10 taxable wage estimation
Taxable Wage Estimation
The general selection of accounts for taxable wage estimation is to check the type of coverage code and the taxable wage indicator code. An account must be experience-rated (type of coverage ‘0’) in order to receive a taxable wage estimation or worksite proration. The indicator should generally show that the taxable wages are currently missing (‘M’) as well, but certain conditions (described shortly) can circumvent that restriction. In addition to the standard checks, the total wages field must be checked as well. If the account is a zero wage reporter, or if it is ineligible for processing due to delinquency, etc., it cannot be selected for taxable wage estimation.
Worksite proration of taxable wages is most often conducted when an allocation of total wages is performed, or when MWR processing has brought in reported total wage worksite data requiring subsequent taxable wages allocation. In addition to standard estimation processing, however, an out-of-balance condition in taxable wages within the family, or a redistribution of total wages without commensurate adjustment to the taxable wage data (with the exception of Minnesota), is also a trigger for reproration of the taxable wages for all or some of the worksite records in the family. This selection process is further described in the Initial Record Selection and subsequent portions of this appendix.
Once an account has been targeted for estimation of taxable wages, it will follow the processing steps described next. Otherwise, the program skips to the Contributions Estimation section of the program. Both master and single accounts are passed through the same estimation processing, described in the next paragraph. Worksite proration is conducted in a separate portion of the program code, described later.
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