Adjusting Erroneous Wage Record Match Results. 2 Agenda Background on the use of wage record data for tracking employment and earningsBackground on the

Adjusting Erroneous Wage Adjusting Erroneous Wage Record Match ResultsRecord Match Results

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AgendaAgenda

• Background on the use of wage record Background on the use of wage record data for tracking employment data for tracking employment and earnings and earnings

• Possibility of misleading or inaccurate Possibility of misleading or inaccurate results from matched wage record results from matched wage record data data

• Handling erroneous wage record data resultsHandling erroneous wage record data results• Discussion: How does your state deal with Discussion: How does your state deal with

erroneous wage record data results?erroneous wage record data results?

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BackgroundBackground• TEGL XX-XXTEGL XX-XX (common performance measures policy)(common performance measures policy)

– UI wage records will be the primary data source for tracking UI wage records will be the primary data source for tracking the adult entered employment, retention, and earnings the adult entered employment, retention, and earnings measures and the employment portion of the youth measures and the employment portion of the youth placement in employment or education measureplacement in employment or education measure

– Other employment and administrative wage record data Other employment and administrative wage record data sources may be used to determine employment and sources may be used to determine employment and earningsearnings

• Wage Record Interchange System Wage Record Interchange System (WRIS)(WRIS)

• U.S. Office of Personnel Mgt.U.S. Office of Personnel Mgt.• U.S. Postal ServiceU.S. Postal Service• U.S. Department of DefenseU.S. Department of Defense• Railroad Retirement SystemRailroad Retirement System• State/local employment recordsState/local employment records• Judicial employment recordsJudicial employment records

• Public school employment Public school employment recordsrecords

• State New Hires RegistryState New Hires Registry• State Department of Revenue State Department of Revenue

or Tax (for self-employed)or Tax (for self-employed)

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BackgroundBackground• Wage record results are derived from Wage record results are derived from

matching using social security matching using social security numbers numbers

• Wage record results that cannot be Wage record results that cannot be translated into quarterly earnings translated into quarterly earnings should be treated as supplemental data and should be treated as supplemental data and should not be included in earnings computationsshould not be included in earnings computations

• Supplemental sources may be used to document Supplemental sources may be used to document employment (and not earnings) in situations where employment (and not earnings) in situations where the participant’s employment is not found in UI or the participant’s employment is not found in UI or other wage record data sources other wage record data sources – All supplemental data and methods must be All supplemental data and methods must be

documented and are subject to auditdocumented and are subject to audit

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• States may adjust the results from States may adjust the results from wage record matches to address wage record matches to address erroneous or misleading resultserroneous or misleading results– States must document each adjusted States must document each adjusted

wage record result, including a description of the wage record result, including a description of the method for determining the adjusted resultmethod for determining the adjusted result

– Results should be excluded from performance Results should be excluded from performance calculations in situations where the erroneous results calculations in situations where the erroneous results cannot be adjustedcannot be adjusted

BackgroundBackground

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Possibility of Misleading or Possibility of Misleading or Inaccurate ResultsInaccurate Results

• Determine whether or not the automated Determine whether or not the automated wage record match was correct wage record match was correct

• If correct, then check the results from If correct, then check the results from wage record matches for misleading or inaccurate wage record matches for misleading or inaccurate results arising from:results arising from:– Scanning and keying errors (e.g., UI staff keying wages Scanning and keying errors (e.g., UI staff keying wages

incorrectly from paper forms submitted by employers);incorrectly from paper forms submitted by employers);– An employer reporting excessively high earnings due to An employer reporting excessively high earnings due to

the distribution of a severance pay package;the distribution of a severance pay package;– An employer reporting wages under an incorrect social An employer reporting wages under an incorrect social

security number; andsecurity number; and– Duplicate records resulting from an individual’s single Duplicate records resulting from an individual’s single

employment experience showing in multiple employment experience showing in multiple wage record sources (e.g., interstate claims). wage record sources (e.g., interstate claims).

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Possibility of Misleading or Possibility of Misleading or Inaccurate ResultsInaccurate Results

• The occurrence of erroneous wage The occurrence of erroneous wage record matching results is likely to be record matching results is likely to be limited and random (i.e., equal chance limited and random (i.e., equal chance of having underreported and over-reported of having underreported and over-reported earnings results)earnings results)

• The impacts of erroneous wage record matching The impacts of erroneous wage record matching results are likely to be greater for local areas when results are likely to be greater for local areas when compared to the impacts at the state levelcompared to the impacts at the state level

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Handling Erroneous Wage Record Handling Erroneous Wage Record Data Matching ResultsData Matching Results

• ETA encourages states to adopt ETA encourages states to adopt procedures for adjusting inaccurate procedures for adjusting inaccurate wage record data matching results wage record data matching results

• To be acceptable for data element To be acceptable for data element validation reviews, the procedures must:validation reviews, the procedures must:– Be documented in writing;Be documented in writing;– Be consistently applied to avoid bias in the selection of Be consistently applied to avoid bias in the selection of

possible erroneous results to be adjusted; possible erroneous results to be adjusted; – Limit adjustments to earnings reported by employers and Limit adjustments to earnings reported by employers and

contained in the source wage records; andcontained in the source wage records; and– Result in greater accuracy in the earnings to Result in greater accuracy in the earnings to

be included in performance computations. be included in performance computations.

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• Examples of methods for identifying possible Examples of methods for identifying possible erroneous wage record matching results include:erroneous wage record matching results include:– Flag extremely high aggregate quarterly earnings for an Flag extremely high aggregate quarterly earnings for an

individual;individual;– Collect post-program employment and earnings data Collect post-program employment and earnings data

from a participant during follow-up, estimate quarterly from a participant during follow-up, estimate quarterly earnings for the performance period, compare this earnings for the performance period, compare this estimate to wage record matched earnings, and flag if estimate to wage record matched earnings, and flag if there is a significant difference; andthere is a significant difference; and

– For a participant showing multiple employers in a quarter, For a participant showing multiple employers in a quarter, flag wage records with identical earnings that flag wage records with identical earnings that are included in the participant’s aggregate are included in the participant’s aggregate earnings.earnings.

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• Adjustments to erroneous earnings Adjustments to erroneous earnings should be reasonable and linked to should be reasonable and linked to original data sources original data sources

• When in doubt, don’t make an adjustmentWhen in doubt, don’t make an adjustment– Don’t make an adjustment if a participant Don’t make an adjustment if a participant

record flagged as having possible erroneous earnings record flagged as having possible erroneous earnings results cannot be definitively determined to be in errorresults cannot be definitively determined to be in error

• Erroneous results should be excluded from Erroneous results should be excluded from performance calculations in situations where the performance calculations in situations where the misleading results cannot be adjustedmisleading results cannot be adjusted

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How does your state deal with How does your state deal with possible erroneous wage possible erroneous wage

record data results?record data results?

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For More InformationFor More Information

ETA’s Performance and Results Web Page on ETA’s Performance and Results Web Page on Reporting MattersReporting Matters

http://www.doleta.gov/performance/reporting

ETA’s Specialist on Data Quality MattersETA’s Specialist on Data Quality MattersTraci DiMartiniTraci DiMartini

[email protected]

Documents

Adjusting Erroneous Wage Record Match Results. 2 Agenda Background on the use of wage record data for tracking employment and earningsBackground on the