Welcome to the August 16, 2005,
issue of BullsEye, the On Point Technology newsletter. Our goal is
to keep you up-to-date on the latest unemployment insurance news
and developments at On Point Technology.
In this issue:
Woody Tucker joins On Point Technology team
On Point Technology is pleased to announce that Floyd "Woody" Tucker has joined the team. A graduate of Randolph-Macon College, Woody spent more than 30 years with the Virginia Employment Security Commission. He started his career as a claims adjudicator and rose through the ranks to become Chief of Benefits, a position he held from 1984 until his retirement from government service this summer. In addition to providing direction and oversight to staff members in 40 field offices, Woody has served as a member of NASWA's Unemployment Insurance (UI) Committee and has been active in numerous national UI projects and organizations, like the General Unemployment Insurance Development Effort (GUIDE).
Many BullsEye readers know Woody personally—a lot of you for several years—and we at On Point Technology are sure that you join us in wishing Woody well in his new career and are looking forward to a continued relationship with him. Woody can be reached by phone at 804-212-6948 or e-mail at woody.tucker@onpointtech.com.
New Aware-UI Tax Module receives positive reviews at Biennial National UI Tax Conference
On Point Technology recently returned from the 2005 Biennial National UI Tax Conference, held in Boise, Idaho, August 2-5. More than 400 people attended the conference, where representatives unveiled the brand new Aware-UI Tax Module. Bob Yokavonus and Hit Mistry demonstrated three "one click" audits—SUTA Dumping, PEO Abuse and 1099 Analysis—which were extremely well received. An overwhelming number of state and federal program administrators visited the booth, many coming back to see the demo again.
The On Point Technology staff appreciates everyone who contributed to the highly successful conference, with special thanks to Roger Madsen, Mark Whitworth and the terrific Idaho Department of Commerce and Labor staff, who handled all the local arrangements. The program was well-planned and covered timely and relevant topics. Special thanks also to Rett Hensley, UI Tax Chief for the U.S. Department of Labor, and his staff, who did a terrific job of keeping things moving on schedule. We are all sorry to hear that Rett is retiring this winter, but with the success of this conference, he is certainly going out on a high point.
In addition to a top-notch program, the food was excellent and the entertainment was a wonderful experience. Idaho set a high standard for the host of the 2007 conference, but On Point Technology is already looking forward to attending.
Industry News
Workforce agencies gaining increased media attention, for better or worse — While certainly not news of the "if it bleeds, it leads" variety, national media are starting to carry articles based on federal BAM statistics that have been released by the U.S. Department of Labor. A recent article in a Seattle newspaper commented on overpayment statistics for Washington and several neighboring states—including a report of the best and worst performing state workforce agencies. They didn't publish the entire list of agency performance.
Whether we like it or not—whether it’s constructive and valuable or destructive and detrimental—news gets published. And this type of article tends to get picked up and localized in other newspapers about 10 days after the initial release. So, it looks like more is to come and the issue won’t go away until dealt with. Historically, the best way to address these types of announcements is to recognize the problem, if there really is one, and explain what is being done to solve it. On Point Technology expects that the states will have something to say on this issue, and when they do, we are ready to help them spread the word.
Do you have a fraud story you'd like to share? Let us know.
Did You Know?
As On Point Technology representatives travel around the country, participating in NASWA conferences and conducting product demonstrations for individual workforce agencies, they are continuously advised of the new developments taking place in UI benefits and tax programs. Conference participants share their UI program experiences, revealing problems that require agency attention and response. It was a series of such alerts that motivated On Point Technology to develop a new Aware module that helps agencies identify instances of employers underpaying or not filing UI taxes.
Several agencies mentioned that the abusive use of professional employer organizations (PEOs) has emerged as a significant issue—possibly rivaling SUTA dumping in impact. This is not to imply that all PEOs are engaged in illegal practices; On Point Technology participates in a PEO, but one that abides by all state and federal rules and doesn’t engage in abusive behavior for the sole purpose of avoiding paying appropriate
UI and other payroll taxes.
However, the states have observed enough problems to raise a red flag, and there are some crooked PEOs that need to be identified for audit action by state workforce agencies.
In response to these concerns, one of the "one click" audits in the Aware-UI Tax Module targets the identification of the movement of employees from non-PEO NAICS codes to the PEO NAICS code. The audit displays the NAICS code and UI tax rate of the sending employer, the PEO NAICS code and UI tax rate of the receiving organization, and the number of employees transferred, ranked from high to low. The program then displays in detail all of the identifying information of the sending employer and receiving PEO, which an auditor can use to determine which situations indicate possible abusive tactics and require investigation.
To learn more about the new Aware-UI Tax Module, or to schedule an Aware demonstration at your office, contact Bob Yokavonus at 908-526-0426 or robert.yokavonus@onpointtech.com.
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