UIPL41-01.html

ETA Advisory File Text

Instructions for Reporting Withholding Information on the ETA 2112 U.S. DEPARTMENT OF LABOREmployment and Training AdministrationWashington D. C. 20210 CLASSIFICATION OWS CORRESPONDENCE SYMBOL OIS DFAS ISSUE DATE July 20 2001 RESCISSIONS None EXPIRATION DATE July 31 2002 DIRECTIVE UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 41-01 TO ALL STATE EMPLOYMENT SECURITY AGENCIES FROM GRACE A. KILBANEAdministratorOffice of Workforce Security SUBJECT Instructions for Reporting Withholding Information on the ETA 2112 Purpose.To clarify instructions in ETA Handbook 401 for completing the ETA 2112. References.Reports and Analysis Letter RAL No. 1 - 01 ET Handbook No. 401 Section II-1 pages 1-8 Unemployment Insurance Program Letter UIPL 32-96. Background.The cited RAL transmitted revised instructions for reporting amounts withheld from benefits to be transferred to the Internal Revenue Service IRS for Federal income tax. Clarification was necessary because benefits paid by some States were underreported on the ETA 2112. The Department's Office of Chief Financial Officer made manual adjustments to the Department's FY 2000 Consolidated Financial Statements to report the accurate amount of benefits paid which included amounts transferred to the IRS. Benefit amounts recorded in the Unemployment Insurance Database UIDB however were not corrected to include the withholding amounts. The Department is requesting States to adjust ETA 2112 reports in the UIDB for prior periods to reflect accurately all benefits paid. Not all State ETA 2112 reports are inaccurate. Reports from States that have not used the FEDTAX system are likely accurate. Action Required.State agencies are to change inaccurate ETA 2112s in the UIDB. Since the FEDTAX system began in January 1999 States using it should review all ETA 2112s transmitted since that date to ascertain whether withholding amounts were properly reported in accordance with RAL 1 - 01 reporting instructions i.e. amounts transferred to the IRS for withholding of Federal income tax should be reported on lines 31 through 43 in column F and line 16F must equal line 44E. Inquiries.Inquiries regarding this directive should be directed to the appropriate Regional Office.