UIPL_08-22_acc.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION UI CORRESPONDENCE SYMBOL OUI DUIO DATE December 29 2021 RESCISSIONS UIPL No. 02-17 EXPIRATION DATE Continuing ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 8-22 TO STATE WORKFORCE AGENCIES FROM ANGELA HANKS s Acting Assistant Secretary SUBJECT Changes to the North American Industry Classification System NAICS Codes for Calendar Year 2022 1.Purpose. This Unemployment Insurance Program Letter UIPL provides information to state workforce agencies about changes to NAICS coding for calendar year CY 2022 and requests states to update industry codes on employer unemployment insurance UI accounts to ensure states correctly code subject employers. 2.Action Requested. State Workforce Agency SWA Administrators should provide this information to appropriate staff to ensure SWA departments that assign NAICS codes to employer accounts use the NAICS 2022 codes for uniform coding of employers industry classification that states will use for statistical and reporting purposes on and after January 1 2022. 3.Summary and Background. a.Summary The NAICS is a system for classifying business establishments individual business locations by type of economic activity in Canada Mexico and the United States. Its purposes are 1 to facilitate the collection tabulation presentation and analysis of data relating to establishments and 2 to promote uniformity and comparability in the presentation and analysis of statistical data describing the North American economy. NAICS is used by Federal statistical agencies that collect or publish data by industry. States must have NAICS codes on their files for the Bureau of Labor Statistics BLS Quarterly Census of Employment and Wages QCEW program as well as for other statistical and reporting programs. b.Background To ensure the relevance accuracy and timeliness of the classificationsI NAICS is reviewed every five years to determine what if any changes are required. Such a review has recently been completed and revisions to NAICS codes have been made for 2022. Herein the new codes are referred to as NAICS 2022. The BLS Quarterly Census of Employment and Wages QCEW program will implement NAICp 2022 in the first quarter of CY 2022. Consequently all state workforce agencies must 2 convert the NAICS codes on existing UI accounts by January 1 2022 and assign NAICS 2022 codes to new UI accounts beginning on or after January 1 2022. Prior to NAICS 2022 NAICS codes were summarized in the 2017 U.S. NAICS manual. The BLS 2017 codes are available at the Download Tab of the BLS website https data.bls.gov cew apps bls naics v3 bls naics app.htm tab search naics 2022 keyword 22medical 22 searchType indexes filter 6 filter sort text asc res ultIndex 0. The NAICS 2022 United States Manual will be available in 2022. The manual will include definitions for each industry background information changes between 2017 and 2022 and a comprehensive index. States can find a summary of the NAICS 2022 changes at https www.federalregister.gov documents 2021 07 02 2021-14249 north- american-industry-classification-system-naics-updates-for-2022-update-of-statistical- policy. The BLS Web site currently provides a Comma Separated Values CSV file with a list of valid NAICS 2022 codes including titles and descriptions at the Download Tab https data.bls.gov cew apps bls naics v3 bls naics app.htm tab download naics 2 022. The CSV file is easily loaded into Microsoft Excel or other applications. Several files are available from the Download tab. Please use the file labeled BLS NAICS 2022 Titles and Descriptions . The BLS NAICS 2022 Titles and Descriptions file should be used as a validation mechanism to ensure that only these codes are assigned to UI accounts for employers in state UI tax files on computer systems. NAICS codes that are not listed in the BLS NAICS 2022 Titles and Descriptions file should be treated as invalid and rejected from state UI tax files. State Information Technology IT staff with questions regarding the NAICS 2022 code files can obtain help from BLS QCEW staff by sending a request to NAICS QCEW bls.gov. 4. Implementation. State Labor Market Information LMI staff or other state staff involved in industry classification have received NAICS 2022 codes previously and have converted all codes on LMI files for the QCEW report to NAICS 2022. States that maintain industry codes on UI tax files as opposed to LMI files must ensure that codes on UI tax files are NAICS 2022 codes and that they agree with codes on LMI files for the same employer. State staff responsible for assigning NAICS codes to employer UI accounts must convert existing UI accounts on tax systems to the new NAICS 2022 codes by January 1 2022 and assign the NAICS 2022 codes to all new UI accounts on tax systems beginning January 1 2022. If states implement use of the NAICS 2022 codes after January 1 2022 states will need to retroactively correct NAICS codes used on employer accounts and or correct incorrect UI tax rates if states use NAICS for assigning new and or maximum employer tax rates. State staff seeking guidance for assigning new NAICS 2022 codes should consult and work cooperatively with their state LMI office or other state staff involved in industry classification coding to ensure that the coding is consistent accurate and timely. 3 A number of states use industrial classification to establish both new and maximum employer tax rates. NAICS 2022 includes changes that may affect the assignment of UI tax rates in these states. Therefore states that assign tax rates based on industry coding should be cognizant of these changes. 5. Inquiries. Please direct inquiries to the appropriate Regional Office. 6. References. North American Industry Classification System Revision for 2022 December 21 2021 https www.federalregister.gov documents 2021 12 21 2021-27536 north-american- industry-classification-system-revision-for-2022-update-of-statistical-policy North American Industry Classification System Revision for 2017 August 8 2016 https www.govinfo.gov content pkg FR-2016-08-08 pdf 2016-18774.pdf UIPL No. 09-01 Required Preparations for Final Implementation of the North American Industry Classification System NAICS Coding issued December 11 2000 https wdr.doleta.gov directives corr doc.cfm DOCN 1740. UIPL No. 02-17 Changes to the North American Industry Classification System NAICS Codes for Calendar Year 2017 issued November 17 2016. https wdr.doleta.gov directives corr doc.cfm DOCN 5545 UIPL No. 31-11 Changes to the North American Industry Classification System NAICS Codes for Calendar Year 2012 issued September 20 2012 https wdr.doleta.gov directives corr doc.cfm DOCN 3081 7. Attachment. None.