Enhancement to the Audit Assignment Process

Abstract

This project focuses on the Field Service unit of the Unemployment Insurance (UI) Tax Department in DEW. One core function of the Field Service unit is to audit employer accounts to ensure that businesses are properly reporting and paying unemployment insurance taxes. Over the past 3 years DEW's audit program has generated over 6,442 audits, reclassified 10,273 employees, and uncovered over $3.44 million owed by employers to the UI Trust Fund. These accomplishments were achieved by using a primarily random audit assignment process. The recommendation to enhance to the current audit assignment process by using a 10% random rate, and a 90% focused audit rate will not only be focusing more efforts on ensuring that noncompliant employers are reporting and paying their fair share, but will also improve the integrity of the UI Trust Fund by uncovering monies that should be assessed.