1. 10/8/20141 DV for Tax Module 5 Wage Item Validation

2. 10/8/20142 Introduction   Wage item validation (WIV) is the process by which the Data Validator verifies that the wage record transaction counts on the ETA581 report are accurate  In this training you will learn the tasks outlined in Module 5 and how to implement them

3. 10/8/20143 Agenda  Overview  Identify Modes of Data Capture  Select Samples from Each Mode  Recount Wage Items  Review wage items for completeness  Verify duplicates and corrections are not counted  Enter Information on Wage Item Validation Worksheet  Submit and Save Wage Item Validation Results  Follow Up on Wage Item Validation Errors  Review

4. 10/8/20144 Overview  WIV involves recounting small samples of wage items, comparing these recounts to what was reported on the ETA581, and computing the percentage of difference. Module 5 outlines the tasks to complete, but does not indicate specifically how to carry out these tasks. This training will show how to complete each task in order to satisfy the requirements of Module 5.

5. 10/8/20145 Task 1 Identify Modes of Data Capture  How does your state receive wage item information from employers? Web, CD, FTP, Fax, Email, Form, etc Web, CD, FTP, Fax, Email, Form, etc  How are they processed? If paper, how are they data entered? If paper, how are they data entered? If batch processed, is recount of single batch possible? If batch processed, is recount of single batch possible? Are there front end edits? Are there front end edits? SSN errorsSSN errors Missing wagesMissing wages Missing namesMissing names How are corrections handled to prevent duplicates? How are corrections handled to prevent duplicates?  How is 581 count obtained? Built as sums from each batch Built as sums from each batch Snapshot at the quarter end Snapshot at the quarter end

6. 10/8/20146 Task 2  Set up worksheet in DV Software One row for each mode One row for each mode

7. 10/8/20147 Task 3 Select Sample from Each Mode  From each mode: Pick a batch or set of reports that contain at least 150 items Pick a batch or set of reports that contain at least 150 items Randomly select 150 of them Randomly select 150 of them Each item should contain at least:Each item should contain at least: Name, SSN, and wages for the quarter Name, SSN, and wages for the quarter Divide the 150 into stage 1 of 50 and stage 2 of 100 records Divide the 150 into stage 1 of 50 and stage 2 of 100 records Set up a worksheet to track results Set up a worksheet to track results

8. 10/8/20148 Task 3 Enter ETA 581 Count for each Batch  On the Wage Verification Worksheet enter the count from the ETA581 in the “581 Count for Batch” column

9. 10/8/20149 Task 4 Recount Wage Items  Manually recount the number of wage items in each of the batches for each mode To be a “countable” wage item - must include: To be a “countable” wage item - must include: Name or SSN for employee, name or EAN for employer, wage dollar amount (records with zero dollar amount are NOT counted) Name or SSN for employee, name or EAN for employer, wage dollar amount (records with zero dollar amount are NOT counted)  Make sure each record is counted only once  Corrected wage items only counted if not included previouslyonly counted if not included previously Do not count the original and the correction, just one or the otherDo not count the original and the correction, just one or the other

10. 10/8/201410 Task 4a  Review and compare Stage 1 records Count how many are complete records Count how many are complete records Contain Name, SSN and Wages >0Contain Name, SSN and Wages >0 Enter recount on DV software worksheetEnter recount on DV software worksheet

11. 10/8/201411 Task 4b  Obtain the system count for these same records  If count based on cumulating wage items How many of the records would your system have counted How many of the records would your system have counted May need to review wage history files to determine which ones were counted May need to review wage history files to determine which ones were counted  If based on Snapshot Obtain an extract of wage items included in your sample (same EAN and SSN ) Obtain an extract of wage items included in your sample (same EAN and SSN )

12. 10/8/201412 Task 4c  Review erroneous records How many duplicates? How many duplicates? How many incomplete records? How many incomplete records? How many corrections were counted incorrectly? How many corrections were counted incorrectly?

13. 10/8/201413 Task 4d  Determine if Stage 2 Review is needed based on error findings for each mode: =0 Pass, Mode is complete =0 Pass, Mode is complete =1-3, Review remaining 100 items =1-3, Review remaining 100 items =>4, Fails =>4, Fails Review of the remaining 100 is not necessary however, it may give insight for correctionsReview of the remaining 100 is not necessary however, it may give insight for corrections

14. 10/8/201414 Task 5 Enter Record on WIV Worksheet  On the WIV Worksheet, enter the total number of valid wage items in the “Recount for Batch” column Research any errors and enter the number of errors in each of the categories Research any errors and enter the number of errors in each of the categories

15. 10/8/201415 Task 6  DV Software determines percent difference PASS – Stage 1 with no errors PASS – Stage 1 with no errors PASS – Stage 2 with 6 or less errors PASS – Stage 2 with 6 or less errors FAIL – Stage 1 with 4 or more errors FAIL – Stage 1 with 4 or more errors FAIL – Stage 2 with 7 or more errors FAIL – Stage 2 with 7 or more errors

16. 10/8/201416 Task 7  Before submitting your results, add any comments you may have by clicking on the “Add Comments” button at the bottom of the worksheet After entering comments, click “Save” After entering comments, click “Save”  Submit by clicking on “Transmit” button at the bottom of the worksheet Transmit only after all modes are completed Transmit only after all modes are completed Must be submitted by June 10 Must be submitted by June 10 Use the browsers File/Save As option to save a copy for your records Use the browsers File/Save As option to save a copy for your records

17. 10/8/201417 Task 8 Follow Up on Wage Item Validation Errors  If errors were identified: Establish reasons for miscounts Establish reasons for miscounts Correct any other errors Correct any other errors Discuss with programmer or person responsible for Wage Item processing Discuss with programmer or person responsible for Wage Item processing Are errors caused by the use of this processing mode?Are errors caused by the use of this processing mode? Are these errors affecting other reports?Are these errors affecting other reports?

18. 10/8/201418 In Review  The data validator’s implementation of the tasks in Module 5 ensure that the wage item transactions processed in the report quarter are accurately reported.  Researching and correcting errors caused by the use of any particular mode of processing can result in less errors occurring in the future.  There should be 6 or less errors to pass. (The WIV software is not computing this correctly at this time) (The WIV software is not computing this correctly at this time)