[Federal Register Volume 67, Number 133 (Thursday, July 11, 2002)]
[Notices]
[Pages 46003-46005]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-17447]


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DEPARTMENT OF LABOR

Employment and Training Administration


Proposed Information Collection Request Submitted for Public 
Comment and Recommendations; Survey of the Costs to Employers To Expand 
the Quarterly Unemployment Insurance Wage Report

ACTION: Notice.

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SUMMARY: The Department of Labor as part of its continuing effort to 
reduce paperwork and respondent burden, conducts a preclearance 
consultation program to provide the general public and federal agencies 
with an opportunity to comment on proposed and/or continuing 
collections of information in accordance with the Paperwork Reduction 
Act of 1995 (PRA95) [44 U.S.C. 3506(c)(2)(A)]. This program helps to 
ensure that requested data can be provided in the desired format, 
reporting burden (time and financial resources) is minimized, 
collection instruments are clearly understood, and the impact of 
collection requirements on respondents can be properly assessed. 
Currently, the Employment and Training Administration (ETA) is 
soliciting comments concerning the proposed survey of costs to 
employers if modifications were made to their state unemployment 
insurance quarterly wage reports. The changes involve expanding the 
employee name fields and adding three additional labor market 
information (LMI) elements. A similar study of costs, which would be 
incurred by State Workforce Agencies (SWAs), has recently been 
completed (OMB Control No. 1205-0419, expired 12/31/2001) (See Federal 
Register/Vol. 64, No. 60/Tuesday, March 30, 1999/Notices, page 15179, 
for the original announcement of the survey). A copy of the proposed 
information collection request (IRC) can be obtained by contacting the 
office listed below in the addressee section of this notice.

DATES: Written comments must be submitted to the office listed in the 
addressee section below on or before September 9, 2002.

ADDRESSES: Bill Whitt, Office of Income Support, Employment and 
Training Administration, Department of Labor, Room S4231, 200 
Constitution Ave, NW., Washington, DC 20210; (202) 693-3219 (this is 
not a toll-free number), Fax 202-693-3229, E-mail [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    SWAs collect and maintain quarterly wage record information from 
employers for purposes of administering state unemployment insurance 
programs; among other things, the information includes employee name, 
social security number (SSN), quarterly wages and employer 
identification number. Federal law requires that a number of state and 
federal agencies use UI quarterly wage record information in certain 
program operations. In addition, wage records are provided by the SWAs 
to the National Directory of New Hires (NDNH), a database primarily 
used for child support enforcement purposes.
    The Social Security Administration (SSA) maintains the NDNH on 
behalf of the Department of Health and Human Services (HHS). Part of 
SSA's responsibility is to verify the name and

[[Page 46004]]

social security number of individuals and the employer identification 
numbers on the UI wage records provided to the NDNH. This verification 
involves matching SSA name/SSN information against the UI wage records. 
However, a lack of standardization among SWAs in the reporting of such 
information makes verification difficult and diminishes the usefulness 
of the information in the NDNH. SSA has established a standard for 
reporting and storage of the name field for W-2 purposes and HHS 
suggests that implementation of the same standard for UI wage records 
would be beneficial to the NDNH, the UI agencies and other users of 
wage records. Effective use of such a standard by the UI agencies may 
improve the utility of wage record data now being used for detection 
and collection of unemployment insurance overpayments.
    A change in the name field requirements may be costly for some 
employers to implement. Therefore, ETA is interested in gathering 
estimates from employers of the costs that they expect to incur if they 
were to adopt the new standard.
    In addition to name field standardization, some groups have 
expressed interest in LMI, such as quarterly hours paid, weeks worked 
and the zip code designating the location of jobs, that is not 
currently available from most SWA's UI tax and wage records or from 
other sources. Wage data currently received are utilized for a number 
of government programs as well as for research purposes. For example, 
under the Workforce Investment Act, states use data from the wage 
records to evaluate the outcomes of job training programs and services 
and to gather LMI. The additional wage record data elements could 
enhance the measurement of performance of such programs.
    Gaining some knowledge of the potential cost of reporting the 
additional information will help the ETA in making future decisions on 
whether to encourage SWAs to ask employers for this information. A 
survey form, which shows the standards for the suggested changes, has 
been developed to assist employers in estimating their costs for 
compliance with the suggested changes.

II. Review Focus

    The Department of Labor is particularly interested in comments 
which:
     Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
     Evaluate the accuracy of ETA's estimate of the burden of 
the proposed collection of information, including the validity of the 
methodology and assumptions used;
     Enhance the quality, utility, and clarity of the 
information to be collected; and
     Minimize the burden of the collection of information on 
those who are to respond, including the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses.

III. Current Actions

    To examine the potential cost to employers, the ETA is planning to 
collect survey data from random samples of employers in the United 
States. The survey will collect information on how (1) employers 
currently submit UI tax and wage records, current costs associated with 
quarterly reporting, estimated costs for the initial change to 
accommodate expanded name fields and the additional labor market 
elements, and the on-going annual costs to employers for these changes; 
(2) the changes may impact employer staff costs and information 
technology costs; and (3) easily employers believe the changes can be 
implemented. As a supplement to the survey, a small number of employers 
will be asked to participate in case studies regarding similar, but 
more detailed questions in relation to possible costs associated with 
adding wage record elements.
    Type of Review: New.
    Agency: Employment and Training Administration.
    Title: Survey of the Costs to Employers to Expand the Quarterly 
Unemployment Insurance Tax Report.
    Affected Public: Employers.
    Total Respondents: Sample of employers, approximately 1600 for 
survey; 12 for case studies.
    Frequency: One time only.
    Total Responses: 1,612.

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                                                                                  Average time
        Cite/reference              Total          Frequency          Total       per response    Burden (hours)
                                 respondents                        responses       (minutes)
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Survey.......................            1600  One time........            1600              30  800
Case Studies.................              12  One time........              12              90  18
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    Totals...................  ..............  ................            1612                  818
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[[Page 46005]]

    Total Burden Cost (capital/startup): $0.00.
    Total Burden Cost (operating/maintaining): $0.00.
    Comments submitted in response to this notice will be summarized 
and/or included in the request for OMB approval of the information 
collection request; they will also become a matter of public record.

    Dated: July 5, 2002.
Grace A. Kilbane,
Administrator, Office of Workforce Security.
[FR Doc. 02-17447 Filed 7-10-02; 8:45 am]
BILLING CODE 4510-30-P