Register Consumer with State Department of Labor (Unemployment)

Submitted by admin on Tue, 05/04/2021 - 15:24
Policy: 

Employers are not registered for Unemployment Insurance (UI) with the State Department of Labor until the employer has paid at least $1000 in gross wages in a single calendar quarter. The payroll department produces the <<report>> <<weekly>> that shows any employers who do not have a UI  account number and have just crossed the $1000 per calendar quarter threshold. After reaching this limit, the employer is liable for all wages previously paid in the calendar year and all wages going forward up to the taxable wage base for each workers. 

<<Staff Title>> or assigned staff runs a ”Quarterly Report” from the payroll system to verify that $1000 in wages have been paid in a single calendar quarter and to collect wage information for prior quarters. <<Staff Title>>collects completes the state Employer Status Report form for the participant. This information is used to apply for a DUA account number for the employer through the state’s registration system. F/EA applies for a UI account number for the employer within five business days of learning that an employer has reached or crossed the $1000 in a single calendar quarter threshold.
Procedure: 
  1. Weekly the payroll department creates a <<report>> for employers without a UI Account No. and gross wages greater than $1000 in a single calendar quarter
  •  <<Staff Title>> creates the report
  • <<Staff Title>> date stamps report
  •  <<Staff Title>> assigns task to a <<Staff Title>> or other F/EA staff
  • Assigned staff completes state Employer Status Report forms <<that is what the forms are usually called, but an individual state may have a different form name or a different process>> for each participant employer using the employer name, address and FEIN information
2.      Collect Quarterly tax payroll data from the payroll system for each employer who needs a UI number
3.      <<Insert Process to collect the data>>
  • Review the data for each quarter for the participant
  • Write the applicable gross wage information on the Employer Status Report <<process may vary by state; insert where on the form to insert applicable data>>
4. Insert the following on the Employer Status Report Form for each participant as applicable <<This process will vary based on the state form requirements>> 
  • Enter the First Date of Employment, which is the first check date, on the Employer Status Report Form in “Please Enter a Valid Payroll or Employment Start Date”
  • Select “Continue”
  • In “Company Name”, enter Employer’s First and Last Name
  • In “Attention To:” enter C/O F/EA – F/EA
  • In “Legal Address” enter employer's address
  • In "Mailing Address" enter the F/EA's mailing address
  • Enter the employer's FEIN on the form as applicable
  • In “Are you liable for federal unemployment tax?”, select “Yes”
  • In “First Date of Liability”, enter first check date from Employer Status Report
  • Select the participant’s city from the drop down
  • In “Please describe the principal activity…”, enter “Household Employer”
  • In “What is the principal product or service…”, enter “None”
  • “Please enter the address of your physical location…” enter participant’s address information
  • In “Please choose the option that best describes your business” select Domestic
  • In “Please choose the option that best describes your business” select Domestic
  • In “Name”, enter Consumer’s Name
  • In “Home Address” enter Consumer’s Address
  • In “Social Security Number”, enter the participant’s SSN
  • In “Is this individual compensated for services performed for the company”, select “No”
  • In “Select the above individual’s title”, select “Owner”
  • On the next page, the participant’s DUA ID will be listed.
5.      Record in the database the date that the Employer Status Report Form is submitted to the state for each participant
6. Mail the forms to the state
7. In approximately <<X>> days, F/EA will receive each employer's UI Account No. via <<mail>>
  •        Date stamp letter upon receipt
  •        This letter contains the UI Account No. and the employer's contribution rate <<there may also be a 'surcharge rate' or disability insurance rate or other, additional rate>>
  •        Enter the new UI Account No. in the participant database for the employer
  •        This number will be used to file and pay state unemployment tax on behalf of the participant employer
  •        Enter the employer's rate in the database
8. On a monthly basis, <<Staff Title>> runs report from payroll system that shows any consumers for whom a "Date Sent" was entered for the date the Employer's Status Report was sent to the state, but a UI Account No. has not yet been received
  • This report shows any consumers that should have a UI Account No., but don't
  • <<Staff Title>> follows up with state to inquite about status of UI Account No.s for these consumers

 

Internal Controls: 

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification. 

The methods of internal control utilized by F/EA to Register Consumer with MA DUA are:
1.      All systems are password protected
  •  Only staff authorized to perform certain duties are provided with password access to systems
2.      After payroll department creates weekly report of consumers who are newly liable for state unemployment insurance, <<Staff Title>> verifies integrity of report by running an independent report of gross wages
3.      All tracking documents are date stamped, initialed, scanned and saved for 7 years per File Retention Policy.
4.    A report is run monthly to identify any consumers for whom the F/EA has applied for a UI Account No. but the number hasn not yet been received.