U. S. Bureau of Labor Statistics Redesigning Data Collection Strategies for Cost-Reduction in Two Bureau of Labor Statistics Surveys Michael A. Searson U.S. Bureau of Labor Statistics International Conference on Establishment Surveys Montréal , Canada June 2007 Quarterly Census of Employment and Wages (QCEW) Program Fed/State Cooperative Statistical Program 2 Program started with the passage of Federal Unemployment Tax Act (FUTA) BLS provides funding, deliverables, manuals, guidelines, and methodologies to State agencies States collect & edit data (decentralized approach) QCEW Statistics th 4 Quarter 2006 Stats: • 8.9 Million establishments • 135.9 Million employment • $1.516 Trillion Wages 3 Data Coverage • 98 Percent of all non-farm salary Workers in the U.S. • 45 Percent of U.S. Agricultural Workers. 4 Data Sources for the CEW Program • Primary Administrative Records of the State Workforce Agencies - UI Tax departments. • Secondary Supplemental forms designed by BLS to meet additional program statistical needs. These are administered by the State LMI staff. 5 QCEW Collection Forms • Status Determination • Quarterly Contribution Report • Annual Refiling Survey (ARS) • Multiple Worksite Report (MWR) • Report of Federal Employment & Wages 6 Status Determination Form (SDF) • Used to determine an employer’s liability for Unemployment Insurance • Basis for initial assignment of industrial, geographic and ownership codes • Mandatory for employers to file • Initial source of UI Tax and physical location addresses 7 Status Determination Form Issues Expected economic activities may change over time Limited space on SDF for: - economic activity information - physical location addresses (PLA) - geographical location information Increasing volume of SDFs State staff knowledge One-Stop Business Registration - impacts access & quality of initial industry code information 8 Purpose of ARS Review and Update (if necessary) • Mailing & Physical Location addresses • County code • Single/multi-worksite status • Industry code (NAICS) 9 Annual Refiling Survey (ARS) About the Form: • BLS designed (standardized) • Mandatory in 23 States • 1/3 of Universe reviewed annually (historically) • Sample based on 7th & 8th digit of EIN • Verification System • Minimum 75% response rate in units or 80% employment for States 10 ARS - Key Points ARS updates are impacted by quality and processing of SDF information • • • • Space provided on form Staff training Data omissions - PLA Limited access Multi-state employers receive ARS forms for each state where they have employees 11 Growth in Establishments Exceeds the Increase in Funds for the States Survey of Staff Time Usage: Data Collection and Review ARS MWR Total 12 % 22 12 34 Survey Costs • Printing - Forms, Cover Letters, Flyers • Handling - Folding, Stuffing, Opening, Scanning, Filing • Postage Out & Return $ .41 $ .56 • Review • Data Entry - Response code and updates, if necessary 13 Strategy to Cut Costs • Reduce scope of survey • Stretch survey to 4 year cycle • Touch-tone Response System (TRS) • Contracting out ARS data collection • Fax collection • Web collection • Central review by BLS staff 14 Three ARS Collection Forms 1. NVS – Single worksite accounts 2. NVM – Multiple worksite accounts 3. NCA – Unclassified accounts 15 ARS Scope Cutbacks Recent budgetary cutbacks lead to the following changes in the ARS Survey: • Size cuts have eliminated businesses with 0, 1, and 2 employees from being surveyed • Government accounts are not surveyed • Private Households are not surveyed • Move from 3 to 4 year cycle 16 Matrix Analysis Approach Number of Alternative Survey Options Evaluate based on “Boxes” Checked Other Factors: • Some alternative strategies may save $, but take a long time to implement • Some not so cost-effective but easy to implement • Some strategies may require more follow-up for nonresponse, thus reducing total cost savings 17 Potential ARS Collection Methods Impact on Survey Processes, Activities, and Costs X File Data Entry Review Data X Sort X X Scan FAX Web Colleciton Central Collection CARS Phase I CARS Phase II X Open TDE (TRS) Return Out Handling Method Print Postage Response Assign Process Handling Returned Forms X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Touchtone Response System (TRS) • Eligible employers have the option to call a toll-free number to respond to the survey • Eliminates return postage and manual processing and review 19 TRS Eligibility • Single worksite employers • Valid NAICS code • Specific county code assigned • Good physical location address 20 TRS Facts 2002 - 6 test States 2003 - Expanded to 40 States 2004 - All States - 378,000 Responses 2005 - 473,000 Responses 2006 - 541,000 Responses 2007* - 382,000 Responses *Survey Still Active 21 TRS normally accounts for 31% of total ARS responses TRS Lessons Learned • System works very well • States advise us via e-mail if respondents indicate problem with TRS; few problems to date • Touch-tone phones set to “pulse” mode, rather than “tone” mode will not work with TRS • Use of Cellular telephones by respondents can create a problem • States and National Office MUST be on the same time line for mailing out TRS eligible forms 22 CARS X File Data Entry Review Data X Sort X X Scan FAX Web Colleciton Central Collection CARS Phase I CARS Phase II X Open TDE (TRS) Return Out Handling Method Print Postage Response Assign Process Handling Returned Forms X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Central Annual Refiling Survey (CARS) • Commercial vendor prints cover letters, flyers, and envelopes • Inserts all materials and mails • Opens returned ARS forms • Sorts responses into different groups based on employer responses • Provide electronic files of responding firms (to note receipt) • Return ARS forms for states to review • Use software to reduce outgoing postage costs 24 ARS Contracting Issues: • All States mailing at the same time would require additional TRS equipment and phone lines • Coordination with third-party (contractor) increases potential risks 25 CARS Cost Reduction • • • 26 Postage: Uses National Change of Address and Mailstream refinement process- average outgoing mail cost $.34. Normal postage $.41 Business Reply Mail (BRM) averaged $.45, will be reduced to $.37 when High Volume QBRM postal service is used. Normal fee as much as $1.10 ARS Processing: CARS FY 07 processing costs is $.55 per respondent (excluding postage) to print, stuff, mail, receive, scan and batch NVS (single) forms. This figure involves three (3) ARS mailings, if necessary FY 2007 CARS Changes • All States used same (generic) TRS Flyer to standardize printing • Expanded from 12 to 22 States • Tightened processing schedule 27 Future Plans FY 2008 • Use generic state cover letters • Expect to increase to 28 states • Processing schedule shortened 28 Future Plans FY 2009 • Imaging of returned forms with some updates • New contract to include printing of NVM and NCA forms 29 Old NVS Form (Double Sided) BLS 3023-NVS 9 Industry Verification Form, BLS 3023 NVS Form Approved, O.M.B. No. 1220-0032 1 UTANA DEPARTMENT OF LABOR AND INDUSTRY In cooperation with the U.S. Department of Labor This report is mandatory under Section 320.5 of the Utana Unemployment Insurance Code and Section 320-1 Title 22 of the Utana Code of Regulations, and is authorized by law, 29 U.S.C. 2. Your cooperation is needed to make the results of this survey complete, accurate, and timely. 1 3 2 Our records show that the main activity of the business using U.I. number 1234567890 in UTANA is: Furnishing customized investment advice to clients on a fee basis but do not have the authority to execute trades. Primary activities performed by establishments in this industry are providing financial planning advice and investment counseling to meet the goals and needs of specific clients. EXAMPLES: futures advisory services, investment advisory services, and investment research. The questions on this form concern the work location(s) using Unemployment Insurance account number 1234567890 IN UTANA. 593930 XYZ ADVISORS ATTN: MARY CAPPS 1310 SILVER STREET 4TH FLOOR SOMECITY UA 12345-5555 10 YES…Please SKIP to Item 12 NO….Continue with Item 11 11 3 4 1 We need the name and direct mailing address for the business using this Unemployment Insurance account, regardless of who prepares the form. This information does not affect mailings for tax purposes. Are the name and mailing address shown in Item 2 correct for the business using this Unemployment Insurance account? In addition to your mailing address, please tell us where your business is physically located (street and number). The physical location address is the place where you conduct your business and receive deliveries, so it cannot be a Post Office Box or a rural route number. The physical location address for the STATENAMEXXXXX location is MISSING from our records. Please enter physical location here. (DO NOT use P.O. Box or rural route number.) CITY, STATE & ZIP: [ ] Same as mailing address [ ] Business has employees but no physical location in STATENAMEXXXXX 5 1 6 1 1 12 8 1 ______% 100% Name of person to contact if we have questions about this report. (Please print) 14 /// PLEASE CONTINUE WITH ITEM 9 ON THE BACK OF THIS PAGE. OFFICE USE FY02 11/12/01 AUX NAICS CTY TWN4 OWN MEEI AT ---210-6282-5-523930—110-0720--5---1---1 CTY TWN AUX Date: _______________________________________________________ Fax: (________)_________________________ Please be sure to answer Items 9-11. Please place your completed form in the postage paid envelope provided and return it to the address in Item 14 within 14 days of receiving it. Thank you for your cooperation! YES (One physical location)….Continue with Item 9 on the back NO (More than one physical location)..…. Please attach a separate sheet. For each site, (1) list physical location address, (2) show number of employees, and (3) answer Items 6 and 9 - 11. Continue with Item 9 NAICS ___________________________________________________________________________________________ 13 Does the business using Unemployment Insurance account 1234567890 IN UTANA have only one physical location in this state? (Do not count client sites or offsite projects that will last less than a year.) SIC ______% activities If you are a third party agent, such as an accounting firm or payroll service, check here. YES…Please enter your website address here. __________________________________________….Continue with Item 8 NO…..Continue with Item 8 EMPL ______% ___________________________________________________________________________________________ Title: Does this business have a website? ___________________________________________________________________________________________ important Name: ______________________________________ Phone: (________)_______________________ _________________ According to our records, the business operating under Unemployment Insurance account 1234567890 in Utana mainly provides goods and services to the general public. Is this correct? ("The general public" includes individual consumers, other businesses, and organizations.) List most PLEASE PRINT CLEARLY Is the following information correct for the address in Item 4? UTANA COUNTY: WATERCRESS YES…Continue with Item 6 NO…..Please print corrections in this space and then continue with Item 6 [ ] YES, we MAINLY provide goods and services to the general public [ ] NO, we are part of a larger company and we MAINLY support other locations of OUR company 7 We need detailed information to assign the correct industry code to this business. In the space provided below, describe your main business activities, goods, products, or services in this state, as though you were telling a prospective employee what you do. Then give us the approximate percentage of sales or revenues resulting from each item. See examples below. Percentages should total 100%. If you are a third party agent for the business named in Item 2, such as a payroll service or accountant, please review Items 9-11 with your client. Goods or products: What are they, and what do you do with them? Do you design, manufacture, sell directly to consumers, distribute to wholesalers, install, repair, or do something else with them? What are these goods or products made of? EXAMPLE 1: Major appliances: Sell to public 40%; Sell to retailers 30%; Repair 30% EXAMPLE 2: Install fiber optic cable 100% Manufacturers: What are your main products? What are your most important materials? What are the main production methods? EXAMPLE: Weaving cotton broadwoven fabrics 80%; Spinning cotton threads 20% Services: Describe in detail the services you provide. To whom do you provide those services? If you offer consulting, brokerage, management, or similar services, what are your major activities? EXAMPLE 1: Hair cutting & styling 65%; Manicures 25%; Facials 10% EXAMPLE 2: Long distance trucking, less than truckload 100% EXAMPLE 3: Marketing consulting: Planning strategy 60%, Sales forecasting 40% EXAMPLE 4: Cleaning private homes 100% Construction or Building Trades: Is the work mostly residential or nonresidential? Single- or multi-family? New or remodeling? EXAMPLE: Electrical contractor: Wiring new homes 51%; Electrical refurbishing of office buildings 49% YES... NO Please print corrections or additions to the right of the printed address in Item 2. ............COMPANY PERMANENTLY OUT OF BUSINESS OR MOVED OUT OF UTANA ........................................ ........Enter date closed or moved: _____________________________ SKIP to Item 9 on the back of this form NUMBER & STREET: ______________________________________ ______________________________________ While you may not do everything listed above, does the information in Item 9 accurately describe the main business in Utana during the past 12 months? (If the business has been closed, sold, or moved out of this state, please answer in terms of its former activity.) RC For questions concerning this form, contact: UTANA DEPARTMENT OF LABOR AND INDUSTRY DIVISION OF RESEARCH AND STATISTICS – ES-202 12345 CENTER STREET, ROOM 200 SOMECITY, UA 12345-9876 INTERNET: http://www.utana.dol.gov PHONE: 1-123-321-4321 FAX: 123-321-4421 Purpose and Use: The purpose of this report is to update information on your products or services. The information will be used to ensure that we assign the correct North American Industry Classification System (NAICS) code to this business location, and that our records contain the correct name and address. The information collected on this form by the Bureau of Labor Statistics and the State agencies cooperating in its statistical programs will be used for statistical and Unemployment Insurance program purposes, and other purposes in accordance with law. Time of Completion: Time of completion is estimated to vary from 2 to 30 minutes with an average of 5 minutes per form. This estimate includes time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing this information. If you have any comments regarding these estimates, or any other aspect of this survey, send them to the Bureau of Labor Statistics, Division of Occupational and Administrative Statistics (NVS), Room 4840, 2 Massachusetts Avenue N.E., Washington, D.C. 20212. You are not required to respond to the collection of information unless it displays a currently valid OMB number. /// Fax Collection X File Data Entry Review Data X Sort X X Scan FAX Web Colleciton Central Collection CARS Phase I CARS Phase II X Open TDE (TRS) Return Out Handling Method Print Postage Response Assign Process Handling Returned Forms X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Fax Collection Issues • Limited records with fax numbers • Must verify fax number before faxing forms (2x fax) • Fax number maintenance on 3 year cycle, more on 4 year cycle • Too costly for data entry 33 Web Collection X File Data Entry Review Data X Sort X X Scan FAX Web Colleciton Central Collection CARS Phase I CARS Phase II X Open TDE (TRS) Return Out Handling Method Print Postage Response Assign Process Handling Returned Forms X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Web Collection Issues • Employers not familiar with ARS form (only surveyed every 3 to 4 years) • Web registration process would take longer for the employer than filling out the form. 35 Quarterly Contribution Report (QCR) Mandatory State Form • • • • • 36 Monthly Employment Total Quarterly Wages Taxable Wages Contributions Due UI Staff responsibility Multiple Worksite Report Purpose: Distribute employment and wage information reported at State level on QCR (tax report) to individual worksites of employer within that State. Also collect business identification information (trade name, physical location address and worksite description) for users of BLS Business Register as a sampling frame or longitudinal analysis. 37 Multiple Worksite Report (MWR) • Standardized BLS Form • Mandatory in 26 States • Disaggregate Statewide employment & wages on QCR • More than 1 location and/or industry in State • 128,000 Legal Entities with 1.4 M worksites • 18% of units on BEL • 38% of Total Employment • Emphasis on Electronic Collection 38 MWR Facts • States collect MWR data each calendar quarter – decentralized approach • Forms mailed to employer at end of each quarter • Due to State 30 days after the quarter ends 39 Sample MWR Form U.I. NUMBER: 1234567890 IN UTANA PAGE 2 OF 2 Multiple Worksite Report - BLS 3020 INSTRUCTIONS Form Approved, O.M.B. No. 1220-0134 In Cooperation with the U.S. Department of Labor STATE OF UTANA 1 OF 2 This report is authorized by law, 29 U.S.C. 2. Your voluntary cooperation is needed to make the results of this survey complete, accurate, and timely. The totals on this form must match the corresponding totals on your Employer’s Quarterly Contribution Report (Form QCR-1234). 1 2 3 PAGE ABC ENTERPRISES ATTN: STEPHEN SMITH SPECIAL EVENT CATERERS 1234 MAIN STREET SUITE 123 SOMECITY UA 98345-6789 WORKSITES OFFICE USE QUARTERLY REPORT INFORMATION : U.I. NUMBER QUARTER ENDING : : DUE DATE SEE INSTRUCTIONS ON THE BACK OF 00001 000002 722320 001 SPECIAL EVENT CATERERS 345 LEXINGTON BLVD RICHMOND UA 98657 00002 000010 722320 003 SPECIAL EVENT CATERERS 459 OX ROAD, SUITE 209 DANVILLE UA 98778-0004 GRADUATION PARTY CATERING 00003 000005 722320 005 SPECIAL EVENT CATERERS Address Unknown –- Please Provide 00004 000150 722320 007 SPECIAL EVENT CATERERS 2097 WASHINGTON AVE SPOKANE UA 98349-3754 SPOKANE SUPPLY/STORAGE FACILITY Please update address and contact information in the address block shown at the left. ********************* *MWR WEB INFORMATION* *ID: 123456789012 * *Password: 99999999 * THIS PAGE ********************* NUMBER OF EMPLOYEES BUSINESS NAME (division, subsidiary, etc) STREET ADDRESS (physical location) CITY, STATE, AND ZIP CODE WORKSITE DESCRIPTION (plant name, store number, etc) 1234567890 JUNE 30, 2005 JULY 31, 2005 (subject to UI laws) During the Pay Period Which Includes the 12th of the Month APR MAY JUN QUARTERLY WAGES OF WORKSITE (subject to UI laws) Round to the nearest dollar .00 COMMENTS: .00 COMMENTS: .00 COMMENTS: .00 COMMENTS: .00 COMMENTS: DUE DATE: Please return this form or a computer-generated facsimile by JULY 31, 2005 Please follow these steps to prepare your Multiple Worksite Report. Contact the Agency listed in Step 5 if you have any questions or if you need additional information, or see http://www.bls.gov/cew/cewmwr00.htm. 1. Review the business name, contact name, and mailing address and make any necessary corrections (Section 2). 2. The Worksites list (Section 3) shows the individual worksites (business locations) that appear in our files for this U.I. Number. Please read across the row for each worksite and do the following: NAME/ADDRESS/DESCRIPTION: Review the name and physical location address for each worksite and make any necessary corrections. Review the description below the physical location to be sure it uniquely identifies each worksite (plant name, store number, etc.). If there is no printed description, please enter a unique identifier for the site. EMPLOYMENT: Enter employment for each month of the quarter. Employment is the total number of full- and parttime employees who worked during or received pay for the pay period which includes the 12th of the month. Include all employees who were subject to Unemployment Insurance laws. WAGES: Enter wages paid during the quarter that are subject to State Unemployment Insurance laws, including the portion that exceeds the State's taxable wage base. Round wages to the nearest dollar. COMMENTS: Explain any large changes in employment or wages. Changes might result from store closings, strikes, layoffs, bonuses, seasonal increases or decreases, or similar events. CLOSED OR SOLD: If a worksite has been sold, closed, or is otherwise inactive, use the Comments section to show: (a) the date closed or sold; (b) if sold, the name of the company that bought the business at that worksite; and (c) the purchaser's U.I. Number, if you know it. 3. Is the list in Section 3 complete? That is, does the business operate any worksites using this U.I. Number that do not appear on the form, such as newly-opened worksites or newly-acquired worksites? MISSING WORKSITES: Provide the following information for each additional worksite. You may use available blank lines or attach a separate page. If you are not sure how to report a worksite or employee, please call the office listed in Step 5 of these instructions. a. The business name, street or physical location address (NO POST OFFICE BOXES), city, state, and zip code b. A unique description or identifier for each worksite (e.g., plant name, store number, or similar description) c. The number of employees for each month of the quarter, and quarterly wages d. The county, township, city, independent city, or similar geographic area in which the worksite is located e. The main business activity at the worksite In addition, if you purchased any of these worksites from another company, please provide: f. The name of the company that sold the worksite g. The effective date of the sale, and h. The seller's U. I. Number, if you know it. 4. Complete the Totals section at the end of the list. For each month, sum the number of employees at all worksites. Then sum the wages for the quarter at all worksites. Except for rounding, these figures MUST agree with the totals on your Quarterly Contributions Report. 5. Using the enclosed envelope, return your completed form to: UTANA DEPARTMENT OF LABOR AND INDUSTRY DIVISION OF RESEARCH AND STATISTICS - QCEW 12345 CENTER STREET, ROOM 200 SOMECITY, UA 12345-9876 PHONE: 1-123-321-4321 FAX: 123-321-4421 .00 PURPOSE OF THIS REPORT COMMENTS: Note: The totals MUST agree (except for rounding) with your Form QCR-1234. TOTALS | | | | .00 ---------------------------------------------------- ________________________________________________________________________________________________________ CONTACT PERSON (for questions regarding this report). INTERNET: http://www.utana.dol.gov GENERAL INFORMATION Please print. NAME: __________________________________________ TITLE: ______________________________________________ VOICE PHONE: (____)______________ Ext.__________ FAX NUMBER: (____)______________ DATE: _____________ This Multiple Worksite Report (MWR) collects employment and wages by individual work location in this State. If you operate businesses from more than one location under the Unemployment Insurance Account Number (U.I. Number) shown above, the MWR supplements your Quarterly Contributions Report. Data from the MWR enable our agency to monitor and analyze conditions of business activities by geographic area and industry in this State. The information collected on this form by the Bureau of Labor Statistics and the State agencies cooperating in its statistical programs will be used for statistical and Unemployment Insurance program purposes, and other purposes in accordance with law. TIME OF COMPLETION We estimate that this form will take from 10 minutes to 60 minutes to complete per response, with an average of 22 minutes. This includes time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing this information. If you have any comments regarding these estimates or any other aspect of this form, send them to the Bureau of Labor Statistics, Division of Administrative Statistics and Labor Turnover, Room 4840, 2 Massachusetts Avenue N.E., Washington, D.C. 20212. You are not required to respond to the collection of information unless it displays a currently valid OMB number. MWR Web Collection • 4 “test” States in 1Q 2006 • Limited solicitation • Expanded to all “eligible” employers in 3Q 2006 in test states • Expanded: • 18 States in 4Q 2006 • 27 States in 1Q 2007 • 30+ States in 2Q 2007 41 MWR Web Results to Date 42 Quarter Employers Worksites 3Q 2006 920 6300 4Q 2006 2000 13229 1Q 2007 3255 20384 Key Web Collection Factors Factor Collection mode Collection mode (cont.) Collection Frequency Employer Familiar With Form 43 ARS MWR Paperdecentralized (States) Paper-decentralized (States) -Annually- once every 3 years (4) No Electronic-centralized (EDI Center) Quarterly Yes Central MWR Electronic Processing Facility • EDI Center, based in Chicago, IL, is a facility designed to collect data electronically from large, national firms • In 4Q 2006 100 enterprises encompassing: • • • • 44 210,469 worksites 8 million employees 7640 Legal entities (EINs) – Federal 9400 Legal entities (UINs) - State Strategies to Reduce MWR Data Collection and Processing Costs 1. EDI Center • Expand collection to include more large, national companies and move into medium sized employer market 2. MWRweb • Expand collection to include all States and small to mid-sized multi-unit employers 3. MWR Paper Form • Utilize a contractor to create a Central MWR Processing Facility (similar to CARS) in FY 2009 • Use a scan-able type form for all “paper” respondents 45 Proposed Strategies Continue work with : • Payroll/Tax Software Developers • Payroll/Tax Outsourcing Firms - For inclusion of MWR electronic reporting in their software or as a service for their clients • Integrate ARS NVM survey with businesses using MWR web Collection 46 Proposed Strategies for Improving Industrial Coding Improve Quality of Initial Codes for New Employers • Review State SDFs • Review SDF procedures • Pursue automated employer self-coding system Goal: • Assign correct codes at initial registration • Only deal with actual changes in employer’s economic activities 47 Summary • Centralize data collection for both surveys • Use electronic collection where costeffective • Use scanable type forms where employer insists on paper reporting 48 Redesigning Data Collection Strategies for CostReduction in Two Bureau of Labor Statistics Surveys For additional information contact: Michael A. Searson Searson.Michael@bls.gov 202.691.6469 U.S. Bureau of Labor Statistics Postal Square Building 2 Massachusetts Ave., NE Suite 4840 Washington, DC 20212-0001 www.bls.gov 49