Maintain tax accounting controls on quarterly benefit charges applied to regular taxed employer account.

The purpose of this function is to insure accurate posting of the chargebacks to the TDT and TTR tax files. This posting consists of chargebacks for the last completed quarter and adjustments to chargebacks for prior quarters.

Benefit payments and monetary and non-monetary changes to previous payments do not post daily to the tax files. This information is accumulated, organized by account number and quarter, and then posted to the tax files on a quarterly basis.

The Benefit and Tax programs that accomplish these tasks produce several reports that allow the Experience Rating Unit to check the process for errors, which would produce incorrect tax rates.

The Rates Unit requests the quarterly update of chargeback data by e-mail to the AD&M Department. It is produced in the month before the interim rates are calculated.

The first job, Chargeback Register, produces three reports.

Report 1: provides updated quarterly chargeback totals for previous quarters and provides the new total for the most recent quarter. The quarters are arranged in four columns on the page with the total benefits posted by thousand group. Up to twenty quarters may be listed.

The quarterly totals are compared to those totals in the same report from the previous chargeback update. Each quarterly total should usually show some change from the previous update with the most change occurring in the most recent quarters due to appeals decisions and re-determinations of claims. The older quarters will generally show smaller amounts of change going back in time. If there are large or unusual inconsistencies in the changes of the quarterly totals, then the programmers should be contacted to locate the error and possibly rerun the jobs.

Report 2: provides the updated quarterly non-charge totals for previous quarters and also the new total for the most recent quarter. The same type of comparison is made on this report to evaluate the amount of change in the quarterly totals. The quarters listed are the same as in Report 1.

Report 3: provides the chargeback adjustments by account. This information contains the claimants name, SSN, initial claim date and the amount of the adjustment. Individual claims are sampled to determine if there are errors in the adjustment run.

Each examiner in the Experience Rating Unit proofs between ten and fifteen adjustments. The sample requirements should include all quarters, increasing and decreasing adjustments, and changes between charge and non-charge determinations. If any major system problems are found, then the programmers are contacted to determine the problem.

The second job converts CBCA to CBCE. The job updates the CBCE file with the adjustments from the previous quarter. It is usually run last after all of the other jobs are completed.

After the Chargeback Register passes all of the report tests, a series of tax programs use this to update the TDT and TTR tax files and creates an error list. The tax program produces a control register that is used to verify this update before the re-rating process.

The register displays quarterly chargeback totals that will be updated to the EMF in the next daily tax run. The current year and the four previous years are detailed and there is a summary sheet showing the complete totals for each quarter, each of the five years and the sum of all five years.

To verify the report, totals for each quarter are compared to the totals from the Chargeback Register reports. The totals will not match exactly because the Chargeback Register report counts chargebacks posted to pending accounts, purged accounts and invalid account numbers, unlike the Chargeback Controls. The differences, however, are expected to be in the thousands of dollars. If multi-million dollar differences between report totals are found, the tax programmer is notified to determine the problem.

If the Chargeback Controls look reasonable, the re-rates resulting from the chargeback adjustments are allowed to process. The re-rating is usually scheduled to occur over a weekend because of the potential for a larger daily tax rate run.

As the accounts examiners proof the individual rate changes, there is a final opportunity to catch any problems. Any new chargeback problem discovered at this point would be reported to the benefits programmer.

Possible solutions to any new problems could be to rerun the chargeback adjustments, to identify all bad claims and manually adjust the tax files, or to introduce corrections into the next regularly scheduled adjustment run. Currently the four adjustment runs are scheduled to begin in February, May, August, and November.

The Rebuild Rate Subfile runs after the re-rating has occurred. The Rates Unit requests the job by e-mail to the AD&M Department. It usually runs during the day following the re-rating of the chargeback adjustments

This job mainly corrects problems with transferred wages. There is printed output from this job but there is nothing to check. The job must be completed before the Interim tax rates are calculated. The Interim tax rates are scheduled for the last tax run in the same months the chargeback update is completed.