Audit Yields Tax Contributions

U.S. Department of Labor
Office of Inspector General
Office of Audit

OIG AUDIT YIELDS MORE THAN
$2.5 MILLION IN UNEMPLOYMENT INSURANCE TAX CONTRIBUTIONS

Information obtained from the Internet may not be in the same format as a hard copy obtained from the Office. Depending on the requester, the quantity of information provided may also vary. In order to appeal any deleted information received via the Internet, you must make a formal written request for the same material. Further, some of the audit reports issued prior to FY 1998 may no longer be available. They may have been destroyed in accordance with our records retnetion schedule. However, any request for audit reports or other audit materials should be sent to the OIG, Disclosure Officer, Room S1303, 200 Constitution Avenue, N.W., Washington, D. C. 20210.

Unless otherwise stated, the audit reports provided on this web page reflect the findings of the OIG at the time that the audit report was issued. The auditee may have more current information available as a result of audit resolution activities.

The OIG is using Adobe Acrobat 4.0 to prepare its audit reports for the internet. If you experience problems accessing the PDF files, you may want to download the latest version of the Adobe Acrobat Reader by clicking on the link provided.

[ Link to Acrobat 4.0 Reader ]

During calendar year (CY) 1999, we followed up with the State Employment Security Agencies to determine what effect Employment Security Manual (ESM) revisions made in response to a prior OIG audit had on states’ success in identifying hidden (or unreported) wages and collecting related tax contributions from employers through field tax audits. ETA revised the ESM in February 1999 in response to a recommendation in an OIG report entitled Improvements Are Needed in the Evaluation of Audit Quality and the Reporting of Blocked Claim Audits (OA Report No. 03-98-008-03-315, issued September 25, 1998). Blocked claim audits are one of the more effective ways to identify hidden wages. However, the report disclosed that many states were discouraged from conducting this type of audit because it did not meet the definition of a reportable audit (output) on ETA’s 581 Contributions Operations report. ETA revised the definition, allowing states to get credit for conducting blocked claim audits beginning in CY 1999. In our follow-up,23 states reported that they had identified more than 13,000 employees who had been misclassified by their employers and had recovered more than $2.5 million of Unemployment Insurance (UI) tax contributions as a result of blocked claim audits conducted during CY1999 that would not have been conducted without the ESM revisions. In addition, we found that 13 states plan to report blocked claim audit results in CY 2000, while another 13 states (or 25 percent) still have no plans to perform blocked claim audits.

(OA Report No. 03-00-005-03-315, issued March 10, 2000)

REPORTS BY FISCAL YEAR

[ Prior to 1998 ]

[ 1998 Reports ]

[ 1999 Reports ]

[ 2000 Reports ]

GO TO --

[ Annual Audit Plans ]

[ Audit Process ]

[ Audit Reports ]

[ FOIA ]

[ Semiannual Reports ]