Narrative: a. 3.

STATE PLAN NARRATIVE

A. OVERVIEW

In July of 2013 Massachusetts launched UI Online, a web-based, self-service benefits system designed to improve the customer service experience and overall service delivery to UI customers. For the last five years, we have been working to improve and enhance the UI Online system in order to deliver on its promise. Much of the improvement we have seen is attributable to both more effective incorporation of the system into our business processes and improvement in the functioning of the system. While we have benefitted from our staff becoming more accustomed to these changes and improved communication with our claimants, including in their primary language, more work must be done. During FY19, we will be conducting an internal review of our online system to determine, over the long-term, the best pathway forward for our program and the services we deliver to our customers. While that work is underway, in parallel, we will be executing to our strategic plan.

This Plan focuses on:

• Improving the Measurement and Management of our CAPS;
• Focusing on the core UI program fundamentals;
• Maintaining the progress we have made; and
• Targeted, prioritized plans to get better

Mass DUA’s values, philosophy, and vision are captured in our Mission Statement:

Our job is to get it right the first time, and to do so timely, while:

• Delivering friendly and professional service to all of our customers;
• Protecting the UI Trust Fund, and combating fraud in all forms;
• Reliably assisting claimants with temporary income replacement and re-employment efforts;
• Helping businesses grow and prosper in Massachusetts; and
• Equipping our team with tools and training to empower our staff and challenge them to be the best.

Like many UI programs nationally we are faced with reduced resources due to a strong economy. In March of 2016, we announced a reduction in force and closed two of our call center offices. During that time, DUA engaged Accenture to assist in the review of our call center operations, tax processes and UI system operations. Their work helped quantify needed remedies, advocate for service delivery changes and gave the agency a roadmap for ongoing improvement and planning for a more flexible workforce.

Today, we continue to implement a number of the recommendations made by Accenture. However, by the end of calendar year 2018, we anticipated closing a third call center location, as the lease agreement in that location is expiring. The recent reduction of our administrative funding, and unclear funding future, has presented us with some challenging financial and management decisions. We will continue to operate two call center locations, and are pleased to be begin working with Zelus, who will be assisting us with a business process redesign and call center optimization effort. This work began in September of 2018 with the intent of implementing additional strategies in FY19.

In March of 2017, our organization experienced the sudden and unexpected passing of our former UI Director. This loss impacted the DUA team in a profound way both personally and professionally. After taking the time to mourn this loss, we have since regrouped, changes have been made at key leadership positions, and the important work that we do is moving forward. DUA has a new UI Director as well as new senior leadership in the Benefits, Tax, and Legal areas. The reconstituted leadership team is working together as a cohesive unit and delivering results. DUA has had two large project successes to build from.

November of 2017, DUA migrated its UI Online system and Data Warehouse to the cloud, becoming the first state with a comprehensive tax and benefits system to do so. The migration was highly successful, with only minimal disruption to our customers during a planned and communicated cutover window. We now provide our users with a more reliable and secure platform to conduct business and deliver services.

Second, in the Spring of 2018, DUA implemented a new state mandated employer tax called the Employer Medical Assistance Contribution Supplement assessment. The new assessment required the drafting and filing of new regulations as well as the building of new functionality in the UI Online system. This work was completed on time and, in line with our Mission Statement, was done right the first time. Our collections are strong and our successful customer service delivery model in this area is being replicated across the UI Tax teams. This project, while complicated and challenging, presented an opportunity for our newly restructured team to work on a project with a tight statutorily defined timeline and show that by working together we can deliver results.

Going forward, by working together, we are confident that we can improve our program performance to a level that the people of Massachusetts both deserve and expect. We have no intention of continuing on as a high priority state. We have the experience, commitment, and plan to become a high performing state. Changes have been made, and more are coming. Business process redesigns to make timely first payments and timely non-monetary determinations have been implemented with further optimization, increasing scrutiny, and deeper evaluation imminent. Significant projects are already underway in the Revenue Enforcement and Program Integrity areas. A brand-new building to house call center and hearings operations is being designed for our Brockton location, with construction scheduled in late calendar year 2019. We are optimistic about our future, both in the near and long term. We have a plan to achieve and sustain success. It is outlined herein.

FY 2020 Update:

As we begin the second year of the two-year cycle, and continue all of the work outlined in our year one submittal, we take this opportunity to provide an update on four major initiatives underway at DUA.

First, DUA has completed the internal review of our online system referenced above. During that exercise, we discovered that the opportunity exists to streamline the user experience for our customers and thus, we have embarked on a new strategic direction. On August 16, 2019, the Massachusetts Executive Office of Labor and Workforce Development published a Request for Information (RFI) to begin the process of examining future possibilities. The purpose of the RFI is to gather information from consultants and advisors in the following areas: a) strategically redesigning business processes to maximize effectiveness; b) delivering a recommendation for a customer-focused multi-agency technology system; and c) creating a data management strategy and plan that results in valid data on an ongoing basis. A copy of the RFI was shared with members of both the USDOL National and Regional offices shortly after publishing.

Second, DUA is nearing the completion of a major technology project in our existing UI Online system that will significantly improve our Revenue Collections and Enforcement effort. These improvements include the implementation of both the Federal and State Tax Intercept programs, among a number of other functionality upgrades. Most of the work on this project was completed in August, with remaining items scheduled for deployment in early Autumn 2019.

Third, DUA began a new UI Online technology improvement project aimed at improving our timely first payment and time lapse metrics via smarter workflow assignment logic. The intent of this work is to align system workflow assignment logic with state and federal performance goals, increase visibility into and accountability for the completion of tasks, and to provide improved reporting to support management decision making. It is anticipated that this project will be completed by the end of FY 2020.

Fourth, DUA is deeply engaged with the NASWA Integrity Center in a combined effort to reduce the UI Improper Payment Rate in Massachusetts. Members of the Integrity Center have made multiple on-site visits with the DUA team and have delivered an extensive set of recommendations for consideration. These recommendations range from policy changes to training initiatives to technology improvements. These recommendations were formulated into an action plan to be executed in the upcoming year. Final signoff of the plan is complete, and the project work is underway.

B. FEDERAL EMPHASIS (GPRA GOALS)

Improving State Capacity to Administer and Operate the UI Program Effectively

We have a mission statement at DUA which drives our priorities. Timely First Pay, Timely Hearings, Employer Registration, Overpayment Detection, and Collections Metrics are a few of the many agency-wide standards for success included in the Management Goal and Performance Reviews for every manager at DUA. All Managers are all being measured based on the success of the whole, as well as their individual contributions.

To emphasize the importance of program performance, in Massachusetts, the Director of our UI Performs Department was reassigned and that department now reports directly to the UI Director. The UI Performs Department is responsible for leading our BAM, BTQ, TPS, and Data Validation effort. In addition, a new Director of Benefit Performance, with many years of UI program experience, was hired from the USDOL Regional Office to bring a new perspective to our team. These two departments now conduct regular and mandatory crosswalk meetings to evaluate program performance, make effective use of available data sets, and provide program improvement recommendations to the UI Director.

In addition, DUA quickly and enthusiastically embraced the UI State Self-Assessment Tool. We have dedicated an experienced and knowledgeable full-time supervisor to this work and embedded this person within our UI Performs Department. We are well on our way to completing all fifteen functions by the April 2019 deadline, with nearly half of the work already submitted. The Self-Assessment work was made a priority by senior leadership with full cooperation an expectation. Operational improvements have already been identified, particularly in the initial claims functions, and more good work is anticipated. We have invested in this tool, and results are already being realized.

In 2016 DUA worked with Accenture to develop a capacity model of claims-taking and adjudication, so we can use flexible staffing in the future, to better deal with seasonal needs. This capacity model has been helpful during the annual peak periods in our business cycle and we will continue to use it in the foreseeable future. In September of 2018 we began working with Zelus to add onto the work already done with Accenture and further examine how we can do more with less in a dwindling funding environment. We continue to emphasize the importance of making payment when due, and our upcoming business process redesign initiative will be conducted with that goal at the forefront.

In August of 2017, at our request, we engaged with the NASWA UI Integrity Center and asked members of their team to perform on site Integrity Services. Four experienced UI subject matter experts visited with our team over the course of four days to examine our BPC and Tax Collection departments. At the end of calendar year 2017, the NASWA team delivered a comprehensive report to the UI Director complete with actionable and realistic goals for program improvement. We have since turned that report into a project plan, with items prioritized and implementation timelines determined. Today, we are marching forward with this plan, with the recent implementation of a credit card payment option for claimant overpayments a notable success.

We communicate regularly with other states and we will continue to collaborate with peers to find best practices across our organization. This continuous expansion of our professional networks and contacts has led to a recent partnership with the states of Florida and New Mexico on a disaster recovery agreement where, in the event of a disaster, we have agreed to assist one another with claim intake. A copy of this agreement has been shared with the USDOL Regional Office and we would be pleased to discuss with others how we arrived at this agreement. These collaborations are often inspired by and initiated through conversations and conferences with NASWA, the UI Integrity Center, ITSC, the Regional Office and others. They are invaluable and DUA will continue to be engaged in these opportunities.

Staff training continues to be an area of much discussion and we are exploring different ways to be successful. An internal, fully comprehensive, centralized training department continues to be our need and our vision. Much of our internal training has historically been focused on initial claims and adjudication training programs and we are in the process of fully updating our adjudication handbook. While those trainings are important, the UI program is made up of many interconnected parts, and training should be offered in all areas. In June of 2017 we hosted on site Fraud Investigator training offered by the UI Integrity Center, and earlier this year sent additional team members to the in-person Fraud Investigator training in New Hampshire. We are pleased to see more online course offerings through the National Integrity Academy and expect to continue to take advantage of those certificate programs.

As agencies evolve, staffing changes are needed and retirements inevitable. DUA has begun the process of identifying junior leaders, providing them with project leadership and promotional opportunities. Rosalin Acosta, Secretary of the Massachusetts Executive Office of Labor and Workforce Development, implemented a “Chat on 21” initiative where, on a monthly basis, her agency heads are asked to select a member of their organization to meet with the Secretary for an informal chat, ask her about the Secretariat vision, and so on. DUA has leveraged the Chat on 21 initiative to provide junior level performers with executive level exposure. This initiative has been very well received and provides potential junior leaders with an opportunity they might not otherwise experience for many years down the road.

Improving Prevention, Detection and Recovery of UI Improper Payments

Massachusetts is deeply engaged with the NASWA UI Integrity Center and views the UI Integrity Center as a critical partner to our success in this area both in the immediate as well as on a going forward basis. We are in regular attendance at the NASWA National Integrity Conference, have participated on the planning committee for the conference, and recently were asked to be a guest panelist. As stated previously, we have already taken advantage of on-site Integrity Services, have both hosted and attended Academy classroom trainings, and were an early sign on state for the Suspicious Actor Repository, or Data Hub. We are very much at the table for all UI Integrity Center conversations and enjoy regular contact and communication with our regional liaison.

In addition to our work with the UI Integrity Center, we are in the process of reviewing and implementing updates to the weekly certification questions offered online and via the IVR. Claimant compliance with our states work search requirements is an area of focus, and our expectation is that reworking some of the language in the questions will capture more results and diminish overpayments.

Recent outreach efforts with organizations like the Association of Unemployment Tax Organizations, ADP, Equifax, and others have opened lines of communication and provided opportunities to reintroduce important topics like adequacy and failure to timely respond. We have had some recent success with Equifax in particular with respect to timely response, and future conference calls are scheduled with members of AUTO to spread a broader message, provide opportunities for feedback and the exchange of ideas. Massachusetts is not currently participating in the State Information Data Exchange System but remains open to a dialogue on that subject as we evaluate our online system in the coming year.

Revenue Enforcement has been prioritized as the major area of focus for our organization during the second half of calendar year 2018 and into 2019. The tax portion of the UI Online system was implemented in December of 2009. Since its inception, there have been pieces of that functionality that have required improvement. We will be investing significant agency resources to this area and have set out a ten part project plan to improve enforcement overall. These include a major upgrade to the tax UI Online system functionality, participation in both the State and Federal tax intercept programs, multiple licensing enforcement partnerships within the Commonwealth, and a number of other critical projects designed to improve collections and accounts receivables. We have already implemented a credit card payment option, instituted a court judgement program through our legal department, and partnered with multiple sheriff counties on an incarceration data initiative.

Improving Program Performance

DUA believes in accountability and we share our results routinely with the Regional Office, as well as the Mass Secretary of Labor, to show where we are in our metrics. We report these metrics to our team often, including some on a daily basis in stand-up meetings across the claim centers.

As stated above, DUA is also a strong proponent of the UI Performs programs. We have both invested in those programs and raised their profile within our organization. There is a natural connection between the BAM program and BPC. Leadership in those areas now meets regularly to improve our program. We have a Data Validation Steering Committee which includes the UI Director. Bi-weekly meetings are held, DV progress is tracked, and numerous enhancements relative to DV have been implemented in the UI Online system in recent months. We have a strong appreciation for the Data Validation program and are committed to being measured so we know how to get better.

Importantly, we incorporate learning from the BAM and BTQ programs, as well as TPS and DV, into our operations. BTQ is linked to our Policy, Training and Call Monitoring programs, to ensure a full picture to best learn and train. We have placed an importance on the UI State Self-Assessment Tool where we are both proud of our progress are actively using the tool to improve.

DUA acknowledges its current high priority status and cares very deeply about program performance improvement. The State Quality Service Plan, and the Corrective Action Plans in particular, are compiled through the efforts of many people across the organization. To validate its investment in the SQSP process, Massachusetts participated as a pilot state for the new CAPS workbook when it was introduced several years ago. Our quarterly CAP updates are routinely submitted on time and we welcome additional technical assistance from our colleagues at the regional office as we work on our joint commitment to performance excellence.

Workforce Innovation and Opportunity Act (WIOA)

DUA is party to every local workforce MOU on WIOA and has signed onto the Combined Plan for Massachusetts. While admittedly challenging to participate actively in all the planning sessions of the 16 Workforce Boards, DUA is working to ensure both our voice is heard and our concerns are met in these discussions. We are dedicated to the program and will continue to be a primary partner in all the MassHire Career Centers.

We worked with our partners to ensure we met the requirements of wage matching for their WIOA reporting, in accordance with Federal and Massachusetts law and regulation. DUA signed MOUs with WIOA partners for data sharing and ensured we provided the data needed for our partners to comply with WIOA reporting requirements.

DUA has a long history and a current continued commitment to provide walk-in service across the Commonwealth, within career centers. Beyond the requirements of WIOA, UI services are available at career centers plus one UI-only walk-in center in Boston.

This year, we reduced the amount DUA funded to those career centers and our future funding levels are uncertain due to recent administrative funding reductions. Our existing service delivery model is under review, with important conversations upcoming during the fall of 2018. We continue to believe that a deeper integration between UI and Reemployment Services is needed and are excited about some of the innovative ideas that are on the table for discussion internally.

We are continuing our work with the MassHire Department of Career Services (MDCS) and other WIOA partners on a common intake system, which will allow registration for work along with the beginning of the claims process. With nearly 80% of our initial claimants using UI Online, we are prime candidates to integrate our claimants with MDCS for an electronic registration and assessment system. In the coming year, we anticipate introducing online resume builder job matching software to UI claimants.

A law change in 2016 allowed DUA to more freely share information with MDCS, to help them achieve their goals. While confidentiality rules apply, this strengthened our partnership with our sister agency, and makes collaboration with MDCS for WIOA much smoother. The career centers in Massachusetts are currently in the midst of an exciting and game changing rebranding initiative. Under the new brand, called MassHire, all career centers will have a singular name bringing unity and a joint vision to a large and integral workforce system.

Other places we have and will continue to partner with MDCS in the spirit of many of our joint programs include: Workshare, RESEA, TRA/TAA, Rapid Response, and the Training Opportunities Program (Section 30) that provides extended UI benefits in conjunction with MDCS approved trainers. We continue to employ a DUA/MDCS Integration Manager, who co-leads bi-weekly DUA/MDCS meetings, further underscoring the value of our partnership and recognizing the important work we can only achieve together.

Reemployment of UI Claimants

Massachusetts has a strong RESEA program and we are expanding our efforts in this area, as referenced above. Our work in a common intake system, while available for WIOA, is inspired by our desire to get job seekers connected with MDCS immediately, as part of an integrated benefit process.

A recent law change in Massachusetts extended the application period for Section 30, to 20 weeks from 15. This highlights a work-around which we want to remedy. A redraft of the Section 30 regulations is nearly complete, with approval from the DUA Advisory Council anticipated as of the fall of 2018.

Claimants should not wait 15 or 20 weeks to understand if they need training to close a skills gap, but the best way to get them into training or back to work fast is to reduce the amount of time it takes to move from DUA to MDCS and into the training or job market. Online skills assessments, integrated resume development, and immediate LMI are just a few of the ways we are looking to expand services for UI job seekers. We are also taking a secretariat wide view of our reemployment goals, and in the last year engaged the American Institute for Full Employment. They performed an on-site visit, interviewed team members working on the RESEA program, and delivered a report containing program recommendations. That report is under review at the secretariat level with a review of our UI and career center service delivery model underway.

Improving Data Validation and Federal Reporting

As mentioned above, DUA has placed a high level of importance on the work being performed by our UI Performs Department. The Director of the UI Performs Department reports directly to the UI Director, and the UI Director attends bi-weekly Data Validation Steering Committee meetings to track DV progress.

DUA understands the value of having clean and reliable data, not only for internal but also for external stakeholder use. In the last year, we have hired additional resources to work on system updates required by and discovered through the Benefits and Tax Data Validation programs. A new project manager was brought in to facilitate improvements to the UI Online system and our Data Warehouse. With the recent retirement of our SUN System Coordinator, we are considering new and innovative ways to backfill that position to better leverage the work that the UI Performs Department is producing and the significant amount of data that is being processed.

DUA is fulfilling its duty to implement a DV program and report results.

Addressing Worker Misclassification

Massachusetts participates in CUE (Council on the Underground Economy) activities, with a sole focus on uncovering and remedying worker misclassification. DUA works on referrals from a number of sources, including the IRS, OSHA and RMV. Further, our focus on this over the years has yielded excellent results in our tax audits.

We have undergone changes in leadership in our tax area, including a new Boston Audit Supervisor, a new Manager of Audit and Revenue Enforcement, and a new Director of Revenue. Through all these changes, we continue to improve the efficiency of our audits, and have provided our audit staff with updated laptops and other equipment. We are proud to have achieved a level of sustained success in this area.

Strategic Goal – Make Timely Benefit Payments

Target: 87.0 percent of intrastate first payments for full weeks of unemployment compensation will be made within 21 days from the week ending date of the first compensable week.

This is a fundamental tenet of UI, and making payment when due remains our primary goal. The Accenture recommendations, stated earlier, offered a service delivery model focused on TFP teams with adjudicators empowered to work all the issues on the claim. By moving to this model, DUA saw gains in our timely first payment metric, and sustaining these gains is the top item on our agenda. We will continue to tweak our model while continuing to make long term investments in our existing online system. We are excited about our upcoming business process redesign engagement, where timely first payment will be the objective, and additional procedural recommendations to achieve our goals are anticipated.

In our call center environment, where most of our non-monetary issue resolution work is being performed, we have placed a renewed emphasis on the role of the call center supervisor. Each call center supervisor is responsible for running a team, and the supervisor is being held accountable for the overall performance of their team. Important duties like coaching and teaching have been re-prioritized and are no longer being left to subordinate junior supervisory staff. One on one coaching sessions, remedial development plans, and the use of other such tools are part of the expectations we have for our call center leadership.

While we focus on timeliness, we are committed to preserving our improvements in quality. Any sustainable process to ensure timeliness must also ensure quality standards are met. There must be a balance. To that end, we are overhauling our adjudication handbook in order to provide our adjudication staff with current, updated policy information and clear instruction. The BTQ process will continue to be used as a tool for adjudication quality improvement and improved communication around that program is a must.

We instituted a policy change to our pre-date processes, which was identified as a cause for missing a timely first payment. We also implemented robo-calls reminding claimants to certify for weekly benefits, as we found at one point that more than 10% of timely failures were attributable to people not claiming the weeks. While some of those have helped, there is more to do.

More specifics of our Plan can be found in the Corrective Action Plan and Narrative for First Payment Promptness.

FY 2020 Update:

We are pleased to share two notable and significant updates on our progress from last year.

First, while continuing to maintain an eye toward future possibilities, DUA has indeed kept its commitment to continue to invest in our existing online system. In June, we signed a new Task Order with our maintenance contract vendor to begin a project aimed at improving our Timely First Payment and Time Lapse metrics. The original design of the UI Online adjudication issue assignment logic prioritizes the oldest unassigned issues first. This design makes it challenging to achieve the 87.0 strategic goal. Today, and in line with the recommendations previously received via our engagement with Accenture, our team manually reassigns work to our adjudication staff, fighting the original design of the system, in order to meet Timely First Payment and Time Lapse dates. While this has led to gains, it comes with switching costs and inefficiencies. The Automated Issue Assignment project will update the UI Online system to enhance the business logic to classify an adjudication issue in defined categories. This project will change the current logic to ‘drop’ ready-to-work issues into an adjudicator’s inbox based on date-driven categories. This will allow DUA to automatically align work assignments with State and Federal goals and will help ensure that issues are assigned to the most qualified adjudicators. Additionally, all issues on a given claim will be assigned to the same adjudicator, bringing a claim-based, versus issue-based, approach to claim processing.

Second, we completed our Call Center Optimization engagement with Zelus Consulting, and currently are in various stages of implementing some of their recommendations. Our focus, initially, and due to an expiring lease, was on successfully relocating our Call Center team from our Lawrence location to our Boston location. This transition is complete and, while the move was difficult, today our call center operation is more cohesive and less siloed than before. Once behind us, we began filling long-needed positions on our adjudication teams, which we believe will increase our ability to make timely benefit payments over the long term. Zelus recommended building out a forecasting model and defining our long-term forecasting goals. The forecasting model will help us annualize seasonal patterns and staffing alignment, assist with staff out-of-office time management, and help us strategize for the mitigation of workflow item buildup during seasonal volume spikes. This work is underway, and the first iteration of the model is expected to be delivered in October. Also underway is the development of a contact center management fundamentals training program for supervisors and managers. This work is being spearheaded by the Massachusetts Human Resources Division and has a deliverable target date of early calendar year 2020.

Strategic Goal - Detect Benefit Overpayments

Target: Overpayments established will be at least 61.9 percent of the estimated detectable, recoverable overpayments.

Like most states, detectable overpayment failures are most frequently worksearch failures, and as such Massachusetts is taking steps to remedy this problem. Nearly 80% of claimants use UI Online to file claims. Most also use UI Online to claim benefits each week. DUA is interested in behavioral science, and specifically the use of nudging, and will be bringing in a User Journey resource effective October of 2018 to begin an effort in this area. We are also in the midst of reviewing our weekly certification questions, as we believe changes to the phrasing of our questions will reduce overpayments.

As mentioned throughout, DUA will continue to remain engaged with the UI Integrity Center on future offerings while we implement the many recommendations, they made in their report delivered in December of 2017. Please see our Integrity Action Plan for additional insights.

FY 2020 Update:

DUA has been heavily engaged with the NASWA Integrity Center and views them as a critical partner to our success in this area. As noted in the Overview section above, the NASWA Integrity Center has been on-site at our invitation on multiple occasions during the last year. The Center has recently delivered over twenty recommendations that we believe will improve our UI program, including reducing overpayments. As part of this engagement, we have been working with a Behavioral Insights vendor. Current behavioral intervention recommendations under discussion include claimant email reminders about weekly work search requirements, tailored advice on earnings requirements, and emphasizing work search requirements and engagement with material in our claimant guide. Our plan will be finalized in September, with some recommendations targeted for completion as early as October.

We have completed our review of our weekly certification questions. System changes are in development and were promoted into the UI Online and IVR systems before the end of calendar year 2019.

We also completed several User Journey mapping exercises for jobseekers, employers, and Third Party Agents. User Journey mapping means charting, step by step, everything a person has to go through in order to achieve an objective. The User Journey work is being used to inform DUA in many ways, including our agency future state vision, but so far has led to the development and implementation of two products. First, we developed benefit calculators to assist claimants with accurate reporting of wages as well as helping them estimate potential benefits. Second, we developed a Quick Guide for claimants to use as an immediate resource upon job separation. The Quick Guide uses clear and plain language to inform claimants of the work search and weekly certification requirements. Both the benefit calculators and the Quick Guide can be accessed on the Mass.gov website. We will also be providing a printed version of the Quick Guide in our Walk-In Center as well as all of the MassHire Career Centers. Since both products are new, it is too early to determine whether or not they have impacted this measurement. To read more about our User Journey work, please visit the Massachusetts Digital Service blog at https://medium.com/massgovdigital/mapping-user-journeys-for-a-better-workforce-system-in-massachusetts-6080b1d07006.

It should be noted that our performance level is not currently being truly measured due to the reporting deficiencies relative to the ETA 227 report. Please see the Reporting Deficiencies section for a further update on our progress on the ETA 227.

Strategic Goal - Establish Tax Accounts Promptly

Target: 89.0 percent of status determinations for new employers will be made within 90 days of the end of the first quarter in which liability occurred.

Massachusetts has failed to reach the target of 89% of new employer status determinations resolved within 90 days of the first quarter in which liability occurred largely due to employers failing to register in a timely manner. We have implemented several strategies designed to prompt employers to register with DUA and begin paying contributions when they are due.

DUA utilizes the following cross-matches with other state agencies to obtain information on possible employers subject to registration:

• Newly registered corporations (and LLC’s) from the Secretary of State’s office
• All new and transferred liquor licenses issued by the Alcoholic Beverage Control Commission
• Corporations with active licenses from the Department of Licensure
• Quarterly reviews to identify employers that have filed withholding tax with the Department of Revenue, but are not registered with DUA
• DUA has an agreement with the Massachusetts Lottery Commission to cross reference the list of current lottery vendors to verify registration as an active employer if subjectivity applies
• DUA is working towards an agreement with the Massachusetts Registry of Motor Vehicles to cross-reference the list of current businesses holding commercial license plates to verify registration of an active employer if subjectivity applies.

DUA has new leadership in place at multiple levels within our tax department, including a new Director of Revenue. While establishing tax accounts promptly is an important goal, and our performance numbers are a notch below where we want them to be, our initial effort in our tax area will be centered on making long overdue improvements to our revenue enforcement and collections area. DUA has embarked on a ten point plan to improve our accounts receivable, which includes a significant financial and resource investment into repairing revenue enforcement functionality in the UI Online system. We will be improving the UI Online system, implementing the Treasury Offset Program for employers, a State Tax Intercept program for employers, and a number of other tools aimed at improving our bottom line. These projects were expected to be completed in early calendar year 2019.

While this work is ongoing, DUA will also be working on improvements to the Employer Registration process to reduce downstream manual work in our Economic Research and Finance departments to ensure these are accurately and efficiently handled by DUA.

FY 2020 Update:

The Massachusetts Percent of Employer Tax Liability Determinations Made Timely is currently at 88.08% compared to the Government Performance Results Act (GPRA) Targeted Level of 89.6%, a variance of 1.52%. Employers register their accounts in the UI Online system and are issued a tax liability determination at the time of registration, provided that they indicate that they have met the thresholds for tax liability.

If the employer indicates that they have not met the threshold at the time of registration, they do not receive a determination of liability at the time of registration. Once the employer submits wages, and provides notification that they have met the threshold, a liability determination would be issued. In the event an employer does not provide notification, a quarterly review of all non-liable accounts that submitted wages is manually completed by staff and determinations are issued to those accounts that have met the threshold. Since this review process is manual it can impact the timeliness of our Employer Tax Liability Determinations.

Massachusetts will continue to strive to increase our percentage of Timely Employer Tax Liability Determinations to the meet or exceed the targeted goal of by implementing the following steps:

1. 1. 1. 1. Introduce a monthly review of non-liable accounts that have submitted wages and issue determinations to those accounts that have met the liability threshold.
         2. Continue with the quarterly review of non-liable accounts that have submitted wages and issue determinations to those accounts that have met the liability threshold.
         3. Continue working toward an online automatic system validation of Employer Liability Determinations post registration.

Strategic Goal – Employment Rate at 2nd Quarter After Exit

Target: TBD

Massachusetts DUA and MDCS agencies are working together to maximize success in this area. Directionally we are aligned, and DUA is committed to helping drive some practices and policies which encourage the robust interaction of our claimants with MDCS and their nearly 30 career centers, as early as possible in the claim. Further, we want to see technology leveraged to make that interaction efficient and focused for both the staff and the claimant – to minimize paperwork and maximize re-employment assistance.

Our long partnership in the Reemployment Services and Eligibility Assessment (RESEA) program and REA programs have demonstrated the commitment we share in getting job seekers back to work. DUA has taken a larger role in that, helping ensure the program is truly owned by both agencies, and sanctions for failure are meaningful.

We are working together on a common electronic front door, allowing and encouraging claimants to get registered for work immediately. With nearly 80% of claimants filing online, we feel strongly that large segments of our population can be well-served by a more rigorous electronic system, not just for registration, but for assessment, resume development, labor market information and job matching. Much of this can and is done today, but a common intake between MDCS and DUA will ensure ease of access for those able to leverage the technology.

We are also working to transition to a profiling model, and away from a screening process, and have requested assistance from both the Regional and National Offices in order to achieve this goal. A profiling model, appropriately weighted and measured, allows us to deliver a more targeted approach to identifying those requiring more intensive services in order to return to work.

C. PROGRAM REVIEW DEFICIENCIES

N/A

D. PROGRAM DEFICIENCIES

N/A

E. REPORTING DEFICIENCIES

1. ETA 227 - The coding changes needed to make the ETA 227 report tie correctly remain outstanding. DUA acknowledges the importance of this report and the seriousness of the report deficiency. Over the course of the last year, DUA has engaged with both the USDOL Regional and National Offices, as well as colleagues in the State of Florida, to explore interim solutions until the programming changes could be implemented. Those discussions did not result in a successful transmission of the missing reports by DUA. Significant programming changes are needed to our UI Online system in order to accurately report the ETA 227 data. DUA hired a developer to assist with this effort and the work needed to make the ETA 227 accurate should be completed during the strategic plan period.

FY 2020 Update: With the assistance of the USDOL National Office, the ETA 227 reports for Q3 of 2015, Q4 of 2015, Q1 of 2016, and Q2 of 2016 were recently successfully loaded into the Sun System. The loading and submission of all subsequent reports are now imminent and were expected to be completed by the end of September 2019.

Additional FY 2020 Report Deficiency:

2. ETA 191 - Financial reports are completed by the Finance Department, a shared services unit within the Massachusetts Executive Office of Labor and Workforce Development (EOLWD). The ETA 191 reports were not prompt on various occasions due to EOLWD transitioning to a new bank during the year, which required the realignment of data collection points as well as data quality checks. The bank transition is over and the process has fully stabilized. Reporting is now being done timely.

Additional FY 2020 Report Deficiency:

3. ETA 2112 - Financial reports are completed by the Finance Department, a shared services unit within the Massachusetts Executive Office of Labor and Workforce Development (EOLWD). The ETA 191 reports were not prompt on various occasions due to EOLWD transitioning to a new bank during the year, which required the realignment of data collection points as well as data quality checks. The bank transition is over and the process has fully stabilized. Reporting is now being done timely.

F. CUSTOMER SERVICES

N/A

G. OTHER

N/A

ASSURANCES

The State Administrator, by signing the SQSP Signature Page, certifies that the state will comply with assurances as outlined in ET Handbook 336, 18th Edition: Unemployment Insurance (UI)State Quality Service Plan (SQSP) Planning and Reporting Guidelines, Chapter 1, Part VII: Assurances.

Assurance of Contingency Planning

In 2012 an independent consultant was engaged to modify the IT Contingency Plan. This modification took into account the changes to contingency planning with the new system architecture. This work was completed in June of 2012. This plan is reviewed and updated to reflect system modifications and personnel changes; the most recent update was in April, 2017.

Assurance of Automated Information Systems Security

In 2011, an independent consultant was engaged by DUA to perform a risk assessment. This assessment was completed in July 2012 and consisted of an assessment of the UI Benefits system, an assessment of the UI Online Revenue system, an assessment of the EOLWD Telephony system, and an assessment of the UI Fraud Prevention and Detection System involving National Directory of New Hires.

DUA also reviews the SSP and updates accordingly. DUA last reviewed and updated the plan in September of 2017.