handbook,” Tax. States should review these
changes and adjust their procedures as necessary. The contents of the Handbook are effective
immediately. Replace the Tax portion of the ET Handbook No. 361, “UI Data Validation
Handbook,” dated July 11, 2008, in its entirety.
6. Inquiries. All questions should be directed to the appropriate Regional Office.
7. Attachment. ET Handbook No. 361, “UI Data Validation Handbook”, Tax, May 2011.
UIPL18-11ATT.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2011/UIPL18-11ATT.pdf)
UNEMPLOYMENT INSURANCE
DATA VALIDATION HANDBOOK
Tax
OFFICE OF UNEMPLOYMENT INSURANCE
DEPARTMENT OF LABOR
MAY 2011
OMB No: 1205-0431
OMB Expiration Date: July 31, 2011
Estimated Average Response Time: 550 hours.
OMB Approval. The reporting requirements for ETA Handbook 361 are approved by OMB
according to the Paperwork Reduction Act of 1995 under OMB No. 1205-0431 to expire July 31,
2011. The respondents' obligation to comply with the reporting requirements is required to
obtain or retain benefits (Section 303(a)(6), SSA). Persons are not required to respond to this
collection of information unless it displays a currently valid OMB control number.
Burden Disclosure. SWA response time for this collection of information is estimated to
average 550 hours per response (this is the average of a full validation every third year with an
estimated burden of 900 hours, and partial validations in the two intervening years), including
the time for reviewing instructions, searching existing data sources, gathering and maintaining
the data needed, and completing and reviewing the collection of information. Send comments
regarding this burden estimate or any other aspect of this collection of information, including
suggestions for reducing this burden to the U. S. Department of Labor, Employment and
Training Administration, Office of Workforce Security (Attn: Burman Skrable), 200 Constitution
Avenue, NW, Room S-4220, Washington, D.C. 20210 (Paperwork Reduction Project 1205-
0431).
TABLE OF CONTENTS
INTRODUCTION ........................................................................................................................I-1
A. Objectives .............................................................................................................................I-1
B. Data Errors Identified Through Validation...........................................................................I-3
C. Data Sources for Federal Reporting and Validation .............................................................I-4
D. Basic Validation Approach ...................................................................................................I-4
E. Reconstructing Federal Report Items....................................................................................I-7
F. Handbook Overview .............................................................................................................I-8
G. Walkthrough of Data Validation Methodology ..................................................................I-10
MODULE 1 ................................................................................................................................. 1-1
A. Purpose................................................................................................................................. 1-1
B. Methodology ........................................................................................................................ 1-1
MODULE 2 ................................................................................................................................. 2-1
A. Purpose................................................................................................................................. 2-1
B. Procedures............................................................................................................................ 2-1
C. Examples.............................................................................................................................. 2-4
D. Procedures............................................................................................................................ 2-9
MODULE 3 ................................................................................................................................. 3-1
A. Purpose................................................................................................................................. 3-1
B. Methodology ........................................................................................................................ 3-1
MODULE 4 ................................................................................................................................. 4-1
A. Introduction.......................................................................................................................... 4-1
B. Procedures............................................................................................................................ 4-1
C. Results and Actions.............................................................................................................. 4-4
MODULE 5 ................................................................................................................................. 5-1
A. Purpose................................................................................................................................. 5-1
B. Methodology ........................................................................................................................ 5-2
APPENDIX A............................................................................................................................. A-1
A. Introduction......................................................................................................................... A-1
B. Report Quarter Terminology............................................................................................... A-1
C. Validation Timelines........................................................................................................... A-5
D. Population Table Specifications.......................................................................................... A-8
Population Tables.............................................................................................................. A-10
APPENDIX B ............................................................................................................................. B-1
A. Purpose................................................................................................................................ B-1
B. Procedures........................................................................................................................... B-1
INTRODUCTION
INTRODUCTION
A. Objectives
States regularly report to the U.S. Department of Labor (DOL) under the Unemployment
Insurance Required Reports (UIRR) system. In particular, states document their performance in
collecting UI employer contributions (taxes) and employer reports on the Employment and
Training Administration (ETA) 581 report entitled “Contribution Operations.” (Figure A)
Data from the ETA 581 report are used for three critical purposes: (1) allocation of UI
administrative funding based on state workload, (2) performance measurement to ensure the
quality of state UI program operations, and (3) calculation of state and national economic
statistics. Table A summarizes the types and uses of the data. Figure A displays the ETA 581
report.
Table A
Types and Uses of ETA 581 Data
Performance/Tax
Performance System
Funding/ (TPS) Computed Economic
Data Type Workload Measures Statistics
Active Employers X X X
Report Filing X
Status Determinations X X
Accounts Receivable X X
Field Audits X
Wage Items X X
Because ETA 581 data have these critical uses, it is essential that states report their activities
accurately and uniformly. Data validation measures the accuracy of state reporting on employer
contribution activities. Two principles underlie a comprehensive data validation process:
UI DV HANDBOOK, TAX I-1 FEBRUARY 2011
INTRODUCTION
Figure A
Form ETA 581
ETA 581 - CONTRIBUTION OPERATIONS
STATE REGION REPORT FOR PERIOD ENDING
st g_states.region rptdate
Employer Line End Quarter Employers Delinquency Total Number Wage
Count 101 Reim- Cutoff Date Items Received
Contributory bursement Total
-1 -2 -3 -4 -5
c1 c2 c3 c4 c14
Employer Contributory Employers Reimbursing Employers
Reports for Filing Secured Resolved Filing Secured Resolved
Preceding 201 Timely Timely
Quarters -6 -7 -8 -9 -10 -11
c53 c54 c55 c56 c57 c58
Newly Established Employers Successor Employers Inactivations/Terminations
Number Time Lapse Time Lapse Number Time Lapse Time Lapse
<= 90 days <=180 days <= 90 days <= 180 days
Status
301
Determinations
-14 -15 -16 -17 -18 -19 -20
c11 c61 c62 c68 c59 c60 c63
Declared Removed Total
Total
Contributory Beginning Deter-mined Uncol- End End
Employer 401 Period Receivable Liquidated lectible Period Period Number Employers Owing Receivables in (26)
Receivables -21 -22 -23 -24 -25 -26 -27
c14a c15 c16 c17 c64 c18
Age of 6 Months
Contributory or Less 9 Months 12 Months 15 Months Over 15 Months
402
Receivables -28 -29 -30 -31 -32
c43 c44 c45 c46 c47
Reimbursing Total Deter- Declared Removed Total
Employers Beginning mined Uncol- End End
Receivables 403 Period Receivable Liquidated lectible Period Period Number Employers Owing Receivables in (38)
-33 -34 -35 -36 -37 -38 -39
c19a c20 c21 c22 c65 c23 c24
Age of 6 Months
Reimbursing or Less 9 Months 12 Months 15 Months Over 15 Months
404
Receivables -40 -41 -42 -43 -44
c48 c49 c50 c51 c52
Number of Audits Calendar Total Wages Audited Hours Spent
Large Change Total Audits Number of Employees
501 Employers Audits Quarters Audited Pre-Audit Post-Audit Auditing Misclassified
-45 -46 -47 -48 -49 -50 -51 -52
c25a c28a c25b c26a c66 c67 c29a c69
Audit Activity
Amount Underreported Amount Overreported
Taxable
502 Total Wages Wages Contributions Total Wages Taxable Wages Contributions
-53 -54 -55 -56 -57 -58
c37a c38a c39a c40a c41a c42a
Number of Mandatory Number of Total Net Contributions Due
Transfers Prohibited
SUTA Dumping 503 Transfers
-59 -60 -61
c70 c71 c72
UI DV HANDBOOK, TAX I-2 FEBRUARY 2011
INTRODUCTION
1. If data are collected, they should be valid and usable.
2. Given the high degree of automation of UI systems, it is feasible and cost-effective
to validate most report cells.
States conduct the validation themselves and report the results to ETA. This handbook provides
detailed validation instructions for each state. ETA also provides states with a Sun-based data
validation software application (referred to as the Sun-based system in UIPL 22-05) to use in
conducting the validation.
Validation is administered using a “validation year” that coincides with the State Quality Service
Plan (SQSP) performance year. It comprises all reports for the four quarters beginning April 1
and ending March 31. Once validity is established by a passing validation, states are required to
validate reported data every third year, except for data elements used to calculate the
Government Performance and Results Act (GPRA) measures. GPRA data are validated
annually. The SQSP is the vehicle through which states submit plans to implement validation or
to revalidate failed items.
B. Data Errors Identified Through Validation
Systematic errors and random errors are the two major types of data error in federal UIRR
reports. Systematic errors involve faulty design or execution of reporting programs. Random
errors involve judgment and input errors. Reporting system errors are always systematic, while
errors stemming from human judgment can be either systematic or random. Both systematic and
random errors must be addressed in the validation design.
• Systematic errors are addressed through validation of the reporting programs that states
use to create federal reports. Systematic errors tend to be constant and fall into one of three
categories: 1) too many transactions (overcounts), 2) too few transactions (undercounts), or 3)
misclassified transactions. Systematic human errors occur when staff are using incorrect
definitions or procedures. For example, a reporting unit may establish its own definition for a
data element that conflicts with the federal definition (this can happen deliberately or
inadvertently). Systematic errors are the most serious because they occur repeatedly. They are
also the easiest to detect and correct. Systematic errors do not need to be assessed very
frequently, and each system error only needs to be corrected once. A one-time adjustment in a
retrieval code or calculation specification, or staff retraining on a corrected definition or
procedure, will usually correct systematic errors.
• Random errors are more variable. They include problems such as input errors or
judgment errors such as misunderstanding or misapplying Federal definitions. In general,
random errors occur intermittently. For example, a few data entry errors may occur even when
most information is entered correctly. Correcting one error does not ensure that similar errors
will not occur in the future.
Consistent and accurate reporting requires both good practice and accurate systems for reporting
the data. Data validation and Tax Performance System (TPS) reviews together test whether data
UI DV HANDBOOK, TAX I-3 FEBRUARY 2011
INTRODUCTION
are accurately posted to the state employer contributions system and reported correctly on the
ETA 581.
C. Data Sources for Federal Reporting and Validation
States use different methods to prepare the ETA 581 report. Some states produce the Federal
reports directly from the employer contributions database: computer programs scan the entire
database to select, classify, and count transactions. Other states produce a database extract or
statistical file as transactions are processed, essentially keeping a running count of items to be
tabulated for the report. Still other states use a combination of these methods. The basic
approach to data validation is the same no matter how the report is developed: using standard
national criteria, states reconstruct the report counts, using only transactions that should have
been reported; and compare what they reported to this reconstructed “validation” count.
The validation methodology is flexible in accommodating the different approaches used by
states. However, validation is most effective when validation data are produced directly from the
employer contributions database. For cost reasons and to minimize changes in data over time,
some states prefer to use daily, weekly, or monthly statistical extract files instead. When extract
files are used, other types of system errors may occur. Reportable transactions may be
improperly excluded from the employer master file. Furthermore, the statistical file may contain
corrupt data. Because the statistical file is not used as part of the daily tax system, errors are not
likely to be detected and corrected through routine agency business.
The only way to test for these problems is to independently reconstruct or query the employer
master file. States that produce validation data from the same statistical extract files used to
produce the ETA 581 instead of directly from the database must ensure that the extract files
contain all the appropriate employer transactions and statuses. The way to do this is to recreate
the logic used to produce the ETA 581. This handbook includes a validation tool, “independent
count validation,” specifically for this purpose. 1 See Appendix B.
Table B outlines variations in the validation methodology, based on typical state approaches to
ETA 581 reporting and data validation reconstruction. To determine the specific validation
methodology to be implemented, the state validator or federal representative should identify the
state’s ETA 581 report source and validation reconstruction source for each population to be
validated.
D. Basic Validation Approach
1
There is no way to accurately reconstruct the reported count when the statistical file
contains transactions that are no longer present in the database (e.g., when it includes status
determinations deleted from the main database after a corrected status determination is made for
the same employer).
UI DV HANDBOOK, TAX I-4 FEBRUARY 2011
INTRODUCTION
The basic approach used in data validation is to reconstruct the numbers that should have been
reported on the ETA 581. Because state UI records are highly automated, states can develop
computer programs that extract from electronic databases all transactions or statuses that they
believe should have been counted on the report. Each extracted transaction or status is compiled
as a record containing information on every dimension needed to classify it properly for
reporting purposes. Automation reduces the burden on validators and state information systems
(IS) staffs to extract records from state files, assemble those records for analysis, and assess
validation results.
Once transactions and statuses are extracted, they are subjected to a series of quality tests. The
DV software contains logic rules to ensure that the classifying elements in each record have
values consistent with classification into report cells. The validator examines samples of the
records to assess whether states have used the most definitive source of information and have
adhered to Federal definitions. After it is determined that the extract data meet the quality tests,
the data are used to produce “validation counts” that are compared to what the state has reported.
If reported counts are within the appropriate tolerance (usually ± 2%) of the validation counts,
the reporting system is judged valid.
States conduct validation using standardized web-based software that runs on DOL Sun
computers in state UI offices. Results are transmitted to the same UI data base used for UI
required reports, and from which results are extracted to monitor DV program compliance.
UI DV HANDBOOK, TAX I-5 FEBRUARY 2011
INTRODUCTION
Table B
Variations in Validation Methodologies Based on State
Approaches to Reporting and Reconstruction
ETA 581 Data Validation
Transactions Independent Source
Overwritten Program Program Count Documentation
Scenario on Database Type Source Timing Type Source Timing Required Review Required Comments
1 No Count Database Snapshot DRE Database Snapshot No No Best scenario because comparing
snapshots eliminates timing
discrepancies
2 No Count Statistical Daily DRE Database Snapshot No No Database is only reconstruction
file source. There could be changes
in transaction characteristics (but
will find all transactions).
3 No DRE Database Snapshot DRE Database Snapshot Yes No Reporting and validation are the
same program. Independent
count may mirror that program.
4 No DRE Statistical Daily DRE Statistical Daily Yes Yes Since transactions are not
file file overwritten, states should be able
to do Scenario 2 instead.
5 Yes DRE Statistical Daily DRE Statistical Daily NA NA No alternative validation source.
file file Cannot reconstruct from the
database. Not thorough
validation.
6 Yes Count Statistical Daily Must create a NA NA NA NA Cannot reconstruct from
file daily extract database. Must change reporting
process to Scenario 5.
NOTE: Snapshot is of the last day of the reporting period.
DRE = Detail Record Extract
NA = Not Available
UI DV HANDBOOK, TAX I-6 FEBRUARY 2011
INTRODUCTION
Data validation provides a reconstruction or audit trail to support the counts and classifications of
transactions that were submitted on the ETA 581 report. Through this audit trail, the state proves
that its UIRR data have been correctly counted and reported. For example, if a state reports
5,000 active reimbursable employers at the end of the quarter, then the state must be able to
create a file listing all 5,000 employers as well as relevant characteristics such as the Employer
Account Number (EAN), employer type, date the liability threshold was met, number of liable
quarters, and wages in each of those liable quarters. Analysis of these characteristics can assure
validators that the file contains 5,000 reimbursable employers correctly classified as active, and
that the reported number is valid.
E. Reconstructing Federal Report Items
There are 37 ETA 581 report items to validate. 2 A single employer account transaction or status
may be counted in several different ETA 581 report items. For example, a contributions report
that is filed on time is counted in two items for the current report quarter (timely reports and
secured reports) and in one item in the following report quarter (resolved reports).
A general principle of the validation design is to streamline the validation process as much as
possible. Transactions and statuses are analyzed only once, even if they appear in multiple
items. The streamlining is accomplished by classifying them into mutually exclusive groups,
which match to one or more items on the federal report. Specifically, tax validation identifies
five types of employer transactions or statuses (called populations), which are further divided
into 46 mutually exclusive groups (subpopulations). All validation counts are built from these
subpopulations. The five populations are: (1) Active Employers, (2) Report Filing, (3) Status
Determinations, (4) Accounts Receivable, and (5) Field Audits.
Table C lists the ETA 581 populations and subpopulations that are reconstructed and the number
of report items validated by each population. It also describes the dimensions used to divide
populations into subpopulations.
2
Wage items processed (item 5 on the ETA 581) are validated but through a less comprehensive
process. The ETA 581 wage item count is not reconstructed.
UI DV HANDBOOK, TAX I-7 FEBRUARY 2011
INTRODUCTION
Table C
ETA 581 Report, by Transaction Population
Population ETA 581 Dimensions Used to Number Number of
Line Create Subpopulations of Report Subpopulations
Numbers Items
1. Active Employers 101 Employer status: 2 2
contributory
reimbursing
2. Report Filing 201 Timing of report receipt and 6 16
resolution:
timely
secured within the quarter due
resolved within two quarters
3. Status 301 Type of status determination: 7 8
Determinations new
successor
inactive
terminated
Time lapse of the determination
4. Accounts 401 Receivable amounts: 10 16
Receivable 402 established
403
liquidated
404
declared uncollectible
removed from the report
outstanding at end of quarter
5. Field Audits 501 By employer size: 11 4
502 small
large
By audit result:
change
no change
6. Wage Items 101 1 N/A
Processed
F. Handbook Overview
To determine the extent to which reported data are accurate and meet federal reporting
definitions, five separate validation “modules” have been developed. Four of these modules—1,
2, 4, and 5—are processes that include various tools to use in validating the quantity and quality
UI DV HANDBOOK, TAX I-8 FEBRUARY 2011
INTRODUCTION
of federally reported data. Module 3 is not a process but a key map linking state data sources to
Federal reporting definitions that is essential to building and testing extract files. The modules
and accompanying appendices are outlined below.
Module 1—Report Validation (RV)
Module 1 describes how to validate whether state ETA 581 reporting programs are functioning
correctly. The Sun-based software systematically processes reconstruction files and compares
the count in each federal report item to the count in the corresponding subpopulation. The
validator examines transactions that the software rejects as invalid and determines whether the
rejected records need to be eliminated from the validation files because they represent
uncountable transactions (e.g., their dates put them out of range for the validated quarter) or are
improperly-built but potentially countable records that need to be fixed in a regenerated file.
Module 2—Data Element Validation (DEV)
Module 2 describes how to test the extract files to validate that the correct data elements are
used, and thus that validation counts can be trusted as accurate. Two tests are conducted as part
of DEV:
(2.1) Minimum Samples (formerly called File Integrity Validation, or FIV), two records
from each subpopulation, are examined to see that the correct data were extracted from the
database to build the reconstruction file.
(2.2) Sort Tests check whether the primary letter codes in the validation files are supported by
state database values, or whether Employer Account Numbers have the prefix, suffix, or range
values the state uses to differentiate contributory from reimbursing employers. Not all sorts are
applicable in all states.
Module 3—State-Specific Data Element Validation Instructions
Module 3 provides the state-specific instructions that the validator uses for investigating
minimum samples and applying sort tests, and helps guide programmers in building extract files.
Module 3 documents the system screens that display the data to be validated as well as the rules
that must be applied to each data element to determine its accuracy. State definitions or
procedures that affect validation are also documented to help state and federal staff interpret the
validation results and improve procedures.
Module 4—TPS Validation
Module 4 determines whether the state’s TPS acceptance samples were selected randomly from
the correct universe of transactions. The quality reviews are a key indicator of the state’s
performance; and it is important to review the sampling methodology to ensure the results are
statistically valid.
Module 5—Wage Item Validation
UI DV HANDBOOK, TAX I-9 FEBRUARY 2011
INTRODUCTION
This module explains how wage item counts are validated.
Appendix A—Report Validation File Specifications
Appendix A includes specifications for the five validation files that the state needs to generate.
Its key element is a table for each population that shows how each subpopulation is defined by
values of a record’s data elements, where each element is defined in Module 3, and how each
subpopulation relates to federal report cells validated. In addition, Appendix A provides
information about timing issues for each population.
Appendix B—Independent Count
Appendix B describes how to determine whether any transactions have been excluded from an
ETA 581 report item. These procedures are applicable to states that create the ETA 581 from the
same extract files used to generate the reconstruction files.
G. Walkthrough of Data Validation Methodology
Figure B is a schematic illustration of the DV process. This section provides IS and validation
staff with a step-by-step walkthrough, using ETA 581 active employers as an example. 3 It
references the handbook module in which that aspect of the data validation process is described.
Readers should review the referenced modules for further information.
State IS staff generate the ETA 581 report from the state’s UI employer database(s) or from
statistical files of counts or detailed records. The report item in the upper left corner of Figure B
represents the count of contributory and reimbursing employers reported on the ETA 581.
At the same time, guided by the file layout (DV Operations Guide, Appendix B), file
specifications (Appendix A) and definitions (Module 3), IS staff extract detailed records for the
reported transactions to reconstruct and provide an audit trail for the reported count. (See
Module 1.) This may be an iterative process; the software may reject many observations from
the initial version of the file as errors. The validator and programmers must examine errors and
determine which records should be removed from the file (e.g., dates out of range, duplicate
transactions) and which records are incorrectly built but are countable transactions and thus must
be corrected and the file rebuilt. The file is not ready for its final import from which samples are
drawn and RV results examined until all errors are dealt with.
The state should generate the ETA 581 and the validation file (the reconstructed “audit trail”)
from the employer database(s) at the same time. Ideally, to prevent inconsistencies due to
timing, the state would then immediately import the validation file into the software so that
3
The validation file, sort file, and state-specific handbook have been modified slightly in Exhibit I.5 for presentation
purposes. Utah’s Tax Transcript screen and handbook are shown.
UI DV HANDBOOK, TAX I-10 FEBRUARY 2011
INTRODUCTION
minimum samples can be drawn and the state can generate supporting documentation (for
example, query screens) from the employer database(s). 4
The DV software compares the reconstructed count with the reported count. In this example,
the validation screen shows the detailed records for the three contributory employers reported
on the ETA 581.
The software selects a sample of two records per subpopulation and displays them on the
sample worksheet. (See Module 2.) The validator assembles the materials—Module 3,
reconstruction files, sample worksheets, and screens—to be used during validation and for
review by DOL auditors.
The validator, following the “step” numbers in each column heading on the sample
worksheet on the DV software, tests the accuracy of the reconstructed data using the state-
specific instructions under the corresponding step number in the state’s Module 3. The
bottom right portion of Figure B shows a page from Utah’s Module 3. (See Module 2.)
Module 3 refers to state source documentation (usually query screens) and to specific fields
on the screens.
To complete the minimum sample reviews, the validator follows the rules for 2A
(contributory employer) in Module 3. The rule for Step 2A requires the validator to compare
the employer-type indicator on the screen to the employer-type indicator on the sample
worksheet. Using the down arrow, the validator selects ‘PASS’ if the two indicators match;
otherwise, ‘FAIL.’
The validator repeats the process for each data element on the worksheet guided by the step
numbers in each column heading. (See Module 2.)
4
Given the highly automated nature of tax data validation, database screens are generally the only supporting
documentation needed. Therefore, this handbook refers to screens, rather than to supporting documentation,
throughout.
UI DV HANDBOOK, TAX I-11 FEBRUARY 2011
INTRODUCTION
Figure B
Overview of UI Tax Data Validation Methodology
Tax
T r a n s c r ip t
SUBJ 0 7 /0 1 /9 1
ETA 581 End of Quarter Employers TERM 1 2 /3 1 /9 4
1 1 EAN
EFFT 0 1 /0 1 /9 2 A c tiv e
1. Contributory 2. Reimbursing REOP 0 4 /0 1 /9 5 S ta tu s 1
UI Employer 123
Employer Database T o ta l C o n tr. C o n tr.
3 1
Count Q tr EC W ages D ue P a id
2 /9 5 11 $ 1 2 ,0 0 0 $36 $36
3 /9 5 11 $ 1 5 ,0 0 0 $45 $45
2
4 /9 5 11 $ 1 6 ,0 0 0 $48 $48
1
1 /9 6 11 $ 1 5 ,0 0 0 $45 $45
U ta h
5
Detail Record Extract
e.g. TPS status
determination file
3 6
4
UI DV HANDBOOK, TAX I-12 FEBRUARY 2011
MODULE 1
Tax
REPORT VALIDATION
REPORT VALIDATION MODULE 1
MODULE 1
A. Purpose
The report validation process is used to determine the accuracy of counts reported on the ETA
581 report. Five validation extract files are constructed according to specifications in the DV
Operations Guide and Appendix A. These files are used to reconstruct the counts for the five
types of employer contributions populations that the state is validating. The report validation
files enable the validator to determine the accuracy of the ETA 581 report item counts. Table 1.1
lists the five report validation population files and the parts of the ETA 581 report they validate.
Table 1.1
Populations
Population ETA 581 Line
Population Description Number
1 Active employers 101
2 Report filing 201
3 Status determinations 301
4 Accounts receivable 401, 402, 403, 404
5 Field audits 501, 502
B. Methodology
Step 1 Produce Report Validation Extract Files
State staff produces five report validation extract filesthere is one extract file for each of the
five populations of UI contributions transactions and statuses. State staff should use the
following specifications to prepare the five files:
1. Extract File Specifications (Appendix B of the DV Operations
Guide; also available on the DV Web page at
http://ows.doleta.gov/dv/).
2. Population tables and timing specifications in Appendix A
3. Duplicate Detection Criteria (Appendix D of the DV Operations
Guide)
4. State’s Module 3
The extract file format is ASCII, comma delimited. See Figure 1.1 for an example of a record
layout. Data must be in the order listed in the record layouts. The Data Type/Format column on
the layouts indicates generic values for text fields. The generic values must be followed by a
dash and the state-specific value. See Figure 1.2 for an example of an extract file.
UI DV HANDBOOK, TAX 1-1 FEBRUARY 2011
REPORT VALIDATION MODULE 1
It is best to generate the validation files at the same time as the ETA 581 to eliminate differences
in data caused by changes in the employer database over time. Because the ETA 581 provides a
“snapshot” of transactions and employer statuses during a specific time period, the validation is
intended to verify the status of transactions at the time the report was run, even if data later
changed. It is less efficient to compare a set of transactions or statuses captured at one point in
time with those captured at another point in time, because many discrepancies will represent
legitimate changes in a dynamic database, instead of systems errors or faulty data. For example,
an employer’s status can legitimately change from active to inactive. If states have a complete
audit trail, timing should not affect the reconstruction of transactions. For example, states should
maintain records of status determinations even if the employer’s status changed in the same
quarter. The validator can use these audit trails to verify that a transaction was correct at the
time of reporting.
Step 2 Import Extract Files
The extract files are imported into the DV software following the instructions in the DV
Operations Guide. The software processes each extract file and builds the subpopulations as
specified in Appendix A. The subpopulations are based on the unique types of transactions and
statuses that can occur and that can be reported on the federal reports. For example, Population
1, active employers, includes all employers who were active on the last day of the quarter. The
software assigns each record to a subpopulation defined by unique combinations of
characteristics such as employer status, employer type, liability date, and termination date. See
Figure 1.3 for a sample of a validation file imported into the software.
Step 3 Examine Error Reports and Reload Extracts If Necessary
When the extract files are loaded, the DV software reads each record to ensure that all fields are
valid. Any records with invalid data, missing mandatory data, or records which appear to be
duplicates are rejected and an error report is produced. The record layouts in the DV Operations
Guide specify the valid data formats for each field, and the population tables in Appendix A
specify the valid values. The software uses the duplicate detection criteria in the DV Operations
Guide to identify duplicate records that the validator must review.
After reviewing any error reports that are generated, state staff should determine if the extracts
are correct or whether they need to be regenerated or reformatted and reloaded into the DV
software. This process should be repeated until the extract files have no errors.
See Figure 1.4 for an example of an error report.
Step 4 Report Validation
The DV software calculates the validation count or dollar amount for each subpopulation
specified in Appendix A. The validation values are compared to the corresponding reported
values in the national UI database. The software then calculates the difference between the
validation and reported values and also calculates an error rate. A reported value is considered
valid and “passes” report validation if the error rate falls within the established tolerance (± 1%
for data used in Government Performance and Results Act (GPRA) measures and ± 2% for all
UI DV HANDBOOK, TAX 1-2 FEBRUARY 2011
REPORT VALIDATION MODULE 1
others). The GPRA Tax measure is the percent of all New Status determinations made within 90
days; the elements with a ±1% tolerance are Total New Status Determinations and New Status
determinations made within 90 Days.
The software produces a summary report that displays all of this information. This summary
report is submitted to the UI national office.
UI DV HANDBOOK, TAX 1-3 FEBRUARY 2011
REPORT VALIDATION MODULE 1
Overview of Module 1
Table 1.2 and Figure 1.1 show an overview of Module 2 methodology.
Table 1.2
Overview of Module 1
Step Description of Step
1A – Analyze the validation program specifications including:
1D
1A. Record Layouts (DV Operations Guide): contains specifications to
build the validation extract files
1B. Data Element Validation State Specific Instructions (Module 3):
Includes instructions and state’s specific screen names, element names and
value codes for validating each data element.
1C. Duplicate Detection Criteria (DV Operations Guide): contains the
criteria that the software uses to detect duplicates.
1D. Subpopulation Specifications (Appendix A): contains reporting and
sampling specifications for each population.
2 Extract transaction records from the state database(s), including all of the data
elements specified in the record layouts. The extract process should include a
routine to ensure that invalid duplicates are excluded from the file, as specified
in the duplicate detection criteria in the DV Operations Guide.
3 Import the validation files into the DV software, which processes the files and
assigns transactions to the subpopulations specified in Appendix A.
4 The RV screen compares the validation counts to the reported counts and
displays the error rates and a pass/fail population score.
UI DV HANDBOOK, TAX 1-4 FEBRUARY 2011
REPORT VALIDATION MODULE 1
Figure 1.1
Overview of Module 1
The following figures are examples of:
1. Population 3 Record Layout (Figure 1.2)
2. Population 3 Sample Extract File (Figure 1.3)
3. Population 3 Validation File after Processed through DV Software (Figure 1.4)
4. Population 3 RV Summary (Figure 1.5)
UI DV HANDBOOK, TAX 1-5 FEBRUARY 2011
REPORT VALIDATION MODULE 1
Figure 1.2
Population 3 Record Layout (portion)
The record layout provides the format for the validation extract file. The extract file type must be ASCII, comma delimited columns.
Data must be in the order listed in the record layout. The Data Format column indicates the generic values for text fields. These must
be followed by a dash and the state-specific value. The Module 3 reference indicates the step where the state-specific values are
documented.
Example: If the state-specific code for New Status Determination is NEW, then the data format would be N-NEW.
Module 3
No. Field Name Reference Field Description Data Type/Format DVWS Constraint
1 OBS Sequential number, start at 1 Number - 00000000 (Required) INTEGER NOT NULL
2 EAN Step 1A Employer Account Number Number - 000000000 CHAR (20) NOT NULL
(Required)
3 Employer Type Step 2A Indicate whether the employer Text - C; R CHAR (20) NOT NULL
Step 2B type is contributory or (Required)
reimbursable.
4 Status Step 11A- D Indicate status determination Text - N; S; I; T CHAR (10) NOT NULL
Determination Type type by New, Successor, (Required)
Indicator Inactivation or Termination.
5 Time Lapse Step 12 Place a zero (0) in this field. Number - 0 INTEGER
(Software generates the time
lapse)
UI DV HANDBOOK, TAX 1-6 FEBRUARY 2011
REPORT VALIDATION MODULE 1
Figure 1.3
A Population 3 Extract File in ASCI Comma-delimited Format
000000001,000000001,C-100,T-345,0,05/16/2003,03/31/2003,,,,,,,05/16/2003,20031021140204
000000002,000000002,C-800,I-306,0,05/08/2003,09/30/2002,,,,,,05/08/2003,,20031021140204
000000003,000000003,C-100,N-106,0,04/02/2003,12/09/2002,,04/02/2003,,,,,,20031021140204
000000004,000000004,C-100,I-306,0,06/13/2003,06/30/2002,,,,,,06/13/2003,,20031021140204
000000005,000000005,C-100,I-325,0,06/16/2003,03/31/2002,,,,,,06/16/2003,,20031021140204
000000006,000000006,C-100,N-101,0,04/02/2003,03/31/2003,,04/02/2003,,,,,,20031021140204
000000007,000000007,C-100,I-306,0,06/13/2003,03/31/2003,,,,,,06/13/2003,,20031021140204
000000008,000000008,C-040,S-186,0,04/03/2003,01/01/2003,,04/03/2003,,04/03/2003,000281498,,,20031021140204
000000009,000000009,C-040,I-370,0,04/03/2003,12/31/1997,,,,,,04/03/2003,,20031021140204
000000010,000000010,C-420,S-186,0,04/03/2003,07/01/2002,,04/03/2003,,04/03/2003,000149776,,,20031021140204
000000011,000000011,C-420,I-370,0,04/03/2003,12/31/1980,,,,,,04/03/2003,,20031021140204
000000012,000000012,C-130,S-186,0,04/03/2003,10/02/2002,,04/03/2003,,04/03/2003,000051455,,,20031021140204
000000013,000000013,C-130,I-370,0,04/03/2003,03/31/1971,,,,,,04/03/2003,,20031021140204
000000014,000000014,C-000,S-165,0,04/21/2003,01/01/2002,,04/21/2003,,04/21/2003,000283912,,,20031021140204
000000015,000000015,C-100,I-306,0,06/03/2003,09/30/2002,,,,,,06/03/2003,,20031021140204
000000016,000000016,C-100,S-161,0,04/08/2003,01/24/2003,,04/08/2003,,04/08/2003,000309296,,,20031021140204
000000017,000000017,C-100,N-101,0,04/02/2003,12/31/2001,,04/02/2003,,,,,,20031021140204
000000018,000000018,C-100,N-101,0,04/02/2003,12/31/2002,,04/02/2003,,,,,,20031021140204
000000019,000000019,C-100,N-106,0,04/02/2003,12/22/2002,,04/02/2003,,,,,,20031021140204
000000020,000000020,C-100,N-101,0,04/02/2003,03/31/2003,,04/02/2003,,,,,,20031021140204
000000021,000000021,C-800,N-120,0,04/02/2003,06/30/2002,,04/02/2003,,,,,,20031021140204
000000022,000000022,C-800,I-306,0,04/02/2003,03/31/2002,,,,,,04/02/2003,,20031021140204
000000023,000000023,C-100,N-101,0,04/02/2003,12/31/2002,,04/02/2003,,,,,,20031021140204
000000024,000000024,C-100,N-101,0,04/02/2003,03/31/2002,,04/02/2003,,,,,,20031021140204
UI DV HANDBOOK, TAX 1-7 FEBRUARY 2011
REPORT VALIDATION MODULE 1
Figure 1.4
A Population 3 Validation File After Processing by DV Software
UI DV HANDBOOK, TAX 1-8 FEBRUARY 2011
REPORT VALIDATION MODULE 1
Figure 1.5
Population 3 Report Validation Summary
UI DV HANDBOOK, TAX 1-9 FEBRUARY 2011
MODULE 2
Tax
DATA ELEMENT VALIDATION
DATA ELEMENT VALIDATION MODULE 2
MODULE 2
A. Purpose
The most important goal of the validation process is to determine how accurately employer
contributions transactions and statuses have been reported on the ETA 581. After the report
validation files have been built and each transaction has been assigned to a specific
subpopulation, the key question is whether the data in each record are correct. This process is
called data element validation (DEV). During DEV the validator will test whether the validation
file is built from the correct elements, i.e., elements that are consistent with Federal reporting
definitions. DEV comprises two separate testing procedures to ascertain whether key data
elements in the report validation file have the values that should be used for building the file and
validating the ETA 581 report counts. These are minimum samples and sorts/range tests. Only
when a file has passed both procedures can it be considered the basis for judging the accuracy of
ETA 581 report counts.
Module 2.1Minimum Samples (formerly called File Integrity Validation (FIV). The DV
software selects a sample of two (2) records per subpopulation that are then displayed on the
sample worksheet. The validator reviews the sampled records using the state-specific data
values and instructions in Module 3, which point the validator to the appropriate supporting
documentation (such as employer history screens). The validator uses this documentation to
validate that the data elements on the worksheets are accurate and that the transactions are
assigned to the appropriate subpopulations. This test ensures that the data in the reconstruction
file accurately reflect the correct employer records in the state’s database(s). All states’
populations have minimum samples.
Module 2.2Sorts Tests/Range Validation provides additional validity tests that examine
whether the primary letter codes used in building the extract file (e.g., N for New or S for
Successor Status determinations) correspond to the proper state-specific codes, and whether
Employer Account Numbers (EANs) have the right prefix, suffix or range values for
Contributory or Reimbursing employer accounts in the state. Not all of these tests apply in all
states.
MODULE 2.1—MINIMUM SAMPLES
B. Procedures
Task 1: Select Minimum Samples
The sampling function of the UI Tax DV software randomly selects two records from each
subpopulation. See the tax tutorial for detailed instructions on how to use the Sun-based DV
software. For each population, the software creates a Minimum Samples Worksheet listing all
data elements for each sampled record (see example in Figure 2.1).
UI DV HANDBOOK, TAX 2-1 FEBRUARY 2011
DATA ELEMENT VALIDATION MODULE 2
Minimum samples—instead of the larger random samples used in benefits--are sufficient for tax
because tax database data are simpler than benefits data, and so the test of whether a file has
been built correctly is whether the correct data have been retrieved for the extract file. The
validator does not have to apply the kind of logic tests used in benefits to assess whether the
correct data element has been used to build the file. The extract process that states use to build
the extract files is highly automated. Automated processes are repetitive. If, for example, a
certain field in the employer history file is extracted and placed in the fifth column of the
reconstruction file for one record, that same field will be used for the fifth column of every
record in that file. Thus, if we know that all data elements have been transferred correctly for the
sampled records, we can be reasonably sure that all similar records are constructed correctly.
Task 2: Conduct Sample Investigation
For each data element in the sampled records, the validator compares the data value on the
worksheet to source screens following instructions in Module 3. Based on that comparison, the
validator records whether or not the value matches what is in the state database. The source data
can be found by referring to query screens from the state data system. These screens display
information on transactions and the status of employer accounts. 5
Figure 2.2 is a sample page from Module 3. For each step listed in Module 3, Minimum Sample
Instructions are provided. These instructions help the validator locate and compare specific data
elements in the state database corresponding to the data on the worksheet, and to determine the
validity of the information (pass or fail).
The instructions for each step or substep identify the supporting documentation (screen and field
names) that the validator will need to examine. A set of logic tests, called validation rules,
determines the accuracy of each characteristic of a given transaction. A subsection, called
function, explains the purpose of each rule.
Definitions listed for each step in Module 3 give the federal definition of the item being
validated. This definition is followed by further information on the data elementexamples,
inclusions (situations falling within the definition), and exclusions.
Definitional Issues identify known discrepancies between state and federal definitions. This
section provides a place for states to systematically document validation issues, letting validators
and auditors know when problems are anticipated. Where state and federal definitions differ, be
sure to follow the federal rules as required by the reporting instructions.
Comments provide additional information identified by states that state staff or federal auditors
may need in order to handle unusual situations.
5
Elements requiring data from multiple fields pose a greater risk of reconstruction error. For example, the
reactivation date for status determinations may not come directly from one field in a state’s database, but instead
from a combination of a transaction code and a transaction date field. A series of applicable transaction codes may
represent reactivations. In these instances, the state or region may want to examine the elements in greater detail.
As discussed in Module 1, states should produce the necessary screens as soon as possible after the reconstruction
file is created.
UI DV HANDBOOK, TAX 2-2 FEBRUARY 2011
DATA ELEMENT VALIDATION MODULE 2
Task 3: Produce Sample Results
Using the down-arrow on the software, select ‘PASS’ on the worksheet next to each data element
that successfully passes a step. Select ‘FAIL’ if a data element does not pass the step. Each
column on the worksheet must be validated before the record is considered complete, and Pass or
Fail must be selected for every item of every record in the sample or else the summary line will
indicate “Incomplete.” The software will not transmit results of populations with incomplete
DEV items. Based on the pass/fail entries, the worksheet will provide an item-by-item count of
the number of data elements that failed. All sampled records must be completely free of errors
for a state to pass a Minimum sample. Once the state validator has finished reviewing all of the
sampled records for a population, the results should be saved following the instructions in the
DV Operations Guide.
UI DV HANDBOOK, TAX 2-3 FEBRUARY 2011
DATA ELEMENT VALIDATION MODULE 2
C. Examples
1. Example of Minimum Samples Worksheet (Figure 2.1)
2. Sample Page from Module 3 (Figure 2.2)
3. Minimum Sample Validation Procedures (Table 2.1 and Figure 2.3)
Figure 2.1
Example of Minimum Samples Worksheet
UI DV HANDBOOK, TAX 2-4 FEBRUARY 2011
DATA ELEMENT VALIDATION MODULE 2
Figure 2.2
Sample Page from Module 3
UI DV HANDBOOK, TAX 2-5 FEBRUARY 2011
DATA ELEMENT VALIDATION MODULE 2
Overview of Module 2.1 (Figure 2.3)
Table 2.1 and Figure 2.3 summarize the tasks in the Minimum Sample review process.
Figure 2.3
Who
Task
Description of Task Performs
No.
Task
1 Open Minimum Samples Worksheet, which lists all data elements Validator
for two records from each subpopulation. A single worksheet is
generated for each population.
2 Produce necessary query screens at the same time reconstruction file IS Staff
is created. Validator
3 The validator turns to the designated step in Module 3. Each step Validator
will have one or more rules listed. The purpose or “Function” of
each rule is provided. In addition, each step includes the definition
from the ETA 581. Use “Definitional Problems” to document
instances where state regulations or practices conflict with the
federal definitions. The validator can use the “Comments” field to
record notes or document issues that may be helpful for future
validations.
4 The validator locates the source Document listed to check each rule. Validator
The document is the source used to compare the data on the
worksheet with the data residing in the state database or state files.
In some cases, it will not be necessary to pull any additional
documents when all of the data elements have been included on the
worksheet. In other instances, it will be necessary for the validator
to refer to screens and/or case files.
5 The validator determines whether the data element being validated Validator
passes all of the validation rules using the required documents.
6 If any of the rules for the step fail validation, the validator selects Validator
‘FAIL’ on the worksheet for that step.
7 If the data element passes all of the rules, the validator selects Validator
‘PASS’ on the worksheet for that step.
UI DV HANDBOOK, TAX 2-6 FEBRUARY 2011
DATA ELEMENT VALIDATION MODULE 2
Module 2.2—SORTS TESTS
Sorts is the name given to a series of tests used in certain states to determine whether data
element values such as C for Contributory or N for New status determinations used to build the
extract file records are supported by underlying state database codes or Employer Account
Number (EAN) values.
The validation software assigns records to subpopulations, in part by using the generic codes
used by all states to build the validation files. For example, all states use ‘C’ to mean
contributory followed by a dash and the state-specific code for contributory. Sorts tests must be
conducted when states have multiple state-specific codes that could be assigned to a single
generic code. A separate query test is also necessary when the state uses the prefix, or suffix, or
value range of the EAN to identify whether the employer type is contributory or reimbursing.
Table 2.2 shows a variety of codes that one state uses to classify a status determination that an
employer is either newly liable or a successor to an existing employer. In building its population
3 validation file, this state might have several acceptable state-specific codes to map to the
generic status determination type indicators of “N” (new) and “S” (successor). For example, this
state’s validation file might show new status determination type indicator values of N-01, N-02,
N-03, N-07, N-08, N-09 or N-10.
For most of the sorts, the validation software produces a distribution of all records in populations
1 – 4 in the extract file by certain key primary codes. It shows the relationship of the records
with the primary code to the state’s secondary codes captured when the file was built. The
validator examines these codes to identify any state-specific codes that are not acceptable
matches for the generic code. In the example above, any code other than 01-03 or 07-10 would
not be consistent with a correct value of N on the record. For sorts 1.1, 1.2, 2.1 and 2.2, the
software allows the validator to query Populations 1 and 2 to determine whether the prefix,
suffix, or value range of the EAN is consistent with state procedures for classifying employers by
type (contributory or reimbursing). A data element passes the sort test if no more than 2% of the
sorted transactions include an incorrect state-specific code or the wrong EAN value. Unless a
population extract file passes all applicable sorts tests and has no minimum samples with errors,
the population cannot pass report validation because the integrity of the extract file used for the
validation is not established.
The DV software provides a data entry screen on which the validator records, for each sort, the
number of records subjected to the test and the number of records that are “out of range.” It also
allows the validator to check N/A if the sort does not apply in the state.
UI DV HANDBOOK, TAX 2-7 FEBRUARY 2011
DATA ELEMENT VALIDATION MODULE 2
Table 2.2
Status Determination Reason Codes
This table lists codes that a state used to indicate the reason employers were
subject to the provisions of UI law as either a ‘new’ employer or as a
‘successor.’
Code Reason
01 Payroll
02 Employment 13th week
03 FUTA
04 Whole Successor allowed
05 Part Successor
06 Consolidation allowed
07 Revived with new number
08 Payroll domestic
09 Payroll agriculture
10 Employment agricultural
UI DV HANDBOOK, TAX 2-8 FEBRUARY 2011
DATA ELEMENT VALIDATION MODULE 2
D. Procedures
Task 1: Identify Applicable Sorts Tests
Examine the sort criteria in Table 2.3 (pages 2-12 and 2-13, below). For each potential sort, look
at the column entitled “When to Do Range Validation” to determine whether the test is
applicable to the state. A sort is only applicable when there are multiple state codes that map to a
single generic indicator, or when the state uses the Employer’s Account Number (EAN) to
identify whether an employer is contributory or reimbursing.
Task 2: Conduct Appropriate Test
To begin range validation, log onto the Sun-based DV software and select the appropriate
population from the Tax Selection Criteria menu.
Select View Data Element Sorts from the drop-down list. The software presents a DATA
ELEMENT SORTS table listing every sort for the population and a box for entering the number
of errors you identify for that sort. The table displays the # of Cases to which the sort is
applicable; the software has calculated them by summing the cases in the relevant
subpopulations.
Click on the link for an applicable sort. If a sort is not applicable in your state, click the N/A
box.
The DV software only queries records in the subpopulations applicable to the selected sort.
Except for the EAN sorts, all of the sorts in Table 2.3 involve instances where a state may have
multiple codes for employer status, employer type, or types of transactions. The software
produces a distribution of the primary code by the state-specific secondary codes; validators can
examine the individual sorted records for each secondary code by clicking on a link. See the
DV Operations Guide for a detailed explanation of how to conduct EAN range validation (sorts
1.1, 1.2, 2.1, 2.2).
Task 3: Produce Range Validation Results
After examining the sorted records, the validator enters the total of errors on the Data Element
Sorts screen. As soon as the SAVE button is clicked, the DV software calculates the error rate
and indicates whether the sort passed or failed. The results are sent to the Population Scores
table. When all sorts and Minimum samples are complete, the validator may transmit the results
to the national office.
States have passed range validation when they have established that no more than 2% of the
records in the tax extract files include incorrect state-specific codes or incorrect EANs
representing employer type.
UI DV HANDBOOK, TAX 2-9 FEBRUARY 2011
DATA ELEMENT VALIDATION MODULE 2
Task 4: Correcting Validation Errors
Validation is not an end in itself; it is a means toward correct reporting. If validation identifies
reporting errors, the state should correct the reporting errors as soon as possible. To document
the corrective action for resolving reporting errors, and the timetable for completion, the state
must address the problem to its ETA Regional Office in accordance with the annual State
Quality Service Plan (SQSP). This will be either in the SQSP narrative or as part of a Corrective
Action Plan (CAP). (Any state that fails to conduct and submit the validation for one or more
benefits or tax populations must address this failure in a CAP.) The narrative or CAP should
contain the following information on every validated report element that exceeds the validation
error rate tolerance:
Report element(s) in error.
Magnitude of error found.
Status/Plan/Schedule for correcting. If reporting errors were corrected in the course of
the first validation, the report should simply note “corrected during validation.”
(Validation of the affected transactions should occur immediately after these corrections
have been made.)
Timing of CAP or Narrative. The plan for correcting the errors should be submitted within the
established deadlines of the SQSP.
Revalidation. Populations that failed any validation must be revalidated the following year. A
revalidation should confirm the success of the corrective action or, if the state has not completed
corrective action, identify the current extent of the error.
Errors Discovered Outside the Validation Process. During the validation process, errors in
reporting may be identified that are outside the scope of the validation program. Such errors
should be included in the comments section of the state’s data validation reports.
UI DV HANDBOOK, TAX 2-10 FEBRUARY 2011
DATA ELEMENT VALIDATION MODULE 2
Table 2.3
Sorts Validation Criteria
Population Sort Subpopulations When to Do Sorts Validation Test Data Test Criteria Module 3
Sorted Element References
1 S1.1 1.1 When the employer’s account number indicates that EAN All EANs must be in ranges Step 2A
the employer type is contributory. allocated to contributory
employers
1 S1.2 1.2 When the employer’s account number indicates that EAN All EANs must be in ranges Step 2B
the employer type is reimbursing. allocated to reimbursing
employers
1 S1.3 1.1 and 1.2 When more than one employer status code is used to Employer All status codes must represent Step 3A
indicate that the employer’s status is active. Status active employers
Indicator
1 S1.4 1.1 When more than one employer type code is used to Employer All employer type codes must Step 2A
indicate that the employer type is contributory. Type Indicator represent contributory employers
1 S1.5 1.2 When more than one employer type code is used to Employer All employer type codes must Step 2B
indicate that the employer type is reimbursing. Type Indicator represent reimbursing employers
2 S2.1 2.1- 2.8 When the employer’s account number indicates that EAN All EANs must be in ranges Step 2A
the employer type is contributory. allocated to contributory
employers
2 S2.2 2.9-2.18 When the employer’s account number indicates that EAN All EANs must be in ranges Step 2B
the employer type is reimbursing. allocated to reimbursing
employers
2 S2.3 2.1-2.8 When more than one employer type code is used to Employer All employer type codes must Step 2A
indicate that the employer type is contributory. Type Indicator represent contributory employers
2 S2.4 2.9-2.18 When more than one employer type code is used to Employer All employer type codes must Step 2B
indicate that the employer type is reimbursing. Type Indicator represent reimbursing employers
3 S3.1 3.1-3.3 When the state uses more than one code to indicate Status Deter- All status determination type Step 11A
that the status determination type is new. mination Type codes must represent ‘new’ status
determination type
3 S3.2 3.4-3.6 When the state uses more than one code to indicate Status Deter- All status determination type Step 11B
that the status determination type is successor. mination Type codes must represent ‘successor’
status determination type
3 S3.3 3.7 When the state uses more than one code to indicate Status Deter- All status determination type Step 11C
that the status determination type is inactivation. mination Type codes must represent
‘inactivation’ status determination
type
UI DV HANDBOOK, TAX 2-11 FEBRUARY 2011
DATA ELEMENT VALIDATION MODULE 2
Table 2.3
Sorts Validation Criteria
Population Sort Subpopulations When to Do Sorts Validation Test Data Test Criteria Module 3
Sorted Element References
3 S3.4 3.8 When the state uses more than one code to indicate Status Deter- All status determination type Step 11D
that the status determination type is termination. mination Type codes must represent
‘termination’ status determination
type
4 S4.1 4.1, 4.9 When the state uses more than one code to indicate Transaction All transactions must be Step 21A
that the transaction type is establishment. Type Indicator establishment of accounts
receivable
4 S4.2 4.2, 4.10 When the state uses more than one code to indicate Transaction All transactions must be Step 21B
that the transaction type is liquidation. Type Indicator liquidations of accounts
receivable
4 S4.3 4.3, 4.4, When the state uses more than one code to indicate Transaction All transactions must be accounts Step 21C
4.11, 4.12 that the transaction type is declared uncollectible. Type Indicator receivable declared uncollectible
UI DV HANDBOOK, TAX 2-12 FEBRUARY 2011
Module 3
Tax
DATA ELEMENT VALIDATION
STATE SPECIFIC INSTRUCTIONS
DEV STATE SPECIFIC INSTRUCTIONS MODULE 3
MODULE 3
A. Purpose
Module 3 provides the set of actual state-specific instructions that the validator uses in data
element validation. It lists the state system screens or documents that contain the data from
which the extract files are built as well as the rules to validate them. State definitions or
procedures that affect validation are also documented to help state and federal staffs interpret the
validation results and improve procedures. Although the intent of Module 3 is to identify state-
specific data that are consistent with Federal reporting definitions, the inclusion of state-specific
information in this module is not to be deemed a finding by itself that such information is in
compliance with federal reporting data definitions.
Module 3 is not included in this handbook. It is maintained in a database that contains data for
every state. Since these instructions are state-specific, each state is responsible for reviewing and
updating its Module 3 regularly. Every year by June 10 States need to certify that they have
reviewed their Module 3 and that is up-to-date.
B. Methodology
Table 3.1 outlines each step in the state-specific validation instructions and its component
substeps. Table 3.2 indicates the combination of validation steps required for validation of each
population. The worksheet guides the validator to the necessary steps by the presence or absence
of data in each column for a given transaction. Each column header identifies the steps to use in
validating the data in that column. Once the validator learns the instructions and rules listed
under each step and substep, it may not be necessary to refer to them for each transaction or
element being validated.
The validator begins the validation by looking at the first transaction (first row) on the worksheet
and then by looking at the first step listed in the column header at the top of the worksheet. The
validator then locates that step in the state-specific instructions in Module 3.
If there are substeps, but the substep is not specified in the column heading, the first page for the
step number will direct the validator to the appropriate substep.
Note: Some steps in Module 3 indicate that they do not require validation or they are no
longer required. The step numbers, however, have been retained in Module 3 to
document the states’ procedures for these steps.
UI DV HANDBOOK, TAX 3-1 FEBRUARY 2011
DEV STATE SPECIFIC INSTRUCTIONS MODULE 3
Table 3.1
Data Element Validation Steps and Substeps
Substep Substep Substep Substep Substep
Step
A B C D E
1. Match Active Employer Status Accounts Field
Employers Report Filing Determinations Receivable Audits
2. Employer Type Contributory Reimbursable
3. Employer Status Active Inactive/
Terminated
4. Liability Date Initial Reopen
5. Inactive/Terminated
as of Date
6. Inactivation and Combined Inactivation Termination
Termination
Processing Dates
7. Wages Quarterly Number of
Wages Liable Quarters
8. Employer Report Timely Secured Resolved
Filing
9. Received Date
10. Final Assessment
Date
11. Status New Successor Inactivation Termination
Determination Type
12. Status
Determination Time
Lapse
13. Status
Determination Date
14. End of Liable
Quarter
15. Activation
Processing Date
16. Reactivation
Processing Date
17. Successorship
Processing Date
18. Predecessor
Account Number
19. Receivable Dates Transaction Established
Date Date
20. Due Date
21. Type of Transaction Receivable Receivable Declared
Established Liquidated Uncollectible
22. Established Amount
23. Liquidated Amount
24. Amount Declared
Uncollectible
25. Amount Removed
26. Balance at End of
Quarter
UI DV HANDBOOK, TAX 3-2 FEBRUARY 2011
DEV STATE SPECIFIC INSTRUCTIONS MODULE 3
Substep Substep Substep Substep Substep
Step
A B C D E
27. Age of Receivable Contributory Reimbursable
28. Employer Size Large Not Large
29. Change Audit Type Change No Change
30. Audit Completion
Date
31. Total Wages Pre-Audit Post-Audit Under Reported Over Reconciled
Reported
32. Taxable Wages Pre-Audit Post-Audit Under Reported Over Reconciled
Reported
33. Contributions Pre-Audit Post-Audit Under Reported Over Reconciled
Reported
UI DV HANDBOOK, TAX 3-3 FEBRUARY 2011
DEV STATE SPECIFIC INSTRUCTIONS MODULE 3
Table 3.2
Relevant Data Element Validation Steps, by Population
Population Relevant Data Element Validation Stepsa
1. Active Employers 1, 2, 3, 5, 7, 14, 15, and 16
2. Report Filing 1, 2, 4, 5, 6, 8, 9, 10, and 14
3. Status Determinations 1, 2, 6, 11, 12, 13, 14, 15, 16, 17, and 18
4. Accounts Receivable 1, 2, 19, 20, 21, 22, 23, 24, 25, 26, and 27
5. Field Audits 1, 28, 29, 30, 31, 32, and 33
a
The population tables in Appendix A specify the appropriate substeps for each population.
UI DV HANDBOOK, TAX 3-4 FEBRUARY 2011
MODULE 4
Tax
QUALITY SAMPLE VALIDATION
QUALITY SAMPLE VALIDATION MODULE 4
MODULE 4
A. Introduction
One of the Tax Validation responsibilities is to review the integrity of four key Tax Performance
System (TPS) acceptance samples: the three Status Determination samples and the Field Audit
sample. The objective of the DV reviews is to ensure that the samples are drawn randomly from
the correct population or universe. The validator (a) reviews how the sample was selected and
(b) compares the universe from which the sample is drawn to a reference count—ideally the
validated reference count--from the ETA 581 report. To ensure that only random acceptance
samples are investigated, the randomness of each TPS sample should be validated before the
cases are given to the TPS reviewer for investigation. To keep from delaying the case
investigations, do (a) as soon as the sample is drawn, as it does not depend on the 581 reference
data. Comparing the universe count with the 581 reference count, (b), can be done later, when
581 data are submitted. That will be approximately February 20 for the Status Determination
samples and November 20 or February 20 for the Field Audit sample (per UIPL 13-10, states
have discretion in the review period for the Field Audit sample.)
States may select their TPS samples in either of two ways. The first is a conventional interval
sample: the programmer (or a utility program) divides the size of the desired sample (say 30)
into the size of the population (say 300) and derives the sample interval (every 10th observation).
A random start point--in this instance between 1 and 10—is then applied, and the program
selects every tenth case from that point. The National Office provides states with random start
numbers for all TPS samples in December for the upcoming calendar year. States may also use a
sampling utility program that randomizes the file and selects the first 30 observations. This
approach is somewhat more difficult to validate, but could involve reviewing the sample against
the source file (see Step 2 below) or reviewing the utility program specifications.
B. Procedures
Task 1: Compare Universe Counts
From IS staff the validator should obtain copies of the universe files for Status Determinations
and Field Audits. For status determinations there will be three TPS universes: (1) New, (2)
Successor, and (3) Inactive/Terminated. The universe listings should cover all quarters for
which the actual acceptance sample was drawn. These are as follows:
Status Determinations: the four quarters of the calendar year
Field Audits: Give period used for acceptance sample.
o UIPL 13-10 changed period from first three calendar-year quarters to four
quarters, but state may select either four calendar-year or four Federal fiscal-year
quarters, e.g., 1/1/2010 – 12/31/2010 or 10/1/2009 – 9/30/2010.
Compare the count of each status determination universe and the field audit universe to the
reference count reported on the ETA 581 (see below) for the same period. If the universe is
within ±2% of the reference count, this indicates that the correct universe was used. Please note
UI DV HANDBOOK, TAX 4-1 FEBRUARY 2011
QUALITY SAMPLE VALIDATION MODULE 4
that you may need to adjust the TPS universe count of Inactivation/Termination determinations
to make a proper comparison with the 581 reference count. The TPS universe includes all
inactivation/termination transactions actually entered on the state’s system. In some states, there
may be differences from the counts required to meet ETA 581 reporting requirements.
Reference Counts by line and UIDB cell number:
New Status Determinations: ETA 581 line 301, column 14 (c11)
Successor Determinations: ETA 581 line 301, column 17 (c68)
Inactivations/Terminations: ETA 581 line 301, column 20 (c63)
Field Audits: ETA 581, line 501, column 47 (c256)
NOTE: The TPS universe is to include all actual determinations to inactivate and/or
terminate accounts during a calendar year. Federal reporting instructions may require
different counts for Inactivations/Terminations on the 581; for example:
An account that was first inactivated and later terminated would appear twice in the
TPS universe, but would only be counted once on the 581 (581 instructions allow
only the inactivation/termination of an active account).
The 581 instructions also stipulate that the count of active employer accounts cannot
include employers that have not reported wages for eight consecutive calendar
quarters. However, some states’ policies do not allow accounts to be inactivatied
until additional steps occur beyond the Federal eight-quarter rule. Since it is the
state’s actual determination to terminate or inactivate an account that adds it to the
TPS universe, such accounts are included in the 581 count of
Inactivations/Terminations, but will not appear in the TPS universe until the actual
inactivation or termination decision is issued.
If such discrepancies arise, adjustments need to be made to the counts before
comparison can be made. If the adjusted TPS universe is within ±2% of the 581
count, the TPS universe will be considered to contain the correct transactions.
Task 2: Review Sample Selection
Determine whether an interval sample was drawn (and how it was drawn) or whether the file was
randomized such that the first set of cases could be selected without establishing intervals.
If an interval sample was drawn, check to see that the correct random start number was used and
that proper cases were selected (for example, if the random start was 10 and the interval was
every 40th case, check to see that cases 50, 90, 130, and so forth were selected).
If the sample was drawn from a randomized file, print the file and ensure that it was not ordered
by date, employer, or some other nonrandom means. The validator can compare the printout
with the way the file was ordered prior to randomization to ensure that the file was randomly
reordered.
UI DV HANDBOOK, TAX 4-2 FEBRUARY 2011
QUALITY SAMPLE VALIDATION MODULE 4
Task 3: Record Findings on the Template
The Sun-based software does not include a screen for forwarding the results of the quality
reviews. Results of the quality review validation should be documented in a Word® file using
the format below and sent via email to the National Office to [email protected]. Note any
problems in the Comments field.
State:
New Status Determinations (Tax Pop 3)
Calendar Year: YYYY
Universe: XXX,XXX
581 Count: XXX,XXX
Difference as % of 581 Count:
Sampling Method: (Interval or Randomized File)
Problems/Comments:
State:
Successor Status Determinations (Tax Pop 3)
Calendar Year: YYYY
Universe: XXX,XXX
581 Count: XXX,XXX
Difference as % of 581 Count:
Sampling Method: (Interval or Randomized File)
Problems/Comments:
State:
Terminations/Inactivation Status Determinations (Tax Pop 3)
Calendar Year: YYYY
Universe: XXX,XXX
Adjustments XXX,XXX
Adj Universe XXX,XXX
581 Count: XXX,XXX
Difference as % of 581 Count:
Sampling Method: (Interval or Randomized File)
UI DV HANDBOOK, TAX 4-3 FEBRUARY 2011
QUALITY SAMPLE VALIDATION MODULE 4
Problems/Comments:
State:
Field Audit Quality (Tax Population 5)
Four Quarters Ending : YYYYQ
Universe: XXX,XXX
581 Count: XXX,XXX
Difference as % of 581 Count:
Sampling Method: (Interval or Randomized File)
Problems/Comments:
C. Results and Actions
If the sampling method was not correct or was not implemented properly, the validator should
ensure that the sample is redrawn and is random before it is given to the TPS reviewer. The
problems should be discussed with the programmer to ensure that next year’s sample is drawn
randomly. If the programmer confirms that the process was incorrect, the validator should
record the problems in the comments section of the template.
If the universe for any TPS acceptance sample differs from the 581 reference count by more than
±2%, the review must be repeated the following year. Otherwise, the review need not be
repeated for three years.
UI DV HANDBOOK, TAX 4-4 FEBRUARY 2011
MODULE 5
Tax
WAGE ITEM VALIDATION
WAGE ITEM VALIDATION MODULE 5
MODULE 5
A. Purpose
Each quarter, employers report to the state agency employee wages on a wage report (WR) and
summary wage and contributions data on a contribution report (CR) on various media, including
paper, magnetic tapes, diskettes, CD-ROMs, or files transmitted over the Internet. A WR
includes a wage record for each employee: the individual’s employee's name, social security
number (SSN) and earnings in covered employment during the quarter. The agency creates a
record in its files--called a wage item--that identifies the individual, his employer, and the
individual’s earnings for the quarter. The agency reports the number of wage items on the ETA
581 report; this count is one of the workload items used to allocate UI administrative funds.
Wage item validation assesses the accuracy of the count of wage items reported on the 581, and
alerts the state to correct any inaccuracies. This helps ensure equitable funding for this state
workload activity. The following box gives a typical flow for processing reports and
contributions.
It would be ideal to validate the count of wage items by building a reconstruction file as is done
for the five Tax Populations. This is impractical for two reasons: (1) size of the extract file--
California’s file would contain over 18 million records--and (2) inability to conduct Data
Element Validation (employers, not the agency, have the original wage information). Instead,
validators recount small samples of wage records before they’re processed, recount them, and
compare this count with the count after those same records have been processed into wage items.
In this process, DV makes an inference about the accuracy of the 581 count from those sample
recounts.
In this recount, validators make sure that (a) every wage record was included as a wage item, and
(b) that wage items did not include any:
Corrections (the system must be able to process corrections without double counting the
item); or
Incomplete wage records (for example, if the identifier or wage amount is missing or 0 for
the employee); or
Duplicate records.
This approach allows states to validate wage items at any time as long as the original wage
records can be retrieved. The validation approach involves selecting samples of wage records for
a particular quarter that contains all modes through which employers have been submitting wage
records to the state. The validator then manually determines how many of them should have been
processed as wage items, and compares the count with the wage items the state obtained when it
processed the same wage records. The relationship between the original count and the validated
count is used to infer the accuracy of the state’s 581 wage item count for that quarter.
UI DV HANDBOOK, TAX 5-1 FEBRUARY 2011
WAGE ITEM VALIDATION MODULE 5
In general, states process Wage Records into Wage Items and count them for reporting on the
581 as follows:
State or Bank Lockbox receives quarterly Contribution and Wage Reports, and
aggregates reports into batches based on how they will be processed. The first stage in
the process for all reports is to separate and deposit money from the report, and then
process the wage records.
o Money → Deposit
o Contribution Reports → Processing
Wage records are processed and counted as follows:
o Processing
Received in Electronically Readable form (disk, tape, EFT, Internet,
etc.),
Send directly through front-end computer edits
o Pass edits: add to Wage Record Database (WRD) as
Wage Items
o Fail edits: return to employer for correction
(see Corrected Records, below)
Received as Paper reports and other media needing data entry
Scan and OCR data
o Pass edits: Add to WRD
o Fail edits: data enter manually or reject
Send for data entry
o Send data-entered records through front-end computer
edits
Pass edits: add to WRD as Wage Items
Fail edits: return to employer for correction
(see Corrected Records, below)
Corrected Records
Send through front-end computer edits
o Pass edits: add to WRD as Wage Items
Fail edits: reject
o Options for obtaining 581 Reported Count
Take running count as items are processed
Sum wage items by batch
Aggregate batches to get to 581 count
Obtain 581 count as a snapshot of the MIS system for the quarter
B. Methodology
Task 1: Determine the modes the state uses to receive wage records, how each mode is
processed, and how the 581 count is obtained.
Modes. Identify the specific modes your state uses to receive or “capture” wage records.
UI DV HANDBOOK, TAX 5-2 FEBRUARY 2011
WAGE ITEM VALIDATION MODULE 5
Processing. It is essential to understand the process your state uses to enter the records of
each mode into your system as wage items and corrections. It may be helpful to build a
simple flowchart, along the lines of the model above, of how wage records are received,
processed into wage items and counted for the 581.
How does your state process wage records?
o If wage records are received on paper, how are they data-entered?
o For records that are batch-processed, are the totals for wage items indicated for each
batch, so that a recount of the batch can be compared with the original count of wage
items?
o Are items received subjected to front-end edits to look for probable SSN errors (less
than 9 digits, impossible sequences), missing wages, missing names, etc.?
o How are corrections handled and recorded so that you as a validator can note
corrections?
Counting. How is the 581 count taken?
o Built up as a sum of counts of items from each batch?
o As a snapshot of the wage file at the end of the report quarter?
o Other?
Task 2. Set up the Worksheet in the Tax Validation Software
Establish a row on the Wage Item Validation Worksheet in the UI Tax Data Validation software
for each mode in which your state receives wage items. See Figure 5.1 below and DV Operations
Guide.
Task 3: Select Samples
States typically group or “batch” wage and contribution reports, by mode received, to process
them and organize their accounting records. The definition of a “batch” may vary depending on
the size of reports and how they are received. For example, you may batch paper wage reports in
groups of 50 or 100 documents with a batch number identifier and summary transaction totals.
Or, you may process a large wage file from a tape or an FTP transmission, each of which could
be a single batch of thousands of records.
It has been determined that a sample of 150 records from each mode, investigated in two stages,
will allow a sufficiently precise inference to be made about the accuracy of processing wage
records into wage items. Stage 1 is a random set of 50 of the 150 records, and if necessary, Stage
2 is the remaining 100 records. On the basis of your study and flowcharting of wage record
processing, select a point at which you can identify at least 150 wage records obtained by each
mode of receipt.
For Each Mode:
o Pick a Batch of Wage Reports containing at least 150 wage records.
o Randomly select 150 records of these records
o Divide the 150 records into a Stage 1 set of 50 records and Stage 2 set of the
remaining 100 records in such a way that the division between Stage 1 and Stage
2 is also random.
UI DV HANDBOOK, TAX 5-3 FEBRUARY 2011
WAGE ITEM VALIDATION MODULE 5
o In a spreadsheet program such as Excel or a database, set up a means to track
results of your investigations of the wage records.
Task 4: Review Sampled Records for Each Mode and Compare Count with Wage Items
Task 4a: Review and Compare Count for First 50 Records in each Mode
The validator must count only wage items that are complete. This means each countable entry
must include each of the following elements:
Employee Identifier (Name or SSN)
Employer Identifier (Name or EAN)
Wage dollar amount
Ensure that only complete records are counted, including corrected records. Enter the recount
for each mode on your tracking worksheet.
Task 4b: Obtain the System Wage Item Count
How this is done will depend on how your state counts wage items.
Batch cumulating of Wage Items. If your state obtains its 581 count by cumulating batch
counts, and you have the original records with an indication of whether they were included as
wage items or not, you can compare your results with those originals.
o It may be easier to retrieve your wage history files to see which of the records in your
set were counted.
Snapshot counting of Wage Items. Ask the programmer to extract and count all wage items
from your system for the validated quarter that have the combination of EAN and SSN
included in your mode samples.
Enter this count as the “581 count for batch” on your worksheet.
Task 4c: Identify and Count Erroneous Records
If there are any discrepancies between your sample recounts and the 581 counts from the system,
search for duplicates—including corrections counted as records—and incomplete records among
the extracted records.
Task 4d: Determine Whether Stage 2 Investigation is needed
Proceed as follows at this point:
If difference between your recount and 581 count is
= 0, the mode passes at Stage 1. The mode is done.
≥ 4, the mode fails at stage 1. The mode is done.
= 1, 2, or 3, review remaining 100 cases for the mode, following Steps 4a-4c.
UI DV HANDBOOK, TAX 5-4 FEBRUARY 2011
WAGE ITEM VALIDATION MODULE 5
Even though the mode fails at stage 1, you may also want to review the
remaining 100 cases to estimate the error rate in wage item processing for the
mode.
Task 4e: Combine Results for Stages 1 and 2 if second stage was investigated.
Task 5: Enter Combined Results in Wage Item Validation Worksheet
From your tracking worksheet, enter the total number of valid wage items in the “Recount for
Batch” column on the Wage Item Validation Worksheet on the DV software. If any duplicates
or other errors have been identified, enter the count by type in the appropriate columns on the
worksheet.
Task 6: UI Tax Validation Software
The UI Tax Data Validation software calculates the difference between the recount and reported
counts for the validated sample of wage items. Wage Item Validation passes if, based on the
sample results, each mode is likely to contain no more than 2% errors. Pass and fail for a mode
is determined as follows:
Pass:
o The Stage 1 sample of 50 wage records contains no errors.
o The full sample of 150 wage records contains no more than 6 errors.
Fail:
o The Stage 1 sample of 50 wage records 4 or more errors.
o The full sample of 150 wage records contains 7 or more errors.
To pass Wage Item Validation, every mode must pass. If it passes, WIV does not need to be
repeated for three years; if at least one mode fails, WIV must be repeated the following year.
Note: Some modes may contain fewer than 150 records. In that case use the
following table to determine pass and fail:
Sample Max
Failures
To Pass
< 20 0
20 - 29 1
30 – 59 2
60 – 89 3
90 – 119 4
120 – 140 5
141 – 149 6
UI DV HANDBOOK, TAX 5-5 FEBRUARY 2011
WAGE ITEM VALIDATION MODULE 5
Task 7: Submitting and Saving Wage Item Validation Results
Submit Wage Item Validation results by clicking the “Transmit” button at the bottom of the
Worksheet (Figure 5.1). Results for a validation year must be submitted by June 10. Because
the software only retains these results until the next validation or a reload of the software, it is
recommended that the results be saved by taking a screen print or doing Save As.
Task 8: Following Up on Wage Item Validation Errors
If the wage item validation identifies errors, the validator should discuss the errors with the
programmer or individual responsible for wage item processing, and the state should determine
whether the error affects other batches of wage items as well.
Example of a Wage Item Validation Worksheet
Figure 5.1 shows an example of a Wage Item Validation Worksheet. The first column lists the
state’s modes for receiving wage records. The second column shows the dates of the batches
from which samples of 150 wage records were drawn. The number of Cases Reviewed out of
the 150 drawn depends on the results at Stage 1. The column labeled “581 Count” indicates how
many of the reviewed wage records were counted as wage items and included in the ETA 581
count during the quarter. The validator’s recount of those same wage records is entered in the
column labeled “Recount for Batch.” Pass and fail are based on the difference between the two
counts and depend on the allowable errors explained in 4d above. In this example, the Fax mode
passes with one error after all 150 cases were reviewed because the discrepancy was discovered
at Stage 1. Internet, Magnetic Tape, and Diskette all pass with 0 differences in the 50 cases
reviewed at Stage 1, but Paper failed with 5 errors out of 50 cases reviewed at Stage 1, and Scans
failed with 7 errors out of 150 cases reviewed. The analysis of errors provides guidance for the
corrective action process.
UI DV HANDBOOK, TAX 5-6 FEBRUARY 2011
WAGE ITEM VALIDATION MODULE 5
Figure 5.1
Wage Item Validation Worksheet
WAGE ITEM VALIDATION
Validation Worksheet
Date Cases 581 Analysis of Errors Delete
Mode Received Reviewed Count Recount Difference Pass/Fail ID missing Amt Missing Duplicate Mode?
Fax 12/31/2008 150 148 147 1 Pass 1
Internet 11/29/2008 50 50 50 0 Pass Delete
Magnetic Tape 11/29/2008 50 49 49 0 Pass Delete
Diskette 11/29/2008 50 48 48 0 Pass Delete
paper 11/29/2008 50 49 44 5 Fail 2 3 Delete
Scans 12/8/2008 150 149 142 7 Fail 2 2 3 Delete
Overall Validation Score: Fail
Save Add Wage Item Transmit Add Comments
UI DV HANDBOOK, TAX 5-7 FEBRUARY 2011
APPENDIX A
Tax
SUBPOPULATION SPECIFICATIONS
TABLE OF CONTENTS
APPENDIX A............................................................................................................................. A-1
A. Introduction......................................................................................................................... A-1
B. Report Quarter Terminology............................................................................................... A-1
C. Validation Timelines........................................................................................................... A-5
D. Population Table Specifications.......................................................................................... A-8
Population Tables.............................................................................................................. A-10
SUBPOPULATION SPECIFICATIONS APPENDIX A
APPENDIX A
A. Introduction
As described in Module 1 of the handbook, the first step in the data validation process is to
create report validation (RV) files, also referred to as extract or reconstruction files. These files
list records of all transactions and account statuses that should be reported on the ETA 581
report. Each record is assigned to a single population and to only one subpopulation within the
population.
Appendix A specifies how the populations are divided into subpopulations. Each row of a
population table is the specification for a single, mutually exclusive subpopulation. Following
each table is a written descriptions of each subpopulation which will help readers orient
themselves to the information in the table.
Each column header includes a step number that refers to Module 3, the state-specific portion of
the handbook. Validators and programmers should refer to the indicated step number for the
definition of the data element and detailed instructions on how to validate it. Each population
table includes a column or row entitled “Reported in ETA 581 Item #s;” it indicates the item
number (ETA 581 report cell) that the count or dollar amount in the column or row is used to
validate on the RV summary report.
States should reconstruct each population as specified for a recent ETA 581 report quarter (RQ).
In addition, states that administer unemployment insurance together with other taxes should
capture tax type, to distinguish between the taxes being validated on the ETA 581 and others
which are not countable on the report. 6
B. Report Quarter Terminology
The specifications in this appendix use a shorthand terminology to refer to report quarters.
Figure A.1 is a time line illustrating how terms and symbols are used.
The Report Quarter (RQ) is the time period shown on the ETA 581 in the block labeled
“A. Report for quarter ended.” This means that the ETA 581 report is showing
transactions that occurred during this quarter or the status of accounts at the end of this
quarter. For example, the ETA 581 report includes items such as the number of active
employers at the end of the RQ and the number of timely employer reports received
during the RQ. The RQ ends at point A in Figure A.1. (Point A is also the time when the
6
Some states may have other unique types of data elements that should be captured in the reconstruction
file to facilitate validation. For example, some states may have an indicator for seasonal employers, which would be
helpful in validating subpopulations 2.7 and 2.15 in population 2. This could be used as a secondary code for
Employer Type; and the software will identify all employers with the seasonal code for further examination when
the state runs Sort 2.4.
UI DV HANDBOOK, TAX A-1 FEBRUARY 2011
SUBPOPULATION SPECIFICATIONS APPENDIX A
state runs programs to download data for both the ETA 581 counts and the data
validation reconstruction files.) The ETA report that relates to the RQ is due at the hash
mark labeled “ETA 581 Due” in Figure A.1.
Contribution and wage reports received from employers during the RQ reflect employer
activity--payment of wages--that occurred during the quarter before the RQ, designated
as RQ-1. (Because this prior quarter is the subject of employer reports received during
the RQ, RQ-1 is often referred to as the Employer Report Quarter, or ERQ).
When specifications need to refer to quarters before or after the RQ, they extend the basic
convention of numbering relative to the RQ. The quarter prior to RQ-1 is RQ-2, the
quarter prior to that is RQ-3, and so on. Similarly, the specifications refer to the quarter
after the RQ using the term RQ+1. This term is used most often for population 2, report
filing, where states have through RQ+1 to resolve reports due in the RQ.
UI DV HANDBOOK, TAX A-2 FEBRUARY 2011
SUBPOPULATION SPECIFICATIONS APPENDIX A
Figure A.1
Quarterly Timeline
2010
1 2 3 4
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
RQ-1 (ERQ) RQ: Report Quarter RQ+1
contribution reports States: States:
covering employer register employers receive contribution
activity in this quarter determine their reports on employer
can be resolved by liability status activity in RQ
RQ+1 receive contribution resolve contribution
reports on employer reports due in RQ on
activity in RQ- employer activities in
pursue delinquent RQ-1
reports
establish, liquidate,
and write off
receivables
complete field audits
Employer Employer ETA 581 ETA 581
Reports Due Reports Due Due
(for RQ-2) Due (for RQ) (for
(for RQ-1) RQ+1)
A B
A IS Staff: Produce Report Counts
Prepare Validation Extract Files (except for Population 2)
Prepare Screen Prints
B IS Staff: Produce extract file for Population 2, as soon as all reports received
during RQ+1 are posted
UI DV HANDBOOK, TAX A-3 FEBRUARY 2011
SUBPOPULATION SPECIFICATIONS APPENDIX A
The file specifications use the following abbreviations and terminology:
RQ ETA 581 report quarter
ERQ Employer Report Quarter (quarter covered by employer’s contribution report)
FDRQ First day of the report quarter
LDRQ Last day of the report quarter
(RQ+1) Quarter after the report quarter
(RQ-1) Quarter before the report quarter
(RQ+n) nth quarter after the report quarter
(RQ–n) nth quarter prior to the report quarter
DD Due date for employer contribution reports
A Active
C Contributory Employer
R Reimbursing Employer
OBS Observation number
> After the date or quarter specified, e.g., “> RQ” means “after the report quarter.”
< Before the date or quarter specified, e.g., “< RQ” means “before the report quarter.”
≥ During or after the date or quarter specified, e.g. “≥ RQ” means “during or after the
report quarter.”
≤ Before or during the date or quarter specified, e.g. “≤ RQ” means “before or during the
report quarter.”
UI DV HANDBOOK, TAX A-4 FEBRUARY 2011
SUBPOPULATION SPECIFICATIONS APPENDIX A
C. Validation Timelines
Each population on the ETA 581, and therefore each population file for validation, represents a
particular timeline of UI tax operations activity. Populations 1, 3, and 5 are fairly
straightforward ― these populations are primarily focused on activities during or statuses at the
end of the RQ. Populations 2 and 4 are more complex and require the validator to look back as
far as eight quarters prior to the RQ, and forward as far as two quarters after the RQ. In Figure
A.2 below, the RQ being validated is the second quarter of 2010, which means RQ-8 is the
second quarter of 2008 and RQ+2 is the fourth quarter of 2010. Once the state has selected the
quarters to be validated for populations 2 and 4, the validator should prepare a full timeline based
on Figure A.2, identifying the eight quarters prior and two quarters after the selected RQ.
Figure A.2
Sample Timeline for Report Quarter 201002 (Second Quarter of 2010)
2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
RQ-8 RQ-7 RQ-6 RQ-5 RQ-4 RQ-3 RQ-2 RQ-1 RQ RQ+1 RQ+2
(ERQ)
Overview of Populations
The ETA 581 for the second report quarter of 2010, which is due in August of 2010, contains the
following information and is validated as follows:
Population 1
o The ETA 581 includes active employer information as of June 30, 2010.
This report information is validated by building a Population 1 extract file for the second
quarter of 2010. Population 1 should include a record for each employer who was active on
the last day of the RQ.
The DVWS filters pending employers out of the active employers count, in accordance with
the Department of Labor’s Change 12 to the ET 401 handbook. Specifically, the software
will not include employers with a met-threshold date after 12/31/2002 in the count if their
activation or reactivation processing date precedes the met-threshold date.
Figure A.1, Point A, shows when the Population 1 validation file should be constructed.
UI DV HANDBOOK, TAX A-5 FEBRUARY 2011
SUBPOPULATION SPECIFICATIONS APPENDIX A
Population 2
The ETA 581 includes employer reports received on time and secured during the second
quarter of 2010 that relate to employer activity during the first quarter of 2010, and resolved
reports that were due during the first quarter of 2010 and relate to employer activity in the
fourth quarter of 2009.
o Population 2 should include all employers owing contributions or required reports for
the same ERQ, due during the RQ, which were received on time or secured during the
RQ or reported as resolved during RQ+1.
o Timely, secured, and resolved counts for the same ERQ (e.g., 201001) are validated
at the same time by building a Population 2 file that is extracted at the end of the third
quarter of 2010. This Population 2 extract file validates timely and secured counts
that are reported on the ETA 581 report for the second report quarter of 2010 and
resolved counts that are reported on the ETA 581 report for the third quarter of 2010.
o Note that timely, secured, and resolved are defined as discrete filing statuses for
validation purposes, whereas on the ETA 581, secured includes timely and resolved
includes both timely and secured.
The received date of the contributions report is used to assign records to subpopulations 2.1, 2.2,
2.3, 2.9, 2.10, and 2.11. Because the received date of a given contributions report does not
change once it is entered into the state system, the validation records for timely and secured
reports do not need to be extracted at the end of the RQ. Instead, the entire population extract
can be run a soon as resolved report records for RQ+1 are available. The validation counts in
subpopulations 2.1, 2.2, 2.9, and 2.10 are compared with ETA 581 counts for the RQ; all
subpopulation validation counts are compared with reported counts for RQ+1 (see 581 Item #
references in the population tables on pages A.16 and A.17).
o In preparing the Population 2 extract file, states will need to account for annual filers.
According to DOL, annual filers must be counted as timely for the quarters in which
their reports are not due, and as timely, secured or resolved, as appropriate for the
quarters in which their reports are due. States will need to enter a default employer
report quarter and default received date for annual employers for the quarterly reports
that are not due, and either a received date, final assessment date, or appropriate
resolved date for annual employers for the quarterly reports that are due. This should
ensure that the quarterly reports that are not due are counted as timely, and that the
quarterly reports that are due are counted appropriately as timely, secured or resolved.
o Figure A.1, Point B, shows when the Population 2 validation file should be
constructed.
UI DV HANDBOOK, TAX A-6 FEBRUARY 2011
SUBPOPULATION SPECIFICATIONS APPENDIX A
Population 3
The ETA 581 includes status determination activities that occurred during the second quarter
of 2010.
o This report information is validated by building a Population 3 extract file for the
second quarter of 2010. Population 3 includes a record for each status determination
the state made during the RQ; multiple determinations for the same employer are
countable and should be included in the file as separate records.
o States that overwrite status determinations on their master tax file may use the TPS
universe for reconstruction. Programmers and validators should note that time-lapse
categories are discrete subpopulations, whereas the ETA 581 reports time lapse
cumulatively.
o The pending employer filter also applies to subpopulations 3.1 to 3.3, which are for
new status determinations.
o Figure A.1, Point A, shows when the Population 3 validation file should be
constructed.
Population 4
The ETA 581 includes receivables activity that occurred during the second quarter of 2010
related to wage reports and contributions that are past due from the ERQ of the first quarter
of 2010 and previous quarters. This includes receivables established, liquidated, declared
uncollectible and removed during the second quarter of 2010.
o This report information is validated by building a Population 4 extract file for the
second quarter of 2010. Population 4 includes all accounting transactions made
during the RQ that establish or modify a receivable on an employer account, as well
as balances due at the end of the quarter.
o Receivables records need both the ERQ and the established date to be properly
assigned to Subpopulations 4.4, 4.5, 4.6 and 4.8 (contributory employers), and both
the due date and the established date to be properly assigned to Subpopulations 4.12,
4.13, 4.14 and 4.16 (reimbursing employers).
o Occasionally, receivable balances due to be removed in the RQ are declared
Uncollectible in the RQ. These should be reported as uncollectible on the ETA 581
and classified as uncollectible (code U) when the extract file is built. When the
validation software encounters Uncollectible records that could be removed on the
basis of their established dates and ERQs, it parses them as uncollectible records.
UI DV HANDBOOK, TAX A-7 FEBRUARY 2011
SUBPOPULATION SPECIFICATIONS APPENDIX A
o For Population 4, Subpopulations 4.7, 4.8, 4.15 and 4.16, programmers should
generate separate balance records for a single employer, for each ERQ where there is
a balance at the end of the RQ.
o Figure A.1, Point A, shows when the Population 4 validation file should be
constructed.
Population 5
The ETA 581 includes audit activity (for example, audit completions) reported during the
second quarter of 2010.
o This report information is validated by building a Population 5 extract file for the
second quarter of 2010 that includes all field audits completed during the RQ.
o Data elements specified on the record layout may not be captured on the state’s
system when they are not reported on the 581. They are however included in the
auditor’s paper files during the validation for the cases sampled for FIV. When states
cannot capture such information automatically, the column can be completed from the
auditor’s paper files during the validation for the selected cases.
o Some states do not consider an audit to be a change audit until Post-versus-Pre
amounts exceed some dollar threshold or tolerance, e.g., $1 or $10. The DV software
considers an audit to be a change audit if any Pre-Post difference is $0.01 or more. If
this difference in approach causes the state to fail validation, the state should note and
document this fact in the Comments field on the RV screen, and apprise the National
Office so that it can manually change the validation to Pass.
o Figure A.1, Point A, shows when the Population 5 validation file should be
constructed.
D. Population Table Specifications
Explanation of UI TAX data formats
Appendix A and Appendix B of the ETA Operations Guide 411 refer to 6 types of data formats.
1. Required. These fields cannot be blank. They may be mandatory codes, dates or dollar
values. Required cells in Appendix A tables indicate the required code, date, or dollar value
parameters, or display the word “Required.” (Appendix F indicates constraint is NOT
NULL.)
Required text fields have code values that must be entered, such as A, C, R, etc. All of the
allowable generic values for each field are listed in the Data Type/Format column on the record
layout. The generic values must be followed by a dash and the corresponding state-specific
value.
UI DV HANDBOOK, TAX A-8 FEBRUARY 2011
SUBPOPULATION SPECIFICATIONS APPENDIX A
2. Conditionally required. Data are included in these fields if the data are present in the
state’s system. Applies to date and wages fields.
3. Optional. These fields are gray in Appendix A and the word “Optional” is displayed. The
software does not look at these fields at all. Any values can be entered or they can be left
blank.
4. Must be blank. These are text or date fields where the presence of data indicates an error.
Therefore, they must be left blank (such as population 4 transaction date for balance
subpopulations 4.7, 4.8, 4.15, and 4.16).
5. Must be blank or 0. These are numeric fields where the presence of data other than 0
indicates an error. In tax these are primarily wages fields in populations 4 and 5.
6. System generated. These fields are generated by the DV software and data should not be
placed in these fields in the extract files. These fields are primarily time lapse and age fields.
Some values are abbreviated in the record layouts (Appendix F) but are shown in the report
validation specifications (Appendix A) in their entirety for informational purposes. Follow the
record layout when building the extract file.
Notes:
For most steps referenced in Appendix A column headers, Rule 1 is the indicator in the state
system. However, if a state does not maintain the indicator specified in Rule 1, then the state
programmer must apply the logic of the other rules in that step in order to develop the indicator
for the extract file .
The extract file type is ASCII, comma delimited. Data must be in the order listed in the record
layouts.
UI DV HANDBOOK, TAX A-9 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
Population Tables
Table A.1
Population 1 Subpopulations
Active Employers
2 3 4 5 6 7 8 9 10
(Step 1A) (Step 3A) (Step 2A) (Step 14) (Step 16) (Step 5) (Step 15) (Step 7B) (Step 7A)
(Step 2B)
Reported
in ETA Liability Date Reactivation Inactive/ Activation Number of
581 Employer Employer (Met Processing Terminated Processing Liable Sum of Wages
Subpopulation Item #’s EAN Status Indicator Type Threshold) Date “as of” Date Date Quarters (Last 8 Q’s)
If = 0, then
activation
(≥ liability
processing
≤ RQ and (≤ date met
> RQ, or date, or
activation date or threshold)1
< liability date reactivation (If Col. 8 = 8)
1.1 1 Required A C ≤ reactivation and ≤ RQ and ≤ RQ
met threshold, processing > $0
processing date, if > activation
or blank date, if
present)1 processing
present,
date, or blank
must be in
RQ
If = 0, then
activation
(≥ liability
processing
≤ RQ and (≤ date met
> RQ, or date, or
activation date or threshold)1
< liability date reactivation (If Col. 8 = 8)
1.2 2 Required A R ≤ reactivation and ≤ RQ and ≤ RQ
met threshold, processing > $0
processing date, if > activation
or blank date, if
present)1 processing
present,
date, or blank
must be in
RQ
Notes
1) Column 9 reports the consecutive number of liable quarters ending with RQ-1. If the number is greater than 8, simply list 8. An account newly activated or
reactivated in the quarter will have 0 liable quarters.
2) Column 10 sums the reported wages for the 8 quarters ending with RQ-1. The record layout for the software specifies that the states provide data for all 8
quarters if available. The software detects non-zero values for wages across quarters.
_____________________
1
Condition applicable for liability (met threshold) dates after 12/31/2002.
Subpopulation descriptions:
1.1 Active contributory employers liable by the end of the report quarter.
UI DV HANDBOOK, TAX A-10 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
1.2 Active reimbursable employers liable by the end of the report quarter.
UI DV HANDBOOK, TAX A-11 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
Table A.2
Population 2 Subpopulations
Report Filing
2 3 4 5 6 7 8 9 10 11
(Step 1B) (Step 1B) (Step 9) (Step 10) (Step 4A) (Step 14) (Step 5) (Step 5) (Step 6A)
3 (Step 4B) (Step 6B)
(Step 2A) (Step 6C)
(Step 2B)
Employer Liability Liability Inactivation/
Reported in Report Date Date Inactive/ Suspended Termination
ETA 581 Quarter Employer Final Assessment (Initial or (Met Terminated “as of” Processing
Subpopulation Item #’s EAN (ERQ) Type Received Date Date Reopen) Threshold) “as of” Date Quarter Date
Required
6, 7, (8 in Required if Date Required if Required if Must be Required if
2.1 Required RQ - 1 C ≤ DD if Date
RQ + 1) Exists Date Exists Date Exists blank Date Exists
Exists
Required
7, (8 in > DD but Required if Date Required if Required if Must be Required if
2.2 Required RQ - 1 C if Date
RQ + 1) within RQ Exists Date Exists Date Exists blank Date Exists
Exists
Required
8 in RQ + Required if Date Required if Required if Must be Required if
2.3 Required RQ - 1 C RQ + 1 if Date
1 Exists Date Exists Date Exists blank Date Exists
Exists
Required
8 in RQ + Required if Date Required if Required if Must be Required if
2.4 Required RQ - 1 C RQ or RQ + 1 if Date
1 Exists Date Exists Date Exists blank Date Exists
Exists
Required
8 in RQ + Required if Date Required if Must be
2.5 Required RQ - 1 C Must be blank if Date < RQ - 1 RQ or RQ + 1
1 Exists Date Exists blank
Exists
> RQ and
Required > liability
8 in RQ + Required if Date Must be Required if
2.6 Required RQ - 1 C Must be blank if Date ≥ RQ date (met
1 Exists blank Date Exists
Exists threshold), or
blank
Required
8 in RQ + Required if Date Required if Required if Required if
2.7 Required RQ - 1 C Must be blank if Date RQ - 1
1 Exists Date Exists Date Exists Date Exists
Exists
8 in RQ + Required if Date = Col. 8 Required if Must be
2.8 Required RQ - 1 C Must be blank = Col. 6 date RQ or RQ + 1
1 Exists date Date Exists blank
UI DV HANDBOOK, TAX A-12 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
Table A.2
Population 2 Subpopulations
Report Filing
2 3 4 5 6 7 8 9 10 11
(Step 1B) (Step 1B) (Step 9) (Step 10) (Step 4A) (Step 14) (Step 5) (Step 5) (Step 6A)
3 (Step 4B) (Step 6B)
(Step 2A) (Step 6C)
(Step 2B)
Employer Liability Liability Inactivation/
Reported in Report Date Date Inactive/ Suspended Termination
ETA 581 Quarter Employer Final Assessment (Initial or (Met Terminated “as of” Processing
Subpopulation Item #’s EAN (ERQ) Type Received Date Date Reopen) Threshold) “as of” Date Quarter Date
Required
9, 10, (11 Required if Date Required if Required if Must be Required if
2.9 Required RQ - 1 R ≤ DD if Date
in RQ + 1) Exists Date Exists Date Exists blank Date Exists
Exists
Required
10, (11 in > DD but Required if Date Required if Required if Must be Required if
2.10 Required RQ - 1 R if Date
RQ + 1) within RQ Exists Date Exists Date Exists blank Date Exists
Exists
Required
11 in Required if Date Required if Required if Must be Required if
2.11 Required RQ - 1 R RQ + 1 if Date
RQ + 1 Exists Date Exists Date Exists blank Date Exists
Exists
Required
11 in Required if Date Required if Required if Must be Required if
2.12 Required RQ - 1 R RQ or RQ + 1 if Date
RQ + 1 Exists Date Exists Date Exists blank Date Exists
Exists
Required
11 in Required if Date Required if Must be
2.13 Required RQ - 1 R Must be blank if Date < RQ-1 RQ or RQ + 1
RQ + 1 Exists Date Exists blank
Exists
> RQ and
Required > liability
11 in Required if Date Must be Required if
2.14 Required RQ - 1 R Must be blank if Date ≥ RQ date (met
RQ + 1 Exists blank Date Exists
Exists threshold), or
blank
Required
11 in Required if Date Required if Required if Required if
2.15 Required RQ - 1 R Must be blank if Date RQ - 1
RQ + 1 Exists Date Exists Date Exists Date Exists
Exists
11 in Required if Date = Col. 8 Required if Must be
2.16 Required RQ - 1 R Must be blank = Col. 6 date RQ or RQ + 1
RQ + 1 Exists date Date Exists blank
Notes:
1) A few states resolve reports for seasonal employers by suspending the report filing requirement in off seasons (subpopulations 2.7
and 2.15). Most states will not have values for “suspended as of quarter.”
UI DV HANDBOOK, TAX A-13 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
2) States should identify all contributory and reimbursing employers who, on the last day of the quarter prior to the ETA 581 report
quarter, are required to file a report covering that quarter in the ETA 581 report quarter. That data file can then be used in the
validation reconstruction, even though not every report owed will be resolved. (If this approach is workable for states, it can also be
done every quarter to program the ETA 581.)
3) Some states may use a delinquency flag instead of the preferred received date; this creates audit trail issues to be reviewed on a
state-specific basis.
4) If an employer has more than one resolved date under columns 5, 6, 9, or 10, the software assigns the record to the first
subpopulation for which it meets the criteria.
Subpopulation descriptions:
The software assigns a record to the first subpopulation for which it meets the subpopulation criteria. Each record is compared to the
requirements for subpopulation 1 and the software determines whether the record meets those criteria. If it does, the record is
assigned to subpopulation 1. If it does not, the software then compares the record to the requirements for subpopulation 2 and
determines whether the record meets those criteria. This process continues as necessary comparing each record to the requirements for
each successive subpopulation.
2.1 Contributory employers owing contributions reports for activities in RQ - 1, who filed contribution reports by the due date
(timely).
2.2 Contributory employers owing contributions reports for activities in RQ - 1, who filed untimely contribution reports by the end of
RQ (secured, but not timely).
2.3 Contributory employers owing contributions reports for activities in RQ - 1, who filed contribution reports during RQ + 1
(resolved, neither secured nor timely).
2.4 Contributory employers owing contributions reports for activities in RQ - 1, who received a legally due and collectible
enforcement (final assessment) by the end of RQ + 1 (resolved, neither secured nor timely).
2.5 Contributory employers owing contributions reports for activities in RQ - 1, who were made inactive during RQ or during RQ + 1
(resolved, neither secured nor timely), and whose inactivation was effective prior to the ERQ.
2.6 Contributory employers owing contributions reports for activities in the RQ - 1, whose liability date (met threshold) was changed
from prior to the RQ, to during or after RQ (resolved, neither secured nor timely).
UI DV HANDBOOK, TAX A-14 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
2.7 Contributory employers owing contributions reports for activities in RQ - 1, who were suspended from filing contribution reports
due in RQ by virtue of being seasonal employers, an administrative decision not to pursue report filing, or for other reasons (resolved,
neither secured nor timely).
2.8 Contributory employers owing contributions reports for activities in RQ - 1, whose accounts were withdrawn by making the
liability date and the inactive/terminated “as of” date equal (resolved, neither secured nor timely). This includes canceled, withdrawn,
closed, dropped, etc., accounts.
2.9 Reimbursable employers owing required reports for activities in RQ - 1, who filed required reports by the due date (timely).
2.10 Reimbursable employers owing required reports for activities in RQ - 1, who filed untimely required reports by the end of the RQ
(secured, but not timely).
2.11 Reimbursable employers owing required reports for activities in RQ - 1, who filed required reports during RQ + 1 (resolved,
neither secured nor timely).
2.12 Reimbursable employers owing required reports for activities in RQ - 1, who received a legally due and collectible enforcement
(final assessment) by the end of RQ + 1 (resolved, neither secured nor timely).
2.13 Reimbursable employers owing required reports for activities in RQ - 1, who were made inactive during the RQ or during RQ + 1
(resolved, neither secured nor timely), and whose inactivation was effective prior to the ERQ.
2.14 Reimbursable employers owing required reports for activities in RQ - 1, whose liability date (met threshold) was changed from
prior to the RQ to during or after the RQ (resolved, neither secured nor timely).
2.15 Reimbursable employers owing required reports for activities in RQ - 1, who were suspended from filing required reports due in
the RQ by virtue of being seasonal employers, an administrative decision not to pursue report filing, or for other reasons (resolved,
neither secured nor timely).
2.16 Reimbursable employers owing required reports for activities in RQ - 1, whose accounts were withdrawn by making the liability
date and the inactive/terminated “as of” date equal (resolved, neither secured nor timely). This includes canceled, withdrawn, closed,
dropped, etc., accounts.
UI DV HANDBOOK, TAX A-15 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
Table A.3
Population 3 Subpopulations
Status Determinations
2 3 4 5 6 7 8 9 10 11 12 13 14
(Step 1C) (Step 2A) (Step 11A) (Step 12) (Step 13) (Step 14) (Step 14) (Step 15) (Step 16) (Step 17) (Step 18) (Step 6A) (Step 6A)
(Step 2B) (Step 11B) or or
(Step 11C) (Step 6B) (Step 6C)
(Step 11D)
Status Liability Successor-
Sub- Reported in Determin. Status Date End of Activation Reactivation ship Predecessor Inactivation Termination
popula ETA 581 Employer Type Time Determin (Met Liable Processing Processing Processing Account Processing Processing
tion Item #’s EAN Type Indicator Lapse . Date Threshold) Quarter Date Date Date Number Date Date
≤ activation
processing
RQ or
≤ 90 date or ≤ Required if
3.1 14, 15, 16 Required C or R New* RQ < Col. 9 RQ or blank Optional Optional Optional Optional
days reactivation Date Exists
date
processing
date if present
≤ activation
processing
≥ 91 but RQ or
date or ≤ Required if
3.2 14, 16 Required C or R New* ≤ 180 RQ < Col. 9 RQ or blank Optional Optional Optional Optional
reactivation Date Exists
days date
processing
date if present
≤ activation
processing
RQ or
≥ 181 date or ≤ Required if
3.3 14 Required C or R New* RQ < Col. 9 RQ or blank Optional Optional Optional Optional
days reactivation Date Exists
date
processing
date if present
≤ ≤ ≤ successor-
≤ 90 Required if
3.4 17, 18, 19 Required C or R Successor* RQ successorship successor- ship date, or RQ Required Optional Optional
days Date Exists
date ship date blank
≥ 91 but ≤ ≤ ≤ successor-
Required if
3.5 17, 19 Required C or R Successor* ≤ 180 RQ successorship successor- ship date, or RQ Required Optional Optional
Date Exists
days date ship date blank
≤ ≤ ≤ successor-
≥ 181 Required if
3.6 17 Required C or R Successor* RQ successorship successor- ship date, or RQ Required Optional Optional
days Date Exists
date ship date blank
Required if
3.7 20 Required C or R Inactivations* Optional RQ Required Optional Optional Optional Optional RQa Optional
Date Exists
Terminations Required if
3.8 20 Required C or R Optional RQ Required Optional Optional Optional Optional Optional RQ
* Date Exists
a
There is the same issue as under Population #1, where the employer could be inactive based on 8 quarters of no wages (or fewer depending on
the state’s threshold), but for some reason the inactivation date/flag was not triggered. We may be able to cross-reference by EAN (by
UI DV HANDBOOK, TAX A-16 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
programming or on the printout) the employers identified as falling in this category from the Population #1 specifications, since they are identical,
as long as the same RQ is validated.
* These values are abbreviated in the record layout.
Notes:
1) States that prefer to validate contributory and reimbursing employer status determinations separately for their own purposes may
do so by replicating the eight subpopulations (one set of eight subpopulations for each type of employer). States may prefer to
validate the two types of employers separately if they are processed in very different ways. However, such states must still submit a
single RV summary to the National Office with the combined results.
Subpopulation Descriptions:
3.1 Status determinations of new and reactivated employers made during the RQ, which were made within 90 days of the end of the
quarter in which the employer became liable. (Subpopulations 3.1 - 3.3 include employers changing from contributory to reimbursing
status or vice versa.)
3.2 Status determinations of new and reactivated employers made during the RQ, which were made between 91 and 180 days of the
end of the quarter in which the employer became liable.
3.3 Status determinations of new and reactivated employers made during the RQ, which were made 181 days or later from the end of
the quarter in which the employer became liable.
3.4 Status determinations of successor employers made during the RQ, which were made within 90 days of the end of the quarter in
which the employer became liable.
3.5 Status determinations of successor employers made during the RQ, which were made between 91 and 180 days of the end of the
quarter in which the employer became liable.
3.6 Status determinations of successor employers made during the RQ, which were made 181 days or later from the end of the quarter
in which the employer became liable.
3.7 Inactivations of employers made during the RQ.
3.8 Terminations of employers made during the RQ.
UI DV HANDBOOK, TAX A-17 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
Table A. 4
Population 4 Subpopulations
Accounts Receivable
2 3 4 5 6 7 8 9 10 11 12 13 14
(Step (Step 2A) (Step 19A) (Step 19B) (Step 1D) (Step 20) (Step 21A) (Step 22) (Step 23) (Step 24) (Step 25) (Step 26) (Step 27A)
1D) (Step 2B) (Step 21B) (Step 27B)
(Step 21C)
Employer
Report Amount Balance
Sub- Employe Transaction Established Quarter Transaction Established in Amount Amount Amount at End of Age of
population EAN r Type Date Q/Date (ERQ) Due Date Type/Indicator RQ Liquidated Uncollectible Removed RQ Receivable
Must be
Must be Must be blank Must be
4.1 Required C RQ RQ Required Optional E >0 blank or Optional
blank or 0 or 0 blank or 0
0
Must be
Must be Must be blank Must be
4.2 Required C RQ Required Required Optional L >0 blank or Optional
blank or 0 or 0 blank or 0
0
Must be
Must be Must be Must be
4.3 Required C RQ Required > RQ - 8 Optional U >0 blank or Optional
blank or 0 blank or 0 blank or 0
0
Must be
Must be Must be Must be
4.4 Required C RQ > RQ - 3 ≤ RQ - 8 Optional U >0 blank or Optional
blank or 0 blank or 0 blank or 0
0
Must be
Must be Must be Must be blank
4.5 Required C Optional < RQ - 2 RQ - 8 Optional R >0 blank or Optional
blank or 0 blank or 0 or 0
0
Must be
Must be Must be Must be blank
4.6 Required C Optional RQ - 2 ≤ RQ - 8 Optional R >0 blank or Optional
blank or 0 blank or 0 or 0
0
Must be Must be Must be Must be blank Must be
4.7 Required C Required > RQ - 8 Optional B >0 Optional
blank blank or 0 blank or 0 or 0 blank or 0
Must be Must be Must be Must be blank Must be
4.8 Required C > RQ - 2 ≤ RQ - 8 Optional B >0 Optional
blank blank or 0 blank or 0 or 0 blank or 0
Reported in
ETA 581 22 23 24 25 26
Item #’s
UI DV HANDBOOK, TAX A-18 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
Table A. 4
Population 4 Subpopulations
Accounts Receivable
1 2 3 4 5 6 7 8 9 10 11 12 13
(Step 1D) (Step 2A) (Step 19A) (Step 19B) (Step 1D) (Step 20) (Step 21A) (Step 22) (Step 23) (Step 24) (Step 25) (Step 26) (Step 27A)
(Step 2B) (Step 21B) (Step 27B)
(Step 21C)
Employer
Report Amount Balance
Sub- Employer Transaction Established Quarter Transaction Established Amount Amount Amount at End of Age of
population EAN Type Date Q/Date (ERQ) Due Date Type/Indicator in RQ Liquidated Uncollectible Removed RQ Receivable
Must be Must be
Must be Must be blank
4.9 Required R RQ RQ Optional Required E >0 blank or blank or Optional
blank or 0 or 0
0 0
Must be Must be
Must be Must be blank
4.10 Required R RQ Required Optional Required L >0 blank or blank or Optional
blank or 0 or 0
0 0
Must be Must be
Must be Must be
4.11 Required R RQ Required Optional > RQ - 7 U >0 blank or blank or Optional
blank or 0 blank or 0
0 0
Must be Must be
Must be Must be
4.12 Required R RQ > RQ - 3 Optional ≤RQ - 7 U >0 blank or blank or Optional
blank or 0 blank or 0
0 0
Must be
Must be Must be Must be blank
4.13 Required R Optional < RQ - 2 Optional RQ - 7 R >0 blank or Optional
blank or 0 blank or 0 or 0
0
Must be
Must be Must be Must be blank
4.14 Required R Optional RQ - 2 Optional ≤RQ - 7 R >0 blank or Optional
blank or 0 blank or 0 or 0
0
Must be
Must be Must be Must be Must be blank
4.15 Required R Required Optional > RQ - 7 B blank or >0 Optional
blank blank or 0 blank or 0 or 0
0
Must be
Must be Must be Must be Must be blank
4.16 Required R > RQ - 2 Optional ≤RQ - 7 B blank or >0 Optional
blank blank or 0 blank or 0 or 0
0
Reported in
ETA 581 Item 34 35 36 37 38
#’s
Notes:
Values in column 8 for all observations in subpopulation 4.1 should be totaled, for comparison to ETA Item #22.
UI DV HANDBOOK, TAX A-19 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
Values in column 9 for all observations in subpopulation 4.2 should be totaled, for comparison to ETA Item #23.
Values in column 10 for all observations in subpopulations 4.3 - 4.4 should be totaled, for comparison to ETA Item #24.
Values in column 11 for all observations in subpopulations 4.5 - 4.6 should be totaled, for comparison to ETA Item #25.
Values in column 12 for all observations in subpopulations 4.7 - 4.8 should be totaled, for comparison to ETA Item #26.
Values in column 8 for all observations in subpopulation 4.9 should be totaled, for comparison to ETA Item #34.
Values in column 9 for all observations in subpopulation 4.10 should be totaled, for comparison to ETA Item #35.
Values in column 10 for all observations in subpopulations 4.11 - 4.12 should be totaled, for comparison to ETA Item #36.
Values in column 11 for all observations in subpopulations 4.13 - 4.14 should be totaled, for comparison to ETA Item #37.
Values in column 12 for all observations in subpopulations 4.15 - 4.16 should be totaled, for comparison to ETA Item #38.
1) There must be one record for each ERQ balance for an EAN to calculate aging.
2) If states bill reimbursing employers on a monthly basis, then they may have up to three records for a receivable establishment in
the RQ.
3) States should not include negative values in individual transactions for report items. If a transaction made in one quarter is fully or
partially adjusted in a subsequent quarter, the adjustment should be reported using a positive entry to an appropriate adjustment
category on the report. For transactions made to an account that are fully or partially adjusted within the same quarter, states may
report the net result. To ensure a proper audit trail for validation purposes, adjustments should only be netted when they actually
occur and are discovered within the same RQ. In these same-quarter situations, states may net adjustments but are not required to net
if they prefer to maintain records of each transaction. The following table gives examples of how to report and validate various types
of receivables adjustments.
UI DV HANDBOOK, TAX A-20 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
Adjustment ETA 581
Error in new receivable identified and corrected within same reporting Report net result in Determined Receivable
period
$100 overstatement of new receivable identified and corrected in +$100 Liquidation in next quarter’s report
following quarter
$500 check received in RQ, returned by bank for non-sufficient funds in Report net result ($0) in Liquidated
same quarter
$500 check received in RQ, returned by bank for non-sufficient funds in +$500 Liquidated in RQ
following quarter +$500 Determined Receivable in report for RQ+1
Subpopulation descriptions:
4.1 Receivable amounts established as past due in the RQ for contributory employers.
4.2 Receivable amounts liquidated during the RQ for contributory employers.
4.3 Receivable amounts declared uncollectible during the RQ for contributory employers where the receivable is less than eight
quarters old.
4.4 Receivable amounts declared uncollectible during the RQ for contributory employers where the receivable is at least eight
quarters old but was established within the RQ or the two preceding quarters. The establishment date parameter is used to confirm
that these transactions have not yet been removed.
4.5 Receivable amounts removed during the RQ for contributory employers where the receivable is eight quarters old and was
established prior to two quarters before the RQ.
4.6 Receivable amounts removed during the RQ for contributory employers where the receivable was at least eight quarters old
and was established two quarters prior to the RQ.
4.7 Receivable balances at the end of the RQ for contributory employers which were less than eight quarters old. (The receivable
was not yet old enough to be removed.)
4.8 Receivable balances at the end of the RQ for contributory employers which were at least eight quarters old but which were
established within the RQ or the preceding quarter. (The receivable is old enough to be removed but is not removed because it has not
yet sat for 2 quarters in the ‘greater than 15 months’ aging category.)
4.9 Receivable amounts established as past due in the RQ for reimbursable employers.
4.10 Receivable amounts liquidated during the RQ for reimbursable employers.
4.11 Receivable amounts declared uncollectible during the RQ for reimbursable employers where the receivable is less than seven
quarters old based on the due date.
UI DV HANDBOOK, TAX A-21 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
4.12 Receivable amounts declared uncollectible during the RQ for reimbursable employers where the receivable is at least seven
quarters old based on the due date but was established within the RQ or the two preceding quarters.
4.13 Receivable amounts removed during the RQ for reimbursable employers where the receivable is seven quarters old based on
the due date and was established prior to two quarters before the RQ.
4.14 Receivable amounts removed during the RQ for reimbursable employers where the receivable was at least seven quarters old
based on the due date and was established two quarters prior to the RQ.
4.15 Receivable balances at the end of the RQ for reimbursable employers which were less than seven quarters old based on the due
date. (The receivable was not yet old enough to be removed.)
4.16 Receivable balances at the end of the RQ for reimbursable employers which were at least seven quarters old based on the due
date but which were established within the RQ or the preceding quarter. (The receivable is old enough to be removed but is not
removed because it has not yet sat for 2 quarters in the ‘greater than 15 months’ aging category.)
UI DV HANDBOOK, TAX A-22 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
Table A.5
Population 5 Subpopulations
Field Audits
Total Wages Taxable Wages Contributions
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
(Step (Step (Step (Step (Step 30) (Step (Step (Step (Step (Step 31E) (Step (Step (Step (Step (Step 32E) (Step (Step (Step (Step (Step 33E)
1E) 1E) 28A) 29A) 31A) 31B) 31C) 31D) 32A) 32B) 32C) 32D) 33A) 33B) 33C) 33D)
(Step (Step
28B) 29B)
Reporte
d in Reconciliatio
ETA n Reconciliatio Reconciliatio
Sub- 581 Employ Audit Pre- Post- Under- Over- Amount Pre- Post- Under- Over- n Amount Pre- Post- Under- Over- n Amount
populati Items Audit er Change Completio Audit Audit Reported Reported (System Audit Audit Reported Reported (System Audit Audit Reported Reported (System
on #’s EAN ID # Size Audit n Date (T1) (T2) (T3) (T4) Generated) (X1) (X2) (X3) (X4) Generated) (C1) (C2) (C3) (C4) Generated)
Must be Must be Must be Must be Must be Must be
> 0 if > 0 if > 0 if > 0 if > 0 if > 0 if
45, 46, Require Require Cols. 9, Cols. 8, Must be Cols. 8, Cols. 8, Must be Cols. 8, Cols. 8, Must be
5.1 L Y RQ Required Required Optional Optional Optional Optional
47 d d 13, 14, 13, 14, blank or 0 9, 14, 9, 13, blank or 0 9, 13, 9, 13, blank or 0
18, 19 18, 19 18, 19 18, 19 14, 19 14, 18
all = 0 all = 0 all = 0 all = 0 all = 0 all = 0
Must be Must be Must be Must be Must be Must be
Require Require Must be Must be Must be
5.2 45, 47 L N RQ Required Required blank or blank or Optional Optional blank or blank or Optional Optional blank or blank or
d d blank or 0 blank or 0 blank or 0
0 0 0 0 0 0
Must be Must be Must be Must be Must be Must be
> 0 if > 0 if > 0 if > 0 if > 0 if > 0 if
Require Require Cols. 9, Cols. 8, Must be Cols. 8, Cols. 8, Must be Cols. 8, Cols. 8, Must be
5.3 46, 47 S Y RQ Required Required Optional Optional Optional Optional
d d 13, 14, 13, 14, blank or 0 9, 14, 9, 13, blank or 0 9, 13, 9, 13, blank or 0
18, 19 18, 19 18, 19 18, 19 14, 19 14, 18
all = 0 all = 0 all = 0 all = 0 all = 0 all = 0
Must be Must be Must be Must be Must be Must be
Require Require Must be Must be Must be
5.4 47 S N RQ Required Required blank or blank or Optional Optional blank or blank or Optional Optional blank or blank or
d d blank or 0 blank or 0 blank or 0
0 0 0 0 0 0
Reporte
d in
ETA 49 50 53 56 54 57 55 58
581
Item #’s
Notes:
1) Some states may want to capture and store in the validation file the pre- and post-audit number of employees. Some states allocate
a percentage of their UI receipts to special funds or programs; if so, the employer’s discount rate and amount discounted should be
included in the file.
UI DV HANDBOOK, TAX A-23 FEBRUARY 2011
SUBPOPULATIONS SPECIFICATIONS APPENDIX A
2) Post-audit figures for total wages, taxable wages and contributions reflect the net increase or decrease of under- and over-reporting
identified during the audit, even though the netted figures are not reportable on the ETA 581. Referring to the report validation file
specification column headers:
Subtract the positive net of (T3 - T4) from the positive net of (T1 - T2). The result in column 10 should be zero.
Subtract the positive net of (X3 - X4) from the positive net of (X1 - X2). The result in column 15 should be zero.
Subtract the positive net of (C3 - C4) from the positive net of (C1 - C2). The result in column 20 should be zero.
For example, if Employer A under reported total wages by $5,000 and also over reported total wages by $1,000, the Employer’s post-
audit total wages would increase by $4,000. So, if the validator nets the under and over reported wages the result is $4,000, and nets
pre- and post-audit wages the result is $4,000. These two results should always reconcile to zero. Referring again to the specification:
If TI = $10,000, T2 = $14,000, T3 = $5,000, T4 = $1,000, then ($10,000 - $14,000) - ($5,000 - $1,000) = 0.
Also, if TI = $10,000, T2 = $6,000, T3 = $1,000, T4 = $5,000, then ($10,000 - $6,000) - ($1,000 - $5,000) = 0.
The validation software will reject records if the total wages reconciliation amount is not zero. However, the software does not reject
records if the taxable wages or contributions reconciliation amounts are not zero.
3) The number of observations in all four subpopulations should be totaled, for comparison to ETA Item #47.
Dollar values in column 6 for all observations in all four subpopulations should be totaled, for comparison to ETA Item #49.
Dollar values in column 7 for all observations in all four subpopulations should be totaled, for comparison to ETA Item #50.
Dollar values in column 8 for all observations in all four subpopulations should be totaled, for comparison to ETA Item #53.
Dollar values in column 9 for all observations in all four subpopulations should be totaled, for comparison to ETA Item #56.
Dollar values in column 13 for all observations in all four subpopulations should be totaled, for comparison to ETA Item #54.
Dollar values in column 14 for all observations in all four subpopulations should be totaled, for comparison to ETA Item #57.
Dollar values in column 18 for all observations in all four subpopulations should be totaled, for comparison to ETA Item #55.
Dollar values in column 19 for all observations in all four subpopulations should be totaled, for comparison to ETA Item #58.
Subpopulation descriptions:
5.1 Large employer audits completed during the RQ, which were change audits.
5.2 Large employer audits completed during the RQ, which were not change audits.
5.3 Small employer audits completed during the RQ, which were change audits.
5.4 Small employer audits completed during the RQ, which were not change audits.
UI DV HANDBOOK, TAX A-24 FEBRUARY 2011
APPENDIX B
Tax
INDEPENDENT COUNT
TABLE OF CONTENTS
APPENDIX B ............................................................................................................................. B-1
A. Purpose................................................................................................................................ B-1
B. Procedures........................................................................................................................... B-1
INDEPENDENT COUNT APPENDIX B
APPENDIX B
A. Purpose
The validation procedures described in Modules 1 and 2 address the validation of all UI
contributions transactions that have been included in the ETA 581 report. However, it is also
important to confirm that no transactions have been improperly or systematically excluded from
the Federal report. Although this problem is a difficult one, it is important to ensure that
funding, economic statistics, and performance outcomes are not biased by the systematic
elimination of particular types of transactions.
This Appendix is only applicable to populations for which the state has produced the RV file
from the same extract files used to produce the ETA 581 report. It is not applicable when states
produce the RV file directly from the employer contributions database, because the RV process
itself constitutes an independent count through the process of reconstruction. When the RV file
is produced from the same file used to produce the ETA 581 report, however, it is necessary to
conduct an independent count in order to identify any errors that may have occurred in the ETA
581 report since these errors will be duplicated in the reconstruction file.
It is not possible to perform an independent count when the database does not contain all of the
reported transactions. In these circumstances, the statistical file is the only source of data to
reconstruct reported counts on the ETA 581 report. For the reasons given in Table B.2 below, it
is unlikely that any state will need to perform an independent count for 581 validation. It is
expected to be relevant only to validating Federal benefits reports. Nevertheless, the procedure
is included in this handbook to ensure that states are aware of the possible problems with using
statistical files for both reporting and validation when database files could be used.
B. Procedures
IS staff create independent total counts of transactions from the main database for comparison
with counts generated on the extract files used to create the ETA 581. In general, the
independent count is created opposite to the way the RV file is created. The RV file should be
programmed from the bottom up, by selecting only the codes and criteria indicated on the file
specification in Appendix A. However, the independent count should be programmed from the
top down, by including all codes relevant to a population and then subtracting observations that
do not match the population and subpopulation specifications. State programming staff must
determine the specific type of independent count (simple query, multiple queries, cross
tabulation).
Table B.1 indicates when independent count validation is required. There are six typical
scenarios for how states produce the ETA 581 report and reconstruct counts for validation. The
ETA 581 Source column indicates for each scenario the source files that states use to generate
report counts. States may use different source files for different types of transactions. The Data
UI DV HANDBOOK, TAX B-1 FEBRUARY 2011
INDEPENDENT COUNT APPENDIX B
Validation Source column indicates for each scenario the source files that states use to
reconstruct lists of transactions for validation.
The Independent Count Required column of Table B.1 indicates whether the state should
conduct independent count validation for populations that match the report and validation
scenario.
Table B.2 describes independent count criteria for each population.
UI DV HANDBOOK, TAX B-2 FEBRUARY 2011
INDEPENDENT COUNT APPENDIX B
Table B.1
ETA 581 Reporting and Validation Configurations
Transactions ETA 581 Data Validation
Overwritten Program Source Timing Program Source Timing Independent
Scenario on Database Type Type Count Required
1 No Count Database Snapshot Detail Database Snapshot No
(for Record
reporting Extract
period) (DRE)
2 No Count Stat file Daily DRE Database Snapshot No
3 No DRE Database Snapshot DRE Database Snapshot Yes
(for
reporting
period)
4 No DRE Stat file Daily DRE Stat file Daily Yes
5 Yes DRE Stat file Daily DRE Stat file Daily NA
6 Yes Count Stat file Daily Must NA NA NA
create a
daily
extract
UI DV HANDBOOK, TAX B-3 FEBRUARY 2011
INDEPENDENT COUNT APPENDIX B
Table B.2
Independent Count Criteria by Population (Using Query Capability)
Population Description Independent Count Criteria
1. Active Employers States should not use statistical files to validate active
employers because the count should be taken from the database
as a snapshot at the end of the month. If states do not use this
approach for reporting--if they instead derive the number from
changes in status over the quarter--they must use it for
validation (they cannot recreate the active employer population
from the status changes). Therefore, there is no situation that
would require an independent count.
2. Report Filing States generally use data files containing a record for each
employer for both reporting and reconstructing counts of
employer report statuses. Therefore, there is not likely to be a
situation where statistical files are used for reporting or
validation. If a state uses a statistical file for validation, it
should create a frequency distribution of received dates for
every employer with a received date for the quarter being
validated. This count can be used to validate that the statistical
file data matches the data base for all timely and secured reports
and for all reports which are resolved by receipt of a report.
This will validate subpopulations 2.1, 2.2, 2.3, 2.9, 2.10 and
2.11, which will be sufficient to demonstrate that the statistical
file is valid.
3. Status Determinations States often use statistical files for reporting status
determinations when their system stores only the most recent
status determination for each employer account and thus
overwrites previous status determinations. These statistical files
are often called RQC or TPS files because they were developed
to provide a universe of determinations from which to derive the
Revenue Quality Control (now Tax Performance System)
sample. These states cannot perform an independent count from
the database to validate the statistical file because the database
will not contain records for all of the status determinations.
Therefore, an independent count is not required for status
determinations, because it is not possible to create such a count
in states that use statistical files.
UI DV HANDBOOK, TAX B-4 FEBRUARY 2011
INDEPENDENT COUNT APPENDIX B
4. Accounts Receivable All states must use a transaction history file or audit trail to
correctly reconstruct payments (amounts liquidated), because
only such files show the date that each payment was made.
Transaction history files are also the source for receivable
amounts established and amounts declared uncollectible in
some states. There is only one source file for such transactions,
so an independent count is not relevant.
All states must use employer quarter files to reconstruct
balances for reporting amounts removed and amounts
outstanding at the end of the quarter. Some states use such
balances for reporting amounts declared uncollectible. These
balances are always captured as a snapshot at the end of the
quarter from the database, so an independent count is not
relevant.
5. Field Audits States do not maintain more than one file with field audit
results, thus an independent count is not relevant.
UI DV HANDBOOK, TAX B-5 FEBRUARY 2011
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