Enhancing(Unemployment(Insurance(Wage(Records( Potential(Benefits,(Barriers,(and(Opportunities

Transcription

1 Enhancing(Unemployment(Insurance(Wage(Records( Potential(Benefits,(Barriers,(and(Opportunities ( Prepared(for(the(Workforce(Information(Council(by(the( Administrative(Wage(Record(Enhancement(Study(Group( September(2014(

2 AdministrativeWageRecordEnhancementStudyGroup RajJindal,Louisiana,StudyGroupChair RebeccaRust,Florida,WorkforceInformationCouncilStateCoDChair PhilBaker,Nebraska SachinChintawar,Louisiana RickClayton,BureauofLaborStatistics ThomasCrowley,EmploymentandTrainingAdministration RichardFroeschle,Texas GayGilbert,EmploymentandTrainingAdministration LynnGray,Oklahoma SteveHine,Minnesota EvelinaLoescher,Illinois SueMukherjee,Pennsylvania RandyMurphy,Pennsylvania InayatNoormohmad,Kansas HeatherParker,EmploymentandTrainingAdministration DanRobinson,Alaska KarenStaha,EmploymentandTrainingAdministration BobUhlenkott,Idaho DonWehbey,NationalAssociationofStateWorkforceAgencies DuaneWhitfield,Florida SteveSaxton,SaxtonConsulting,ProjectCoordinator GaryCrossley,WorkforceInformationCouncilExecutiveDirector i

3 Enhancing(Unemployment(Insurance(Wage(Records( PotentialBenefits,Barriers,andOpportunities ASummaryofFirstDYearStudyActivitiesandFindings Preparedforthe WorkforceInformationCouncil bythe AdministrativeWageRecord EnhancementStudyGroup September2014 ii

4 Acknowledgements.. Ourgreatappreciationgoesouttoalloftheindividualsinstateworkforceagencies, publicandprivateuserorganizations,andpayrollservicesandsoftwarecompaniesthat respondedtoquestionnairesdevelopedinthisfirstyearofstudy,andthosethat participatedinconversationsaboutthistopicandassistedincollectingdatafromothers. Withouttheirassistance,thisexplorationwouldnotbepossible. ThesupportofMichaelHorriganoftheBureauofLaborStatisticsandfederalcoDchairof theworkforceinformationcouncil,richhobbie,executivedirectorofthenational AssociationofStateWorkforceAgencies,andGayGilbert,AdministratoroftheOfficeof UnemploymentInsuranceattheEmploymentandTrainingAdministrationandtheirstaffs hasbeeninvaluable.theinputandinterestfromthenationalpayrollreporting Consortium,includingPresidentPeteIsberganditsmembercompanieshascontributed muchtoourfullerunderstandingofreportingissuesfacingtheemployercommunity. Finally,specialthanksgotothefollowingindividualsandorganizationsforassistingwith followupontheuserorganizationsurvey.theseindividualsmadepersonalcontactswith nondrespondingorganizationstoencourageparticipation.throughtheireffortsthe surveyresponsewassignificantlyimproved. AllisonLeeuw,InterimDirector,ResearchandAnalysis, IndianaWorkforceDevelopment AnthonyP.Carnevale,DirectorandResearchProfessoroftheGeorgetownUniversity CenteronEducationandtheWorkforce CarolRogers,DeputyDirector,IndianaBusinessResearchCenter ChelseaOrvella,LegislativeDirector, SocietyforProfessionalEngineeringEmployeesinAerospace CynthiaForland,Director,LaborMarketandPerformanceAnalysis, WashingtonEmploymentSecurityDepartment KennethE.Poole,CEO/President,CenterforRegionalEconomicCompetitiveness LesleyHirsch,Director,NewYorkCityLaborMarketInformationService, CityUniversityofNewYork PaulShannon,AssistantDirector,Budget&ResourcePlanning, ArizonaDept.ofAdministration RonKelly,VicePresident,TechnicalAssistanceandTraining, CenterforRegionalEconomicCompetitiveness SpencerWong,Chief,LaborMarketInformationDivision, CaliforniaEmploymentDevelopmentDepartment iii

5 Table.of.Contents. Acknowledgements. iii Executive.Summary. 1 Key.findings...1 Next.Steps.and.Recommendations...3 Chapter.One:.Overview.of.the.Study. 5 Introduction...5 Background...6 Study.Plan...7 Chapter.Two:..Current.State.Practices.for.Unemployment.Insurance.Wage.Record.Collection.and.Use. 9 Study.Methods...9 Results...10 EmployerReportingMethods...10 FrequencyofEmployerReports...14 UsesoftheWageRecords...14 CurrentEnhancementstotheWageRecords...18 ConsiderationofAdditionalEnhancements...20 StateUISystems Capabilities...20 PreviousResearchintoEnhancementstotheWageRecords...22 Chapter.Three:.User.Organizations'.Views.Regarding.Enhanced.Wage.Record.Collection.and.Use. 23 Study.Methods...23 Results...24 ParticipantCharacteristics...24 ImportanceofRelatedWorkforceInformationGoals...27 ValueofAdditionalVariables...30 NonDResponseAssessment...34 PotentialUsesoftheEnhancedWageRecordData...37 AdditionalCommentsProvidedbyRespondents...37 Chapter.Four:.Payroll.Services/Software.Companies.System.Capabilities. 39 Study.Methods...39 Results...40 PayrollCompanyCharacteristics...40 TypesofMediaUsedtoTransmitData...41 PayrollServicePricingFactors...45 PayrollSoftwareSalesandUse...46 CapacitytoStoreandReportWageRecordEnhancements...46 FactorsContributingtoHighCostsforAdditionalVariables...48 OtherComments iv

6 Chapter.Five:.Summary.of.Findings. 51 Findings.That.Support.Wage.Record.Enhancement...51 GrowthinElectronicReporting...51 IncreasedReportingFrequency...52 ImprovementsinStateUIAutomatedSystems...52 EmployersAlreadyReportEnhancedData...52 PayrollServiceProvidersCanAccommodateMostEnhancedVariables...53 WideUsageofWageRecords...53 BroadUserSupportExists...53 UsersValuethePotentialOfferedbyEnhancedWageRecords...54 FederalStatutesSupportEnhancedWageRecords...55 EnhancedWageRecordsCouldReduceEmployerSurveyBurdenandImproveLaborMarketStatistics55 Findings.That.May.Hinder.Wage.Record.Enhancement...56 LackofCoordination...56 CompetingPriorities...56 ContinuedUseofPaperTransactions...56 LackofAdequateIncentivesforComplete,Accurate,andTimelyReporting...57 UncertaintiesOverOngoingFundingSupport...57 DataSecurityConcerns...57 InflexibleStateSystems...57 InconsistentDefinitions...58 LackofOccupationalCodingSkillsandTools...58 LackofStandardCodingtoReflectVarietyinCompensationPackages...58 Chapter.Six:.Next.Steps.and.Recommendations. 59 Next.Steps.for.the.Study.Group...59 ConveneanEmployerFocusGroup...59 ConductEmployerSurveys...59 DocumentStateEnhancementProcesses...60 Recommendations.for.Broader.Action...60 EncourageElectronicReporting...60 DevelopToolstoAssistwithOccupationalandGeographicCoding...60 IdentifyFinancialSupportforStateUIUpgrades...61 EstablishaStatePractitionersWorkingGroup...61 EstablishaWageRecordEnhancementAdvisoryCouncil...61 Appendices. 63 v

7 Executive.Summary.. Inlate2012,thefederalDstateWorkforceInformationCouncilestablishedan AdministrativeWageRecordEnhancementStudyGrouptoexaminethefeasibilityof addingvariablestothequarterlywagerecordreportsthatemployerssubmittoallstates aspartoftheunemploymentinsurance(ui)program.theybeganlookingatthe administrativerecordsasanalternativesourceforimprovinglocalandstatelabormarket informationamidconcernsovertheadequacyofexistingsurveydbasedstatisticaldatafor stateandlocaleducationandtrainingprogramplanningandaccountability,economic analysis,careerplanning,andworkforceprogramadministration. Initsfirstyearofinvestigation,theStudyGrouphassurveyedstateagenciesresponsible foruiwagerecordcollections,userorganizationsthatmightbenefitfromwagerecord enhancement,andpayrollservices/softwarecompaniesthatcompileandreportthe wagerecordsformanyemployers.thoseactivitieshaveresultedinsomekeyfindingsand recommendationsforfuturesteps. Key.findings. TheStudyGroupfoundseveralstructuralfactorsthatcouldcontributefavorablytowage recordenhancement: Growth(in(Electronic(Reporting:(morestatesarerequiringmoreemployersto reportelectronicallywhichfacilitatesmodificationstothewagerecordsand lowersthemarginalcostsofaddingvariablesandcollectingdata.( Increased(Reporting(Frequency:(Illinoisnowrequiressomeemployerstoreport monthlywhich,ifexpandedtootherstates,couldbroadenthebenefitsanduses ofthewagerecords.( Improvements(in(State(UI(Automated(Systems:(manystateshavereplaced decadesdoldtechnologywithmoderndatabasesthataremoreflexibleinhandling modificationssuchasaddedwagevariables.( Employers(Already(Report(Enhanced(Data:(twelvestatescollectoneormoreoften differentenhancedwagevariablesdemonstratingthatemployersarecapableof producingthedesireddata. Payroll(Service(Providers(Can(Accommodate(Enhanced(Records:(amajorityof payrollservicesfirmscontactedarecapableofhandlingmostoftheenhanced wagerecordvariables.( Wide(Usage(of(Wage(Records:(stateUIagenciescurrentlyworkwithmany potentialcustomers/usersthatarecallingforenhancedwagerecords.( Page 1

8 Strong(User(Support:(userorganizationsacrossawidespectrumareenthusiastic aboutthepossibleaccesstotheenhancedwagerecordsandthelabormarket informationgoalsthoserecordscouldhelpachieve. Users(Value(the(Potential(Offered(by(Enhanced(Wage(Records:(theuserssurveyed indicatedthatenhancedwagerecordswouldbehighlyvaluedbytheir organizationsandthosetheyserve,anddescribedmanyspecificusesforthe improvedwagedata.( Federal(Statutes(Support(Enhanced(Wage(Records:(anumberofcurrentlaws requireemployerstocompilevariablesbeingconsideredforenhancement.( Enhanced(Wage(Records(Could(Reduce(Employer(Survey(Burden(and(Improve( Labor(Market(Statistics:(severalfederalstatisticalprogramsusesurveysand reportstocollectthesameinformationthattheenhancedwagerecordscould provide.inaddition,thegeographicdetailfromthewagerecordswouldenablefar greaterprecisionandtimelinessatthestateandlocallevelthancurrentsurveys.( TheStudyGroupalsofoundanumberofcurrentconditionsthat,withoutattention,could hinderwagerecordenhancement: Lack(of(Coordination:(wagerecordenhancementcostsaremagnifiedwhenthe statesarenotworkingtogetherorwithemployerstodevelopsolutions.similarly theoverallbenefitsareunderstatedwhenallthedifferentusersandorganizations involvedarenotrecognizingandcommunicatingtheircommonneeds.(( Competing(Priorities:(economicconditionsandtheneedtodealwithantiquated systemskeepmanystatesfocusedsolelyonpayingbenefits,notonenhancingthe system.( Continued(Use(of(Paper(Transactions:(evenasmoreemployersareusingelectronic meanstoreportwagedata,alargenumberstillrelyonpaperandfax,which makeswagerecordenhancementmuchmoredifficultandcostly.(( Lack(of(Adequate(Employer(Incentives(for(Complete,(Accurate,(and(Timely( Reporting:(requiringadditionalvariablesonthewagerecordsispointlessunless employersreportthedataanddosocorrectlyandtimely.( Uncertainties(Over(Ongoing(Funding(Support:(todate,thecostsofwagerecord enhancementhavenotbeendeterminedandnofundingsourceshavebeen identified.( Data(Security(Concerns:(publicconcernsarepossiblewithanyincreaseinthe compilationandstorageofadditionalconfidentialinformation.( Inflexible(State(Systems:(ManystateshavenotyetreplacedlegacyUIsystemswith technologythatcanhandleadditionalwagerecordvariables.( Inconsistent(Definitions:(definitionsforwagerecordelementsoftendifferamong thestatesandbetweenstatesandthefederalgovernment;thisincreasesthe complexityandcostofreportingforemployersandleadstoinaccurateandlate reports. Page 2

9 Lack(of(Occupational(Coding(Skills(and(Tools:(employersoftendonotunderstand thedefinitionaldistinctionsinthestandardoccupationalclassificationstructure anddonotknowhowtoaccessoruseonlinetoolstoassignandmaintainthese codes. Lack(of(Standard(Coding(to(Reflect(Variety(in(Compensation(Packages:(current compensationoptionsusedbyemployersarecomplexandvariedandthereisnot astandardmethodforcodingemployeecompensationacrossstates.( Next.Steps.and.Recommendations. Forthecomingyear,theStudyGrouphasestablishedplanstocollectinputdirectlyfrom employersthroughtheuseoffocusgroupsandstateemployersurveys,anddocument theconsiderations,costs,processes,andactionstakeninstatesthathaveenhancedtheir wagerecordsandthosethatarecurrentlyworkingthroughit. Finally,theStudyGrouprecommendsthewidercommunityofparticipants,includingthe BureauofLaborStatistics,EmploymentandTrainingAdministration,NASWA,andthe statestakethefollowingsteps: Encourage(Electronic(Reporting:developincentivesandassistanceforstatesto increasethenumberofemployersthatreportelectronically. Develop(Tools(to(Assist(Employers(with(Occupational(and(Geographic(Coding:build ontoolsdevelopedbyo*netandthestatesthatcurrentlyenhancetheirwage recordsandworkwiththepayrollsoftwarecompaniestointegratesystemsthat makeiteasierforemployerstoassignandmaintainaccuratecodes. Identify(Financial(Support(for(State(UI(Upgrades:renewgrantstostatesfor modernizationofuitaxsystems,includeincentivestoworkcollaborativelyand buildsystemsthatcanaccommodatewagerecordenhancement. Establish(a(Wage(Record(Enhancement(Practitioners (Working(Group:thiswould facilitatecollaborationamongstatesengagedinorplanningforwagerecord enhancement. Establish(a(Wage(Record(Enhancement(Advisory(Counciltorecommend:1) commondataelements,definitions,andcodingstructures;2)incentivesfor accurate,complete,andtimelyreporting;3)alternativeimplementation strategies;4)allowableandappropriatefundingmechanisms;and5)legislative actionsrequiredtoimplementuniversalwagerecordenhancement. Page 3

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11 Chapter.One:. Overview.of.the.Study.. Introduction. ThisreportsummarizestheinitialyearofinvestigationbytheWorkforceInformation Council sadministrativewagerecordenhancementstudygroupintothepotential benefitsof,andbarriersto,enhancinglabormarketinformationbyaddingdataelements tothewagerecordscollectedbystatesaspartoftheadministrationofthe UnemploymentInsurance(UI)Program.. Ifenhancedwagerecordcollectionistobesuccessfullyundertaken,manysupporting entitieswillneedtoplayarole:potentialusers,employeradvocates,federalandstate legislators,andstateexecutivesandstaff,amongothers.ultimately,however,three playersarefundamentaltothesuccessfulcompilationofenhancedwagerecords:1) individualemployers,whocompile,maintainandreportwagerecordsfortheir employees;2)thirddpartyserviceproviderssuchaspayrollservicesandsoftware companies,whoserveasintermediarieswithuiagenciesonbehalfofmanyemployers; and3)stateuiagencies,whomustcollect,edit,analyze,anddistributetheinformation forittohavevalue.ifanyofthesethreeentitiesdoesnothavetheresourcesandsystems toperformtheirroles,enhancedwagerecordcollectionwillfail. Overthepastyear,tobegintoexaminethepotentialforwagerecordenhancement amongtheseimportantplayers,thestudygrouphassurveyedstateuiagencies,user organizationsandpayrollservices/softwarecompanies.threeinterimreportswere preparedbasedontheresults: 1. Current(Practices(of(Unemployment(Insurance(Wage(Record(Collection(and(Use(( 2. Current(Views(of(User(Organizations(Regarding(Enhanced(Wage(Record(Collection( and(use( 3. Potential(Barriers(and(Opportunities(Regarding(Enhanced(Wage(Record(Collection( and(use( Inthisreport,wewillsummarizeinformationfromthoseinterimreportstodescribethe environmentwithinwhichwagerecordenhancementisbeingconsidered,the opportunitiesthathavebeenfound currentconditionsthatmightcontributefavorably towardanimplementationofwagerecordenhancement,andpotentialbarriersthat remain currentconditionsthatreflectongoingchallengestoaddingvariablestothe wagerecords. WewillalsopresentnextstepstheStudyGroupanticipatesinthecontinuingexploration ofthisimportanttopic.finally,wewillintroducesuggestedstepsthatotherorganizations Page 5

12 mighttake,thatwouldhavevaluewithorwithoutwagerecordenhancement,butthat wouldboostthepotentialforwagerecordenhancement. Background. FollowingtheenactmentoftheSocialSecurityActin1935,statesestablished UnemploymentInsuranceprogramsforthepurposeofprovidingwagestabilization duringweakeconomicperiods.inallstates,paymentstounemployedindividualsare basedontheindividual spreviouswork.inordertoestablishthatworkhistory,allstates collectafewbasicdataelementsfromemployersabouteachemployee,includingtheir socialsecuritynumberandtheamountofwagespaidtothemduringthemostrecent quarter.overthedecades,thesewagedatarecordshavebecomeessentialnotonlyfor theadministrationoftheuiprogrambutalsoformanyotherpurposes,whichwillbe describedinthisreport. ThelastconcertedeffortbytheU.S.DepartmentofLabor(DOL)toexploretheuseof administrativewagedataforlabormarketinformation(includingevaluatingtheimpactof trainingservicesonemploymentandwages)waspresentedattheirnewtoolsforanew EraSymposium 1 in2003.theworkforceinformationcouncilandthebureauoflabor StatisticssponsoredthissymposiumaspartoftheirAdministrativeDataResearchand EvaluationProject,whichwasfollowedbyareportin Thereportconcludedthat linkedadministrativereportsofferstatesattractiveopportunitiesforestimatingthe impactoftheworkforceinvestmentact(wia)anditsrelatedservicesatarelativelylow cost.thereportalsonotedthatadministratorsshouldstrivetoimprovethequalityand accessibilityofthesedatawhileensuringtheappropriateprivacyandconfidentiality protections. InamorerecentpublicationbytheWorkforceInformationCouncil 3,itwasnotedthata widerangeofindividualsandorganizationsuselabormarketinformation(lmi)for personal,business,education,andgovernmentpolicydecisions.sounddecisions regardingcareers,jobs,education,businessexpansionandcontraction,andtaxesand revenuesallcanhingeonaccurate,validlmi.muchoftheavailableinformation supportingthesedecisionsisproducedbyfederalandstateagenciesbasedonsurveysof employersandhouseholds.asfederalandstatebudgetstighten,lmisurveysareoften amongthefirstactivitiescurtailed meaninglessreliableinformationproducedforfewer geographicalareas.whilethenationalstatisticsarebasedonsurveyswithlargesamples, muchlessreliableinformationisavailableforstateandlocalareas. 1 KevinHollenbeck,ChristopherT.King,andDanielSchroeder PreliminaryWIANetImpactEstimates: AdministrativeRecordsOpportunitiesandLimitations 2 KevinHollenbeck,ChristopherT.King,WeiDJangHuangandDanielSchroeder NetImpactEstimatesfor ServicesProvidedthroughtheWorkforceInvestmentAct 3 LaborMarketInformationCustomersandTheirNeedsDDCustomerDOrientedLMIProductInnovationDD Page 6

13 Tomitigatetheeffectsofshrinkingbudgets,statesandlocaljurisdictionsmustexplore alternativesourcesiftheyaretocontinuetoprovidehighqualityinformationtosupport criticalpersonal,business,andgovernmentpolicydecisions.oneimportantalternative sourceistheemploymentandwagerecorddatareportedbyemployersfor administrationoftheunemploymentinsurance(ui)programsinallstates.thesedata, andthesystemusedtocollectthem,offeranopportunitytoenhancelabormarket informationforstateandlocalareasatarelativelylowcost.manystateshavebegun usingtheuiwagerecordstoenhancelmiandtomeasureprogramperformance.some stateshavebeguntocollectadditionalitemswiththewagerecords,includingjobtitles, hoursworked,andlocationofwork.somestatesarelookingatacceleratingthe reportingtimeframesothatinformationcanbemadeavailablemoretimely. Toassiststateworkforceagencies,theUSDepartmentofLabor,andlabormarket informationproducersandusersbetterassessthepotentialofusingenhanced administrativedatatoimprovelabormarketinformation,theworkforceinformation Council(WIC)establishedanAdministrativeWageRecordEnhancementStudyGroup.The StudyGroupwascomprisedofLaborMarketInformationDirectorsandstafffromseveral statesandrepresentativesfromthedepartmentoflabor semploymentandtraining AdministrationandBureauofLaborStatistics,andtheNationalAssociationofState WorkforceAgencies.TheWICselectedRajJindal,DirectorofInformationTechnologyat thelouisianaworkforcecommission,aschairofthestudygroup.inadditionthewic hiredaprojectcoordinatortofacilitatetheworkofthecommittee. ThisStudyGroupwaschargedwithexploringthebenefitsandbarrierstoaddingdata elementstowagerecordscollectedintheadministrationoftheunemployment InsuranceProgram,asasourceforenhancedlabormarketinformation.TheStudyGroup willdocumentcurrentpracticesassociatedwithcollectingandusingvariouswagerecord dataelementstoproduceinformationthatbenefitsawidevarietyofusers,determineif enhancementstothosewagerecorddatamayprovideevengreatervalue,andidentify potentialbarriersandopportunitiesforcollectingsuchenhanceddata. Study.Plan. Thisfirstyearofthisstudyhasbeencomprisedofthefollowingfourcomponents: Phase(I(described(the(current(state(practices(for(collecting(and(using(UI(wage( records,(and(past(research(on(ui(wage(record(enhancement.(( Phase(II(documented(the(importance(of(workforce(information(goals(that(could(be( supported(with(enhanced(wage(records(and(the(potential(value(that(could(be( derived(from(enhancements(to(the(wage(record(reporting(system(from(the( perspective(of(potential(users.( Page 7

14 Phase(III(explored(potential(barriers(to(and(opportunities(for(enhancement(of(the( wage(record(reporting(system(from(the(perspective(of(state(workforce(agencies,( payroll(processing(firms,(and(payroll(software(providers.( Phase(IV(summarizes(the(firstTyear(results(in(this(final(report.( Page 8

15 Study.Methods. Chapter.Two:.. Current.State.Practices.for.Unemployment.Insurance. Wage.Record.Collection.and.Use. ThischaptersummarizestheinitialphaseofinvestigationbytheAdministrativeWage RecordEnhancementStudyGroup.Inthisinitialphase,theworkteam:.. Inventoried(states (UI(wage(record(employer(reporting(requirements((including( data(collected,(timing,(and(methods(used)( Identified(and(described(wage(record(enhancements((beyond(the(norm)(that(states( currently(have(in(place(and(described(the(process(by(which(those(enhancements( were(added(and(the(benefits/uses(those(states(derive(from(each(existing( enhancement( Solicited(from(states(a(list(of(current(uses(of(the(UI(wage(records(in(each(state( Conducted(research(on(past(and(current(work(done(by(ETA,(states,(and(research( institutes(on(the(laws(and(uses(of(administrative(wage(records(for(purposes(other( than(states (administration(of(the(ui(program( Developed(a(central(repository(of(all(past(and(current(research(on(wage(record( enhancement Tocollectthenecessaryinformationforthisstageoftheproject,theprojectcoordinator workedwiththestudygrouptodevelopaquestionnairethatwouldbesenttoall50 statesandthreeterritoriescomprisingtheunitedstates.thenationalassociationof StateWorkforceAgencies(NASWA)conveyedthequestionnairetoallstatesand territoriesusinganedmailandcoverlettersignedbythennaswapresidentmarkhenry andwicstatecodchairrebeccarustonjuly9,2013.thecoverletterwasdirectedto stateworkforceagencyadministratorsandrequestedaresponsefromeachstateby August5,2013.Thedirectorofeachstate sunemploymentinsuranceprogramandlabor MarketInformationProgramwerecopiedontherequest.Acopyofthecoverletterand questionnaireareincludedinthisreportasappendicesaandb. Followingth ing,membersoftheWorkforceInformationCouncilandtheStudy Groupwereaskedtofollowupwithstatesintheirrespectiveregionstoencouragestate responsetothesurvey.repeatedfollowupcontactsweremadewithstatesthathadnot respondedbytheoriginallyrequesteddate.naswasentafollowuprequesttoallnond respondingstatesonseptember14,2013.attheendofseptember2013,thestudyteam agreedtoproceedwiththefirstinterimreport.thefinalresponsewasreceived December4, Page 9

16 Results. FortyDtwoofthefiftystates(84percent)andtwoofthreeterritories(Guamandthe VirginIslands)respondedtothequestionnaire.Thesestates/territoriescomprise75 percentofthebusinessestablishments,73percentofemployment,and71percentofthe wagespaidintheu.s.amapoftherespondingstatesisshownbelow. Employer(Reporting(Methods( Statesandterritorieswereaskedthreequestionsaboutthemethodsemployersuseto reportthewagerecords.first,theywereaskedaboutanyexistingrequirementsfor employerstoreportwagerecordselectronically. Does(your(state(mandate(electronic(reporting(of(UI(wage(records(for(any(segment( of(employers?(if(so,(what(are(the(criteria((e.g.,(size(of(firm,(industry)?( Paperrecordsrequiregreaterlevelsofstaffinvolvementanderrorcheckingtoprocess data.electronicreportingofdataenablesmoreefficientprocessingofthewagerecords bystateauthoritiesand,potentially,wouldmakeiteasiertohandlecollectionof additionalvariableswiththewagerecorddata. Page 10

17 Ofthe44respondingstatesandterritories,28(64percent) 4 indicatedtheyrequire electronicreportingofwagerecorddatabysomeorallemployers,while16(36percent) didnot.thelegislatureinatleastoneofthestatesthatdoesnotrequireelectronic reportingwasatthetimeconsideringsuchamandate.therequirementtoreport electronicallyisgenerallybasedonthenumberofemployeesinthereportingfirmsbut, insomecases,isalsobasedontheamountofwagespaidor,forpayrollfirms,the numberofbusinessesforwhichtheyreport.forexample,onestatesetitsthresholdat 100employeesormore,butalsorequiredelectronicreportingiftheemployerhad $1,000,000ormoreinwagesduringthecurrentorpreviousquarter.Thetablebelow depictsthedistributionoftheemploymentthresholdrequirementsforelectronic reportingamongtherespondingstates. Table1 ElectronicReportingRequirements inrespondingstates/territories Threshold.#.of. Employees. Number.of. States.in Number.of. States.in NoRequirement Togiveasenseoftheshareofemployersinthesestatesthatmaybeaskedtoreport electronically,andtheamountofemploymentinformationthatiscapturedbythose electronicreports,table2belowdisplaystheshareofprivateu.s.firmsandemployment abovecertainemploymentthresholds.forexample,u.s.firmsthathave100ormore employeescomprisejust2percentofallprivatefirms,yettheyemploy63percentofall privatedsectoremployeesinthenation. 4 Sincethesurveyofstates,morecurrentinformationonelectronicreportingrequirementshasbeen compiled.thereviseddata,depictingallstatesasof2014,areshowninchapter5,onpage51. Page 11

18 Table2 CumulativeSharesofU.S.PrivateSectorFirms andemploymentbyfirmsize Number.of. Employees. Share.of.U.S.. Firms.. Share.of.Total.U.S.. Nonfarm.Employment % 100% 5+ 44% 95% % 89% % 82% 50+ 5% 71% % 63% % 53% Stateswerealsoaskedtoprovidepercentagedistributionsofemployersandwages reflectingthemethodsemployersusedtoreportthewagerecords. What(percentage(of(employers((or(their(agents)(in(your(state(report(wage(data( using(the(following(methods?( Internet:(( ( Magnetic(media((tape,(computer(disk,(etc.):(( ( Paper/fax:((( ( Other((specify):( ( ( What(percentage(of(total(wages(reported(in(your(state(do(the(following(reporting( methods(represent?( Internet:(( ( Magnetic(media((tape,(computer(disk,(etc.):(( Paper/fax:((( ( Other((specify): Statesandterritoriesthatrequiredelectronicreportingtendedtobelargerand comprisedahighershareoftheemployeesandwagespaid.the28respondentsthat requiredsomelevelofelectronicreporting(64percentoftheallrespondents)comprised over79percentofthe6.6mbusinessestablishmentsandover80percentofthe$3.7 trillioninwagespaidintherespondingstatesandterritories.notsurprisingly,asdepicted intable3,thesestates/territoriesexperiencedhigherratesofelectronicreporting,as well. Page 12

19 Reporting. Method. Table3 MethodsUsedbyEmployerstoReportQuarterlyWages States.with.Some.Required. Electronic.Reporting. Percent.of. Employers 5,.6. Percent.of. Wages 4. States.with.No.Required. Electronic.Reporting. Percent.of. Employers 4,.5. Percent.of. Wages 4. Internet 52% 61% 44% 42% MagneticMedia 9% 14% 10% 14% Paper 31% 10% 34% 18% Other 7 8% 15% 12% 26% Somestatesincludedelectronicformsofdatadeliveryinthe Other categoryand providedabreakoutofthe Other categorythatspecifiedthepercentagethatwasftp 6. Basedonthatinformation,wecangetagoodunderstandingoftheshareofallformsof electronicdatatransmissionversuspaperandstaffdentereddata.thefollowingtable depictsthisdistribution.theclosenessofthepercentagesbetweenstatesthatrequired electronicreportingandthosethatdidnotseemstoindicatethatmostemployersprefer electronicreportingregardlessofwhetheritisrequiredornot.however,thereisalsoa substantialminorityofemployersthatoptedforpaperreporting,instatesthatallowit. Table4 MethodsUsedbyEmployerstoReportQuarterlyWages Reporting. Method. States.with.Required. Electronic.Reporting. Percent.of. Employers 4. Percent.of. Wages 4. States.without.Required. Electronic.Reporting. Percent.of. Employers 4. Percent.of. Wages 4. ElectronicFiles 69% 90% 65% 82% Paper/StaffEntry 31% 10% 35% 18% ( 5 Twostateswerenotabletoprovidethepercentagedistributionbasedonemployers.Theyrepresented threepercentofallemployersintherespondingstates.sixstateswerenotabletoprovidethe percentagedistributionbasedonwages.theyrepresentedfivepercentofthetotalwagesinthe respondingstates. 6 TheBureauofLaborStatisticsdoesnotproduceacountoffirmsbystate;therefore,thenumberof establishmentsineachstatewasusedasaproxyforthenumberofemployerstocalculatetheseshares. 7 SomestatesincludedaformofInternetreportingcalledFileTransferProtocolor FTP inthe Other or MagneticMedia categories. Page 13

20 Frequency(of(Employer(Reports( Thestateswerenextasked: Does(your(state(require(any(employers(to(report(wage(records(more(frequently( than(quarterly?(if(yes,(what(criteria(are(used(to(select(those(employers?( QuarterlyreportinghasbeenthenormforUIwagerecordreportingfordecades.Asnew informationtechnologyhasbeenadopted,realdtimesharingoflargedatafileshas becomecommonplaceinthebusinessworld,andthepotentialformoretimelycollection ofwagerecordsisbecomingmoreofareality. Virtuallyallstatesthatrespondedcontinuetorequirequarterlywagefilereporting,with Illinoisbeingtheoneexception.Atthetimeofthesurvey,Illinoisemployerswithatleast 100employeeswererequiredtosubmitmonthlyreports.AsofJuly2014,Illinois employerswithatleast25employeesarerequiredtosubmitmonthlyreports.illinoishas madethesechangestohelpenhancetheintegrityofthestate smedicaidprogramby improvinginformationfortimelyverificationofclienteligibility. Uses(of(the(Wage(Records( Does(your(agency(match(the(wage(records(with(other(administrative(data((e.g.,( DMV,(TANF)(to(add(demographic(characteristics((age,(gender,(income,(residence( address,(etc.)?( Anypotentialenhancementofthewagerecordsshouldnotduplicateexisting administrativesystemsand,potentially,shouldeliminateredundantreporting.by coordinatingadministrativedatacollection,employerreportingburdenandthe processingcosttogovernmentmightbereduced. FederalandstateUIlaws,aswellasotherstatelaws,tightlyrestrictsuchmatchingto otherdatabases.onlyahandfuloftherespondingstatesreportedmatchingthewage recordswithotherstateadministrativefilestoadddemographiccharacteristicstothe employeedata.mostofthosethatdidwererelyingonfilesfromtheirdepartmentsof MotorVehiclestobringinvariablessuchasage,gender,andresidenceaddress,although filesfromworkforceprogramsandauniquestatedspecificprogramwerealsomentioned. Who(uses(the(wage(data(your(agency(collects(for(purposes(other(than(direct(UI( administration?(what(are(those(purposes?( Accesstothewagerecordsisgenerallylimitedtostateandlocalpersonnelwithaneedto usethedataforpurposesoutsideoftheuiprogramasdefinedinstatelaw.evenwhen statelawprescribesanallowableuse,specificuseagreementsaredevelopedandsigned toensureproperprotectionsfortheconfidentialityofthedata. Page 14

21 Thebreadthofthetypesofusedescribedmakeitclearthatthewagerecordscollected undertheunemploymentinsuranceprogramhavevaluetoafarwideraudiencethan originallyenvisioned.thewagerecordsprovideatimelyandcomprehensivetoolfor userstoconductthepublic sbusiness,atfarlesscostthanifeachentityweretoattempt tocollectthedataseparately. Thefollowingchartprovidesexamplesofthewiderangeofuserorganizationsandtheir commonapplicationsofthewagerecorddata.therespondingstatesprovidedmorethan threehundredexamplesofuse.thesehavebeengroupedbyprogramtypeanduse.the shadingonthechartindicatestheshareofeachusergroupforwhichthestateslistedthe typeofuse:most=50+percent;some=25to49percent;few=1to24percent. Page 15

22 & & Table&5& Examples&of&UI&Wage&Record&Uses&and&User&Programs&Identified&by&States/Territories&& & Programs(Identified(as(( Using(the(UI(Wage(Records( Employment&Verification& Income&Verification& Fiscal&Management& Primary(Uses(of(Wage(Record(Information( Child&Support& & & & & & & & & & & & & & Corrections& & & & & & & & & & & & & & Consumer&Affairs& & & & & & & & & & & & & & Civil&Rights&Commission& & & & & & & & & & & & & & State&&&Local&Government&Administration& & & & & & & & & & & & & & Fish,&Wildlife,&and&Parks& & & & & & & & & & & & & & Law&Enforcement/Public&Safety& & & & & & & & & & & & & & Crime&Victims&Restitution& & & & & & & & & & & & & & Emergency&Management& & & & & & & & & & & & & & BLS/Census/State&Labor&Market&Information& & & & & & & & & & & & & & Private&and&Public&Research&Organizations& & & & & & & & & & & & & & Federal&Reserve&Bank& & & & & & & & & & & & & & Workforce&Preparation& & & & & & & & & & & & & & Vocational&Rehabilitation& & & & & & & & & & & & & & Employment&Services& & & & & & & & & & & & & & Adult&Basic,&Career,&and&Higher&Education& & & & & & & & & & & & & & Department&of&Commerce& & & & & & & & & & & & & & Economic&Development& & & & & & & & & & & & & & National&Farmworkers&Jobs&and&Education&Program& & & & & & & & & & & & & & Labor&Standards,&Worker&Safety,&Wage/Hour&Agencies& & & & & & & & & & & & & & Investigations& Locating&Individuals& Law&Enforcement& Data&Generation,&& Market&and&Policy&Analysis& Program&Administration& Eligibility&Determination& Program&Performance& Assessment& Credit/Grant/Loan&Making& Collection&of&Fines,&Restitution,& Penalties,&Debts,&Overpayments& Tax&Collection& & Most&use:& 25& Some&use:& & Page&16& Few&use:& 6& No&use&mentioned:& &&

23 Programs(and(Agencies(Identified(as(( Using(the(UI(Wage(Records( Table&5& Examples&of&UI&Wage&Record&Uses&and&User&Programs&Identified&by&States/Territories&& Employment&Verification& Income&Verification& Fiscal&Management& Primary(Uses(of(Wage(Record(Information( Workers &Compensation& & & & & & & & & & & & & & Financial&Institutions& & & & & & & & & & & & & & FMHA&Loan&Program& & & & & & & & & & & & & & HUD&Assisted&Housing&Program& & & & & & & & & & & & & & State&and&Local&Housing&Programs& & & & & & & & & & & & & & Human&Services&Agencies& & & & & & & & & & & & & & Temporary&Assistance&for&Needy&Families&(TANF)& & & & & & & & & & & & & & Supplemental&Nutrition&Assistance&(Food&Stamps)& & & & & & & & & & & & & & Public&Assistance& & & & & & & & & & & & & & Utility&Assistance& & & & & & & & & & & & & & USDA&Rural&Assistance& & & & & & & & & & & & & & Social&Security& & & & & & & & & & & & & & Retirement&Programs& & & & & & & & & & & & & & Health&Care& & & & & & & & & & & & & & Health&Insurance& & & & & & & & & & & & & & Mental&Health& & & & & & & & & & & & & & Medicaid&Assistance& & & & & & & & & & & & & & Disability&Assistance& & & & & & & & & & & & & & Debt&Collection&Agencies& & & & & & & & & & & & & & IRS&and&State&Revenue&Agencies& & & & & & & & & & & & & & Investigations& Locating&Individuals& Law&Enforcement& Data&Generation,&& Market&and&Policy&Analysis& Program&Administration& Eligibility&Determination& Program&Performance& Assessment& Credit/Grant/Loan&Making& Collection&of&Fines,&Restitution,& Penalties,&Debts,&Overpayments& Tax&Collection& & Most&use:& 25& Some&use:& & Page&17& Few&use:& 6& No&use&mentioned:& &&

24 Current'Enhancements'to'the'Wage'Records' Twelveoftherespondingstatesandterritoriesenhancedthebasicwagerecord,adding dataelementstotheinformationcollectedfromemployersabouteachindividual employee.slightlymorethanhalfofthesestatesandterritoriesrelieduponstatelawto directtheenhancementsandmosthavebeencollectingtheenhanceddataformany years. State/& Territory Alaska Iowa When& Started& Late 1980s Table6 CurrentStateWageRecordEnhancements Initiated&by& Statute&or&Rule& Rule Rule Minnesota 1995 Statute NewJersey 1984 Statute Enhanced&Data&Elements&Collected&& About&Each&Employee StandardOccupationalClassificationCode; geographiccode(countyequivalent)ofprincipal worksite Bonuses Reportingunit(employee sprincipalworksite) Totalhoursworkedinquarterandprincipal worksitenumber Baseweeks(numberofweeksinquarterthe individualearnedover$140) Ohio 1987 Statute Totalnumberofweeksworkedinquarter Oregon 1995 Statute Totalhoursworkedinquarter Pennsylvania 1983 Statute Totalnumberofweeksworkedinquarter RhodeIsland 2008 Rule Totalhoursworkedandnumberofweeksworked inquarter Vermont 2001 Statute Paytype:salaryorhourly;hourlypayrate;gender VirginIslands 2005 Rule Totalhoursworkedinquarter;salary;jobtitle; worksitestreetaddress,zip,andcounty;gender Washington 1977 Statute Totalhoursworkedinquarter Wyoming Totalhoursworkedinquarter,tips,anddateof hire(collectedaspartofjointeffortswiththe Workers CompensationProgram) Page18

25 Table7 CurrentEnhancementsbyType Enhanced&information&type& collected&about&each&employee:& Number&of& states/territories& Hoursworked 6 Primaryworksitelocation 5 Weeksworked 4 Payrate 2 Gender 2 Paytype 1 Occupation 1 Dateofhire 1 Bonuses 1 Tips 1 Ofthetwelverespondingstatesthatenhancedthewagerecord,sevenhadsomedegree ofelectronicreportingrequired,includingthreestatesthatrequiredelectronicreporting fromallemployers.thisgivestheimpressionthatatleastsomeemployersandpayroll servicecompaniesandsoftwareprovidersarecapableofstoringtheenhanceddata elementsanddeliveringthemelectronicallytothestates.thisquestionisexplored furtherinchapter4. Moststatescollectingenhanceddatanotedthatissuesofincompletenessorinaccuracy intheemployerareportedenhanceddatareducedthereliabilityofestimatesderivedfrom theirapplication.somestatesusedhoursorweeksworkedinuideterminationsandhad foundthosedataweremorecloselyeditedandreliable.incaseswheretheenhanced datawerenotuseddirectlyintheuiprogram,moredatagapsandinaccuracieswere noted.thosecollectinghourswereableonlytoestimategrosshourlyearningswithout accountingforovertimepay. Despitethesechallengessomestatesreportedthatthedatawereextremelyhelpfulin estimatinghourlyearnings,understandingcareerprogressionfromoccupationto occupation,assessingtheeffectivenessofworkforcetraining,andmakingoccupational projections.onestatepointedoutthattheemployeeworksiteinformationeasedother employerreportingburdensandhelpedwithuiclaimfiling. ' Page19

26 Consideration'of'Additional'Enhancements' Has'your'state'considered'adding'other'data'elements'to'the'wage'record' requirements?'if'so,'what'and'when?'what'was'the'intended'purpose?'what'was' the'result?' Do'you'know'of'organizations'calling'for'your'state'to'collect'additional'elements' with'the'wage'records?'if'so,'which'organizations'and'what' enhancements/purposes?' Fourteenstatesindicatedthattheyhaveconsideredenhancementstotheirwage records,includingfourstateswithenhancedwagerecordslookingatfurther enhancements.theseconsiderationsrangedfrominformaldiscussionsamongstaffersin stateagenciesandlegislatures,totaskforcesbeingestablished,toproposedlegislation aimedatexploringpossibleenhancements.somestateswereexploringenhancementsto coincidewithupcominguicomputersystemredesigns. Sevenstatesreportedthatexternalorganizationswerecallingforwagerecord enhancements,includingbusinessassociations;economicdevelopment,education,and workforceagencies;andthesocietyofprofessionalengineeringemployeesinaerospace. Mostwereseekingenhancedcollectionofthenumberofhoursworked,hourlywages, andoccupationtoevaluatestateinvestmentineducationandtrainingandaideconomic developmentefforts.thefairlaborstandardsactrequiresthatemployersmaintaindata onallofthesevariables. Manystateswereworkingtodeveloplongitudinaldatasystemsthatwillfacilitatethe matchingofstudentrecordstolabormarketoutcomes.partnerorganizationsinthose effortswereincreasinglydiscussingthepotentialvalueofenhancedwagerecords.these desiresarereflectedinanumberofpublicationsbyorganizationsinterestedintheuseof wagerecordsforeducationandtrainingprogramevaluation,indicatingthelimitations imposedbytheabsenceoftheadditionalvariables.' State'UI'Systems 'Capabilities' Asindicatedintheintroductiontothisreport,inordertoassessthepotentialforwage recordenhancement,itisfundamentallyimportanttounderstandtheabilityofstate UnemploymentInsurancesystemstoreceive,store,edit,andanalyzethedata. Is'your'state's'UI'wage'collection'system'flexible'enough'to'collect'additional'data' elements'on'the'wage'reports?'please'describe'any'technical/fiscal/staffing' constraints'to'adding'elements.' Ofthe42statesand2territoriesthatrespondedtothesurvey,thirteen(30percent) indicatedthattheiruisystemswereatthattimeflexibleenoughtohandleadditional wagedataelements,while20(45percent)respondedthattheirsystemswerenot.of Page20

27 these20,fivestatedthattheyexpectedtocompletenearaterminstallationofnew systemsthatwouldprovidetheflexibilityneededforwagerecordenhancementandtwo indicatednewsystemswerebeingbuiltbutdidnotclearlystatewhetherthesewould enablewagerecordenhancement. Ninestates(20percent)didnotstate yes or no inresponsetothequestionbut providedcommentsthatindicateditwaspossiblethattheirsystemscouldhandlethe enhancements.tworespondents(5percent)didnotanswerthequestionorprovide comments. Thestatesprovidedavarietyofcommentsonthetechnical/fiscal/staffingconstraintsto enhancingwagerecordcollection.evenstatesthatindicatedthattheirsystemscould accommodateadditionalwagevariablesmadeitclearthatmanyfactorswouldhavetobe addressedbeforeconsideringwagerecordenhancement.table8summarizesthe constraintsmentionedbytherespondingstates.acompletelistingofthestates commentsisincludedasappendixc. Table8 SummaryofStateCommentsReceivedRegarding ConstraintstoEnhancedWageRecordReporting Constraint&Mentioned& #&of&states& Mentioning& Extensivereaprogrammingrequired 20 Inadequatefunding 13 Currentsystemrigidity 11 Potentialemployerburden 7 Changesrequiredinformsused 6 Conflictingstaffingpriorities 5 Addedprocessingcosts 4 Sizelimitsonformsused 2 Addedeffort 2 Law/rulechangesrequired 2 Employercommunications/educationneeded 2 Possibleincreaseinincomplete,untimelyreporting 2 Noconstraintsmentioned 5 Page21

28 Nodirectinformationwasgatheredonthecostsassociatedwithadaptingsystemsto collectenhancedwagerecords.clearly,itemssuchastheextensivereaprogramming mentionedby20stateswouldcarryasubstantialcostwhich,whentakeninthecontext oftheirothercommentsaboutinadequateavailablefunding,begsthequestionasto wherefundingtosupportsuchaneffortmightbefound.thistopicwillbetouchedupon inchapter6. Previous'Research'into'Enhancements'to'the'Wage'Records' Thestateswerealsoasked: Has'anyone'in'your'state'prepared'any'reports'on'the'benefits'or'monetary'value' of'using'wage'records'for'purposes'other'than'direct'ui'administration?'if'so,'who' can'we'contact'to'obtain'a'copy?' Onlyonestatereportedhavingsuchastudy,anditwasnearlytwentyyearsold. However,anumberofreportsthatdiscussthevalueofbasicwagerecordsandpossible enhancementshavebeenidentified.thesedocuments,identifiedtodate,arelistedin AppendixD.Workwillcontinuetoidentifyadditionalresearch. Page22

29 Chapter&Three:& User&Organizations'&Views&Regarding& Enhanced&Wage&Record&Collection&and&Use& & Study&Methods& ThegoalofPhaseIIofthestudywastobetterunderstandhowusersmightvaluethe availabilityofadditionalvariablesthatcharacterizethenatureofworkandcompensation inlocallabormarkets.thisphasebeganwiththedevelopmentofalistofnationaland regionalorganizationsthatrepresentbusiness,education,labormarketresearch,and workforcepreparation.theprojectcoordinatorcompiledthisinitiallistandsubmittedit tothestudygroupforcommentandaugmentation.thelistwasthensharedwiththe labormarketinformationdirectorsinall53statesandterritoriesfortheirreview, comment,andaugmentation.attheendofthisprocess,113organizationswereselected toincludeinasurvey.alistoftheseorganizationsisincludedinappendixe. Next,theprojectcoordinatorworkedwiththeStudyGrouptodevelopanonline,weba basedquestionnairetocollectinformationabouttheuserorganizations purposeand scope,andtheirviewsontheimportanceoflmigoalsassociatedwithwagerecord enhancementandonthevalueofaddingvariablestotheuiwagerecords.thegroupalso developedacovereamailtoconveytherequestforparticipationinthesurvey.acopyof thecovereamailandquestionnaireareincludedinthisreportasappendicesfandg. Therequesttocompletethequestionnairewasinitiallyconveyedtotheselecteduser organizationsbyeamailfromthewic sexecutivedirectoronapril16,2014.theeamail requestedresponsesbymay2.inanattempttomaximizeearlyresponse,followaupea mailsweresentonapril25andmay7. Asresponsesslowedafteraninitialburst,membersofthestudyteamsoughtthesupport ofselectedintermediarypartnerorganizationsbyaskingthemtomakepersonalcontacts withnonarespondingorganizationstoencouragetheirparticipation.inaddition,members oftheworkforceinformationcouncil,itswagestudyadvisorycommittee,andthelabor marketinformationdirectorsinall53statesandterritorieswereaskedtofollowupwith nonarespondingorganizationsintheirrespectiveregionstoencourageresponsestothe survey.inconcertwiththesecontacts,additionalfollowaupeamailsweresenttonona respondingorganizationsbetweenjuly1andaugust7,2014.inearlyaugust2014,the studyteamagreedtoproceedwiththephaseiisummaryreport.thefinalresponsewas receivedaugust27,2014. & Page23

30 Results& Fortyaseven(42percent)oftheonehundredthirteenuserorganizationscontacted respondedtothequestionnaire. Participant'Characteristics' Userorganizationswereaskedthreequestionsaboutthenatureandscopeoftheir organization.first,theywereaskedtoassignacategorydesignationtotheirorganization. Please'select'the'description'that'best'fits'your'organization.' o Schools,'Colleges,'and'Related' o Employment'&'Training' o Health'Services' o Business'Association' o Trade'Association' o Professional'Association' o Legislative' o Human'Services' o Government' o Research' o Labor'Association' ' o Other'(please'specify)' ' ' Nearlyaquarterofthe47respondentsusedthe Other categorytodescribetheir organization.usingtheinformationprovided,combinedwithacarefulreviewofthe respondingorganizations websites,therespondentsweregroupedasfollows. BusinessandTradeAssociations 8 Education,Workforce,andRelatedSupportOrganizations 6 GovernmentResearchandStatisticalOrganizations 3 LaborAssociations 3 PolicyDevelopmentandAdvocacyOrganizations 5 PrivateConsultingResearchOrganizations 8 ProfessionalAssociations 8 UniversityabasedResearchCenters 6 Next,participantswereaskedtodescribethesizeandscopeoftheirorganization. Please'describe'the'scope'of'your'organization'and'its'members,'if'any.' Geography& Number&of&Members& Number&of&Individuals&Served& o 'Local' o ''0' o ''<'1,000' o 'Regional' o ''1'W'4' o ''1,000'to'9,999' o 'Statewide' o ''5'W'24' o ''10,000'to'99,999' o 'MultiWstate' o ''25' '99' o ''100,000'to'499,999' o National' o ''100' '499' o ''500,000'to'999,999' ' o ''500+' o ''1,000,000+' Ofthe47respondinguserorganizations,28(62percent)indicatedtheyhaveanational scope,while13(28percent)representstatewideormultiastateconstituencies.five respondents(10percent)representedlocalorregionalinterests. Page24

31 Table9 GeographicalRepresentation ofrespondinguserorganizations Geography& Number&& Percentage& Local 3 6% Regional 2 4% Statewide 8 17% MultiaState 5 11% National 29 62% Themajorityofrespondentsrepresentedmorethan100individualororganizational members,withfortypercenthavingmorethan500members. Table10 NumberofMembersRepresented byrespondinguserorganizations Number&of&& Members& Number&of& Respondents&& Percentage&of& Respondents& % 1a4 3 6% 5a % 25a % 100a % % Intotal,therespondinguserorganizationsindicatedtheyservedmorethan20million individuals.overhalfoftherespondentsservedmorethan100,000individuals. Table11 NumberofIndividualsServedbythe RespondingUserOrganizations Number&of& Number&of& Percentage&of& Individuals&Served& Respondents&& Respondents& <1, % 1,000to9, % 10,000to99, % 100,000to499, % 500,000to999, % 1,000, % Page25

32 AscanbeenseeninTable12below,nodirectcorrelationcanbeinferredfromthe membershipsizeandthenumberofindividualsservedbytherespondingorganizations. Someorganizationswithnomembersservedlargepopulationswhilesomewithlarge membershipservedrelativelyfewindividuals. Table12 NumberofIndividualsServedbythe RespondingUserOrganizations Number&of& Individuals&Served& Number&of&Members& 0& 1N4& 5N24& 25N99& 100N499& 500+& <1, ,000to9, ,000to99, ,000to499, ,000to999, ,000, Thenumberofindividualstheuserorganizationsreportedservingwasdistributed relativelyevenlyacrossorganizationaltypes. Type&of&Organization& BusinessandTrade Associations Table13 NumberofIndividualsServedbyTypeof RespondingUserOrganization <1,000 1,000to 9,999 Number&of&Individuals&Served& 10,000to 99, ,000to 499, ,000to 999,999 1,000, Government 3 LaborAssociations 2 1 PolicyDevelopmentand AdvocacyOrganizations PrivateConsultingResearch Organizations ProfessionalAssociations Education,Workforce,and RelatedSupportOrganizations UniversityabasedResearch Centers Page26

33 Importance'of'Related'Workforce'Information'Goals' TheStudyGroupwishedtoassessthelevelofuserorganizations supportforworkforce informationgoalsthatenhancedwagerecordswouldsupport. Please'rate'the'importance'of'the'following'workforce'information'goals'to'your' organization'and'those'it'serves.' o Helping'to'align'education'programs'with'employer'needs' o Enhancing'information'to'support'economic'development'efforts' o Delivering'accessible'information'on'education'and'training'program' outcomes' o Monitoring'local,'regional,'and'statewide'economic'trends' o Assessing'the'effects'from'economic'disruptions'(recession,'natural'disaster,' etc.)' o Informing'the'community'of'economic'and'social'needs' o Reducing'employer'survey'burden'through'better'use'of'administrative'data' o Providing'accurate'information'on'employment'opportunities'available'to'job' seekers' Respondentswereprovidedafourapointscaleonwhichtoratetheimportanceofeach goal:1=notimportant,2=littleimportance,3=important,or4=veryimportant. Overall,therespondentsindicatedthatallofthelistedworkforceinformationgoalswere importanttoveryimportanttotheirorganizations.table14,onthenextpage,displays themean,median, andstandarddeviationoftheimportancescoresassignedtothese goals.thestrongest supportwasexpressedfor helpingtoaligneducationprogramswith employerneeds and deliveringaccessibleinformationoneducationandtraining programoutcomes, withmeanscoresof3.53and3.43,respectively.asindicatedbythe medianscores,atleasthalfoftherespondentsratedsixoftheeightgoalsasvery importanttotheirorganizationsandtheothertwoasimportant. Page27

34 Table14 OverallRespondents RatingofWorkforceInformationGoals Workforce&Information&Goal& Mean& Score& Median& Score& Std.& Dev.& Helpingtoaligneducationprogramswithemployerneeds Enhancinginformationtosupporteconomicdevelopment efforts Deliveringaccessibleinformationoneducationandtraining programoutcomes Monitoringlocal,regional,andstatewideeconomictrends Assessingtheeffectsfromeconomicdisruptions(recession, naturaldisaster,etc.) Informingthecommunityofeconomicandsocialneeds ' Reducingemployersurveyburdenthroughbetteruseof administrativedata Providingaccurateinformationonemployment opportunitiesavailabletojobseekers InTable15,onthefollowingpage,webreakdowntheseresultstolookatthemeanand medianratingsbytypeofuserorganization.nearlyallofthegoalswereratedas importantorveryimportanttotherespondingorganizationaltypes. Page28

35 Table15 RatingofWorkforceInformationGoals bytypeofrespondinguserorganization Type&of&Organization&(n)& BusinessandTrade Associations(8) Education,Workforce, andrelated(6) GovernmentResearch andstatistics(3) LaborAssociations(3) PolicyDevelopment andadvocacy(5) PrivateConsulting Research(8) Professional Associations(8) Universityabased ResearchCenters(6) Workforce&Information&Goal Mean Med. MeanMed. Mean Med. Mean Med.Mean Med. Mean Med.Mean Med. Mean Med. Helpingtoaligneducation programswithemployerneeds Enhancinginformationtosupport economicdevelopmentefforts Deliveringaccessibleinformation oneducationandtrainingprogram outcomes Monitoringlocal,regional,and statewideeconomictrends Assessingtheeffectsfrom economicdisruptions(recession, naturaldisaster,etc.) Informingthecommunityof economicandsocialneeds Reducingemployersurveyburden throughbetteruseof administrativedata Providingaccurateinformationon employmentopportunities availabletojobseekers Whilemostorganizationsscoredallofthegoalsasimportantorveryimportant,itis informativetolookathoweachtypeoforganizationrankedthegoals,basedonthe meanscoretheyassigned.table16presentsthisviewontherelativeimportanceofthe goals.forexample,reflectingmanypreviousstudies,business sinterestinimproved educationprogramsisreflectedintheirtoprankingsfor helping'to'align'education' programs'with'employer'needs 'and delivering'accessible'information'on'education'and' training'program'outcomes. 'Interestingly,' monitoring'local,'regional,'and'statewide' economic'trends 'isrankedhigherbymostorganizationtypes'than' delivering'accessible' information'on'education'and'training'program'outcomes, 'aresultwhichcontrastswith theoverallmeanscoresdiscussedabove. Table16alsopresentsbothsummedrankingsacrossallorganizationtypesthatare weightedandunaweightedtoreflectthenumberoforganizationsineachorganization type.regardlessofweighting,thetoptworankedgoalsare helping'to'align'education' Page29

36 programs'with'employer'needs 'and' monitoring'local,'regional,'and'statewide'economic' trends. Table16 RankedScoresofWorkforceInformationGoals WithinTypeofRespondingUserOrganization Ranking 8 &by&type&of&organization&(n)& Overall& Ranking& Workforce&Information&Goal& Helpingtoaligneducationprogramswith employerneeds Enhancinginformationtosupporteconomic developmentefforts Deliveringaccessibleinformationon educationandtrainingprogramoutcomes Monitoringlocal,regional,andstatewide economictrends Assessingtheeffectsfromeconomic disruptions(recession,naturaldisaster,etc.) Informingthecommunityofeconomicand socialneeds Reducingemployersurveyburdenthrough betteruseofadministrativedata Providingaccurateinformationon employmentopportunitiesavailabletojob seekers BusinessandTrade Associations(8) Education,Workforce, andrelated(6) GovernmentResearch andstatistics(3) LaborAssociations(3) PolicyDevelopment andadvocacy(5) PrivateConsulting Research(8) Professional Associations(8) Universityabased ResearchCenters(6) UnaweightedOverall Ranking 9 WeightedOverall Ranking Value'of'Additional'Variables' Wagerecordenhancementsthathaveoccurredinsomestatesandhavebeendiscussed inothersincludeaddingsomeorallofthefollowingvariables: Hoursworked Primaryworksitelocation Weeksworked Payrate Gender Paytype Occupationorjobtitle Dateofhire Bonuses Tips Homeaddress ' 8 Rankingisbasedonthemeanscoreassignedbyeachtypeoforganization. 9 TheUnaweightedOverallRankingwascalculatedbysummingtherankingsbyorganizationtypeandthen rankingthosesums. 10 TheWeightedOverallRankingwascalculatedbymultiplyingtherankingsbyorganizationtypebythe numberofrespondentsbyorganizationtype,summingtheresults,andthenrankingthosesums. Page30

37 Collectingthesevariableswouldenabletheproductionofawidevarietyofinformation types.theuserorganizationswerenextasked:'' Please'rate'the potential'value'of'each'type'of'information'below'to'your' organization'and'those'it'serves.'also,'please'describe'briefly'the'potential'uses'of' any'of'the'items'that'you'rate'as'moderate'or'high'value.' Respondentswereprovidedalistofinformationtypesthatmightbeavailablewith enhancedwagerecorddatacollection.theyweregivenafourapointscaleonwhichto ratethepotentialvalueofeachinformationtype:1=novalue,2=littlevalue,3= moderatevalue,or4=highvalue.foreachinformationtype,inadditiontotherating scale,theywereprovidedwithspacetorecordpotentialusesofthatinformationtypeif theyrateditofmoderateorhighvalue.table17displaysthemean,medianandstandard deviationofthevaluescorestheyassignedtoeachinformationtype. Table17 OverallRespondents RatingoftheValueof PotentialWageRecordEnhancementVariables(n=47) Potential&Enhancement&Information&Types& Mean& Median& Std.& Dev.& Occupationsofindividualsinlocallabormarkets Hourlywagesofindividualsinlocallabormarkets Hoursworkedbyindividualsinlocallabormarkets Hourlywagesbyoccupationinlocallabormarkets Hoursworkedbyoccupationinlocallabormarkets Hourlywagespaidinlocalindustries Employeehoursworkedinlocalindustries Genderofindividualsinlocalindustriesandoccupations Principalworklocationofindividualsinlocallabormarkets Industriesinwhichgraduatesofspecificeducationandtraining programsareemployed Occupationsinwhichgraduatesfromspecificeducationand trainingprogramsareemployed Hourlyearningsofgraduatesfromspecificeducationand trainingprograms Careerpathsofgraduatesfromspecificeducationandtraining programs Commutepatternsofindividualsworkinginlocallabormarkets Page31

38 Table18breaksdowntherespondents assessmentofvaluebyorganizationaltype. Table18 RatingoftheValueofPotentialWageRecordEnhancement VariablesbyTypeofRespondingUserOrganization(n=47) Type&of&Organization&(n)& Potential&Enhancement& Information&Types Occupationsofindividualsinlocal labormarkets Hourlywagesofindividualsinlocal labormarkets Hoursworkedbyindividualsin locallabormarkets Hourlywagesbyoccupationin locallabormarkets Hoursworkedbyoccupationin locallabormarkets Hourlywagespaidinlocal industries Employeehoursworkedinlocal industries Genderofindividualsinlocal industriesandoccupations Principalworklocationof individualsinlocallabormarkets Industriesinwhichgraduatesof specificeducationandtraining programsareemployed Occupationsinwhichgraduates fromspecificeducationand trainingprogramsareemployed Hourlyearningsofgraduatesfrom specificeducationandtraining programs Careerpathsofgraduatesfrom specificeducationandtraining programs Commutepatternsofindividuals workinginlocallabormarkets BusinessandTrade Associations(8) Education, Workforce,and Related(6) Government Researchand Statistics(3) LaborAssociations (3) PolicyDevelopment andadvocacy(5) PrivateConsulting Research(8) Professional Associations(8) Universityabased ResearchCenters(6) Mean Med. MeanMed. Mean Med.Mean Med. Mean Med. Mean Med.Mean Med. Mean Med Asusedearlier,wealsorankedthevaluescoresassignedtotheinformationtypes.Table 19presentsrankingsbyorganizationaltypeandsummedrankingsacrossallorganization typesthatareweightedandunaweightedtoreflectthenumberoforganizationsineach Page32

39 organizationtype.regardlessofweighting,thetopthreerankedinformationtypesare occupations'of'individuals'in'local'labor'markets, ' occupations'in'which'graduates'from' specific'education'and'training'programs'are'employed, and hourly'wages'of'individuals' in'local'labor'markets. Thesethreeitemswouldrequirecollectionofoccupationand hoursworkedinadditiontothecurrentlycollectedwagespaid.theseconditemwould alsorequirematchingofwagerecordstostudentrecords. Table19 RankedValueofPotentialWageRecordEnhancement VariablesbyTypeofRespondingUserOrganization(n=47) Ranking 11 &by&type&of&organization&(n)& Overall& Ranking& Potential&Enhancement&Information&Types BusinessandTrade Associations(8) Occupationsofindividualsinlocallabormarkets Hourlywagesofindividualsinlocallabormarkets Hoursworkedbyindividualsinlocallabormarkets Hourlywagesbyoccupationinlocallabormarkets Hoursworkedbyoccupationinlocallabormarkets Hourlywagespaidinlocalindustries Employeehoursworkedinlocalindustries Genderofindividualsinlocalindustriesand occupations Principalworklocationofindividualsinlocallabor markets Industriesinwhichgraduatesofspecificeducation andtrainingprogramsareemployed Occupationsinwhichgraduatesfromspecific educationandtrainingprogramsareemployed Hourlyearningsofgraduatesfromspecific educationandtrainingprograms Careerpathsofgraduatesfromspecificeducation andtrainingprograms Commutepatternsofindividualsworkinginlocal labormarkets Education,Workforce, andrelated(6) GovernmentResearch andstatistics(3) LaborAssociations(3) PolicyDevelopmentand Advocacy(5) PrivateConsulting Research(8) ProfessionalAssociations (8) Universityabased ResearchCenters(6) UnaweightedOverall Ranking 12 WeightedOverall Ranking Rankingisbasedonthemeanscoreassignedbyeachtypeoforganization. 12 TheUnaweightedOverallRankingwascalculatedbysummingtherankingsbyorganizationtypeandthen rankingthosesums. 13 TheWeightedOverallRankingwascalculatedbymultiplyingtherankingsbyorganizationtypebythe numberofrespondentsbyorganizationtype,summingtheresults,andthenrankingthosesums. Page33

40 NonWResponse'Assessment' Wheneverinformationiscollectedthroughasurvey,thesurveyresponserateisoneof themajorconcerns.manyacademicstudiesandwebsurveysitespegtypicalresponse ratesforonlinesurveysfrom5or10percentupto30or40percent,dependingonmany factors.accordingtotheeamailmarketingfirmbenchmark 14 Generallyspeaking,an openrateof15a20%isconsidered"good."however,noteveryonewhowillopen your willparticipateinyoursurvey.therefore,youcanexpectthepercentageof subscriberswhorespondtothesurveytobeevenlessthanthat. MichaelBraun Hamilton,OnlineSurveyAnalystforSuperSurvey,indicatesthemediansurveyresponse for199surveysconductedusingtheirsoftwarewas26percent. 15 Lowresponseratescanraisequestionsastowhethertherespondentsarerepresentative ofthepopulationasawhole whetherthereisanonaresponsebias.withlowerresponse rates,nonaresponsebiasmustbeconsidered.whiletheresponserateinthisstudywas onthehigherendofresponseratescale,weareneverthelessinterestedinassessingthe potentialfornonaresponsebias. Onemethodusedtotestfornonaresponsebiasistomakeconcertedeffortstocollect datafromsomeofthenonarespondentsandcomparetheirviewstotheearlier(perhaps morewilling)responders.inthisstudy,thatapproachwasavailablebecauseofthe secondwaveofdatacollectioneffortsthatconsistedoffocusedoutreacheffortsby intermediariesandthestatelmidirectors.inthefirstwaveofdatacollection,26 organizationsrespondedwithinthefirstfourweeks.thesecondwaveresultedin21 additionalresponsesfromthreetofourmonthslater.bycomparingtheearlyandlate groupsofresponders,wemaygetabettersenseofthepotentialforbias.iftheir responsesaresimilar,wemaybesomewhatreassuredthattheviewsoftheentire populationarewellrepresented. Table20displaysthemeanandstandarddeviationofthescoresassignedtothe workforceinformationgoalsbytheearlyandlategroups MichaelBraunHamilton, OnlineSurveyResponseRatesandTimesBackgroundandGuidancefor Industry,Ipathia,Inc.,2009, Page34

41 Table20 Early 16 andlate 17 Respondents Ratingof WorkforceInformationGoalsOrganization Workforce&Information&Goal Helpingtoaligneducationprogramswithemployer needs Enhancinginformationtosupporteconomic developmentefforts Deliveringaccessibleinformationoneducationand trainingprogramoutcomes Monitoringlocal,regional,andstatewideeconomic trends Assessingtheeffectsfromeconomicdisruptions (recession,naturaldisaster,etc.) 26&Early& Responders& 21&Late& Responders& Mean Std.Dev. Mean Std.Dev Informingthecommunityofeconomicandsocialneeds Reducingemployersurveyburdenthroughbetteruse ofadministrativedata Providingaccurateinformationonemployment opportunitiesavailabletojobseekers Whilestillratingmostofthegoalsbetweenimportantandveryimportant,thelater respondersratedfourofthegoalsatleast0.6pointslower.manyfactors,including organizationaltypeandsmallsamplesize,couldexplainthesedifferencesbuttheyare worthconsidering. Toprovideadditionalperspective,wehaveperformedthesameanalysisontheratingsof thetypesofpotentialinformationenhancements.table21belowdisplaysthesefindings. 16 Early responseswerereceivedbetweenapril16andmay15,2014,withonlyeamailfollowaup. 17 Late responseswerereceivedbetweenjuly1andaugust27,2014followingfocusedfollowaupby intermediaryorganizations. Page35

42 Table21 Early 18 andlate 19 RespondentsRatingoftheValueof PotentialWageRecordEnhancementVariables Potential&Enhancement&Information&Types 26&Early& Responders& 21&Late& Responders& Mean Std.Dev. Mean Std.Dev. Occupationsofindividualsinlocallabormarkets Hourlywagesofindividualsinlocallabormarkets Hoursworkedbyindividualsinlocallabormarkets Hourlywagesbyoccupationinlocallabormarkets Hoursworkedbyoccupationinlocallabormarkets Hourlywagespaidinlocalindustries Employeehoursworkedinlocalindustries Genderofindividualsinlocalindustriesand occupations Principalworklocationofindividualsinlocallabor markets Industriesinwhichgraduatesofspecificeducation andtrainingprogramsareemployed Occupationsinwhichgraduatesfromspecific educationandtrainingprogramsareemployed Hourlyearningsofgraduatesfromspecificeducation andtrainingprograms Careerpathsofgraduatesfromspecificeducation andtrainingprograms Commutepatternsofindividualsworkinginlocal labormarkets Inthiscase,theredonotappeartobeanymaterialdifferencesintheratingsofthetwo groups.basedonthisinformation,nonaresponsebiasdoesnotappeartobeasignificant concern. ' ' 18 Early responseswerereceivedbetweenapril16andmay15,2014,withonlyeamailfollowaup. 19 Late responseswerereceivedbetweenjuly1andaugust27,2014followingfocusedfollowaupby intermediaryorganizations. Page36

43 Potential'Uses'of'the'Enhanced'Wage'Record'Data' Therespondentswereaskedtodescribehowtheenhanceditemsthattheyratedas moderateorhighvaluemightbeused.tenofthefourteenitemslistedinthe questionnairearedifferentcombinationsmadepossiblebyaddingfivebasicdata elementstothewagerecord:occupation,hoursworked,gender,primaryworklocation, andresidencelocation.fourofthequestionnaireitemsdealwithmatchingenhanced wagerecorddatawitheducationandtrainingparticipationrecords.the47respondents providedmorethan250ideasabouttheusesofthesedata.thedetailedresponses regardinguses,byitemandorganizationaltype,canbefoundinappendiceshandi. Ingeneral,theresponsesfellintoafewbroadcategories,including: Aligning'education'and'workforce'training'supply'with'employer'demands'for' labor' Developing'more'effective'education'and'training'programs' Providing'consumer'information'for'improved'decision'making' Supporting'more'efficient'labor'markets' Strengthening'economic'development'efforts' Helping'businesses'compete'more'effectively' Improving'corporate'hiring/retention'practices' Promoting'greater'accountability'in'public'spending'on'education'and'training' programs' Increasing'knowledge'and'understanding'about'the'dynamics'of'local,'regional' and'statewide'labor'markets' Supporting'effective'policy'development'to'address'economic'and'social'challenges' Evaluating'public'policies'and'programs'related'to'labor'markets'and'the' workforce' Additional'Comments'Provided'by'Respondents' Therespondentswerelastofferedanopportunitytoprovideanyadditionalcomments thattheyfeltwererelevant.belowarethosecomments,editedtoremoveanyidentifying organizationalinformation. Regardingthosevaluesthatwereselectedas"notimportant,"whiletheyarenot necessarilycriticaltotheworkof(ournationalorganization),theymayindeedbe ofgreatimportancetoourstateandregionalmembers. Allareimportantforcommunitycolleges needatindividuallevelforcollegesto matchtostudentsservedtoassessprograms abilitiestoprovidevaluetothe studentandthecommunity. Overall,thisisveryessentialinformation.Thanks Itisessentialtolinklongitudinalearningsgainsandlabormarketattachmentto trainingandcredentialingtoassessoutcomesandimpactofinvestments. Page37

44 Thankyouforconductingthisimportantsurvey.Ourorganizationsupports addingoccupationandotherdatatouiwagerecordstobettershapepublic policiestosupportworkersandgraduates. OurmaininterestinenhancedUIwagerecordsislinkingthemtodataon students&participantsinworkforcedevelopmentprogramstogetinfoabout theirjobqualityforpolicymakers,educators,etc. Wearemostinterestedinthealignmentofeducationandworkforcedatasothat studentsgraduatereadytoenterandsucceedintheworkforce. Mostinterestedinsupplementingquarterlywagesforspecificindividualswith hoursandlocationofworks.occupationisnotasimportantandismuchharder toobtain. Veryimportanttoincludeadditionalindividualdemographicdata.Frequently wanttomatchacademicrecordswithemploymentandnotallinstitutionshave thessn.additionalindustrydatanecessary. Whiledatapointsrelatedtospecificeducationandtrainingprogramswouldbe valuable,thatdatacouldalsobegainedfromdatalinkagesifonlyoccupationand hourlyinfowasinwagerecords. Earningschangesduetochangesinhoursvs.changesinthehourlywagehave verydifferentlabormarketimplications.importanttobeabletodistinguish betweenthetwoeffects. Iget(state)wagesdataforrecentcollegegraduates.Theflyintheointmentis theabsenceofoccupationaltitlesandhoursworked. Skill/competencyassessmentiscriticaltounderstandingskillgapsinvarious occupations/industries. Myresearchusesindividualleveldataformultiavariableandlongitudinal statisticalanalysestoexaminehowpersonal,sectoralandlocalfactorsinfluence wages,earningsandemploymentoutcomes. Iexpressskepticismaboutourpracticalabilitytoalignlowacostelectronic collectionofoccupationalinformationwiththerealitiesofbusinessaspecific positionaspecificresponsibilities&changes. I'mrespondingasauniversityabasedinstitutionthatdoes research/evaluates/designsemploymentandtrainingprograms. Theinformationaboveisneededtoenableworkers,students,educators, trainers,andemployerstomakelabormarketdecisionswithareasonable probabilityofsuccess,andisrequiredbyusc29a49l2. ThesurveydiscussesdatathatwouldsignificantlyenhanceboththeBLSand CensusprogramsthatuseadministrativeUIdata.Therelevantissueisthecostto reportthesedataonajobbasis. Page38

45 Chapter&Four:& Payroll&Services/Software&Companies &System&Capabilities& & Study&Methods& Tobegintogetaviewintoemployers abilitytoreportenhancedwagerecordvariables, theworkteamattemptedtosurveyfirmsinthepayrollservices/softwareindustry.fora significantnumberofemployers,thesefirmsprovidearangeofservicesincluding everythingfrommaintainingpayrollrecordstofilingtaxestoprovidingpayrollsoftware.if theseorganizationshavethecapacitytostoreandreportthedesireddata,thenoneof thepotentialbarrierstoenhancedwagerecordcollectioncanbemitigated. Toobtaininformationfromthepayrollservices/softwareindustry,theworkteam developedanonline,webabasedquestionnairetocollectinformationaboutthepayroll servicescompanies sizeandscope,thecurrentfeaturesoftheirsystemsregarding potentialwagerecordenhancementvariables,andthecostsofaddinganyvariablesthat werenotinthelistofcurrentfeatures. UsingtheInternet,theprojectcoordinatordevelopedalistof77nationalandregional companiesinthepayrollservices/softwareindustry. Becausetheworkteamdidnothavegoodeamailaddressesformanyofthecompaniesto besurveyed,thestudygroupdevelopedacoverlettertoconveytherequestforsurvey participation.copiesoftheinitialcoverletterandquestionnaireareincludedinthis reportasappendicesjandk,respectively. Thecoverletter,signedbytheWIC sexecutivedirector,wassenttotheselectedpayroll companiesbyu.s.postalservic onmay15,2014.theletterwasgenerallysenttoa topexecutiveofthecompanyandrequestedaresponsebymay30. Seekingtoincreasethelikelihoodofobtainingsurveyresponses,thestudygroupreached outtoarepresentativeofthenationalpayrollreportingconsortium,anonaprofittrade associationoforganizationsthatprovidepayrollprocessingandemploymenttaxservices directlytoemployers.nprcmembersservemorethan1.4millionemployerswitha combinedtotalofmorethan35millionemployees,overoneathirdoftheprivateasector workforce.theirmemberstendtobeamongthelargerpayrollfirms. Duringaphoneconference,severalmembersofNPRCagreedtoparticipateinthesurvey andprovidedcontactinformationtothestudyteam,includingonefirmthatwasnot amongtheoriginal77firmsidentified.thisbroughtthetotalnumberofpayroll services/softwarefirmscontactedto78.alistofthesefirmsisincludedinappendixl. TheWICExecutiveDirectorconveyedtheinvitationeamailtoNPRCmembersonJuly7, withreminderssenttononarespondentsonjuly17. Page39

46 Attemptingtoencourageadditionalparticipation,anadditionaleamailinvitationwasalso senttononanprcmembersthathadbeenincludedintheoriginalletterinvitation.valid eamailaddresseswereobtainedfor50ofthe77originalinvitees.thewic sexecutive DirectorsenttheeamailinvitationonJuly8,2014. Results& Followingtheinitiallettermailout,tworesponseswerereceivedwithinafewdaysbutno additionalresponsescamein.theeamailinvitationsentwiththesupportofnprc broughtinsevenmoreparticipants.theeamailinvitationtothe50companiesthathad receivedtheoriginalletterinvitationandreminderresultedinnoresponses.onjuly28, 2014,theNPRCrepresentativesinformedthestudyteamthatnofurtherresponseshould beexpectedfromtheirmembers.atotalofonlynineresponsesfromalleffortshadbeen received. Whilethenumberofresponseswasbelowwhathadbeenhopedfor,theresponding companiesserveasignificantnumberofemployersandofferanimportantglimpseinto thecapabilitiesoftheindustryasawhole. Payroll'Company'Characteristics' Thefirstquestionaskedofthepayrollcompanieswasintendedtodetermineif,infact, therespondingcompanyparticipatedinthewagerecordreportingprocess. Does'your'company'complete'and'file'quarterly'state'unemployment' compensation'wage'record'reports'on'behalf'of'employers?' Iftheyansweredaffirmatively,theywerepresentedwithtwoadditionalquestions: In'how'many'states'do'you'file'quarterly'state'unemployment'compensation'wage' record'reports?' Roughly,'for'how'many'employers'does'your'company'file'state'unemployment' compensation'wage'record'reports?' AllninerespondingfirmsindicatedthattheyfiledthequarterlyUIwagerecordreports. Onlyoneoftheninefirmsfiledwagerecordreportsinfewerthan50states,andeven thatfirmsubmittedreportsin48states.allofthefirmsthatparticipatedinthesurvey canbeconsiderednationwidefirms. Theirnationwidescopeisalsoreflectedinthenumberoffirmsforwhichtheyfiled quarterlywagerecords.thesmallestfirmfiledreportsforfewerthan1,000employers, whilethelargestfirmsfiledreportsformorethanoneahalfmillionemployers.intotal, theninerespondingfirmsservednearly1.2millionemployers.themediannumberof employersservedbythesepayrollfirmswas28,000. Page40

47 IntheUnitedStates,thereareapproximately5.7millionemployersthatoperatein7.4 millionestablishments(physicallocationswherebusinessisconducted.) 20 Sincethe questionnairedidnotexplicitlystatewhethertherespondentsshouldreflectthenumber ofentirefirmsorestablishmentsintheirresponse,itispossiblethatsomecounted establishments.therefore,the1.2milliontotalemployersservedbytherespondentscan bestbedescribedasbetween16and21percentofallu.s.employers. Types'of'Media'Used'to'Transmit'Data' Thequestionnairenextprobedthetypesofmediathatthepayrollfirmsandthe employerstheyserveusetotransmitdata.thisisimportantbecausethegreatertheuse ofelectronictransmissionmethods,thelowerthemarginalcostofaddingdataelements. Of'the employers'on'whose'behalf'you'file'unemployment'compensation'wage' reports,'what'percentage'do'you'submit'to'the'states'using'each'of'the'following' media?' ' ''''*'Internet/FTP' *'Magnetic'(tape,'computer'disk,'etc.)' *'Paper/fax' Foreachmediatype,therespondentswereprovidedonascreenwithapulladownmenu withthefollowingchoices: o o o o o o o 0'to'4'percent 5'to'19'percent 20'to'39'percent 40'to'59'percent 60'to'79'percent 80'to'94'percent 95'to'100'percent Table22displaysthedistributionofresponseswithineachreportingmediatype.Sevenof theninefirmsusedtheinternetorftpforatleast60percentofthereportstheyfiled. ThetypeofreportingsystemssupportedbystateUIagenciesmayinfluencethisfigure. Conversely,mostoftherespondingfirmsusedpaperorfaxonlytoasmalldegreeinfiling wagerecordreportswiththestates. 20 U.S.CensusBureau,StatisticsofU.S.Businesses,2011, Page41

48 Table22 PercentofReportsFiledbyPayrollServicesFirmsUsingEachFilingMethod Percent&of& Quarterly& Reports&Filed& Number&of&Firms&by&Filing&Method& Magnetic&& Internet/FTP& (tape,&computer& disk,&etc.)& Paper/fax& 0to4percent to19percent to39percent to59percent to79percent to94percent to100percent Total Perhapsmoreimportantthanthenumberoffirmsthatusedeachmediatypeisthe numberofemployerreportsthatwerefiledwitheachmediatype.usingthepercentages reportedinresponsetothequestionaboveandthereportedfiguresonthenumberof employersservedbytherespondingfirms,itwaspossibletocalculate 21 lowaendand highaendestimatesofthenumberofemployerreportsthatwerefiledusingeachmedia type.thesearedisplayedintable23onthenextpage.therespondingfirmsusedsome formofdigitalfiletransmittalfor95to100percentoftheroughly1.2millionemployers quarterlywagerecordreportstheyfiled. 21 Thelowaandhighaendestimateswerecalculatedforeachrespondentbymultiplyingthenumberof employerstheyservedbythelowandhighendsofthemediapercentagerangetheyindicated.theresults werethensummedacrossallrespondentsbymediatype. Page42

49 Table23 RangesinNumberofEmployerQuarterlyReportsFiledby PayrollServicesCompanies,byFilingMethod Filing&Method& Number&of&Reports&Filed& LowNEnd&Estimate& HighNEnd&Estimate& Internet/FTP 615, ,062 Magnetic (tape, computer disk, etc.) 478, ,482 Paper/fax 4,310 60,407 Thesurveyparticipantswerealsoaskedtodescribehowtheyreceiveddatafromthe employerstheyserve.thisisimportantasagaugeofwhetheremployersareusing electronicorpapertransmissionmethodstohandledata.ahigherincidenceintheuseof paperwouldlikelyindicateahigherpotentialcostofaddingvariablestothereports. What'percentage'of'your'employer'clients'use'the'following'media'to'transmit' employee'wages'and'other'data'to'your'firm'to'prepare'their'state'unemployment' compensation'wage'record'reports?' ' '''''*'Internet/FTP' *'Magnetic'(tape,'computer'disk,'etc.)' *'Paper/fax' Onceagain,theywereprovidedwithpulladownmenusforeachmediatypethatoffered thesamepercentagerangesfromwhichtochoose. o o o o o o o 0'to'4'percent 5'to'19'percent 20'to'39'percent 40'to'59'percent 60'to'79'percent 80'to'94'percent 95'to'100'percent Table24summarizestheresults.Ofnote,atleasttwofirmsreceivedwagerecordsfroma highpercentageoftheemployerstheyservedinpaper/faxformandveryfewemployers usedmagneticmediatotransmitthewagedatatotheirpayrollservicesprovider.one respondentmadethepointthat,inadditiontothethreemediatypeslistedonthe questionnaire,40percentoftheirclients(fewerthan10,000)phoneddatain.the absenceofthisoptiononthequestionnaireintroducedagapinoursummary,inthat otherrespondentsmayhaveusedthatoptionforsomepercentageoftheiremployersifit hadbeenavailable.however,giventhatthesumofthepercentagesacrossthethree categoriesreportedbyalloftheotherrespondentsapproximated100percent,we believethegapinourdataislikelynotlarge. Page43

50 Table24 PercentDistributionAmongFilingMethodsUsedbyPayrollServicesFirms Filing&Method& Magnetic&& Internet/FTP& (tape,&computer& Paper/fax& disk,&etc.)& 0to4percent to19percent to39percent to59percent to79percent to94percent to100percent Total Aswasdonewiththepayrollfirms reportstothestates,wecalculatedlowaandhighaend estimatesofthenumberoffirmsthatusedeachmediatypetotransmitwagedatatothe payrollfirmsforprocessing(seetable25.)therespondentsreportedasurprisinglylarge numberoffirmsusedpaperandfaxtosendpayrolldatatotheirserviceprovidersfor processing.thismaywarrantfurtherinvestigationintothesizeoffirmsusingpaperand fax,andwhetheralternativedatatransfermethodsarefeasibleforthem.also,asnoted above,someunknownnumbersofemployerstransfereddatatothepayrollcompanies bytelephone. Table25 RangeinNumberofEmployersProvidingDatatotheResponding PayrollServicesCompaniesUsingDifferentDataTransferMethods Data&Transfer&Method& Minimum&Number&& of&employers& Maximum&Number&& of&employers& Internet/FTP 598, ,020 Magnetic(tape,computerdisk,etc.) 0 47,552 Paper/fax 468, ,902 ' Page44

51 Payroll'Service'Pricing'Factors' Togetabettersenseofanypotentialcostincreasestoemployersservedbythepayroll firmsifadditionalvariableswereaddedtothequarterlyreports,therespondentswere askedtocharacterizehowtheysetpricesfortheirservices. Please'indicate'below'the'factors'your'company'considers'in'setting'a'price'for'the' service'of'submitting'unemployment'compensation'wage'record'reports?' o o o o o o o o Number'of'wage'records'submitted' Frequency'of'wage'record'submittals' Number'of'variables'submitted'with'each'wage'record' Total'wages'paid'by'the'employer' Client s'recordkeeping'and'transmittal'methods' Number'of'services'provide'to'client' Market'rates' Other'(please'specify)' ' Respondentswereallowedtoselectasmanyoftheoptionstheywished.Thefollowing aretheresponsesreceivedfromtheninefirms.itisinterestingtonotethatonlyonefirm indicatedthattheyadjusttheirpricebasedonthenumberofvariablessubmittedwith eachwagerecord. Table26 FactorsIncludedbyPayrollFirmsinSettingPrices forsubmittingunemploymentcompensationwagerecordreports ' Pricing&Factor& #&of&responses& Numberofservicesprovidedtoclient 4 Marketrates 3 Numberofwagerecordssubmitted 2 Client srecordkeepingandtransmittalmethods 1 Frequencyofwagerecordsubmittals 1 Numberofvariablessubmittedwitheachwagerecord 1 Other: Clientbilledforpayrollprocessingonly nochargeforquarter endpreparation Other: Flatdollaramountperpayrollprocessed 1 Other: Howmanytimeswehavetomakeadjustments 1 Other: Partofbasicservice 1 Other: Thisserviceispartofouroveralltaxpayment\filingserviceso therearenoseparatefeesforfilingsuireports ' 1 1 Page45

52 Payroll'Software'Sales'and'Use' Alsoofinteresttothestudyteamwaswhetherthepayrollfirmssoldseparatesoftware systemsthatenabledemployerstofiletheirownquarterlywagerecordreports. Does'your'company'sell'software'that'directly'supports'employers 'capability'to'file' their'own'quarterly'state'unemployment'compensation'wage'record'reports?' Iftheyindicatedthattheydidsellsuchsoftware,theywereaskedtoestimate,roughly, thenumberofemployersthatusedsoftwaretofiletheirstateunemployment compensationwagerecordreports. Twofirmsindicatedthattheydidsellpayrollsoftwareandthat,intotal,fewerthan3,000 employersusedthatsoftware.giventhatonlytwofirmsresponded,andrelativelyfew employerswereinvolved,wehavenotprovidedanybreakoutofotherquestionsbased onthisinformation. Capacity'to'Store'and'Report'Wage'Record'Enhancements' Next,therespondentswereaskedtoassessthecurrentcapacityoftheirsystemsto collect,maintain,andreporttwentydifferentvariablesthathavebeendiscussedas possibleenhancementstowagerecordreporting.theparticipantswerealsoaskedto reflectonthecostofaddingvariablesthattheirsystemsdidn tcurrentlysupport,andthe natureofthosecosts.thequestionsposedandtheresponsesareintable27.inthis table,acolumnhasbeenaddedtoreflecttheaverage(mean)costofaddingvariables. Thisisacalculatedfield.Thecostfactorsoflow,medium,andhighwereassignedvalues of1,2,and3,respectively,tocalculatetheaverage.notallrespondentsthatdidnothave afeatureprovidedaresponseonthecostofaddingthatfeature.theaveragesreflectthe responsesreceived. Thevariablesthatwereleastoftenafeatureoftherespondents systemswere residuals' paid'in'the'quarter,' piecewwork'amounts'paid'in'the'quarter,'and' county 'ofprincipal worklocation. Therespondentsthatdidn tcurrentlyhavethecapabilitytostorevariouselementsofthe employee soccupationandprincipalworklocationindicatedthataddingthoseitems wouldbemostcostly. Afewoftherespondentsseemedtoindicatethatthecostsassociatedwithaddingmany oftheseitemswouldbeongoingcosts,notaoneatimecostassociatedwithmodifying currentsystems.whythesefirmsseethesecostsasongoingoncesystemshavebeen designedtoacceptthedataissomethingthatmaywarrantfurtherexploration. Page46

53 & Table&27& Current&Capacity&of,&and&Cost&of&Additions&to,&Responding&Payroll&Services/Software&Companies && to&accommodate&possible&enhanced&wage&record&variables& All#states#require#employers#or#their#agents#to#submit#quarterly#reports#that#detail#each# employee s#name,#social#security#number#and#wages#paid# during#the#quarter.#a#few#states# require#additional#data#elements#to#be#reported#with#the#quarterly#wage#record#reports.#please#indicate#which#of# the#following#data#elements#your#systems#are#currently#capable#of# storing#and#reporting.#also,#please#rate#the#cost#of#adding#any#of#the#items# that#your# systems#currently#do#not#support#and#indicate#whether#these#would#be#one>time#and/or# ongoing# costs.# CurrentFeature CostofAdding,IfNotaCurrentFeature NatureofAddedCost & High Medium Low Mean 22 One= One=time, Yes No Cost Cost Cost Cost time Ongoing Ongoing & Employee squarterlyhoursandearnings && && && && && && && && && Regular&hours&worked&in&quarter& 9& 0& 0& 0& 0& NA& 0& 0& 0& Overtime&hours&worked&in&quarter& 6& 3& 1& 1& 1& 2.0& 0& 2& 0& Weeks&worked&in&quarter& 8& 1& 0& 0& 1& 1.0& 0& 0& 0& Salary&paid&in&quarter& 9& 0& 0& 0& 0& NA& 0& 0& 0& Regular&(straightRtime)&wages&paid&in&quarter& 7& 2& 0& 2& 0& 2.0& 0& 2& 0& Overtime&wages&paid&in&quarter& 6& 3& 1& 1& 1& 2.0& 0& 2& 0& Commissions&paid&in&quarter& 5& 4& 1& 2& 1& 2.0& 0& 3& 0& Bonuses&paid&in&quarter& 5& 4& 1& 2& 1& 2.0& 0& 3& 0& Tips&paid&in&quarter& 8& 1& 0& 1& 0& 2.0& 0& 1& 0& Residuals&paid&in&quarter& 3& 6& 1& 4& 1& 2.0& 1& 3& 0& PieceRwork&amounts&paid&in&quarter& 3& 6& 1& 4& 1& 2.0& 1& 3& 0& Employee soccupation && && && && && && && && && Job&title& 5& 4& 3& 1& 0& 2.8& 1& 2& 1& Standard&Occupational&Classification&(SOC)&Code& 4& 5& 3& 1& 1& 2.4& 1& 2& 1& Both&Job&Title&and&SOC&Code 23 & 3& 6& && && && && && && && Employee sprincipalworklocation && && && && && && && && && Street&address& 4& 5& 2& 2& 0& 2.5& 1& 3& 0& City& 4& 5& 2& 2& 0& 2.5& 1& 3& 0& ZIP& 4& 5& 2& 2& 0& 2.5& 1& 3& 0& County& 3& 6& 3& 2& 0& 2.6& 1& 3& 1& State& 5& 4& 2& 1& 0& 2.7& 1& 2& 0& Employer&site&number& 5& 4& 2& 1& 0& 2.7& 1& 1& 1& Employee sgender 9& 0& 0& 0& 0& NA& 0& 0& 0& 22 &This&item&was&calculated&from&the&responses.&The&cost&factors&of&low,&medium,&and&high&were&assigned&values&of&1,&2,&and&3,&respectively,&to&calculate&the& average.&not&all&respondents&that&did&not&have&a&feature&provided&a&response&on&the&cost&of&adding&that&feature.&the&averages&reflect&the&responses&received.& 23 &This&item&was&compiled&from&the&responses&but&was&not&a&question&explicitly&asked&of&the&respondents.& Page&47& &

54 Itisnoteworthythatsomeoftherespondingfirmsindicatedthattheyhavesystemsin placetohandlemostofthepossibleenhancementdatavariables.infact,twofirmshad thecurrentcapacitytohandle19ofthe20variablesbeingconsidered,onemissingthe Standard'Occupational'Classification'codes andtheothermissing weeks'worked'in'the' quarter. Table28 CurrentCapabilitiesofRespondingFirms Systems (Outof20PossibleDataElements) Number'of'Data'Elements' That'are'Current'Features' Number'of'' Responding'Firms' Inreviewingtheinformationintables27and28,readersshouldbecautioustonot interpretcurrentcapacityasafeaturethatisbeingused.someprovidershavesystems thatcouldsupportaparticulardataelementbutarenotcurrentlyreceivingthat informationelementfromtheiremployerclients.(theworkforceinformationcouncil anticipatesincludinganassessmentofemployers informationsystemsandinterestin enhancedwagerecordreportinginfuturephasesofthisstudy.)mostofthe20data elementsincludedinthisquestionarenotrequiredbyanystate.however,thecapacityof payrollproviders systemsisonefactorinassessingthefeasibilityofandnecessaryfuture stepstowardenhancingthewagerecordreporting. Factors'Contributing'to'High'Costs'for'Additional'Variables' Therespondentswereaskedtoprovideexplanatoryinformationthatwouldhelpus understandwhysomeoftheadditionswouldbesocostly. If'you'identified'items'above'that'would'be'highAcost'additions'to'your'systems,' please'list'some'of'the'important'factors'contributing'to'the'high'cost'' Fiverespondentsprovidedthefollowingcomments. We'have'multiple'systems'needing'updating'with'additional'fields.'One'system'is' vendorasupplied,'so'we'are'dependent'on'vendor.'we'use'thirdaparty'tax'filing' software customization'comes'at'high'cost.' Page48

55 Training clients'and employees'how'these'codes'should'be'assigned'and'stored.' These'are'costs'that'are'in'addition'to'programming'data'capture'and'validation.' We'provide'tax'filing'processing'for'30+'different'payroll'systems.'We'do'not' provide'the'payroll'system,'thus'there'are'additional'costs'to'coordinate'payroll' development'and'tax'filing'support.' Clients'do'not'regularly'provide'this'level'of'detail'information'to'a'payrollA processing'vendor.' All'of'the'elements'above'are'not'an'issue'with'the'following'exceptions:'bonuses,' commissions,'residuals'and'piecework'earnings these'are'challenging'to'get'at' since'the'client'often'calls'the'data'in.' Other'Comments' Finally,therespondentswereaskedtocommentonanyfactorsthatmightmake enhancingthewagerecordsmoreorlessdifficult. Please'describe'briefly'any'other'factors'that'would'aid'or'hinder'your'firm's' ability,'or'the'ability'of'businesses'using'your'software,'to'report'the'additional' wage'record'information'described'above.' Theircommentsarelistedbelow. ReAtrain'staff'on'processes'to'request'such'data'and'maintain'any'changes.'Time' to'coordinate'would'be'lengthy'and'other'priorities'for'limited'it'resources.' Diverse'definitions'exponentially'increase'complexity'and'burden;'e.g.,' hours/weeks'worked.'titles'or'soc'codes'would'require'extensive'training'and' systems'development.'components'of'wages'(ot,'bonus,'commission'etc.)'are'not' separately'stored.'many'employees'now'work'in'multiple'locations'within.' In'addition'to'first'time'programming,'ongoing'system'development,'maintenance' and'storage'would'be'required'to'provide'support.' The'cost'to'add'these'to'our'software'is'minimal.'The'cost'to'our'clients'to'modify' their'interfaces'to'include'additional'elements'is'quite'large'and'many'employers' would'be'unable'to'comply.' Antiquated'software'with'limited'storage'and'functionality.' Information'on'job'title,'work'location,'etc.'would'need'to'be'provided'by'the'client' on'an'ongoing'basis,'which'sometimes'proves'to'be'difficult.' In'most'cases'our'payroll'system'supports'the'ability'to'store'and'report'the'data' elements'listed'on'that'last'page'of'the'survey,'so'we'answered'yes.'however,'in' some'instances'we'do'not'use'those'data'elements'even'though'they'are'available' to'us,'usually'due'to'the'complexity'in'getting'the'data'from'clients'and'a'lack'of' Page49

56 need'to'use'the'data'for'reporting'purposes.'an'example'is'worksite'ids.we'can' store'them,'but'we'do'not'do'multipleaworksite'reporting'on'behalf'of'our'clients' so'those'fields'are'not'populated'in'the'database.'in'order'to'actually'begin'using' that'functionality'we'would'have'to'create'some'mechanism'for'clients'to'provide' that'information,'likely'via'development'on'the'frontaend'web'application,'which' would'be'costly'and'would'take'time'to'test'and'implement.'so,'the'survey' response'may'be'misleading'in'that'our'system' supports 'it,'but'from'a'business' standpoint'we'do'not'support'it'as'part'of'our'product'offering.'another' consideration'is'that'we'do'not'create'our'quarterly'wage'reporting'from'our' payroll'system,'but'from'a'completely'separate'tax'system,'which'may'not'have' the'same'features'and'functionality.'in'some'cases'we'would'have'to'work'with' our'vendor'to'make'enhancements'to'the'tax'system'in'order'to'report'the'data' that'is'stored'in'payroll.'' Inadditionthecommentsreceivedonthequestionnaire,duringourcallwiththeNational PayrollReportingConsortium,theystressedtheimportanceaddressing,inanywage recordenhancementeffort,theissueofinconsistentdefinitionsusedbystatesandthe federalgovernmentwithinandacrossvariousprograms.forexample,ifstateui programsusedifferingdefinitionsof wages, thenemployersthatreporttothosestates musttailorthequarterlyuireportstoreflecteachstate suniquesituation.ifthe AffordableCareActrequiresusesdefinitionsofhoursworkedthataredifferentthanthe UIProgram,thenseparatesystemsmustbecreatedtopreparethosereports.Thework teamagreesthattheseinconsistenciesaddcost,complexity,andconfusion,andmake comparingdataacrossstatesandprogramsproblematic. NPRCalsoprovidedmoreextensivefollow[upcommentstohelpinformtheStudyGroup aboutpotentialissues.thosecomments,containedinaletterfromnprcpresidentpete Isberg,canbefoundinAppendixM,andintroduceimportantconceptstoconsiderifand whenadiscussionoccurstocontemplatewagerecordenhancement. Page50

57 Chapter'Five:' Summary'of'Findings' ' Itisclearatthispointinourresearchthatthenation semployersandtheiragents,and thestateuishopsarenotyetpreparedforuniversalenhancementofthewagerecords.a numberofchallengingfactors,atleastatpresent,hinderwidespreadenhancement. Despitethebarriers,somestatesandsomeemployersaretakingthenextstepsto enhancetheirwagerecords.throughthesurveysofpayrollservicescompanies,stateui agencies,andinformationuserorganizations,aswellasrelatedbackgroundresearch,we haveidentifiedanumberofconditionsthatrepresentpositivestepstoward preparedness;factorsthatsupportfurtherenhancementofthewagerecords. Ifwecanfindwaystosupportcontinuedprogressonthepositivefindingsandwork togethertoaddressthechallenges,itisreasonabletoforeseeanot[too[distantpointin thefuturewhennationwidewagerecordsenhancement,basedonacommonapproach, ispossible.inthischapterwediscusstheencouragingandchallengingfactors. Findings'That'Support'Wage'Record'Enhancement' Growth'in'Electronic'Reporting' Animportanttrendthatwillfacilitate wagerecordenhancementisthe increasingamountofelectronicreporting ofthewagerecords.asof2014,40 25 statesandterritoriesnowrequire electronicwagerecordreportingforsome employers.andagrowingnumberof statesareloweringtheemployment thresholdatwhichemployersarerequired toreportelectronically;asof2014,at least12statesrequireitforallemployers. Table29 ElectronicReportingRequirementsinAll States/TerritorieswithUIPrograms(N=52) Threshold'#'of' Employees 24 ' NoRequirement 12 Number'of' States/Territories' Historically,allwagereportswere preparedmanuallyandtransmittedtothestatesonpaper.underthosecircumstances, askingemployerstodoubletheamountofinformationtranscribedontothepaperforms representedanunacceptableadditionalburden,nottomentionthatthelimitedamount ofspaceonthepaperformssimplycouldn taccommodateadditionalfields.paper recordsalsorequiresubstantiallymorestatestaffefforttoenterthedataandcheckfor 24 Onestatebasestheirthresholdon$100,000ofwagesduringtheyearratherthanonthenumberof employees.theyhavebeenincludedwiththe5+category. 25 Thisfigurehasbeenupdatedsincethesurveyofstatesandincludesall52statesandterritoriesthathave auiprogram.source:the'bridge:'tax,web. Page51

58 errors.electronicreportingofdataenablesmoreefficientprocessingofthewagerecords, andsubstantiallylowersthemarginalcostofhandlingadditionalwagerecordvariables. Eveninstateswhereelectronicreportingisnotmandatory,mostemployerstransmitthe dataelectronically.statesrespondingtothesurveyindicatedthatovertwo[thirdsof employers coveringnearly90percentofwagespaid reportelectronically.not surprisingly,givenadvancesintechnologyandchangingstaterequirements,these numberscontinuetogrow. Increased'Reporting'Frequency' AnotherinterestingdevelopmentisIllinois requirementtoreportwagerecordsmonthly ratherthanquarterly,aspartofmedicaidreform.their"smart"actwas designedto rootoutwaste,fraudandabuseinthestate'smedicaidprogram. ItrequiresmonthlyUI wagerecordsfromemployerswhoarerequiredtosubmittheircontributionandwage reportselectronically,currentlythosewith25ormoreemployees.thischangein reportingfrequencycouldonlybeaccommodatedwiththeadvancesinelectronicdata managementandreporting. MoretimelyreportingofthesedatawillnotonlyassistwithIllinois effortstoimprove healthcareadministrationbutwillalsoincreasetheusefulnessofthedataforother purposessuchasmoretimelyeconomicanalysis,somethingusersoftenseek;for alternativebaseperiodcalculationsintheuiprogram;asapossiblereplacementfor monthlyemploymentsurveysconductedbythebls;orformoretimelyfollow[upon trainingparticipants workoutcomesundertheworkforceinnovationandopportunity Act. Improvements'in'State'UI'Automated'Systems' Bolsteredbyfederalgrants,morestatesarereplacinglegacyUIcomputersystems,built in the 1970s and 1980s, withmodernflexibledatabases,onesthatcanaccommodate additionalvariablesmoreeasily.accordingtonaswa,23stateshavecompletedorare activelyworkingonmodernizationoftheiruibenefitsandtaxsystems.fiveothersare makingsimilarprogressontheiruitaxsystemsalone,themostimportantelementfrom thestandpointofenhancingtheenhancedwagerecords. Ofthe42statesandterritoriesrespondingtooursurveyinlate2013,18indicatedthat theirsystemswere,orwouldbesoon,capableofhandlingenhancedwagerecords.in addition,another10statesindicatedthattheymightbeabletoaccommodatewage recordenhancements.afewstateshaveindicatedthattheyplantoenhancetheirwage recordsinsomefashionand14statesindicatedthattheyhaveconsideredit. Employers'Already'Report'Enhanced'Data' Twelvestatesalreadyenhancetheirwagerecordswithoneormoreofthetenvariables displayedintable30.thisisimportantasitindicatesthatemployerswithemployeesin Page52

59 thosestates,andtheiragents,havebeenabletopurchase,buildoradaptsystemsto reportthoseadditionalvariables.' Table30 CurrentWageRecordEnhancement Enhanced'Information'Type' Collected'About'Each'Employee:' Number'of' States/Territories:' Hoursworked 6 Primaryworksitelocation 5 Weeksworked 4 Payrate 2 Gender 2 Paytype 1 Occupation 1 Dateofhire 1 Bonuses 1 Tips 1 Payroll'Service'Providers'Can'Accommodate'Most'Enhanced'Variables' Thirteenofthe20possibledataelementsarealreadyfeaturedinthemajorityofthe respondingpayrollservicecompanies technologysystems.andforthosethatarenot, mostcompaniesindicatedthataddingthemwouldnotbeahighcost.also,formost companies,handlingmorewagerecordvariablesdidnotseemtoaffectthepricethey chargeclients. Wide'Usage'of'Wage'Records' Thestatesurveyillustratedthataverybroadrangeoforganizationscurrentlyusethe wagerecordsforavastnumberofpurposesincludingperformanceassessment,eligibility determination,andeconomicanalysis.theseorganizationsserveasareadycustomer basefortheenhancedwagerecordinformation,andmaybewillingtopayforits availability. Broad'User'Support'Exists' TheusergroupssurveyedexpressedstrongsupportfortheLMIgoals,shownonthenext page,thatarerelatedtowagerecordenhancement.thediversearrayofrespondinguser organizations,frombusinessandtradeassociationstoorganizedlabortoeducational agencies,uniformlyfoundachievingthesegoalseitherimportantorveryimportantto theirorganizationsandthosetheyserve.thegoalsare: Page53

60 Helping'to'align'education'programs'with'employer'needs' Enhancing'information'to'support'economic'development'efforts' Delivering'accessible'information'on'education'and'training'program'outcomes' Monitoring'local,'regional,'and'statewide'economic'trends' Assessing'the'effects'from'economic'disruptions'(recession,'natural'disaster,'etc.)' Informing'the'community'of'economic'and'social'needs' Reducing'employer'survey'burden'through'better'use'of'administrative'data' Providing'accurate'information'on'employment'opportunities'available'to'job' seekers' Theforty[sevennational,state,andlocalentitiesthatrespondednotonlyrepresenteda widearrayofusertypesbutalsoservedover20millionindividuals.supportfromthese kindsoforganizationscouldbeextremelyimportantifandwhenfederallegislationis neededtoenactwagerecordenhancement. Users'Value'the'Potential'Offered'by'Enhanced'Wage'Records' Whenaskedaboutthevalueof14informationtypesmadepossiblebywagerecord enhancement,allbutonewereratedofhighvaluetoatleastoneorganizationtype.the respondingorganizationsassignedthehighestvaluetoknowingtheoccupationand hourlyearningsofindividualworkers.thelowestrateditemsweregenderandcommute information,althougheventhesewereratedofmoderatevalueoverallbythe respondents. Inadditiontoindicatingvalue,theuserorganizationswereabletoidentifyspecific applicationsfortheenhanceddata.ingeneral,theseusesfellalongthefollowinglines (theirmorespecificcommentsareincludedinappendiceshandi): Aligning'education'and'workforce'training'supply'with'employer'demands'for' labor' Increasing'knowledge'and'understanding'about'the'dynamics'of'local,'regional' and'statewide'labor'markets' Developing'more'effective'education'and'training'programs' Providing'consumers'information'for'improved'decision'making' Supporting'more'efficient'labor'markets' Strengthening'economic'development'efforts' Helping'businesses'compete'more'effectively' Improving'corporate'hiring/retention'practices' Promoting'greater'accountability'in'public'spending'on'education'and'training' programs' Supporting'effective'policy'development'to'address'economic'and'social'challenges' Evaluating'public'policies'and'programs'related'to'labor'markets'and'the' workforce' Better'benchmarking'of'national'surveyAbased'statistics' Page54

61 Federal'Statutes'Support'Enhanced'Wage'Records' Thequestionofemployerreportingburdenisoftenexpressedaboutwagerecord enhancement,assumingthatemployersarenotalreadymaintainingthedata.however, federalstatutesrequireemployerstocompilesuchdata. FairLaborStandardsAct(FLSA);29C.F.R.516.2[516.8,570.6 AgeDiscriminationinEmploymentAct(ADEA);29C.F.R (a) FamilyandMedicalLeaveActof1993(FMLA);5C.F.R ;20C.F.R EqualPayActof1963(EPA);29U.S.C.206;29C.F.R , Alloftheabovefederallawsrequireemployerstomaintainrecordsthatcontainsomeor allofthefollowing:name,address,socialsecuritynumber,dateofbirth,dateofhire, dateoftermination,gender,occupation,rateofpay,basisonwhichwagesarepaid (hourly,commission,piecemeal),totalweeklyearningsbrokenoutbystraighttimeand overtimepremium,wagespaidduringeachpayperiod,datesofpaymentandpayperiod covered. Theselawsdon tspecifyhowtherecordsaretobemaintainedorthattheyaretobe reportedbutthefactthatemployersmusthavethesedatameansthereshouldnotbe additionalcoststoemployerstocompilethedata.thisdoesnotmeanthatwagerecord enhancementwillnotaddtoemployers costs,onlythatcostsofgatheringthosedata shouldnotbeattributedtoenhancedreporting. Enhanced'Wage'Records'Could'Reduce'Employer'Survey'Burden'and'Improve'Labor' Market'Statistics' TheBLS,states,educationalinstitutions,trainingagencies,andtheUSEqualEmployment OpportunityCommission(EEOC),amongothers,usereportsandsurveystogather informationfromemployersonemployees occupations,hoursworked,worklocation, gender,etc.itislikelythatthesedatacouldbecollectedmoreefficientlythroughthe wagerecords.thiswouldreducethedatacollectioncosttotheseorganizationsandto theemployerswhomustcompletethosereportsandsurveys. Forexample,undertheCivilRightsActof1964asamendedbytheEqualEmployment OpportunityActof1972,theEEOCcollectsthefollowinginformationfrommostpublic andprivateemployers:firminformationonlocation,ownership,industry,singlevs. multipleestablishment,andtotalemployment;andindividualemployeedataon occupationin10soc[basedcategoriesandrace/ethnicitybyestablishmentlocation.the PaycheckFairnessAct'requirestheEEOCtocollectfromemployerspayinformation regardingthesex,race,andnationaloriginofemployeesforuseintheenforcementof federallawsprohibitingpaydiscrimination. BLSandthestatescollectinformationonemployeeoccupations,worklocations,gender, andworkhoursthroughmillionsofsurveysannuallyinthecurrentemploymentstatistics, OccupationalEmploymentStatistics,andEmploymentandPayrollprograms.Thepayroll Page55

62 firmadpusesdatatheyreceivemonthlyfromtheirclientemployerstoproducean alternativeestimateofmonthlynationaljobgrowth thatcomparestothebureau s CurrentEmploymentStatisticsProgram. Thesurveysatthestateandlocallevelareoftensubjecttolargesamplingandnon[ samplingerror,andvolatilityduetosmallsamplesizesandnon[response.collectingdata onthewagerecordscoulddramaticallyimprovetheaccuracyanddetailoftheselabor marketstatistics.inaddition,someofthesesurveysareconductedovermanymonths; usingthewagerecordscouldimprovethetimelinessoftheresultingdata. Findings'That'May'Hinder'Wage'Record'Enhancement' Lack'of'Coordination' Oneofthedifficultiesinbuildingacaseforwagerecordenhancementisthatoftenthere islittlecommunicationorcoordinationamongthepotentialusersofthedata.individual organizationsassumethattheirneedsalonewillnotjustifytheexpenseandeffortto buildanewsystem.theyworkintheirsiloanddon tlookatotherorganizationsthatmay havedifferentpurposesforthedata.forexample,theequalemploymentopportunity Commission,healthcareorganizations,educationandtraininginstitutions,andworkers compensationinsurancecompaniesalluseoccupationalinformationaboutindividuals, andallhaveindependentmeansofobtainingthem,likelyatamuchhighercostandat lowerqualitythaniftheyworkedtogether.thereisnotaforumforcommunication amongfederal,state,localandprivateorganizationsthatusethekindsofdatathatcould comefromwagerecordenhancements. Thislackofcoordinationalsoexistsamongstatesthatareconsideringimprovementsto theiruiandlmisystems.thecostandcomplexityrisebecausethedevelopmentof solutionsisoftennotsharedamongpotentialbeneficiaries. Competing'Priorities' Inmanystates,ifnotmost,UIProgramstaffhavebeenoverwhelmedsincetheGreat Recessionsimplytryingtopayunemploymentbenefitstoanextremelyhighnumberof unemployedworkers,whileatthesametimeattemptingtoadaptorreplacedecades[old technologysystems.havingthetimetostepbacktolookatnewwaystoproducequality labormarketinformation,orhelpeducationandtrainingagenciesbetterachievetheir goalshasnotbeenaluxurymanyhavehad.itcertainlyhasn tbeentheirhighestpriority. SomemightquestionwhetherthoseshouldbegoalsfortheUIProgramatall.Exploring theideathatwagerecordenhancementmightimprovetheeconomy,therebyreducing unemployment,hasnotbeenattheforefrontofthoughtformany. Continued'Use'of'Paper'Transactions' Despitegrowthintheamountofdataemployerssubmitusingelectronicformats,there arestillmany,especiallysmaller,employersthatusepaperorfaxtosendwagerecord Page56

63 informationtostatesortotheirpayrollserviceproviders.toachieveuniversalwage recordenhancement,alloftheseemployerswouldneedtoadoptnewmethods,which mayincreasetheircostsintheshortrun.wehavenotyethaddirectdiscussionswith employergroupstoascertainthedegreetowhichthismaybetrue. Lack'of'Adequate'Incentives'for'Complete,'Accurate,'and'Timely'Reporting' Eveninstatesthatcurrentlyenhancethewagerecords,manyemployers,andinsome casesthemajorityofemployersdonotreportaccurately,completely,ortimely.insome casesthisoccurswhenthestatefailstoenforcetheirownrequirements.inothercases, instructionsfromserviceproviderscanleadthemastray.forexample,thestateofalaska requiresaworksitecodeforeachemployee.yet,amajorpayrollsoftwarecompany s websiteinstructstheirclientsregardingalaskareporting: Youdonotneedtoentera geographiccodeintoourpayrollservice.wedeterminethecodeforthisreport automaticallyfromthecompany(headquarters)addressyouenter. Whenimproperor incompletereportingoccurs,eitherthecoststothestaterisebecauseofincreased follow[upeffortstocollectandcleanthedata,ortheyusethedatatheyreceivebut acceptlowerqualityandreliabilityintheirestimates,ortheysimplyignorethedata, meaningthatsomeemployersarewastingtheirtimereportingit.unless,thestates and/orthefederalgovernmentcanworkwithemployersandtheiragentstodetermine incentivesthatresultinhighqualitydatabeingreported,therewon tbevaluein enhancingthewagerecords. Uncertainties'Over'Ongoing'Funding'Support' Somehavequestionedfromwherefundingforwagerecordenhancementshouldcome. SomestateandETArepresentativeshavestatedtheUIProgramfundscannotbeusedfor suchactivitiesunlessthestateuiprogramlawspecificallyrequirestheadditional variablesinuiprogramadministration.whetheracasecanbemadethatthedata contributetoeconomicimprovementandthatsuchimprovementbenefitstheuiorjob Serviceprogramsisunknown.WhetherUIlawspermitUItaxratestobeadjusted,asa possibleincentivetoemployersthatreportaccurate,complete,andtimelywagerecords isalsounknowntothestudygroup.noclearsolutionhasbeensuggested. Data'Security'Concerns' Thepublicisevermoreconcernedaboutbreachesofdatasystemsthatcontain confidentialinformationaboutindividuals.whiletheagenciesinvolvedinwagerecord collectionhavesystemsinplacetoprotecttheconfidentialdatatheyalreadyhave,any attempttoincreasetheamountand/ordetailofthatinformationmayfaceresistance. Inflexible'State'Systems' WhilemanystateshavesucceededinmodernizingtheiroldlegacyUIsystems,many othershavenot.estimatesofthecosttoreplacetheseold,inflexiblesystemsrangeinto thebillions,oftenwithoutanidentifiedfundingsource.withoutmoremodern Page57

64 technology,wagerecordenhancementwouldbeimpracticalandextremelycostlyfor bothuiprogramstaffandemployersworkinginthosestates. Inconsistent'Definitions' OnepointhighlightedbytheNationalPayrollReportingConsortiumwasthe recordkeepingcomplexitiesandcostsresultingfromthefactthatstatesandthefederal governmentoftenusedifferingdefinitionsforwagerecordelements,suchasemployer, employment,andwagesindifferentprogramsandjurisdictions.anexamplewasshared bythenprc:thehoursanemployeeisonpaidvacationareexcludedfromhoursworked inthestateoforegon,butincludedinwashingtonstate.theseinconsistentdefinitions addtoemployerburdenandprovideadis[incentivetoreportmoredataortoreport accurately.theyalsowouldreducetheutilityoflabormarketinformationgeneratedwith theenhancedwagerecords,asuncertaintyofmeaningwouldbeintroducedintoany comparisonacrossstates. Lack'of'Occupational'Coding'Skills'and'Tools' Enablingemployerstomaintainaccuraterecordsoneachemployee sjobtitleand occupationalcodemaybechallenging.electronictoolsexistthatcanassistintranslating employerjobtitlesintostandardoccupationcodes.however,todaynotallemployers haveaccesstothesetoolsorknowledgeofhowtousethemappropriately.thought wouldhavetobegivenastohowtomakesuchtoolswidelyavailableandeasytouse.in addition,newapproacheswouldneedtobedevelopedtoensurethatemployerswere maintainingup[to[datecodesfortheiremployees. Lack'of'Standard'Coding'to'Reflect'Variety'in'Compensation'Packages' Formanyemployees,compensationmaycomeinavarietyofcashandnon[cashforms. Forexample,somemayreceivehealthbenefitsortransportationorhousingallowances inadditiontotheirregularwagesorsalary.allformsofcompensationareimportantto understandingthelabormarketandincalculatingbenefitsforprogramssuchas unemploymentinsurance.inordertoachieveuniversalwagerecordenhancementata reasonablecosttoemployers,astandardstructureofrecordcodingandreportingwould needtobedevelopedthatcapturedthevarioustypesofcompensation. ' Page58

65 Chapter'Six:' Next'Steps'and'Recommendations' ' Muchworkremainstofullyunderstandtheissuessurroundingwagerecord enhancementandtoprepareemployersandstatestoimplementiteffectively.thestudy Groupintendstopursuesomeofthisworkinthecomingyear.Otheractivitieswillneed theattentionofabroaderassemblyoforganizationstoeffectivelyaddress.below,we discusstheimmediateplansofthestudygroup;followedbyafewrecommendationsfor thewiderproducer/usercommunity. Next'Steps'for'the'Study'Group' Convene'an'Employer'Focus'Group' In2014[15,theStudyGroupplanstoconveneatleastoneemployerfocusgroup.These face[to[faceforumswillprovideanopportunitytogetadeeperunderstandingof employerssharedconcernsabout,andpossiblesupportfor,wagerecordenhancement. Theforumswillbringtogetherindividualemployersand/oremployerassociationsfor facilitateddiscussionsofthepros/consofenhancingwagerecordreporting.we anticipateseekingemployerviewsonthepotentialbenefitstoemployersfromwage recordenhancement.thesemightincludeimprovingthealignmentofeducationwith employerneedsresultinginanimprovedlaborsupply,accessingmoredetailed informationwithwhichtomonitorlabormarketconditions,reducingthenumberof surveysinwhichtheyareaskedtoparticipate,eliminatingduplicative/similardata requestsfromdifferentprogramsatthestateand/orfederallevel,andstandardizing reportingrequirementsacrossstates. Wealsoplantoexploreemployers concernsaboutwagerecordenhancement,including suchitemsasnothavingtherequesteddata,needingtomergedataacrossmultiplein[ housesystems,adaptingtorequiredelectronicreporting,fundinganyadditionaleffort andcost,dealingwithinconsistencyacrossstates,and/orneedingbettertechnical support. Finally,wewouldliketogetemployersinputandreactionsregardingpossibleincentives toencouragemoreaccurate,complete,andtimelyreporting. Asummaryreportwillbeproduceddocumentingthediscussions. Conduct'Employer'Surveys' Theforumswillprovideabroadviewofemployerconcernsandsupport.TheStudyGroup alsohopestogatherspecificemployerinformationthroughsurveysconductedinseveral states.thesesurveyswillbedesignedtocollectinformationonemployerrecordkeeping andreportingpractices,thecostsforenhancingwagerecords,andemployerperceptions Page59

66 ofwagerecordenhancement.wewillattempttogatherinformationonboththestaff andinformationtechnologycostsassociatedwithprovidedadditionalwagerecord variables.thisworkwillbuildonstudyconductedfortheemploymentandtraining Administrationin TheStudyGroupplanstobuildaWeb[basedemployersurveyinstrumentandrepository foremployerresponses.thistoolwillenablethestudygrouptocollectdirectresponses fromindividualemployers.employers accesstothesurveywillbebasedonasurveykey thatwillallowtheemployertoremainanonymous,thusensuringconfidentialitywhile enablinganon[confidentialnationalsummaryofresultsanddisaggregationofresponses intostateandindustrycohorts.thestate[specificdatawillbereturnedtoindividual statesfortheiranalysiswhileallowinganon[confidentialanalysisatthenationallevel. Document'State'Enhancement'Processes' TheWICplanstosolicitstatesthathavealreadyenhancedtheirwagerecordsorthatare currentlyundertakingwagerecordenhancementtosharetheirexperiences.thiseffort woulddocumentthestepsinvolved,considerationsmade,costsincurred,barriers encountered,solutionsdeveloped,andactionstakenbythesestates.itwouldattemptto capturethereasoningbehindtheirdecisions,thebenefitstheyperceive,theydatauses theyhopefor,andthecostsandfundingforenhancement.thesecasestudieswould assistotherstatesthatareentertainingthepossibilityofenhancement. Recommendations'for'Broader'Action' Encourage'Electronic'Reporting' Statesnotyetrequiringelectronicreportingforallemployersshoulddevelopincentives toencouragereportingthroughelectronicandmagneticmedia.a2011study 27 conductedbyernstandyoungforthenationalpayrollreportingconsortiumsuggested offeringelectronicfilersadditionalfeaturessuchasconfirmationoffilingreceiptand electronicaccountaccess. Develop'Tools'to'Assist'with'Occupational'and'Geographic'Coding' Oneofthemorechallengingaspectsofwagerecordenhancementwillbeequipping employerstoaccuratelyassignandmaintainoccupationandworklocationcodesfortheir employees.somestatesthatcurrentlyrequirethesecodeshavedevelopedtoolstoassist withthistask.o*netonlinehasaworkingoccupationalcodingtool.eta,naswaand thestatesshouldworktogetherwithemployerorganizations,payrollsoftwareproviders toensurethattheoptionsareeasytouse,incorporateanysuggestedimprovements,and areintegratedintothepayrollsystemsusedbyemployers. 26 EmployerCostsforAdditionalUnemploymentInsuranceWageReportElements, FinalReport,DTI Associates,October BusinessProcessesandConsiderationsinMeetingEmployeeWageReportingDeadlines, Ernst&Young,September2011, Page60

67 Identify'Financial'Support'for'State'UI'Upgrades' ETAshouldidentifysupplementalfinancialsupportforstatestoupgradetheirUItax systemsandprovideincentivestoensurethatallstatesadoptcommonsystemstandards andhavetheflexibilitytohandleadditionalvariables. Establish'a'State'Practitioners'Working'Group' NASWAshouldcreateastatewagerecordenhancementpractitionersgroup forthose statesthathaveenhancedtheirwagerecords,thoseworkingonit,andthoseinterested inpursuingit.thepractitionersgroupshouldincludeui,it,andlmirepresentatives.the groupshouldshareinnovativepractices,addresscommonissues,anddevelopuniform approachestoreportingenhancedvariables. Establish'a'Wage'Record'Enhancement'Advisory'Council' InresponsetothenewWorkforceInnovationandOpportunityAct,theSecretaryofLabor willbeformingaworkforceinformationadvisorycouncil.thedepartmentoflabor shouldaskedtocouncilmakerecommendationsregardingthedevelopmentofan enhancedwagerecordreportingsystem.specifically,thecouncilshouldconsultwith representativesofstateuiandlmiprograms,employers,andthepayrollindustry,aswell aspotentialfederal,state,andlocaluserorganizationstodeveloprecommendationson: Common'data'elements,'definitions,'and'coding'structure standardizing reportingdefinitionsandrequirementsacrossstateswouldgoalongwaytoward makingthesystemeasierforemployers,thusincreasingcomplianceandreducing thelikelihoodofinaccurateandlatereports.italsoincreasesinformation comparabilityacrossgeographicareas. Appropriate'employer'incentives'for'accurate,'complete,'and'timely'reporting thesemighttaketheformofpenaltiesorrewards.forexample,employers reportingcorrectlycouldbeexcusedfromselectedfederalsurveys.or,states couldassessa collection[and[cleaning feeonemployersthatdonotreport accurate,complete,andtimelywagerecords.suchafeecouldbeassessedbased onthenumberofwagerecordssubmittedandbewaivedforthoseemployers thatprovidecleanfiles. Alternative'implementation'strategies suchasstartingwithlargeremployersor specificindustriesorpayrollservicesfirms. Allowable'and'appropriate'funding'mechanisms thesemightincludefees assessedonemployersasmentionedaboveoronprogramsthatwouldbenefit fromwagerecordenhancementsuchasthosemandatedbythecarld.perkins CareerandTechnicalEducationAct,TradeAdjustmentAssistanceExtensionAct, Wagner[PeyserAct,FUTA,orCivilRightsAct.TheWagner[PeyserActandtheCarl PerkinsActhavespecificlanguageallowingfundingforlabormarketinformation. Legislative'actions'required'for'universal'wage'record'enhancement.' Page61

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69 Appendices) AppendixA CoverLettertoStates/TerritoriesRequestingResponsetoSurvey AppendixB QuestionnaireforAllStates AppendixC StateCommentsRegardingUISystems FlexibilitytoIncorporate EnhancedWageRecordElementsNowandintheFuture AppendixD BibliographyofResearchonEnhancedWageRecords AppendixE ListUserOrganizationsSelectedforSurvey AppendixF EOmailInvitationRequestingUserOrganizationstoComplete Questionnaire AppendixG OnlineQuestionnaireforPotentialUsersofEnhancedDataCollection AppendixH UserOrganizations CommentsonPotentialUsesofEnhancedWage RecordVariables,byOrganizationType AppendixI UserOrganizations CommentsonPotentialUsesofEnhancedWage RecordVariables,byInformationTypeandOrganizationType AppendixJ InvitationLetterRequestingPayrollCompaniestoComplete Questionnaire AppendixK OnlineQuestionnaireforPayrollServices/SoftwareCompanies AppendixL ListofPayrollServices/SoftwareFirmsContactedtoRequestSurvey Participation AppendixM CommentsReceivedfromtheNationalPayrollReportingConsortium Page1

70 Appendix(A( Cover(Letter(to(States/Territories(Requesting(Response(to(Survey( A#1

71 Appendix(A( Cover(Letter(to(States/Territories(Requesting(Response(to(Survey( A#2

72 Appendix(B(( Questionnaire(for(All(States( 1. State'name:' ' ' 2. Contact'person:' ' ' Title:'' ' 3. Phone:' ' ' E9mail:''' ' ' 4. Does'your'state'mandate'electronic'reporting'of'UI'wage'records'for'any'segment'of' employers?'if'so,'what'are'the'criteria'(e.g.,'size'of'firm,'industry)?' 5. What'percentage'of'employers'(or'their'agents)'in'your'state'report'wage'data'using'the' following'methods?' Internet:'' Magnetic'media'(tape,'computer'disk,'etc.):'' ' Paper/fax:'''' Other'(specify):' ' ' 6. What'percentage'of'total'wages'reported'in'your'state'do'the'following'reporting' methods'represent?' Internet: Magneticmedia(tape,computerdisk,etc.): Paper/fax: Other: 7. Does'your'state'require'any'employers'to'report'wage'records'more'frequently'than' quarterly?'if'yes,'what'criteria'are'used'to'select'those'employers?' B#1

73 Appendix(B(( Questionnaire(for(All(States( 8. Does'your'agency'match'the'wage'records'with'other'administrative'data'(e.g.,'DMV,' TANF)'to'add'demographic'characteristics'(age,'gender,'income,'residence'address,' etc.)?'' Characteristic' Source' ' ' ' ' ' 9. Describe'the'restriction(s)'your'state'places'on'using'wage'records'for'non9UI'purposes?' 10. Who'uses'the'wage'data'your'agency'collects'for'purposes'other'than'direct'UI' administration?'what'are'those'purposes?' Organization' Purpose' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 11. Has'anyone'in'your'state'prepared'any'reports'on'the'benefits'or'monetary'value'of' using'the'wage'records'for'purposes'other'than'direct'ui'administration?'if'so,'who'can' we'contact'to'obtain'a'copy?' 12. In'addition'to'the'basic'UI'wage'record'(name,'SSN,'and'total'wages),'does'your'state' collect'any'of'the'following'enhanced'data'elements'from'employers'on'the'wage' records'for'each'employee?' B#2

74 Appendix(B(( Questionnaire(for(All(States( Hoursworked:Totalhours Regularhours Overtimehours Weeksworked: Paybytype:Salary Hourly Commission Bonus Piece Occupation:Jobtitle SOCcode Employee sprimaryworklocation:streetaddress ZIP County Employerreportingsitenumber: Gender: Other(specify): If(you(checked(any(of(the(above(enhancement(categories,(please(continue(with(question(13.(If( not,(please(skip(to(question(25.( 13. Do'you'collect'the'enhanced'data'elements'on'a'quarterly'or'other'frequency'basis?' Quarterly Other(specify) 14. When'did'your'state'begin'collecting'the'enhanced'data'elements?' 15. Was'legislation'required'to'collect'the'enhanced'data'elements?'If'so,'please'provide'a' copy'or'a'link.' 16. Why'did'your'state'decide'to'collect'the'enhanced'wage'data'elements?' B#3

75 Appendix(B(( Questionnaire(for(All(States( ' 17. What'organizations''were'most'influential'in'your'state's'decision'to'enhance'the'wage' records?' 18. Initially,'what'organizations'supported'the'collection'of'enhanced'data?'Do'they'still?' Organization' Still'support?' ' Yes''' ' ' No''' ' ' ' Yes''' ' ' No''' ' ' ' Yes''' ' ' No''' ' ' ' Yes''' ' ' No''' ' ' 19. Initially,'what'organizations'opposed'the'collection'of'enhanced'data?'Do'they'still?' Organization' Still'oppose?' ' Yes''' ' ' No''' ' ' ' Yes''' ' ' No''' ' ' ' Yes''' ' ' No''' ' ' ' Yes''' ' ' No''' ' ' ' ' ' 20. Are'there'currently'other'organizations'that'are'strong'supporters'or'opponents'of'the' enhanced'wage'data'collection?' 21. Has'anyone'estimated'the'additional'costs'(in'dollar'or'percentage'terms)'of'collecting' the'enhanced'elements?'if'so,'who'can'we'contact'to'obtain'a'copy?' 22. What'collection'issues,'if'any,'have'you'encountered'with'the'enhanced'data'elements?' 23. What'recommendations'do'you'have'for'improving'the'collection'of'your'enhanced' wage'records?' B#4

76 Appendix(B(( Questionnaire(for(All(States( ' ' ' 24. What'issues'have'you'encountered'in'analyzing'the'enhanced'wage'records?' 25. Has'your'state'considered'adding'other'data'elements'to'the'wage'record'requirements?' If'so,'what'and'when?'What'was'the'intended'purpose?'What'was'the'result?' 26. Do'you'know'of'organizations'calling'for'your'state'to'collect'additional'elements'with' the'wage'records?'if'so,'which'organizations'and'what'enhancements/purposes?' Organization' Enhancement/Purpose' ' ' ' ' 27. What'additional'enhancements'do'you'believe'would'add'the'most'value?'Why?' 28. Is'your'state's'UI'wage'collection'system'flexible'enough'to'collect'additional'data' elements'on'the'wage'reports?'please'describe'any'technical/fiscal/staffing'constraints' to'adding'elements?' Thank'you'for'your'assistance'in'this'effort'to'study'the'use'of'UI'wage'records.' B#5

77 Appendix(C( State(Comments(Regarding(UI(Systems (Flexibility(to(Incorporate(( Enhanced(Wage(Record(Elements(Now(and(in(the(Future( Now 28 ( Future 29 ( State(Comments 30 ( Yes Yes Wewouldhavetocontracttechnicaldeveloperstocreatetheenhancements anddevelopsupportmechanismfornewdataelements. Addinganyadditionalelementswouldnotbeeasy.Paperandelectronicforms wouldhavetobechangedandtherewouldalsobesignificantprogramming workinvolved.withenoughtime,money,andpoliticalwillitwould,ofcourse, bepossible,butgiventhat[ourstate]alreadyhasoneofthekey enhancementsbeingconsidered,ourresponsetothisquestionwillbeless usefulthanotherstates. [Ourstate's]UIwagecollectionsystemisflexibleenoughtocollectadditional dataelementsshouldtheybeaddedtothewagereport.theconstraints wouldbeprimarilyrelatedtoresources.programmingcostsandpossible staffinglevelswouldneedtobeincreasedtotheappropriatecostinglevelto effectivelyintegrateadditionaldataelements.unlessadditionalfederal fundingwasprovidedthesecostswouldbebornebytheuiadministrative grant,whichhistoricallydoesnotprovidesufficientamountsforit enhancements. Yes,butitstillcomesdowntofundingforadministrationandburdenon employerissuesthatneedtobeaddressed. Itwillrequiresomeeffortbutthebenefitsoutweighthestaffingconstraints. [Ouragency]iscurrentlyinprogrammingforPhase2ofanew3#phase integratedsystem(ui/workforcedevelopment).thewagecollectionsystemis inphase3 currentlysettogolivebyapril2015.aswedocument requirementsforthesystem,wewillhavethelatitudetoadddataelementsto thewage#reportingvehicle. Thesystemneedstobeflexibletoallowforchangesinthelaw. Butprogrammingwouldberequiredatacostthatiscurrentlynotsupported byexistingadministrativefunding. Oursystemisflexible;however,theadditionaldataelementswillrequire extensiveprogramlogicchanges.thiseffortwouldrequireamajorinvestment infunds,itresourcesaswellasstaff.furthermore,additionalstaffing resourceswouldbeneededtoeducatetheemployersfortheneedofthe additionalelements.currentlyouritstaffislimitedaswellasourfunding. Yes,butwouldrequirereprogrammingofourdatacaptureprocessand reportingmethods. 28 Thiscolumnreflectsthestate sresponsegiventothequestiononcurrentuiflexibilitytoaddwagevariables. 29 Thiscolumnwasdeterminedbasedonthecommentseachstateprovided. 30 Thecommentshavebeeneditedforclarityandtoremoveanyidentifyingstateinformation. C#1

78 Appendix(C( State(Comments(Regarding(UI(Systems (Flexibility(to(Incorporate(( Enhanced(Wage(Record(Elements(Now(and(in(the(Future( Now( Future( State(Comments( Yes Yes Thedegreeofflexibilitywoulddependonthetypeofnewdataelementsthat aretobecollected,wherethisinformationwouldbesent,howitwouldbe sent,anyneedforaninterface,etc.thedegreeofflexibilitywouldinturn determinethetechnical/fiscal/staffingconstraints[ourstate's]uc ModernizationSystem(UCMS)mightencounter.Sincethiswouldbe"new"to UCMS,therewouldbeaddedfeeschargedby[ourcontractor]tomake necessaryprogramchanges,extraadministrativecosts,andtherewouldbe significanttimespenttestingandtroubleshooting.asthiswouldbeavery labor#intensiveproject,itwouldprobablyrequireexperienced,temporary staff.inthepast,[ourstate]hasturnedtoretiredannuitantsforthistypeof work. Oursystemisflexibleenough.Themaindifficultywouldbefittingtheextra fieldsonthereportingforms. Withsufficientfunding,itwouldbepossible.Giventhecurrentbudgetary constraintsofourdepartment,itisnotfeasibletomodifythewageform, reprogramtheocrscanner,modifyvariousapplications,andmultiple databasetablestocapturethisdata. Changesindataelementswillinvolvemoduleupdatesandchangecontrol processesintheapplicationenvironment. No Yes Currentlynot,buttheabilitytocollectadditionaldataelementswillbepartof ournewcomputersystemduetobeoperationalin2016. Ourcurrentsystemisnotflexibleenoughatthistimetocollectadditionaldata elements;however,anewserverbasedsystemisbeingdevelopedthatwill allowforthecollectionofadditionaldataelements. TheDivision's45+#yearoldlegacycomputersystemisnotflexible.Becauseof constantmodificationsovertheyears,itisverycomplicatedtomaintain.the legacysystemisexpectedtobereplacedin2015,and,asmuchaspossible, resourcesarebeingdirectedtowardbuildingthenewsystem.collectingand storingadditionaldataelementsfromwagereportsontheexistinglegacy systemwouldrequiredivertingmuchtimeandmoneyfrombuildingthefuture systemtomodifyingasystemthatwillonlyremaininuseforashorttime.the newsystemwillbeflexibleenoughtocollectadditionaldataelements. [Ourstate]isclosetoimplementingamodernizedandnewUIsystemthatwill includebenefits,appeals,andtax.toaddadditionaldataelementsbeyond whatiscurrentlyrequiredatthistimewouldrequireadditionaltechnicalstaff forprogrammingandfundstoachieveanyalterationstothesystem. Inthefuturewhenour4#stateUIupgradesystemconsortiumlaunches. (ExpectedbyDecember2016,jointprojectwith[fourstates]) C#2

79 Appendix(C( State(Comments(Regarding(UI(Systems (Flexibility(to(Incorporate(( Enhanced(Wage(Record(Elements(Now(and(in(the(Future( Now( Future( State(Comments( No No [Ourstate's]UIwagecollectionsystemwouldfacesignificantlimitationsto collectadditionaldata,suchas,spaceavailabilityontheform;burdenonthe employerstore#programtheirsystemstoreportthedata;[ourdepartment's] costtore#programitssystemtocapturethedata;and[ourdepartment's] additionalcosttoprocessthedataelements,etc. NotatthistimeasitwouldrequireasignificanteffortinourUIbusiness. Thecollectionofanyadditionalelementswouldrequireustobuildanewtax system. ExtensivesystemmodificationsinvolvingbusinessandIT Redevelopmentofinternet,magmediaandpaperreportingmechanisms, communicationofandadoptionbyemployercommunity. Communicationandlead#timerequiredbyemployers(especiallysmall employers)tobeginuse. Communicationandleadtimeforvendorssuchaspayrollservicestomake systemsavailableto[ourstate's]employers Rulechangesmakingreportingmandatory. [Ourstate's]quarterlywagesystemisveryoldandcouldnotwithstand additionaldataelementswithoutawholesystemredesign. OurcurrentUIwagecollectionsystemhasseverelegacyconstraintstothe collectionofadditionaldataelements.oneoptionforthecollectionofthe aforementioneddataelementsisforastatetoreceiveitsemployers'native electronichrfilesandassumeresponsibilityforconversiontoausableformat. WearestilloperatingourTaxsystemonamainframesystem,andits technologyisover40yearsold.wewouldbelimitedonwhatifanyadditional datawecouldcollect.thesystemhaslimitedfieldsallofwhicharefull. Ourweb,IVRandelectronicfileformatswouldallhavetoberedesignedand coded.employers,agentsand3rdpartypayrollproviderswouldallhaveto obtainadditionaldataforeachssntheyreportandupdatetheirfileformats. [Ourstate]doesnothavetheresourcesinIToronthefrontlinestodevelop, manuallyinputormaintainotherdataelementsthatarenotdirectlyrelatedto theadministrationoftheuiprogram. Notatthistime.Implementationofadditionalelementswouldbevery expensive whatagencywouldabsorbthiscost? C#3

80 Appendix(C( State(Comments(Regarding(UI(Systems (Flexibility(to(Incorporate(( Enhanced(Wage(Record(Elements(Now(and(in(the(Future( Now( Future( State(Comments( No No Thereareconcernsassociatedwithcompellingmandatorycompliancetohave employersreportworkersoccupationaltitlesandhoursworkedinconnection withthecurrentuiwagereport.whileitisrecognizedthatmanybenefitscan bederivedfortheeducationcommunityand[ouragency]fromcapturingsuch information,thisshouldbeweighedagainstsomeofthecostsassociatedwith mandatingthis.themostobviousconcernwouldbetheadditionalburdenand costplacedonemployers;eveninmanyhighlyautomatedlargebusinesses,an employee swagedataisinapayrollsystemandtheemployee soccupational titleisinahumanresourcesystem.iftheemployersubmits unidentifiable occupationaltitlesitmayrequirethedepartmenttofollow#upwiththe employertogetacceptableoccupationalinformation.thiscouldimpact timelinessdelays. ProbablynotduetolimitedstoragecapacitywithinourlegacyUIsystem. No Maybe OurlegacyUIbusinesssystemisnotflexibleenoughtohandlecollectingnew dataelements.thedatabasestructureisarchaicandcurrentbusinessand informationtechnologyresourcesareunlikelytopermitinvestmentintheold system.however,wearerequiringallemployerstosubmitwagerecords electronicallyforuipurposesasofthe1stcalendarquarter2014.atthattime, thewebinterfaceandotherformsofdatasubmissionmaybeflexibleenough tosiphonoffthenewdataelementswithoutburdeningtheuibusiness systemsorresources. CurrentUITaxandBenefitsaretransitioningtonewtechnology. No Answer Maybe Wehavenothaddiscussionsaroundthistopic.TheITandtechnical constraintswoulddependonthecomplexityandthetypeofadditionaldata elementsbeingconsidered. Technicalelementsaffecting[ourstate}tocollectdataareprogrammingthe quarterlyreporttogatherdata,programmingwagerecordfileand programmingthebenefitsystemtoacceptdata.fiscalandstaffingarethe sameissue.therewouldbeanadditionalnumberoffte stoaccomplishthis task.ouremployerbasedoesnotalwaysreporttherequiredinformation currentlyandwehave2fte sthatfollowuponmissingdata.whennew elementsarerequiredtobesupplied,additionalfte swouldbeneededto gathermissingdata.thestatehascreatedasmallbusinessimpactbill requiringanalysisofnewlawspassed.thiscouldbepotentiallyaroadblockfor suchdatatobecollected. Wouldrequireaddingfieldstofileandupdatingallwageinputsystems. C#4

81 Appendix(C( State(Comments(Regarding(UI(Systems (Flexibility(to(Incorporate(( Enhanced(Wage(Record(Elements(Now(and(in(the(Future( Now( Future( State(Comments( No Answer Maybe Asdesigned,thesystemwouldhavetobealteredinordertoaccommodate additionaldataelements.systemmodificationswouldincludetechnical programmingofourinternetapplication,ftpprocess,magnetictapeprocess, mainframedatabaseandemulator,documenttemplatesandedmssystem. Onthesurfaceitappearsthatasignificantchangetotheinformationcollected wouldbeamajorproject. NotwithoutadditionalITchanges.Ourpaperandelectronicreporting mechanismswouldhavetobeupdatedtoacceptadditionalinformation.it resourcesarescarceforthestateandwouldrequireprioritizationwithother projects. Thefirsthurdleistogetstatutoryauthority.Then,inadditiontotheexpected technical,fiscalandstaffingconstraintsthatareinvolvedinprogramming, thereareconcernsabouttheimpactsontimelytaxreporting.theextraburden onemployersandserviceprovidersofincludinginformation,whichisnoton thecompany spayrollsystem,maycontributetolowerandslowercompliance. The2013#2014budget,directsthe[severaleducationandworkforce departmentstowork]onadatasharingsystem. Itisdifficulttosaywhetheroursystemis flexible enoughtocollectadditional dataonthewagereportingsystems.todosowouldmeanmodifyingallofour existingancillarysystems,eams,fasttax,webtax,icesaandpaper,toaccept additionalinformation.additionally,ournewtaxsystemjustnowcomingon linewouldneedtobemodifiedtoacceptandstorenewfields,andduetothe warrantyperiod,thisworkcouldbedonenoearlierthanfebruary2015.the costofchangingthesesystemstohandlethesenewdataelementscannotbe accuratelyestimatedthisearly,butduesimplytothenumberofsystems impacted,weexpectthesetobesignificantaswell.suchchangeswouldalso requireemployers systemstobemodifiedtobeabletoreportthedata,and legislationwouldberequiredtoaddanyenhancements. [Ourstate]recentlyimplementedaUITaxandClaimssystemthatchangedthe filestructureforwagereports.thisrequiredmanyemployersandtpa'swith automatedsystemstoenhancetheirsystemsincoordinationwith[ourstate's] implementation.anychangetoourstructurewouldhaveanegativeappealto ourcustomersandwouldputastrainonlimiteditandfundingresources. Addingdataelementswouldrequiresubstantialcomputerprogramming expenseandeachaddedelementwouldrequireadditionalstafftimefordata entryanddatacorrection. C#5

82 Appendix(D( Bibliography(of(Research(on(Enhanced(Wage(Records( Rassen,Elisa,KathyBooth,ErikaFalk,andJoshWyner."AGuideforUsingLaborMarketDatato ImproveStudentSuccess."AspenInstitute,CollegeExcellenceProgram,2013.Web. < MarketData.pdf>. "WageRecordsResearch."Wyoming'Labor'Market'Information,N.p.,n.d.Web. < Feldbaum,Mindy,andTimHarmon."UsingUnemploymentInsuranceWageDatatoImprove ProgramEmploymentOutcomes:ATechnicalAssistanceGuideforCommunityandTechnical Colleges."Achieving'the'Dream.NationalScienceFoundation,2012.Web. < o_improve_program_employment_outcomes_a_technical>. BusinessProcessesandConsiderationsinMeetingEmployeeWageReportingDeadlines, PreparedfortheNationalPayrollReportingConsortium,Inc.,Ernst&Young,September2011. Web. recommendations11sept09.pdf. Durham,Christin,andLauraWheaton."InvestigatingAlternativeSourcesofQuarterlyWage Data:AnOverviewoftheNDNH,LEHD,WRIS,andADARE."Urban'Institute'Publications.Urban Institute,Oct.2012.Web.< Stevens,DavidandTrevaStack LinkingandSharingEducationandWorkforceData SourcesandPartnerships:InformationonMaryland,theADARENetwork,andtheFederal EmploymentDataExchangeSystem(FEDES),TheJacobFranceInstituteattheUniversityof Baltimore Peel,BruceH."EducationalOutcomeAnalysisUsingMaine swagerecordmatchingsystem." NESUG'2010'Applications'Development.NortheastSASUsers Grouphttp:// "FactSheet#21:RecordkeepingRequirementsundertheFairLaborStandardsAct(FLSA)"Fact' Sheet'9'Wage'and'Hour'Division'(WHD)'9'U.S.'Department'of'Labor.N.p.,July2008.Web.28Oct < EmploymentandTrainingAdministration, StateWageInventory D#1

83 Appendix(D( Bibliography(of(Research(on(Enhanced(Wage(Records( Fleck,Heather,M.S.,WilliamT.Kosanovich,Ph.D.,JamesVanErden,Ph.D.,andRonShack,Ph.D. "StudyofEmployerCostsforAdditionalUIWageReportElements."DTIAssociates A HaverstickCompany,Oct Gordon,Rich,MarkSchaff,andGregShaw."UsingWageRecordsinWorkforceInvestmentsin Ohio."Monthly'Labor'Review.BureauofLaborStatistics,May2004.Web. < WorkforceInformationCouncil,ES#202PolicyCouncil,WageRecordCommittee,Various Documents,2002#2007 "MeasuringtheSuccessofEducation,Training,andWorkforceDevelopment."National AssociationofWorkforceAgencies,LaborMarketInformationCommittee,Sept.2001.Web. < King,C.T.&Schexnayder,D.T.(1998)The'use'of'linked'employer9employee'UI'wage'data:' Illustrative'uses'in'Texas'policy'analysis.'Austin,TX:CenterfortheStudyofHumanResources. Web.< U.S.Congress,OfficeofTechnologyAssessment,WageRecordInformationSystems, OTA#BP#EHR#127(Washington,DC,May1994). Moore,Richard,Ph.D.,andDanielBlake,Ph.D."FeasibilityStudyofCollectingOccupational IdentifierInformation:FinalReport."AppliedManagementandPlanningGroup,Mar SpecialTopicsinAccountabilityUsingUIWageRecordstoMeasurePlacement. Presentation totheillinoiscommunitycollegeboard.web. < D#2

84 Appendix(E( List(User(Organizations(Selected(for(Survey( ACT' AFL9CIO' American'Association'of'Community'Colleges' (AACC)' American'Association'of'State'Colleges'and' Universities'(AASCU)' American'Council'on'Education'(ACE)' American'Economic'Association' American'Educational'Research'Association' (AERA)' American'Hospital'Association' American'Public'Human'Services'Association' American'Statistical'Association' Association'for'the'Study'of'Higher'Education' (ASHE)' Association'for'University'Business'and' Economic'Research' Beacon'Economics' Bill'and'Melinda'Gates'Foundation' Building'Your'Career' Burning'Glass' C2ER Council'for'Community'and'Economic' Research' California'Community'Colleges'Chancellor's' Office' California'Hospital'Association' California'Manufacturers'&'Technology' Association' California'State'University'Chancellor's'Office' California'Workforce'Association' California'Workforce'Investment'Board' Center'for'Strategic'Economic'Research' Center'for'the'Continuing'Study'of'the' California'Economy' Charleston'Chamber'of'Commerce' Council'for'Adult'&'Experiential'Learning' (CAEL)' CVS'Caremark' Data'Quality'Campaign' Development'Research'Partners' Employment'&'Economic'Information'Center' of'new'mexico' Fairfield'Index' Federal'Reserve'Bank'of'Atlanta' Federal'Reserve'Bank'of'Boston' Federal'Reserve'Bank'of'Chicago' Federal'Reserve'Bank'of'Cleveland' Federal'Reserve'Bank'of'Dallas' Federal'Reserve'Bank'of'Kansas'City' Federal'Reserve'Bank'of'Minneapolis' Federal'Reserve'Bank'of'New'York' Federal'Reserve'Bank'of'Philadelphia' Federal'Reserve'Bank'of'Richmond' Federal'Reserve'Bank'of'San'Francisco' Federal'Reserve'Bank'of'St.'Louis' Florida'Council'of'100' Georgetown'University'Center'on'Education' and'the'workforce' Goodwill'Industries'International' Houghton'Mifflin'Harcourt' HR'Policy'Association' Industry'Workforce'Needs'Council' Institute'for'Educational'Leadership' Institute'for'Research'on'Labor'and' Employment'(IRLE)' Institute'for'Work'and'Employment'Research' (IWER)' International'Association'of'Workforce' Professionals' Jacob'France'Institute' Jobs'for'the'Future' Kuder,'Inc.' Lumina'Foundation' Massachusetts'Workforce'Board'Association' Michigan'Works'Association' Minnesota'Workforce'Council'Association' Monster'Government'Solutions' National'Alliance'of'Community' Development'Organizations' National'Association'of'Counties' National'Association'of'Development' Organizations' National'Association'of'Manufacturers' National'Association'of'Workforce'Boards' E#1

85 Appendix(E( List(User(Organizations(Selected(for(Survey( National'Association'of'Workforce' Development'Professionals' National'Bureau'of'Economic'Research' National'Career'Development'Association' National'Center'for'College'&'Career' Transitions'(NC3T)' National'Center'for'Competency'Testing' National'Center'for'Education'Statistics' National'Center'for'Health'Workforce' Analysis' National'Collaborative'on'Workforce'and' Disability'for'Youth' National'Conference'of'State'Legislatures' National'Council'for'Workforce'Education' National'Governor s'association' National'Human'Resources'Association' National'League'of'Cities' National'Skills'Coalition' National'Workforce'Association' New'Horizons'Economic'Research' Optimal'Resume' Partnership'for'21st'Century'Skills' Professionals'in'Human'Resources' Association' San'Diego'Association'of'Governments' Society'for'Human'Resource'Management' (SHRM)' Society'of'Professional'Engineering' Employees'in'Aerospace' State'Higher'Education'Executive'Officers' Association'(SHEEO)' Texas'Association'of'Workforce'Boards' The'Association'for'Career'and'Technical' Education' The'Center'for'Law'and'Social'Policy' The'Communication'Workers'of'America' The'Conference'Board' The'Department'for'Professional'Employees,' AFL9CIO' The'George'Washington'University'Institute' of'public'policy' The'Information'Technology'&'Innovation' Foundation' The'International'Federation'of'Professional' and'technical'engineers' The'National'Association'of'State'Directors' of'career'technical'education'consortium' The'National'Employment'Law'Project' U.S.'Chamber'of'Commerce'Foundation' UCLA'Anderson'School'of'Management' UCLA'Center'for'Labor'Research'and' Education' UCLA'Luskin'School'of'Public'Affairs' University'of'Texas'Ray'Marshall'Center' UPD'Consulting' Urban'Institute' Wanted'Analytics' Washington'Workforce'Association' WE'Upjohn'Institute'for'Employment' Research' Workforce'Alliance' Workforce'Arizona'Council' Workforce'Data'Quality'Campaign' E#2

86 Appendix(F( EVmail(Invitation(Requesting(User(Organizations(to(Complete(Questionnaire( FortheattentionofDr.JamesSmith,ExecutiveDirector, SampleOrganizationName DearLaborMarketInformationUser, ThisnoteistorequestyourassistanceinastudybeingconductedbytheWorkforce InformationCouncil(WIC),incooperationwiththeNationalAssociationofStateWorkforce Agencies,statelaboragenciesandtheU.S.DepartmentofLabor. TheWICisanadvisorybodycomprisedofstateandfederalrepresentativesinvolvedinthe productionoflabormarketinformation.thesecretaryoflaborestablishedthewic,pursuant totheworkforceinvestmentact(wia)of1998,toguidethedevelopmentofthenation's employmentstatisticssystem. TheWICisinvestigatingthepotentialbenefitsfrombetteruseofthewagerecorddatathatall statescollectfromemployersaspartoftheadministrationoftheunemploymentinsurance (UI)Program.TheWICalsoisinterestedindeterminingwhethertheadministrativelycollected wagerecordsmightbeenhancedtoprovidedatathatwouldhelpimprovethealignmentof educationandtrainingwiththeneedsofbusiness. Basicwagerecordinformation,collectedfromemployerseveryquarterbyallstates,includes eachemployee'sname,socialsecuritynumber,andwagespaidforthequarter.thesedataare usedinmanystatesforpurposesotherthanuiadministration,suchasassessingthe employmentoutcomesofgraduatesfromeducationalinstitutionsandtrainingprograms,and conductingeconomicanalyses. Afewstates"enhance"thewagerecordsbycollectingadditionaldataelementsoneach employee.forexample,somestatescollecttheemployee'shoursworked,gender,jobtitle, and/orprimaryworklocation. Acriticalstepinthisstudyistodeterminethevalueusersmightderiveifmorestatesenhanced thequarterlywagereports.wehavedevelopedabriefquestionnaireintendedtoprovideyour organizationanopportunitytotelluswhetherthistypeofinformationwouldbeofvalue,and howyourorganizationmightusethisinformation.weestimatethisquestionnairewilltake F#1

87 Appendix(F( EVmail(Invitation(Requesting(User(Organizations(to(Complete(Questionnaire( approximately5minutestocomplete.pleasecompletethequestionnairebyaugust8. Inordertoparticipate,youmayeither: 1.Clickonthislink or 2.Copy#pastetheentirefollowinglinkbetweenquotemarks(NOTincludingthequotemarks)inaweb browser " or 3.ClickonthefollowingURLandenterthelogininformationprovidedbelow: Key:sampleQVXxYZz Yourorganization'sresponsewillbekeptstrictlyconfidential.However,yourfeedbackwillhelp thewicprovideallstateswithsummaryinformationonthebenefitspotentiallyderivedfrom thecollectionofenhancedwagerecords. Thankyouverymuchforyourassistanceinthisimportanteffort. Sincerely, GaryCrossley,ExecutiveDirector WorkforceInformationCouncil F#2

88 Appendix(G( Online(Questionnaire(for(Potential(Users(of(Enhanced(Data(Collection( *(Required(Information TheWorkforceInformationCouncil,incooperationwiththeNationalAssociationofStateWorkforceAgencies, statelaboragenciesandtheu.s.departmentoflabor,isconductingastudytodeterminethepotentialbenefitsof addingrequireddataelementstoemployers'quarterlystateunemploymentinsurancewagerecordreportsin ordertoproducemoreaccurateandlocalizedinformationonthelabormarket.weareinterestedinyourviewson thevalueofmakingsuchchanges.therearenocurrentplanstoimplementsuchchangestostatewagerecord reportrequirements.individualresponsestothisquestionnairewillbekeptstrictlyconfidential;onlysummarized datawillbereleased. *( 1.(Organization(name: *( 2.(Contact(person(name(and(title: 3.(Contact(phone(number: *( 4.(Contact(eVmail: *( 5.(Please(select(the(description(that(best(fits(your(organization. o Schools,'Colleges,'and' Related' o Employment'&'Training' o Health'Services' o Consulting'Research' o Business'Association' o Trade'Association' o Professional'Association' o Labor'Association' o Legislative' o Human'Services' o Government' o Other'(please'specify)'' ' ' *( 6.(Please(describe(the(scope(of(your(organization(and(its(members,(if(any.(( Geography Number(of(Members o Local' o 0' o Regional' o 194' o Statewide' o 5924' o Multi9state' o 25999' o National' o ' o 500+' ( Number(of(Individuals(Served o <1,000' o 1,000'to'9,999' o 10,000'to'99,999' o 100,000'to'499,999' o 500,000'to'999,999' o 1,000,000+ G#1

89 Appendix(G( Online(Questionnaire(for(Potential(Users(of(Enhanced(Data(Collection( *( 7.(Please(rate(the(importance(of(the(following(workforce(information(goals(to(your(organization(and(( those(it(serves: Not( Little( Very( Importance(of(Workforce(Information(Goals Important Important Importance Important a. Helping'to'align'education'programs'with'employer'needs'' o o o o b. Enhancing'information'to'support'economic'development'efforts' o o o o c. Delivering'accessible'information'on'education'and'training' program'outcomes'' o o o o d. Monitoring'local,'regional,'and'statewide'economic'trends'' o o o o e. Assessing'the'effects'from'economic'disruptions'(recession,'natural' disaster,'etc.)'' o o o o f. Informing'the'community'of'economic'and'social'needs'' o o o o g. Reducing'employer'survey'burden'through'better'use'of' administrative'data' h. Providing'accurate'information'on'employment'opportunities' available'to'job'seekers'' G#2 o o o o o o o o *( 8.(Please(rate(the(potential(value(of(each(type(of(information(below(to(your(organization(and(those(it(serves.( Also,(please(describe(briefly(the(potential(uses(of(any(of(the(items(that(you(rate(as(moderate(or(high(value. Value(of(Enhancement No(Value Low(Value Moderate( Value High( Value a. Occupations'of'individuals'in'local'labor'markets' o o o o b. Hourly'wages'of'individuals'in'local'labor'markets' o o o o c. Hours'worked'by'individuals'in'local'labor'markets' o o o o d. Hourly'wages'by'occupation'in'local'labor'markets' o o o o e. Hours'worked'by'occupation'in'local'labor'markets' o o o o f. Hourly'wages'paid'in'local'industries' o o o o g. Employee'hours'worked'in'local'industries' o o o o h. Gender'of'individuals'in'local'industries'and'occupations' o o o o i. Principal'work'location'of'individuals'in'local'labor'markets' o o o o j. Industries'in'which'graduates'of'specific'education'and'training' programs'are'employed' o o o o k. Occupations'in'which'graduates'from'specific'education'and'training' programs'are'employed' l. Hourly'earnings'of'graduates'from'specific'education'and'training' programs' m. Career'paths'of'graduates'from'specific'education'and'training' programs' o o o o o o o o o o o o n. Commute'patterns'of'individuals'working'in'local'labor'markets' o o o o 9.(Please(describe(the(potential(uses(of(any(items(that(you(rate(as(moderate(or(high(value: 10.(Additional(comments?

90 Appendix(H( Specific(Comments(Received(Regarding(Potential(Uses(of(Information( Based(on(Enhanced(Wage(Records,(by(Information(Type(and(Organization(Type( H#1 Businessand Trade Associations Determiningiflocaleducationalorganizationsarealignedwithlocalfirms' needs Promotingeducationaccountabilitythroughprogramoutcomes Benchmarkingcollegecompleters Understandingsector,careertechnicaleducation(CTE)alignmentand funding Determiningifprogramcompletersareemployedinfield collegesneed individualleveldataformatching Helpingcommunitycollegesystemstargetwhereprogramsaredelivered Assistingcollegesinprogramdevelopment Demonstratingspecificvocationalneedsinlocalareas Demonstratinghowcriticalvocationalcoursesaretoourworkforce Demonstratingthevalueofmanufacturingjobstothemiddleclassandto localareas Developingspecificcontentandleveragingthosegraduatesinspecific industries Identifyingandfocusingourresourcesingeographiclocations ImprovingCensusOnTheMapdata Improvingdescriptionofearnings;betterdetailthanquarterlyearnings Lookingatpart#timeemployment Managingtalentpipeline Marketingeducationalcontenttospecificindustries Providingconsumerinformationbyprogram Providingprospectingfirmswithpotentiallaborcostandlaborpool information Education, Workforce,and Related Support Organizations Aimingtrainingandjobplacementtosupportcareernavigation Assessingthefull#time/part#timesplitinemploymentbyeducation Assessingtheoccupationaldiversityoflocallabormarkets Assessingtherelationshipbetweenacademicmajorandfieldofwork Assessingtherelativeworthofadegree Assessingthewagesearnedvariabilitywithinandbetweenoccupations Enhancingpostgraduateaccountability Providingconsumerinformation Providinginformationforpostgraduateaccountability Understandingalignmentbetweeneducation/trainingtoemployment outcomes Understandingcareerpathwaysandcareeradvancementopportunities Understandingeconomicimpactofeducation/trainingprograms Understandingpart#timeemploymenttrends(i.e.,workinglearners) Understandingrelationshipbetweenoccupationsandcareeradvancement opportunities Understandingunderemploymentandcareeradvancementopportunities

91 Appendix(H( Specific(Comments(Received(Regarding(Potential(Uses(of(Information( Based(on(Enhanced(Wage(Records,(by(Information(Type(and(Organization(Type( H#2 Government Analyzingeconomictrends Analyzinglocaleconomicstructure&workforce Assessingeducationalcapacityofthecommunity Assessinglabormarketoutcomesofeducationprogramcompleters Assessingpolicies Assessingtheeffectivenessofeducationalprograms Determiningreturnstoschooling Developingjobladdermodels Improvingunderstandingofdemandforskillsandpossiblemismatches Improvingunderstandingoflaborforceutilization Improvingunderstandingoflocalwagepressuresoninflationandproductivity growth Measuringearningsgrowth Measuringqualityofmatchesbetweenjobsandworkers Promotingdiversity Studyingcommutingpatternsandextentoflocallabormarkets Studyingpossibleskillmismatch Supportingnationalstatisticsonlargemetroareas Understandinghowadultsnavigateeducationandworktoacquireanduse skills Labor Associations Allowingstudentsandcurrentworkersseewherecurrentandfuturejobsare Comparingwagesofeachgender Determiningifstudentsgotjobsinthefieldstheymajoredin,andifnot,why Determininggoingpayforparticularoccupationsinagivenlabormarket Givingabroaderviewofthegoinglabormarketwageinanindustry Helpingstudentsandcurrentworkersseewherethejobsare Improvingunderstandingofthedensityofparticularoccupationsinangiven market Influencingcorporatehiring/retentionpractices Shapinggoodworkforcedevelopmentpolicies Policy Development andadvocacy Organizations Answeringpolicyandresearchquestions Assessingeducation/trainingprogramoutcomes Contributingtopolicy#makingbasedoneconomicandlabormarketanalysis Helpingstudentsmakechoicesaboutprograms,loans,etc. Improvingaccountabilityandalignmentofeducation/trainingwithemployer needs Informingcareercounselors,students&workersaboutearningsprospects Understandingjobqualityofeducation/trainingprogramgraduates

92 Appendix(H( Specific(Comments(Received(Regarding(Potential(Uses(of(Information( Based(on(Enhanced(Wage(Records,(by(Information(Type(and(Organization(Type( H#3 Private Consulting Research Organizations Assessingmobilityofspecificpostsecondaryprograms Assessingpovertyanditscauses Assessingreasonsforvariationinreturnstopostsecondarytraining Assessingthevalueoftraining Comparingourmarketwithcompetitorlocationsineconomicdevelopment efforts Correlatinggainsinearningstosourceofgains Determininghowreturnstopostsecondarytrainingdifferbygenderother thingsconstant Determiningvalueofpostsecondarytrainingtodifferentindustries Determiningwhetherpostsecondaryprogramparticipantsgettraining#related jobs Examiningpre/posttraininggainsfromeducation Improvingtrainingdecisions Informinglocaldecisionmakersineducation,workforce,andeconomic development Informingparticipantsoffederalandstateworkforceprograms Makingmoreinformeddecisionsabouttrainingoptions,careerchoices,and careerpaths Providingmoredetailedandcurrentinformationforanalysis Providingsupply/demandinformationfortrainingdecisions Understandingdynamicsoflocallabormarkets Professional Associations Addingoccupationaldetailtolocallabormarketinformation Allowingeducation/trainingprogramstodeterminerelatedplacement Demonstratingpost#collegeemploymentvaluetostudents Derivingindustrybyoccupationdata,ideallyreportedbyindividualjob Determiningwhichindividualsarefullandparttime Developinglabormarketmodels Developinglifecyclemodelsandaggregatedemandovertime Developinglocaltransportationmodels Disentanglingtwocomponentsofquarterlyearnings:effort(hoursworked)vs. hourlywage Enhancingplacementefforts Forecastinglabormarketdemandandsupply Gaugingwhereinthelabormarketgrowth/contractionisoccurring Identifyinganystructuralchangeintheemployer#employeerelationshipover time Identifyingchangesinthestructureoftheworkforce Improvingprogramservices Improvingunderstandingoftheaveragepayoffofprograms Providingamoreaccuratequantitymeasure Providingaveryimportantpricemeasure

93 Professional Associations (cont d) Appendix(H( Specific(Comments(Received(Regarding(Potential(Uses(of(Information( Based(on(Enhanced(Wage(Records,(by(Information(Type(and(Organization(Type( University# basedresearch Centers Providingmorespecificdetailthanindustrydata Resolvingwhoworksatanylocation(nowaninference) Usefultoidentifyanystructuralchangeintheemployer#employeerelationship overtime Analyzingandreportingofreturnoninvestmentfrompublicandprivate investments Analyzingandreportingoftransportationplanningandeconomicdevelopment Analyzingandreportingonequityissuesandtheirdynamicsovertime Assessingrelationshipsbetweenformalandinformallearningpathways Assessingrelevanceofcareerladderandcareerlatticeconcepts Assessingtravelburdenandimplicationsforurbanplanning Determiningvalueofformalandinformallearning Developinginsightsintoeconomicreturnstoeducationandtraining Developinginsightsintoindustryspecificoutcomes individualdata Developinginsightsonthegendergap Evaluatinganddesigningeffectiveprograms Examininglevelsoflabormarketattachmentandparticipation Examiningoccupationalchangeandmobility Examiningproductivityfactors(wage=valueoflaborperhour) Improvingpolicy(butsecondarytoaddingoccupation) Matchingeducationandcareerpathways Preparingreportsandbriefingsforlegislators,public,andcounselors Providinginformationontravelburdenandimplicationsforurbanplanning Relatingoccupationstoeducationandtrainingprogramsofstudyandindustry basedcertifications Understandinglaborflows/needs H#4

94 Appendix(I( Specific(Comments(Received(Regarding(Potential(Uses(of(Information( Based(on(Enhanced(Wage(Records,(by(Information(Type(and(Organization(Type( I#1 PotentialUsesofDataonOccupation BusinessandTradeAssociations Demonstratingspecificvocationalneedsinlocalareas Providingprospectingfirmswithpotentiallaborpoolinformation Understandingsector,careertechnicaleducation(CTE)alignmentandfunding Determiningifprogramcompletersareemployedinfield collegesneed individualleveldataformatching Education,Workforce,and RelatedSupportOrganizations Aimingtrainingandjobplacementtosupportcareernavigation Assessingtheoccupationaldiversityoflocallabormarkets Enhancingpostgraduateaccountability Providingconsumerinformation Understandingcareerpathwaysandcareeradvancementopportunities Government Assessingeducationalcapacityofthecommunity Analyzinglocaleconomicstructure&workforce Measuringqualityofmatchesbetweenjobsandworkers LaborAssociations Influencingcorporatehiring/retentionpractices Helpingshapegoodworkforcedevelopmentpolicies Improvingunderstandingofthedensityofparticularoccupationsinangiven market PolicyDevelopmentand AdvocacyOrganizations Informingcareercounselors,students&workersaboutearningsprospects Answeringpolicyandresearchquestions Contributingtopolicy#makingbasedoneconomicandlabormarketanalysis PrivateConsultingResearch Organizations Determiningwhetherpostsecondaryprogramparticipantsgettraining#related jobs Providingsupply/demandinformationfortrainingdecisions Comparingourmarketwithcompetitorlocationsineconomicdevelopment efforts Understandingdynamicsoflocallabormarkets ProfessionalAssociations Demonstratingpost#collegeemployment Allowingeducation/trainingprogramstodeterminerelatedplacement Gaugingwhereinthelabormarketgrowth/contractionisoccurring Addingoccupationaldetailtolocallabormarketinformation University#basedResearch Centers Examiningoccupationalchangeandmobility Preparingreportsandbriefingsforlegislators,public,andcounselors Understandinglaborflows/needs Evaluatinganddesigningeffectiveprograms Relatingoccupationstoeducationandtrainingprogramsofstudyandindustry basedcertifications PotentialUsesofDataonHourlyWages BusinessandTradeAssociations Providingprospectingfirmswithpotentiallaborcostinformation Providingbetterdetailthanquarterlyearnings Lookingatpart#timeemployment Education,Workforce,and RelatedSupportOrganizations Aimingtrainingandjobplacementtosupportcareernavigation Understandingunderemploymentandcareeradvancementopportunities

95 Appendix(I( Specific(Comments(Received(Regarding(Potential(Uses(of(Information( Based(on(Enhanced(Wage(Records,(by(Information(Type(and(Organization(Type( I#2 Government Assessingtheeffectivenessofeducationalprograms Analyzingeconomictrends Measuringearningsgrowth LaborAssociations Determiningpayforparticularoccupationsinagivenlabormarket PolicyDevelopmentand AdvocacyOrganizations Informingcareercounselors,students&workersaboutearningsprospects Contributingtopolicy#makingbasedoneconomicandlabormarketanalysis PrivateConsultingResearch Organizations Examiningpre/posttraininggainsfromeducation Understandinglocallabormarkets Comparingourmarketwithcompetitorlocationsineconomicdevelopment efforts Assessingpovertyanditscauses ProfessionalAssociations Demonstratingpost#collegeemploymentvaluetostudents Improvingunderstandingoftheaveragepayoffofprograms Disentanglingtwocomponentsofquarterlyearnings:effort(hoursworked)vs. hourlywage Providingaveryimportantpricemeasure University#basedResearch Centers Examiningproductivityfactors(wage=valueoflaborperhour) Understandinglaborflows/needs Evaluatinganddesigningeffectiveprograms ' PotentialUsesofDataonHoursWorked BusinessandTradeAssociations Improvingdescriptionofearnings Education,Workforce,and RelatedSupportOrganizations Aimingtrainingandjobplacementtosupportcareernavigation Providinginformationforpostgraduateaccountability Providingconsumerinformation Understandingpart#timeemploymenttrends(i.e.,workinglearners) Government Analyzingeconomictrends Improvingunderstandingoflaborforceutilization LaborAssociations Determiningpayforparticularoccupationsinagivenlabormarket PolicyDevelopmentand AdvocacyOrganizations Assessingeducation/trainingprogramoutcomes Contributingtopolicy#makingbasedoneconomicandlabormarketanalysis PrivateConsultingResearch Organizations Examiningpre/posttraininggainsfromeducation Informinglocaldecisionmakersineducation,workforce,andeconomic development Assessingpovertyanditscauses ProfessionalAssociations Determiningwhichindividualsarefullandparttime Disentanglingtwocomponentsofquarterlyearnings:effort(hoursworked)vs. hourlywage Providingamoreaccuratequantitymeasure University#basedResearch Centers Examininglevelsoflabormarketattachmentandparticipation Understandinglaborflows/needs Evaluatinganddesigningeffectiveprograms '

96 Appendix(I( Specific(Comments(Received(Regarding(Potential(Uses(of(Information( Based(on(Enhanced(Wage(Records,(by(Information(Type(and(Organization(Type( I#3 PotentialUsesofDataonHourlyWagesbyOccupation BusinessandTradeAssociations Providingprospectingfirmswithpotentiallaborcostinfo Improvingdescriptionofearnings Education,Workforce,and RelatedSupportOrganizations Aimingtrainingandjobplacementtosupportcareernavigation Assessingthewagesearnedvariabilitywithinandbetweenoccupations Understandingunderemploymentandcareeradvancementopportunities Government Supportingnationalstatisticsonlargemetroareas Analyzinglocaleconomicstructureandworkforce Improvingunderstandingoflaborforceutilization LaborAssociations Influencingcorporatehiring/retentionpractices Helpingshapegoodworkforcedevelopmentpolicies Determiningthelabormarketwagesofparticularoccupations PolicyDevelopmentand AdvocacyOrganizations Informingcareercounselors,students&workersaboutearningsprospects Contributingtopolicy#makingbasedoneconomicandlabormarketanalysis PrivateConsultingResearch Organizations Informingparticipantsoffederalandstateworkforceprograms Comparingourmarketwithcompetitorlocationsineconomicdevelopment efforts Assessingpovertyanditscauses ProfessionalAssociations Usefultoidentifyanystructuralchangeintheemployer#employee relationshipovertime Addingoccupationaldetailtolocallabormarketinformation Providingaveryimportantpricemeasure Providingamoreaccuratequantitymeasure University#basedResearch Centers Understandinglaborflows/needs Evaluatinganddesigningeffectiveprograms ' PotentialUsesofDataonHoursWorkedbyOccupation BusinessandTradeAssociations Improvingdescriptionofearnings Education,Workforce,and RelatedSupportOrganizations Aimingtrainingandjobplacementtosupportcareernavigation Assessingthefull#time/part#timesplitinemploymentbyeducation Understandingpart#timeemploymenttrends(i.e.,workinglearners) Government Analyzinglocaleconomicstructure&workforce Improvingunderstandingoflaborforceutilization LaborAssociations Influencingcorporatehiring/retentionpractices Helpingshapegoodworkforcedevelopmentpolicies Determiningthegoinglabormarketwagesofgivenoccupations PolicyDevelopmentand AdvocacyOrganizations Contributingtopolicy#makingbasedoneconomicandlabormarketanalysis PrivateConsultingResearch Organizations Makingmoreinformeddecisionsabouttrainingoptions,careerchoices,and careerpaths Assessingpovertyanditscauses

97 Appendix(I( Specific(Comments(Received(Regarding(Potential(Uses(of(Information( Based(on(Enhanced(Wage(Records,(by(Information(Type(and(Organization(Type( I#4 ProfessionalAssociations Identifyinganystructuralchangeintheemployer#employeerelationshipover time Addingoccupationaldetailtolocallabormarketinformation Providingaveryimportantpricemeasure Providingamoreaccuratequantitymeasure University#basedResearch Centers Understandinglaborflows/needs ' PotentialUsesofDataonHourlyWagesPaidinLocalIndustries BusinessandTradeAssociations Demonstratingthevalueofmanufacturingtolocalareas Assessinglaborcost,betterthannodata,butinasingleindustry e.g., manufacturing includingjanitortoceo,itwouldbehardcompare Benchmarkingcollegecompleters Providingconsumerinformationbyprogram Education,Workforce,and RelatedSupportOrganizations Aimingtrainingandjobplacementtosupportcareernavigation Understandingunderemploymentandcareeradvancementopportunities Government Analyzingeconomictrends Improvingunderstandingoflocalwagepressuresoninflationandproductivity growth LaborAssociations Givingabroaderviewofthegoinglabormarketwageinanindustry PolicyDevelopmentand AdvocacyOrganizations Informingcareercounselors,students&workersaboutearningsprospects Contributingtopolicy#makingbasedoneconomicandlabormarketanalysis PrivateConsultingResearch Organizations Correlatinggainsinearningstosourceofgains Improvingtrainingdecisions Providingmoredetailedandcurrentinformationforanalysis Comparingourmarketwithcompetitorlocationsineconomicdevelopment efforts Assessingpovertyanditscauses ProfessionalAssociations Identifyingchangesinthestructureoftheworkforce Derivingindustrybyoccupationdata,ideallyreportedbyindividualjob University#basedResearch Centers Developinginsightsintoindustryspecificoutcomes individualdata Understandinglaborflows/needs Evaluatinganddesigningeffectiveprograms PotentialUsesofDataonHoursWorkedinLocalIndustries Education,Workforce,and RelatedSupportOrganizations Aimingtrainingandjobplacementtosupportcareernavigation Understandingpart#timeemploymenttrends(i.e.,workinglearners) Government Analyzingeconomictrends Improvingunderstandingoflocalwagepressuresoninflationandproductivity growth LaborAssociations Givingabroaderviewofthegoinglabormarketwageinanindustry PolicyDevelopmentand AdvocacyOrganizations Contributingtopolicy#makingbasedoneconomicandlabormarketanalysis PrivateConsultingResearch Organizations Assessingpovertyanditscauses

98 Appendix(I( Specific(Comments(Received(Regarding(Potential(Uses(of(Information( Based(on(Enhanced(Wage(Records,(by(Information(Type(and(Organization(Type( I#5 ProfessionalAssociations Identifyingchangesinthestructureoftheworkforce Derivingindustrybyoccupationdata,ideallyreportedbyindividualjob University#basedResearch Centers Developinginsightsintoindustryspecificoutcomes individualdata Understandinglaborflows/needs Evaluatinganddesigningeffectiveprograms ' PotentialUsesofDataonGender Government Analyzinglocaleconomicstructure&workforce Promotingdiversity LaborAssociations Comparingwagesofeachgender PolicyDevelopmentand AdvocacyOrganizations Contributingtopolicy#makingbasedoneconomicandlabormarketanalysis PrivateConsultingResearch Organizations Determininghowreturnstopostsecondarytrainingdifferbygenderother thingsconstant ProfessionalAssociations Developinglabormarketmodels University#basedResearch Centers Developinginsightsonthegendergap Analyzingandreportingonequityissuesandtheirdynamicsovertime Understandinglaborflows/needs Evaluatinganddesigningeffectiveprograms ' PotentialUsesofDataonPrincipalWorkLocation BusinessandTradeAssociations ImprovingCensuscommutingpatterndata(OnTheMap);onlyseevalueifalso knowtheirresidence Education,Workforce,and RelatedSupportOrganizations Aimingtrainingandjobplacementtosupportcareernavigation Providingpostgraduateaccountabilityandconsumerinformation Government Analyzingeconomictrends Studyingcommutingpatternsandextentoflocallabormarkets PolicyDevelopmentand AdvocacyOrganizations Contributingtopolicy#makingbasedoneconomicandlabormarketanalysis PrivateConsultingResearch Organization Assessingmobilityofspecificpostsecondaryprograms ProfessionalAssociations Demonstratingpost#collegeemployment Resolvingwhoworksatanylocation(nowaninference) University#basedResearch Centers Providinginformationontravelburdenandimplicationsforurbanplanning Analyzingandreportingoftransportationplanningandeconomic development Understandinglaborflows/needs Evaluatinganddesigningeffectiveprograms '

99 Appendix(I( Specific(Comments(Received(Regarding(Potential(Uses(of(Information( Based(on(Enhanced(Wage(Records,(by(Information(Type(and(Organization(Type( I#6 PotentialUsesofDataonIndustriesinWhichGraduatesofSpecificEducation andtrainingprogramswork BusinessandTradeAssociations Determiningiflocaleducationalorganizationsarealignedwithlocalfirms' needs Determiningifindividualsareusingtheirdegrees Promotingeducationaccountabilitythroughprogramoutcomes Identifyingandfocusingourresourcesinthoselocations Benchmarkingdata Education,Workforce,and RelatedSupportOrganizations Aimingtrainingandjobplacementtosupportcareernavigation Providingpostgraduateaccountabilityandconsumerinformation Understandingalignmentbetweeneducation/trainingtoemployment outcomes Government Assessinglabormarketoutcomesofeducationalprogramcompleters Assessingpolicies Studyingpossibleskillmismatch LaborAssociations Influencingcorporatehiring/retentionpractices Helpingshapegoodworkforcedevelopmentpolicies Helpingstudentsandcurrentworkersseewherethejobsare PrivateConsultingResearch Organizations Determiningvalueofpostsecondarytrainingtodifferentindustries Assessingvalueoftraining ProfessionalAssociations Demonstratingpost#collegeemployment Improvingprogramservices Enhancingplacementefforts Forecastinglabormarketdemand University#basedResearch Centers Analyzingandreportingofreturnoninvestmentfrompublicandprivate investments Understandinglaborflows/needs Improvingpolicy(butsecondarytoaddingoccupation) ' PotentialUsesofDataonOccupationsinWhichGraduatesofSpecificEducation andtrainingprogramswork BusinessandTradeAssociations Demonstratinghowcriticalvocationalcoursesaretoourworkforce Assessingifindividualsareusingtheirdegrees;assessingiflocaleducational organizationsarealignedwithlocalfirms'needs Managingtalentpipeline Marketingourcontenttospecificindustries Benchmarkingdata Education,Workforce,and RelatedSupportOrganizations Aimingtrainingandjobplacementtosupportcareernavigation Assessingtherelationshipbetweenacademicmajorandfieldofwork Providingpostgraduateaccountabilityandconsumerinformation Understandingalignmentbetweeneducation/trainingtoemployment outcomes Government Assessinglabormarketoutcomesofeducationprogramcompleters Assessingpolicies Improvingunderstandingofdemandforskillsandpossiblemismatches

100 Appendix(I( Specific(Comments(Received(Regarding(Potential(Uses(of(Information( Based(on(Enhanced(Wage(Records,(by(Information(Type(and(Organization(Type( I#7 LaborAssociations Influencingcorporatehiring/retentionpractices Shapinggoodworkforcedevelopmentpolicies Allowingstudentsandcurrentworkersseewherecurrentandfuturejobsare PolicyDevelopmentand AdvocacyOrganizations Improvingaccountabilityandalignmentofeducation/trainingwithemployer needs PrivateConsultingResearch Organizations Determiningwhetherpostsecondaryprogramparticipantsgettraining# relatedjobs Assessingthevalueoftraining ProfessionalAssociations Demonstratingpost#collegeemployment Providingmorespecificdetailthanindustrydata Enhancingplacementefforts Improvingprogramservices Forecastinglabormarketdemand University#basedResearch Centers Understandinglaborflows/needs Evaluatinganddesigningeffectiveprograms Matchingeducationandcareerpathways ' PotentialUsesofDataonHourlyEarningsofGraduatesofSpecificEducation andtrainingprograms BusinessandTradeAssociations Demonstratingthevalueofmanufacturingjobstothemiddleclass Promotingeducationaccountabilitythroughprogramoutcomes Criticalneedforcommunitycollegestobeabletodothis Education,Workforce,and RelatedSupportOrganizations Aimingtrainingandjobplacementtosupportcareernavigation Assessingtherelativeworthofadegree Understandingeconomicimpactofeducation/trainingprograms Government Assessinglabormarketoutcomesofeducationprogramcompleters Assessingpolicies Determiningreturnstoschooling LaborAssociations Influencingcorporatehiring/retentionpractices Shapinggoodworkforcedevelopmentpolicies PolicyDevelopmentand AdvocacyOrganizations Understandingjobqualityofeducation/trainingprogramgraduates ProfessionalAssociations Demonstratingpost#collegeemploymentandvaluetostudents Enhancingplacementefforts Improvingprogramservices Forecastinglabormarketsupply University#basedResearch Centers Developinginsightsintoeconomicreturnstoeducationandtraining Understandinglaborflows/needs Evaluatinganddesigningeffectiveprograms Determiningvalueofformalandinformallearning '

101 Appendix(I( Specific(Comments(Received(Regarding(Potential(Uses(of(Information( Based(on(Enhanced(Wage(Records,(by(Information(Type(and(Organization(Type( I#8 PotentialUsesofDataonCareerPathsofGraduatesfrom SpecificEducation andtrainingprograms BusinessandTradeAssociations Demonstratinghowcriticalvocationalcoursesaretoourworkforce Determiningifindividualsareusingtheirdegrees Promotingeducationaccountabilitythroughprogramoutcomes Developingspecificcontentandleveragingthosegraduatesinspecific industries Assistingcollegesinprogramdevelopment Education,Workforce,and RelatedSupportOrganizations Aimingtrainingandjobplacementtosupportcareernavigation Providingpostgraduateaccountabilityandconsumerinformation Understandingrelationshipbetweenoccupationsandcareeradvancement opportunities Government Understandinghowadultsnavigateeducationandworktoacquireanduse skills Assessingpolicies Developingjobladdermodels LaborAssociations Influencingcorporatehiring/retentionpractices Shapinggoodworkforcedevelopmentpolicies Determiningifstudentsgotjobsinthefieldstheymajoredin,andifnot,why PolicyDevelopmentand AdvocacyOrganizations Helpingstudentsmakechoicesaboutprograms,loans,etc. PrivateConsultingResearch Organizations Assessingreasonsforvariationinreturnstopostsecondarytraining ProfessionalAssociations Demonstratingpost#collegeemployment Enhancingplacementefforts Improvingprogramservices Developinglifecyclemodelsandaggregatedemandovertime University#basedResearch Centers Assessingrelevanceofcareerladderandcareerlatticeconcepts Understandinglaborflows/needs Evaluatinganddesigningeffectiveprograms Assessingrelationshipsbetweenformalandinformallearningpathways ' PotentialUsesofDataonCommutePatterns BusinessandTradeAssociations ImprovingCensusOnTheMapdata Helpingcommunitycollegesystemstargetwhereprogramsaredelivered Government Analyzingeconomictrends Developingjobladdermodels ProfessionalAssociations Developinglocaltransportationmodels University#basedResearch Centers Assessingtravelburdenandimplicationsforurbanplanning Understandinglaborflows/needs Evaluatinganddesigningeffectiveprograms

102 Appendix(J( Invitation(Letter(Requesting(Payroll(Companies(to(Complete(Questionnaire( May15,2014 «Contact_person»,«Contact_title» «Company_Name» «Address»,«City»,«State»«ZIP» «Salutation»: I am writing this letter to request your assistance in a study b eing c onduc t e d by the Workforce Information Council (WIC), in cooperation with the National Association of State WorkforceAgencies,statelaboragenciesandtheU.S.DepartmentofLabor. TheWICisanadvisorybodycomprisedofstateandfederalrepresentativesinvolvedinthe productionoflabormarketinformation.thesecretaryoflaborestablishedthewic,pursuantto theworkforceinvestmentact(wia)of1998,toguidethedevelopmentofthenation's employmentstatisticssystem.thewicisinvestigatingwhetherthewagerecorddatathatall statescollectfromemployersaspartoftheadministrationoftheunemploymentinsurance (UI) Programmightbeenhancedtoprovidedatathatwouldhelpimprovethealignmentofeducation andtrainingwiththeneedsofbusiness.itisimportanttonote,thereareno(current(plans(to enhancethequarterlywagereports. Asyouknow,basicwagerecordinformation,collectedfromemployerseveryquarterbyallstates, includeseachemployee'sname,socialsecuritynumber,andwagespaidforthequarter.thesedata areusedformanyimportantpurposesbeyonduiadministration,suchasassessing the employmentoutcomesofgraduatesfromeducationalinstitutionsandtrainingprograms, and conductingeconomicanalyses. Afewstates"enhance"thewagerecordsbycollectingadditionaldataelementsoneachemployee. Forexample,somestatescollecttheemployee'shoursworked,gender,jobtitle,and/orprimary worklocation.acriticalstepinthisstudyistodeterminethedegreetowhichemployersandtheir agentshavesystemsinplacethatcanprovidetheseadditionaldata. PHONE: J#1

103 Wehavedevelopedabriefquestionnairetohelpusunderstandthecapabilitiesof organizations suchasyours.tocompletethequestionnaire,enterpassword«survey_key»at: Weestimatethatthisquestionnairewilltakeapproximately10minutestocomplete.Wewould greatlyappreciateyourparticipationbymay30,2014. Yourorganization sresponsewillremainconfidentialbutwillhelpthewicprovideallstateswith informationonthepotentialbarriersandopportunitiesassociatedwiththecollectionof enhancedwagerecords. Thankyouforyourassistanceinthisimportanteffort. PAGE(2( Sincerely, GaryCrossley ExecutiveDirector J#2

104 Appendix(K( Online(Questionnaire(for(Payroll(Services/Software(Companies( *(Required(Information The(Workforce(Information(Council,(in(cooperation(with(the(National(Association(of( State(Workforce( Agencies,(state(labor(agencies(and(the(U.S.(Department(of(Labor,(is( conducting(a(study(to(determine( the(feasibility(of(adding(data(elements(to(the(current( state(unemployment(insurance(wage(record( reports.(there(are(no(current(plans(to( implement(such(changes(to(state(wage(report(requirements.( Individual(responses(to( this(questionnaire(will(be(kept(strictly(confidential;(only(summarized(data(will( be( released.( *( 1.( Organization(name: *( 2.( Contact(person(name: *( 3.( Contact(phone(number: *( 4.( Contact(eVmail: *( 5.( Does(your(company(complete(and(file(quarterly(state(unemployment(compensation(wage(record(reports( on(behalf(of(employers? o Yes' [If'yes,'display'5a'and'5b'and'move'respondent'to'question'5a]' o No' [If'no,'move'respondent'to'question'9]' ( ( ( ( ( *( 5a.((In(how(many(statesdo(you(file(quarterly(state(unemployment(compensation(wage(record(reports?( ( *( 5b.((Roughly,(for(how(many(employers(does(your(company(file(state(unemployment(compensation(wage( record(reports?( ( ( K#1

105 Appendix(K( Online(Questionnaire(for(Payroll(Services/Software(Companies( *( 6.(( Of(the(roughly([pull(answer(from(question(5b](employers(on(whose(behalf(you(file(unemployment( compensation(wage(reports,(what(percentage(do(you(submit(to(the(states(using(each(of(the(following( media?( ( Internet/FTP Magnetic((tape,(computer(disk,(etc.) Paper/fax o 0'to'4'percent' o 0'to'4'percent' o 0'to'4'percent' o 5'to'19'percent' o 5'to'19'percent' o 5'to'19'percent' o 20'to'39'percent' o 20'to'39'percent' o 20'to'39'percent' o 40'to'59'percent' o 40'to'59'percent' o 40'to'59'percent' o 60'to'79'percent' o 60'to'79'percent' o 60'to'79'percent' o 80'to'94'percent' o 80'to'94'percent' o 80'to'94'percent o 95'to'100'percent' o 95'to'100'percent' o 95'to'100'percent ( ( *( 7.(( What(percentage(of(your(employer(clients(use(the(following(media(to(transmit(employee(wages(and(other( data(to(your(firm(to(prepare(their(state(unemployment(compensation(wage(record(reports?( (( Internet/FTP Magnetic((tape,(computer(disk,(etc.) Paper/fax o 0'to'4'percent' o 0'to'4'percent' o 0'to'4'percent' o 5'to'19'percent' o 5'to'19'percent' o 5'to'19'percent' o 20'to'39'percent' o 20'to'39'percent' o 20'to'39'percent' o 40'to'59'percent' o 40'to'59'percent' o 40'to'59'percent' o 60'to'79'percent' o 60'to'79'percent' o 60'to'79'percent' o 80'to'94'percent' o 80'to'94'percent' o 80'to'94'percent o 95'to'100'percent' o 95'to'100'percent' o 95'to'100'percent ( ( *( 8.(( Please(indicate(below(the(factors(your(company(considers(in(setting(a(price(for(the(service(of(submitting( unemployment(compensation(wage(record(reports?( (( o Number'of'wage'records'submitted' o Frequency'of'wage'record'submittals' o Number'of'variables'submitted'with'each' wage'record' o Total'wages'paid'by'the'employer' o Other'(please'specify)' ' o Client s'recordkeeping'and'transmittal' methods' o Number'of'services'provide'to'client' o Market'rates' *( 9.(( Does(your(company(sell(software(that(directly(supports(employers (capability(to(file(their(own(quarterly( state(unemployment(compensation(wage(record(reports? o Yes' [If'yes,'display'9a'and'move'respondent'to'question'9a.]' o No' [If'no'and'question'5'was'no,'move'respondent'to'exit,'otherwise'if'no,'move'respondent'to'question'10]' ( ( ( ( ( *( 9a.( Roughly,(how(many(employers(use(your(software(to(file(their(state(unemployment(compensation( wage(record(reports?( K#2

106 *"10.""All"states"require"employers"or"their"agents"to"submit"quarterly"reports"that"detail"each" employee s"name,"social"security"number" and"wages"paid"during"the"quarter."a"few"states" require"additional"data"elements"to"be"reported"with"the"quarterly"wage"record" reports."please"indicate"which"of"the"following"data"elements"your"systems"are"currently"capable"of" storing"and"reporting."also," please"rate"the"cost"of"adding"any"of"the"items"that"your" systems"currently"do"not"support"and"indicate"whether"these"would"be" oneatime"and/or" ongoing" costs. " Cost"of"Adding," Current"Feature" "if"not"a"current"feature" Nature"of"Added"Cost" Employee s"quarterly"hours"and"earnings" Yes" No" Low" Cost" Medium" Cost" High" Cost" OneA" time" Ongoing" *(a)regularhoursworkedinquarter o o o o o o o *(b)overtimehoursworkedinquarter o o o o o o o *(c)weeksworkedinquarter o o o o o o o *(d)salarypaidinquarter o o o o o o o *(e)regular(straight?time)wagespaidinquarter o o o o o o o *(f)overtimewagespaidinquarter o o o o o o o *(g)commissionspaidinquarter o o o o o o o *(h)bonusespaidinquarter o o o o o o o *(i)tipspaidinquarter o o o o o o o *(j)residualspaidinquarter o o o o o o o *(k)piece?workamountspaidinquarter o o o o o o o Employee s"occupation Yes" No" Low" Cost" Medium" Cost" High" Cost" OneA" time" Ongoing" *(l)jobtitle o o o o o o o *(m)standardoccupationalclassification(soc)code o o o o o o o

107 Current"Feature" Employee s"principal"work"location Yes" No" Cost"of"Adding," "if"not"a"current"feature" Medium" Cost" Low" Cost" High" Cost" Nature"of"Added"Cost" OneA" Ongoing" time" *(n)streetaddress o o o o o o o *(o)city o o o o o o o *(p)zip o o o o o o o *(q)county o o o o o o o *(r)state o o o o o o o *(s)employersitenumber o o o o o o o Employee s"gender Yes" No" Low" Cost" Medium" Cost" High" Cost" OneA" time" Ongoing" *(t)employee sgender o o o o o o o *" 11." If"you"identified"items"above"that"would"be"highAcost"additions"to"your"systems,"please"list"some"of"the"important"factors"contributing"to"the"high" cost." " *" 12." Please"describe"briefly"any"other"factors"that"would"aid"or"hinder"your"firm's" ability,"or"the"ability"of"businesses"using"your"software,"to"report"the" additional" wage"record"information"described"above.

108 Appendix(L( List(of(Payroll(Services/Software(Firms(Contacted(to(Request(Survey(Participation A"Plus"Payroll" AccountantsWorld" Accuchex" ACH"of"America" ADP" Advantage"Payroll"Services" AdvantageHR" AlphaStaff" AmCheck" Apex"Payroll" Ascentis" Associated"Data"Services" BambooHR" BBSI" BenefitMall" BestPay" Big"Fish"Payroll" Casa"Payroll"Services"" Ceridian" CheckPointHR" Coastal"Human"Resource"Group" Corporate"Payroll"Services" Datapay" dmdickason"personnel"services" Dominion"Payroll"Services" Empower"Software"Solutions "" Employers"Resource" esmartpayroll" Execupay" Extensis" Fidelity"Employer"Services" Greenshades"Software""" GTM"Payroll"Services" Insperity" Intuit" IOI"Pay" Kronos" MasterTax" MyPayrollHR" National"Payroll"Specialists" National"Payroll"Systems" Netchex" Novatime" NuViewHR" ONPAY" Ovation"Payroll" Padgett"Payroll"Services" Paychex" Paycom"Payroll" Paycor" Paylocity" Paymaster"" Payroll"and"Benefit"Solutions" Payroll"People"" Payroll"Resource"Group" PaySmart" Paysystems.net" PayUSA" Pinpay"Payroll"Express" Precision"Payroll"of"America" PrimePay"" ProPayroll" QTI"Group" Resource"Management" Sage"HRMS" SBF"Payroll" Sure"Payroll" Target"CW" TelePayroll" Thompson"Reuters" TriNet" TruPay" Ultimate"Software" USA"Payroll" Valiant"Solutions" Wells"Fargo"Business"Payroll" Services" XCELHR" ZPAY"Payroll"Systems" L#1

109 Appendix(M( Comments(Received(from(the(National(Payroll(Reporting(Consortium ( August22,2014 Ms.RebeccaRust,Chief BureauofLaborMarketStatistics FloridaDepartmentofEconomicOpportunity 107E.MadisonStreet CaldwellBuilding,MSCG#020 Tallahassee,FL DearMs.Rust: MembersoftheNationalPayrollReportingConsortium(NPRC)appreciatetheopportunitytooffer inputtotheadministrativewagerecordenhancementstudygroup. Weunderstandthatthe groupisconductingafeasibilitystudyofenhancingwagereporting,whichincludesconsideration ofvariouschangesandnewdataelementstowagereports,including: o Weeksworked,hoursworked o Geographiccode(worklocation) o Standardoccupationcodes/titles o Payrate o Expandingelectronicfilingmandates o Increasingthefrequencyofwagereportstomonthly NPRCispolicy#neutralconcerningproposalsaffectingemployerreporting,butservestoprovide constructiveexpertiseonsuchmatters. Weappreciatetheopportunitytoassistindocumenting keyissues,suchasfeasibility,employerburdenandcostrelatedtotheproposedenhancementsto wagereports. Generally,suchinformationexistswithinvariousadministrativesystems.However,itiscriticalto notethatexistingdatamaybedefinedbyotherlaws,andconsequentlymaynotbeusefulforlmi purposes.forexample,largeemployersarenewlyrequiredbytheaffordablecareacttotrack employeehoursofservice,butthedefinitions,exceptionsandattributionrulesvaryfromstateand FederalUnemploymentInsuranceandWageandHourlaws. Thestudygroupshouldassumethat anynewreportingelementswouldrequireemployerstoestablishentirelynewsetsofrecords specificallyforsuchreporting. M#1

110 Appendix(M( Comments(Received(from(the(National(Payroll(Reporting(Consortium Thediscussionpointsbelowofferrecommendationsrelatedtothefollowingfactors: 1. Standarddefinitionswouldbenecessarytoavoidstatevariations,whichmay necessitatechangestoexistingstatelawsand/orregulations. 2. Standardoccupationaltitlesandcodesmaybedifficulttoestablishandmaintain with appropriateaccuracy. 3. Elementssuchaspayratemaybeconceptuallysimple(e.g.,forhourlyworkers); yetmay be complex in practice. The U.S. workforce is increasingly compensated with regular wages plus various benefits, commissions, bonuses, equity and other compensation. Sometimesthosecomponentsaregreaterthantheregularwage rate. 4. Geographiclocation:TheU.S.workforceisincreasinglymobile,intermsoftraveling employeesandtelecommuters. Itmaycomplicatewagereportingifitbecomes necessarytoseparatelyreportwagesassociatedwithmultipleworksiteswithina quarterlytimeperiod. 5. Monthlywagereportingmaybecostlyforemployers,duetoincreasedworkloadto gatherelementsofreportablewagesthataren talreadyinpayrollsystems (generally thevalueoftaxablebenefitsandnon#cashcompensation ). Wehave attachedastudy reportproducedbyernst&youngofemployercoststocomply withmorefrequent wagereporting. Eachoftheseelementsisdiscussedinmoredetailbelow: Standard(definitions ( Standarddefinitionsareperhapsthemostcriticalelementofthestudyathand,bothfromthe perspectiveofemployers(forwhomdiversedefinitionscreatecomplexityinrecordkeeping systems),andforthenationallabormarketinformationsystem,whichisalsofacedwith complexityanduncertaintyifcoreelementsaredefineddifferentlybythestates. Forexample,forwagestobereportableonaUIquarterlytaxandwagereport,theymusthave beenpaidtoanemployeeworkingincoveredemploymentforanemployer.eachofthesetermsis definedinfutaandstatelaws.manydifferencesexistinthedefinitionsofemployer,employment, andwageswithinthesestatelaws.thesimplifiedtaxandwagereportstudy(stawrs) reportedthatthereareover100definitionaldifferencesbetweenstateuilaws,thefederal UnemploymentTaxAct(FUTA),theFederalInsuranceContributionsAct(FICA),andIncomeTax Withholdinglaws. M#2

111 Appendix(M( Comments(Received(from(the(National(Payroll(Reporting(Consortium Forthemostpart,statescurrentlycollectthefollowingdataontaxandwagereports: 1. Nameofeachworker(truncatedinsomestates) 2. SocialSecurityNumber 3. QuarterlyWageamount 4. CalendarQuarter 5. Employername 6. EmployerstateUIaccountnumber 7. EmployerFEIN 8. Employeraddress Severalstatesalreadyadministerreportingof hoursworked,butdefinitionsvarybetweenthe states. Evenwithin"somestates(e.g.,Oregon)employersmustkeeptwosetsofrecordsforhours worked,becauseworkers compensationandunemploymentinsurancedefinitionsaredifferent. Employersstruggletounderstandextensiveguidanceonwhatconstitutesanhourworkedforthe manytypesofworkersthatarepaidonanybasisotherthanhourly. Wehaveattachedtwo examplesofstateguidancetoemployers.thereareseveraldifferencesbetweenthetwostate rules.forexample,paidtimeoff/leavehoursareexcludedinoregon,butincludedinwashington. Largeemployers(generallywith50ormorefull#timeemployees)arealsocurrentlyfacingentirely separaterulesdefininghoursofserviceforthepurposeofdistinguishingfull#timeemployeesforthe AffordableCareAct.However,definitionsandattributionrulesarelikelyinconsistentwithLabor MarketInformationsystems,andwebelievethattheLMIsystemwouldnotbeabletoaccepthours workedasdefinedbytherelevantacaregulations.(fordetails,see Weeksworked, currentlycollectedinsomestates,wouldsimilarlybefacilitatedbystandard definitionsastowhatconstitutesaweekworked(givenvariousformsofleave/paidtimeoff,jury duty,on#callarrangements,educationalinstitutionsandthelike.) Onesourceoferrors,asanexample,isthattheagenciesthatrequirereportingofweeksworked generallymustannounceannuallythemaximumnumberofweeksreportableinaquarter(e.g.,13 or14),andemployersoccasionallyreportnumbersinexcessofthemaximum. Itwouldseemnecessarytoestablishfederaldefinitionstoavoidsuchstatevariations,bothto facilitateemployercomplianceandtoensurethattheresults,whenaggregatedatthenational level,areconsistent. Thismaynecessitatechangestoexistingstatelawsand/orregulations. ( M#3

112 Appendix(M( Comments(Received(from(the(National(Payroll(Reporting(Consortium ( ( ( ( Occupational(titles(and(codes( NPRCappreciatesthesignificanceandimportanceofthisinformationtotheLMIsystem, educationalinstitutionsandtheu.seconomy. Weareconcerned,however,whetheremployers canrealisticallybeexpectedtoestablishandmaintainaccurateoccupationalcodes/titlesforeach employee. Employersthatuseapayrollserviceprovidermaybenefitfromimprovedsoftwaretorequireand facilitateoccupationalcodingforeachemployeewithdrop#downmenusandothersupport.but accuracywilldependupontheknowledgeandinformationavailabletothepersonwhoisusingthe system. Itmaybedifficulttocapturewithinadrop#downmenusystemthebodyofknowledge containedintheu.s.bureauoflaborstatistics StandardOccupationalClassificationandCoding definitionsdocument(january2013),whichexceeds200pages.alaska soccupationalcoding manualforemployersis99pages. Withoutfullknowledgeofthenuanceddistinctionsbetween differentoccupations,inaccuratecodesmaybecomeaproblem. StateWorkforceagenciesandtheirsoftwaredevelopershavedevelopedeffectiveoccupation codingsystemswithintheuiandworkforcetrainingsystems,soperhapsemployersmaybenefit fromsimilarautomatedsystems.however,forthesystemtoproduceusefuldata,itwillbecritical tostudy,understandandaddressknowledgerequirementsfromtheperspectiveofthepeople handlingthedataentry,whoseprimaryconcernislikelytobetimelycompletionofthenextpayroll. Maintenancemaybeanevenbiggerconcern. Softwarecanrequirethatcertainfieldsbe completed,butoncepopulated,itmaynotalwaysbeapparenttothesystemthatanemployeehas changedjobduties. Overtime,occupationalcodesarelikelytobecomeoutdated.TheNPRC discussedthisissueatlengthwithoutarrivingatausefulsuggestedsolution. Pay(rate(appearsconceptuallysimple,withrespecttohourlyworkers.Asmentionedabove,the U.S.workforceisincreasinglycompensatedwithregularwagesplusvariousbenefits, commissions,bonuses,equityandothercompensation,whicharenotlikelytobereflectedinthe regularrateofpay. TheLaborMarketInformationsystemwouldprobablywant payrate to includeallcompensation. Ifso,itmaybenecessarytodevelopguidancerelatedtocertainindustriesandcategoriesof employmentandcompensationthatmayneedspecialattributionorestimationrules. Geographic(Location( Today sworkforceisincreasinglymobile,andgeocodingmaybecomecomplextocaptureworkers withmultipleworksiteswithinatimeperiod.aswithdefinitions,federalrulesarerequiredto distinguishemployeesthattelecommuteorworkinmorethanonelocationwithoutmakingwage M#4

113 Appendix(M( Comments(Received(from(the(National(Payroll(Reporting(Consortium reportingoverlycomplex. WewouldsuggestrelianceontheU.S.DOL slongstandingguidanceconcerning localizationof services, whicharecontainedinuipl20#14,localizationofworkprovisions,mostrecently revisedonmay10,2004(firstissuedasuipl291in1952).multistateemployersunderstand theserules,whichgenerallyresultinemploymentbeingreportedtotheprincipalstateof employment. Thefollowingexcerptexplainstheconceptsinbrief: The"objective"of""localization"of"work""provisions"in"state"unemployment"insurance"laws"is"" to" cover"under"one"state"law"all"of"the"service"performed"by"an"individual"for"one"employer," wherever"it"is"performed."the"following"principles"provide"a"guide"for"applying"the"states " statutory"provisions"relating"to""localization"of"work.""all"of"the"examples"provided"are"actual" state"decisions"or"have"been"taken"from"state"manuals"of"interpretation"or"instruction. " The"following"language"was"included"in"the"September"1950"edition"of"the"Manual"of"State" Employment"Security"Legislation"and"similar"language"now"appears"in"all"state"laws: " " (1) Service"that"is"localized"within"a"state:"The"term""employment""shall" include"an"individual's"entire"service,"performed"within,"or"both"within"and" without,"this"state"if"the"service"is"localized"in"this"state."service"shall"be" deemed"to"be"localized"within"a"state"if: (A) the"service"is"performed"entirely"within"such"state;"or (B) the"service"is"performed"both"within"and"without"such"state"but"" the"service"performed"without"such"state"is"incidental"to"the" " individual's"service"within"the"state;"for"example,"is"temporary"or" transitory"in"nature"or"consists"of"isolated"transactions. (2) Service"not"localized"in"any"state:"The"term""employment""shall"include" " an"individual s"entire"service,"performed"within,"or"both"within"and"without" " this"state"if"the"service"is"not"localized"in"any"state"but"some"of"the"service"is" performed"in"this"state,"and; (A) the"individual's"base"of"operations"is"in"this"state;"or (B) if"there"is"no"base"of"operations,"the"place"from"which"such" service"is"directed"or"controlled"is"in"this"state;"or (C) the"individual's"base"of"operations"or"place"from"which"such" " service"is"directed"or"controlled"is"not"in"any"state"in"which"some"part" " of"the"service"is"performed,"but"the"individual's"residence"is"in"this"" state. M#5

114 Appendix(M( Comments(Received(from(the(National(Payroll(Reporting(Consortium " " " " If,"after"applying"all"of"the"above"tests"to"a"given"set"of"circumstances,"the" individual s"service"is"found"not"to"be"subject"to"any"one"state,"under"most"state" laws"the"employer"may"elect"to"cover"all"of"the"individual s"service"in"one"state," either"under"a"provision"for"election"of"coverage"or"under"the"interstate"reciprocal" Coverage"Arrangement.""Under"the"reciprocal"coverage"arrangement,"the"service" may"be"covered"in"any"one"of"the"following"states:" (1)"a"state"in"which"some"part"of" the"individual s"service"is"performed,"(2)"the"state"in"which"he"lives,"or"(3)"a"state"in" which"the"employer"maintains"a"place"of"business. " MoreFrequent(Monthly)WageReporting( ( NPRCrecentlysponsoredastudybyErnst&Youngofthecostsandotherissuesrelatedtomore frequentwagereporting.inanutshell,morefrequentreportingwouldcreatesubstantialnewcosts foremployers,primarilyduetotheadditionalworkloadtogatherelementsofreportablewagesthat aren talreadyinpayrollsystems(generallytaxablebenefitsandnon#cashcompensation).large employersinparticularofferasmanyasfiftydifferenttypesofreportablecompensation,manyof whichareeitheradministeredbythirdpartiesormustbeperiodicallyevaluatedtodeterminethe monetaryvalue(e.g.,personaluseofacompanycar,valueoflodgingprovidedbytheemployer.) PleaserefertotheE&Ystudy(attached)fordetailsandadditionalexplanation. ( InterpretationofSurveyResponses( ( NPRCmembersexpressedsomeconcernsaboutthesurveyadministeredbytheAdministrative WageRecordEnhancementStudygroup,inthesensethatpermittedresponsesmaybe misleading. Thisrelatesprimarilytoquestionsaskingwhethersoftwaresupportscollectionofthe dataof interest. Inmanycases,datafieldsareavailableonavoluntarybasis;howeveritwouldbe an entirelydifferentmatterifsuchdatawouldberequired(i.e.,generallysuchfieldsarenot populated).anexcerptofoneresponsefollows: In"most"cases"our"payroll"system"supports"the"ability"to"store"and"report"the"data" elements"listed"on"that"last"page"of"the"survey,"so"we"answered"yes."however,"in" some" instances"we"do"not"use"those"data"elements"even"though"they"are"available" to"us," usually"due"to"the"complexity"in"getting"the"data"from"clients"and"a"lack"of" need"to"use" the"data"for"reporting"purposes."an"example"is"worksite"ids.we"can" store"them,"but"we" do"not"do"multiple"worksite"reporting"on"behalf"of"our"clients"sothose"fields"are"not" populated"in"the"database."in"order"to"actually"begin"using"that" functionality"we"would" have"to"create"some"mechanism"for"clients"to"provide"that" information,"likely"via" development"on"the"fronteend"web"application,"which"would"be" costly"and"would"take" time"to"test"and"implement."so,"the"survey"response"may"be" misleading"in"that"our"" M#6

115 Appendix(M( Comments(Received(from(the(National(Payroll(Reporting(Consortium " " " " system" supports "it,"but"from"a"business"standpoint"we"do"not" support"it"as"part"of"our" product"offering."another"consideration"is"that"we"do"not" create"our"quarterly"wage" reporting"from"our"payroll"system,"but"from"a"completely" separate"tax"system"which" may"not"have"the"same"features"and"functionality."in" some"cases"we"would"have"to"work" with"our"vendor"to"make"enhancements"to"the" tax"system"in"order"to"report"the"data" that"is"stored"in"payroll. " WehopethatthisinformationishelpfultotheAdministrativeWageRecordEnhancementStudy groupinunderstandinganddocumentingthepracticalconsiderationsandcostsinenhancingwage recordswithadditionalelements.ouraiminprovidingtheinformationwastocontributeabalanced assessmenttorealisticallysummarizesomeofthekeycomponentsofemployercostsand complexity,andtomakerelevantsuggestionsforthegroup. Thankyouforallowingourparticipationandinputintoyourstudyofthisveryimportantprocess. Wewouldbehappytodiscussthisinformationifitwouldbehelpful. Sincerely, PeteIsberg NationalPayrollReportingConsortium #7670 inc.org Cc: Ms.RajJindal,Louisiana(Co#Chair) Mr.SteveSaxton,California M#7

116 Appendix(M( Workforce(Information(Council(Study(of(Unemployment(Insurance(Wage(Records(( Comments(Received(from(the(National(Payroll(Reporting(Consortium( Appendix: Oregon and Washington Guidance as to Reportable Hours Worked Oregon Rules: Hours Worked OR Workers Benefit Fund assessment and Wage Report hours worked Box( 9. Like wages, report hours in thequarter that theyare paid.totalallfulland partialhours workedbyallpaidindividuals(workers,owners,officers)subjecttooregon sworkers Compensa# tionlaworcoveredbyworkers compensationinsurancethroughpersonalelection. Enterthetotalhoursroundeddowntothenearestwhole(nofractionsordecimals).Ifyouhaveno hourstoreportforthequarter,enter 0. Note:(ThehoursyoureportfortheWBFassessmentwon tnecessarilyequalthehoursyoureport for UI tax purposes on Form 132. In part, this is because there may be differences in who is subjecttowhichtax. Visit or call , for more information. Oregon combined payroll tax report 150#211#155(Rev.12#10) Determining(Hours(Worked( 9. What(is(the(definition(of(hours(worked? Anhourworkedisanhourinwhichthecovered(ornotcoveredbutsubject)worker,owner,or officerisengagedinaworkactivity.thewbfassessmentisbasedonhoursorpartsofhours worked.(seebelowforhowtotreatpartialhoursworked.) 10. How are hours calculated? Employerswhotrackactualhoursworkedmustusethoserecordstodetermineactualhoursand partsofanhourworked.notallemployersofindividualswhoaresalaried,paidoncommission, paid"bythepiece,"orwhoworkonanhonorsystem,trackactualhoursworkedandarenot requiredtodosoexclusivelyforpurposesofcalculatingthewbfassessment.ifhoursarenot tracked,choosethemethodthatensuresthemostreasonableestimateofhoursworked: Employerswhohaveinformationavailableshowinghoursworked,suchasacontract,shoulduse thisinformationtodetermineorreasonablyestimatehoursworked. Employerswhoestimatehoursworkedusingaflat#ratecalculationshoulduse173.33hoursper month,40hoursperweek,or8hoursperday(proratedforpart#time). M#8

117 Appendix(M( Workforce(Information(Council(Study(of(Unemployment(Insurance(Wage(Records(( Comments(Received(from(the(National(Payroll(Reporting(Consortium( Ifanymethodotherthanactualtrackingortheflat#ratecalculationwithoutadjustmentisusedto determineareasonableestimateofhoursworked,theemployermustdocumentthemethodused incaseofanaudit. 11. Are overtime hours included? Itdepends.Ifactualhoursworkedaretracked: Includeovertimehours. Ifhoursworkedaredeterminedusingtheflat#ratecalculation: Ifatrackingsystemisavailableforrecordingovertimehours,addtheovertimehourstothe calculatedtotal. Ifnotrackingsystemisavailabletotrackovertimehours,usethecalculatedtotalwithno adjustmentforovertimehours. Anytimeyouarecalculatingovertimehours,useonlyactualhoursworkedandnothourspaid (e.g.twohoursovertimepaidattwicethehourlywageiscalculatedastwohoursworked,not as fourhourspaid). 12. Are leave (vacation, sick leave, paid time off ( PTO ), or holiday) hours included? Itdepends.Ifactualhoursworkedaretracked: Donotincludeleave(vacation,sickleave,PTO,andholiday)hours. If hoursworkedaredeterminedusingtheflat#ratecalculation: Ifatrackingsystemisavailableforrecordingleave(vacation,sickleave,PTO,orholiday) hours, subtractleavehoursfromthecalculatedtotal. Ifnotrackingsystemisavailabletotrackleavehours,usethecalculatedtotalwithno adjustmentforleavehours. 13. Are training hours and orientation hours included? Iftheindividualisrequiredbytheemployertoattend,includehoursattendingorientationor training. 14. Is standby or on-call time included? Aswithleavehours,itdepends. Ifactualhoursworkedaretracked, oncall or standby hours(evenifpaid)arenot includedinthesumofhoursworked. Ifhoursworkedaredeterminedusingtheflat#ratecalculation: o Ifatrackingsystemisavailableforrecording oncall or standby hours,subtract thesehoursfromthecalculatedtotal. o Ifnotrackingsystemisavailabletotrack oncall or standby hours,usethe M#9

118 Appendix(M( Workforce(Information(Council(Study(of(Unemployment(Insurance(Wage(Records(( Comments(Received(from(the(National(Payroll(Reporting(Consortium( calculatedtotalwithnoadjustmentforthe oncall or standby hours. 15. Workers work part-time. How are hours worked calculated? Eithertrackactualhoursworkedor,onlyifhoursarenottracked;usetheappropriatefractionof theappropriateflatratetocalculatehoursworked.forexample,forhalf#timeworkerspaidweekly orbiweekly,useaflatrateofhalfof40hoursperweektocalculatehoursworked.forhalf#time workerspaidmonthlyorsemi#monthly,usehalforone#quarterof173.33hourspermonthasaflat calculation.documentthecalculationmethod. 16. Employer has both part-time and full-time workers. Can the flat rate be used for the fulltime workers and actual hours be tracked for the part-time employees? IMPORTANT(Theflatratemaynot(beusedforanybody,full#orpart#time,whosehoursare tracked.however,theemployerisnotrequiredtousesamemethodforeverybody.forexample,if hoursarenottrackedforfull#timeworkersbutaretrackedforpart#timeworkers,usetheflatratefor full#timeworkersandtheactualhourstrackedforpart#timeworkers. 17. Employer has monthly salaried employees working overtime. Must hours be tracked or may the flat rate be used? Theflatratemaybeusediftheemployerhasnowaytoestimatereasonablytheovertimehours worked.nothinginthelaworadministrativerulesrequiresemployerstotrackhoursexclusivelyfor thepurposeofcalculatingthewbfassessment.however,whatevermethodisusedtocalculate workers withholdingsmustalsobeusedfortheemployer scontributionsandviceversa. 18. Workers are paid a biweekly salary. Workers track their hours, but report them to the employer subsequent to each pay period. (In other words, the employer pays ahead.) Where hours are tracked but reported after pay, can the flat rate be used to calculate the assessment or must the tracking method be used? Ifanemployerispayingbythehourbeforetimesheetsarecollected,paymentmustbecalculated onbasehoursworked,withadjustmentsforovertimeorleavetimemadeinthesubsequentpay period.theassessmentcanbecalculatedthesameway.theassessmentmaybebasedonthe base hoursassumedworkedduringapayperiod,andanyadjustmenttoactualhoursworkedmay be usedtocalculatetheassessmentinthefollowingpayperiod. Calculating the Assessment 19. What is a pay period? Theassessmentisbasedonhoursorpartsofanhourworkedinapayperiod.Usethesamepay periodusedtocalculatetheworkers stateandfederalwithholdingtax.whateverpayperiodis usedtocomputetheworkers withholdingmustbeusedtocalculatethewbfassessment. 20. At the change of a calendar year, what assessment rate is used for payroll earned in the last quarter of one year, but not paid until the first quarter of the next year? Usetheassessmentratethatappliestotheperiodinwhichthepayrollispaid,notearned.For M#10

119 Appendix(M( Workforce(Information(Council(Study(of(Unemployment(Insurance(Wage(Records(( Comments(Received(from(the(National(Payroll(Reporting(Consortium( example,theassessmentratechangedfrom.030for2006to.028for2007.forpayrollearnedin December2006,butnotpaiduntilJanuary2007,theassessmentrateusedisthatwhichisin effectwhenthepayrollispaid(.028). 21. How are fractions of an hour treated in the assessment calculation? Fractionsofhoursworkedarenotrounded.Forexample,ifaworkerworks37.5hoursinapay period,theassessmentcalculationwouldbe37.5hoursx$ How are fractions of a cent dealt with as a deduction? WhenreportingtheWBFassessment,"totalhoursworkedbyallworkersduringthereporting period"times"theassessmentrate"(whichistheworkerandemployerratecombined)isthe amountdue.fractionsofhoursworkedbyeachworkermaynot(beroundedwhencalculating eachworker sassessmentamountdue.however,whencompletingthereportingform(formoq orformoadomestic),thesumofallworkers hoursshouldberoundeddowntothenearest whole,andthetotalamountdue(theproductofhoursworkedtimestheassessmentrate)should beroundeddowntothenearestwholecent. Inaddition,whencalculatingtheworkerportiontobedeductedfromwages,itisinevitablethat fractionsofacentwillresult.therefore,theproductof"hoursworked"multipliedby"the assessmentrate"mayberoundedattheemployer sdiscretion.forexample:foraworkerwho worked173.33hours,173.33x.028=$4.85(thetotalassessmentdueroundeddowntothe nearestwholecent).halfofthismaybecollectedfromtheworker swages:halfof$4.85=$2.427 or$2.42(iftheemployerchoosestodropthefractionofacent)or$2.43ifroundedup.themath formulaisequivalentto(hoursxrate)/2. Ifthefractionofacentisdroppedwhendeductingtheworkers half,aroundingerrormayresultin aslightdifferencebetweenamountscontributedbytheworkersandtheemployer.ofcourse,the moreworkersthereare,thelargerthedifferencewillbe.therefore,thetotalofallworkers "hours worked"reportedmayberoundedattheemployer sdiscretion.employersneedtodetermine whichmethod(droppingthefractionofacent,orroundingupordownusinga4/5split)willcome closesttoeachcontributinghalf. Reporting EmployersreportandpaytheWBFassessment(notworkers compensationinsurancepremiums) directlytothestate.employerswhoaresubjecttoquarterlyreportingofstatewithholdingtaxes, unemploymentinsurancetaxesand/ortrimetorlanetransitdistrict(ltd)taxesreporttheirwbf assessmentquarterlywiththeseotherpayrolltaxesontheoregonquarterlytaxreport(form OQ)oritselectronicequivalent. M#11

120 Appendix(M( Workforce(Information(Council(Study(of(Unemployment(Insurance(Wage(Records(( Comments(Received(from(the(National(Payroll(Reporting(Consortium( EmployerswhoaresubjectonlytotheWBFassessmentreportquarterly,andcompleteonly the WBFAssessmentportionoftheOregonQuarterlyTaxReport(FormOQ)oritselectronic equivalent. Source: OregonForm132Instructions Column4.Hoursworkedduringthisquarter.Enterthenumberofhourseachemployeeworked inthequarter.ifyoudon ttrackhoursforafulltimeemployee,use520hoursforthereport.for fractionsorportionsofanhourworkedbyanemployee,roundupanyportionofanhourtothe nearestwholehour.reporttheactualnumberofhoursworked,bothstraighttimeandovertime. Don treporthourspaidforsickleave,vacationleave,oranyotherhourspaidwherenoworkwas performed.eventhoughthesehoursaren treportedincolumn4,wagespaidarestillincludedin thesubjectwagesincolumn5.althoughyoureportwagesinthequartertheyarepaid,report hoursinthequartertheyareworked.note:thehoursyoureportforuitaxpurposesonform132 won tnecessarilyequalthehoursyoureportforthewbfassessmentonformoq,box9.inpart, thisisbecausetheremaybedifferencesinwhoissubjecttowhichtax.also,hoursforthewbf assessmentshouldbereported,likewages,inthequartertheyarepaid.thehoursforuitax purposesshouldbereportedinthequartertheyareworked.enter 0 foranemployeewhodidn t workduringthequarterbutreceivedwages. M#12

121 Appendix(M( Workforce(Information(Council(Study(of(Unemployment(Insurance(Wage(Records(( Comments(Received(from(the(National(Payroll(Reporting(Consortium( Hours Worked Washington (WAC ) Howshouldemployersreporthoursworked?(RCW ) Thissectiondefinesthehoursthatemployersmustincludeonthequarterlytaxandwage report. (1) Vacationpay.Reportthenumberofhoursanemployeeisonpaidleave.Donotreport paymentsmadeinplaceofvacationtimeashoursworked. (2) Sickleavepay.AsprovidedinRCW (1),anypaymentsmadetoanemployee underaqualifiedplanforsicknessoraccidentdisability,insuranceorannuities,medicalor hospitalizationexpensesinconnectionwithsicknessoraccidentdisability,deathorretirementare notconsideredwagesorcompensation.donotreporttheseashoursorwages.forpayments underanonqualifiedplan,reportbothwagesandhours. (3) Overtime.Reportthenumberofhoursactuallyworkedforwhichovertimepayor compensatorytimeisprovided,withoutregardtotheamountofwagesorcompensationpaid. (4) Commissionedorpieceworkemployees.Reporttheactualnumberofhoursworkedby employeespaidbycommissionorbypiecework.iftherearenoreliabletimekeepingrecords, reportafull#timecommissionedorpieceworkemployeeforfortyhoursworkedforeachweekin whichanyoftheirdutieswereperformed. (5) Wagesinlieuofnotice.Whenanemployeeispaidwagesinlieuofnoticeoftermination, reporttheactualnumberofhoursforwhichtheywerepaid.wagesinlieuofnoticeoftermination paystheemployeewhoseserviceshavebeenterminatedbytheemployerfortheamountof wagestheywouldhaveearnedduringthenoticeperiod. (6) Employees on salary. If a salaried employee works other than the regular forty#hour week, reporttheactualnumberofhoursworked.iftherearenoreliabletimekeepingrecords,reportforty hoursforeachweekinwhichafull#timesalariedemployeeworked. (7) Faculty employees. Faculty members of community and technical colleges must teach at leastfifteenclassroomorlaboratoryhourstobeconsideredfull#time.ateachingloadoflessthan fifteenhoursofinstructionisconsideredpart#time. (a) Ifthereisnoreliablehourlyinformation,reportthehoursofinstructionaspart#timebased on fifteencreditsasafull#timeteachingloadandthirty#fivehoursasfull#timeemploymentfora week.forexample,aninstructorteachestwelvecreditsperweek.twelvedividedbyfifteenequals eightypercent.thirty#fivehourstimeseightypercentequalstwenty#eighthours.theemployer shouldreportthetwenty#eighthourstothedepartmentontheemployer'squarterlytaxandwage report. (b) Anypart#timesalariedinstructorwhodoesnotestablishavalidclaimbecauseofthis formulamayprovidethedepartmentwithevidenceofhoursworkedthatexceedsthehours reportedbytheemployer. M#13

122 Appendix(M( Workforce(Information(Council(Study(of(Unemployment(Insurance(Wage(Records(( Comments(Received(from(the(National(Payroll(Reporting(Consortium( (8) Severance pay. Do not report additional hours for severance pay. Report only the dollar amount paid to the employee. Severance pay is taxable because it is based on past service and compensatestheemployeeuponjobseparation. (9) Paymentinkind.Reporttheactualhoursworkedforperformingserviceswhichare compensatedonlybypaymentinkind. (10) Bonuses,tipsandothergratuities.Donotreportadditionalhoursforbonuses,tipsorother gratuitiesiftheyarereceivedbyanemployeewhoisworkingregularhoursifbonuses,tips andgratuitiesaretheonlysourcesofcompensation. (11) Fractionsofhours.Iftheemployee'stotalnumberofhoursforthequarterresultsina fractionamount,roundthetotaltothenexthigherwholenumber. (12) Practice,preparation,andrehearsaltime.Ifanemployeewhoispartofaperforming groupispaidforaperformance,butisalsorequiredbytheemployertoattendpractice, preparation,andrehearsalonanorganizedgroupbasis,reportthehoursspentintherequired practice,preparation,andrehearsalaswellastheperformance. (13) On#callandstandbyhours.Donotreporthoursifanemployeeispaidforashiftofon# callorstandbyhoursinwhichtheemployeewasnotactuallycalledinanddidnotperform services. Iftheemployeewascalledinorperformedservices,reportthehoursactuallyworked.If the employerhasnorecordsofthenumberofhoursactuallyworked,reportthedurationoftheshift up toeighthoursperday. [StatutoryAuthority:RCW , WSR10#23#064, 192#310#040,filed11/12/10, effective12/13/10;wsr07#23#127, 192#310#040,filed11/21/07,effective1/1/08.Statutory Authority:Chapters34.05and50.12RCW,RCW and (1).WSR99#20#141, 192#310#040,filed10/6/99,effective11/6/99.] M#14

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124 ( Preparedforthe WorkforceInformationCouncil bythe AdministrativeWageRecord EnhancementStudyGroup September2014