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DV for Tax Module 5DV for Tax Module 5

Wage Item ValidationWage Item Validation

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Introduction 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 In this training you will learn the tasks outlined in Module 5 and how to outlined in Module 5 and how to implement themimplement them

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AgendaAgenda OverviewOverview Identify Modes of Data CaptureIdentify Modes of Data Capture Select Samples from Each ModeSelect Samples from Each Mode Recount Wage ItemsRecount Wage Items Review wage items for completeness Review wage items for completeness Verify duplicates and corrections are not countedVerify duplicates and corrections are not counted Enter Information on Wage Item Validation WorksheetEnter Information on Wage Item Validation Worksheet Submit and Save Wage Item Validation ResultsSubmit and Save Wage Item Validation Results Follow Up on Wage Item Validation ErrorsFollow Up on Wage Item Validation Errors ReviewReview

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Overview Overview

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

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Task 1 Task 1 Identify Modes of Data CaptureIdentify Modes of Data Capture

How does your state receive wage item information from How does your state receive wage item information from employers? employers?

Web, CD, FTP, Fax, Email, Form, etcWeb, CD, FTP, Fax, Email, Form, etc How are they processed?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 names Missing names

How are corrections handled to prevent duplicates?How are corrections handled to prevent duplicates? How is 581 count obtained?How is 581 count obtained?

Built as sums from each batchBuilt as sums from each batch Snapshot at the quarter endSnapshot at the quarter end

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Task 2Task 2

Set up worksheet in DV SoftwareSet up worksheet in DV Software One row for each modeOne row for each mode

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Task 3Task 3Select Sample from Each ModeSelect Sample from Each Mode

From each mode:From each mode: Pick a batch or set of reports that contain at Pick a batch or set of reports that contain at

least 150 itemsleast 150 items Randomly select 150 of themRandomly select 150 of them

• Each item should contain at least:Each item should contain at least: Name, SSN, and wages for the quarterName, SSN, and wages for the quarter

Divide the 150 into stage 1 of 50 and stage 2 Divide the 150 into stage 1 of 50 and stage 2 of 100 recordsof 100 records

Set up a worksheet to track resultsSet up a worksheet to track results

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Task 3Task 3Enter ETA 581 Count for each Enter ETA 581 Count for each

BatchBatch

On the Wage Verification Worksheet enter On the Wage Verification Worksheet enter the count from the ETA581 in the “581 the count from the ETA581 in the “581 Count for Batch” columnCount for Batch” column

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Task 4Task 4Recount Wage ItemsRecount Wage Items

Manually recount the number of wage items in Manually recount the number of wage items in each of the batches for each mode 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 Name or SSN for employee, name or EAN for employer, wage dollar amount (records with zero dollar amount are NOT dollar amount (records with zero dollar amount are NOT counted)counted)

Make sure each record is counted only onceMake sure each record is counted only once Corrected wage itemsCorrected wage items

• only counted if not included previouslyonly counted if not included previously• Do not count the original Do not count the original and and the correction, just one or the the correction, just one or the

otherother

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Task 4aTask 4a

Review and compare Stage 1 recordsReview and compare Stage 1 records Count how many are complete recordsCount 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

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Task 4bTask 4b

Obtain the system count for these same recordsObtain the system count for these same records If count based on cumulating wage itemsIf count based on cumulating wage items

How many of the records would your system have How many of the records would your system have countedcounted

May need to review wage history files to determine May need to review wage history files to determine which ones were countedwhich ones were counted

If based on SnapshotIf based on Snapshot Obtain an extract of wage items included in your Obtain an extract of wage items included in your

sample (same EAN and SSN )sample (same EAN and SSN )

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Task 4cTask 4c

Review erroneous recordsReview erroneous records How many duplicates?How many duplicates? How many incomplete records?How many incomplete records? How many corrections were counted How many corrections were counted

incorrectly?incorrectly?

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Task 4dTask 4d

Determine if Stage 2 Review is needed Determine if Stage 2 Review is needed based on error findings for each mode: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 Review of the remaining 100 is not necessary however, it may give insight for correctionshowever, it may give insight for corrections

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Task 5Task 5Enter Record on WIV WorksheetEnter Record on WIV Worksheet

On the WIV Worksheet, enter the total On the WIV Worksheet, enter the total number of valid wage items in the number of valid wage items in the “Recount for Batch” column“Recount for Batch” column Research any errors and enter the number of Research any errors and enter the number of

errors in each of the categorieserrors in each of the categories

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Task 6Task 6

DV Software determines percent DV Software determines percent difference difference PASS – Stage 1 with no errorsPASS – Stage 1 with no errors PASS – Stage 2 with 6 or less errorsPASS – Stage 2 with 6 or less errors FAIL – Stage 1 with 4 or more errorsFAIL – Stage 1 with 4 or more errors FAIL – Stage 2 with 7 or more errorsFAIL – Stage 2 with 7 or more errors

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Task 7Task 7

Before submitting your results, add any Before submitting your results, add any comments you may have by clicking on the “Add comments you may have by clicking on the “Add Comments” button at the bottom of the Comments” button at the bottom of the worksheetworksheet After entering comments, click “Save” After entering comments, click “Save”

Submit by clicking on “Transmit” button at the Submit by clicking on “Transmit” button at the bottom of the worksheetbottom of the worksheet Transmit only after all modes are completed Transmit only after all modes are completed Must be submitted by June 10Must be submitted by June 10 Use the browsers File/Save As option to save a copy Use the browsers File/Save As option to save a copy

for your recordsfor your records

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Task 8Task 8Follow Up on Wage Item Validation Follow Up on Wage Item Validation

ErrorsErrors If errors were identified:If errors were identified:

Establish reasons for miscountsEstablish reasons for miscounts Correct any other errorsCorrect any other errors Discuss with programmer or person Discuss with programmer or person

responsible for Wage Item processingresponsible for Wage Item processing• Are errors caused by the use of this processing Are errors caused by the use of this processing

mode?mode?• Are these errors affecting other reports?Are these errors affecting other reports?

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In ReviewIn Review

The data validator’s implementation of the tasks The data validator’s implementation of the tasks in Module 5 ensure that the wage item in Module 5 ensure that the wage item transactions processed in the report quarter are transactions processed in the report quarter are accurately reported.accurately reported.

Researching and correcting errors caused by Researching and correcting errors caused by the use of any particular mode of processing can the use of any particular mode of processing can result in less errors occurring in the future.result in less errors occurring in the future.

There should be 6 or less errors to pass. There should be 6 or less errors to pass. (The WIV software is not computing this correctly at (The WIV software is not computing this correctly at

this time)this time)