Processes Are Needed to Ensure Reliability of Federal Unemployment Tax Certification Files and to Work Multi-State Cases

The Commissioner, Small Business/Self-Employed Division, should develop a process to identify errors in key data fields, i.e., State wage fields, State unemployment tax rate fields, and the State payment fields, used to calculate allowed FUTA tax credit as part of the IRS's upfront data validation process for State FUTA Certification Data Files. For those errors that materially affect the calculation of allowed FUTA tax credit, request corrected files.

The Commissioner, Small Business/Self-Employed Division, should develop a process to identify records not returned as required from State Agencies and, as warranted, contact State Agencies to request recertification for those employers whose records were not returned.

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The Commissioner, Small Business/Self-Employed Division, should revise its process to accurately identify multi-State employer discrepancy cases.

The Commissioner, Small Business/Self-Employed Division, should correct tax assessments made on the 2,590 employers as a result of programming errors and establish a process to identify other employers affected by this programming error.