1. 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

2. Quarterly Census of Employment and Wages (QCEW) Program
Fed/State Cooperative Statistical Program
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)

3. 4th Quarter 2006 Stats: QCEW Statistics 8.9 Million establishments
Million employment
$1.516 Trillion Wages

4. Data Coverage 98 Percent of all non-farm salary Workers in the U.S.
45 Percent of U.S. Agricultural Workers.

5. 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.

6. QCEW Collection Forms Status Determination
Quarterly Contribution Report
Annual Refiling Survey (ARS)
Multiple Worksite Report (MWR)
Report of Federal Employment & Wages

7. 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

8. 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

9. Purpose of ARS Review and Update (if necessary)
Mailing & Physical Location addresses
County code
Single/multi-worksite status
Industry code (NAICS)

10. 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

11. 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

12. Growth in Establishments Exceeds the Increase in Funds for the States
Survey of Staff Time Usage:
Data Collection and Review %
ARS
MWR
Total

13. Survey Costs Printing - Forms, Cover Letters, Flyers
Handling - Folding, Stuffing, Opening, Scanning, Filing
Postage Out & Return
$ $ .56
Review
Data Entry - Response code and updates, if necessary

14. 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

15. Three ARS Collection Forms
NVS – Single worksite accounts
NVM – Multiple worksite accounts
NCA – Unclassified accounts

16. 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

17. 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 non-response, thus reducing total cost savings

18. Potential ARS Collection Methods Impact on Survey Processes, Activities, and Costs

19. 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

20. TRS Eligibility Single worksite employers Valid NAICS code
Specific county code assigned
Good physical location address

21. TRS normally accounts for 31% of total ARS responses
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
TRS normally accounts for 31% of total ARS responses

22. TRS Lessons Learned System works very well
States advise us via 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

23. CARS

24. 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

25. 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

26. CARS Cost Reduction
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

27. FY 2007 CARS Changes
All States used same (generic) TRS Flyer to standardize printing
Expanded from 12 to 22 States
Tightened processing schedule

28. Future Plans FY 2008 Use generic state cover letters
Expect to increase to 28 states
Processing schedule shortened

29. Future Plans FY 2009 Imaging of returned forms with some updates
New contract to include printing of NVM and NCA forms

30. Old NVS Form (Double Sided)

31. New NVS Form

32. Fax Collection

33. 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

34. Web Collection

35. 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.

36. Quarterly Contribution Report (QCR)
Mandatory State Form
Monthly Employment
Total Quarterly Wages
Taxable Wages
Contributions Due
UI Staff responsibility

37. 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.

38. 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

39. 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

40. Sample MWR Form

41. 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

42. MWR Web Results to Date Quarter Employers Worksites 3Q 2006 920 6300
2000
13229
1Q 2007
3255
20384

43. Key Web Collection Factors
ARS
MWR
Collection mode
Paper-decentralized
(States)
Collection mode (cont.) --
Electronic-centralized
(EDI Center)
Collection Frequency
Annually- once every 3 years (4)
Quarterly
Employer Familiar With Form No
Yes

44. 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 enterprises encompassing:
210,469 worksites
8 million employees
7640 Legal entities (EINs) – Federal
9400 Legal entities (UINs) - State

45. 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

46. 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

47. 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

48. Summary Centralize data collection for both surveys
Use electronic collection where cost-effective
Use scanable type forms where employer insists on paper reporting

49. For additional information contact: Searson.Michael@bls.gov
Redesigning Data Collection Strategies for Cost-Reduction in Two Bureau of Labor Statistics Surveys
For additional information contact:
Michael A. Searson
U.S. Bureau of Labor Statistics Postal Square Building 2 Massachusetts Ave., NE
Suite 4840
Washington, DC