Unemployment Insurance
UI Tax Project Certification
Department of Workforce Solutions
Presentation to Project Certification CommitteeDecember 16, 2009
2
DWS Project Staff: Introductions
• Business – Neil Meoni – Deputy Cabinet Secretary
• I.T. Division– John Salazar – CIO– John Hudson – IT Operations Manager
Introduction• Social Security Act of 1935 Established UI
Program
• 51-1-3 NM7A 1978 Established a process for systematic accumulation of taxes to pay qualified participants benefits during periods of unemployment
• NMDWS collects unemployment taxes from New Mexico employers on a quarterly basis, deposits those funds to a federal trust fund from which UI benefits are paid weekly to qualified applicants
• Collects over $130M annually in unemployment insurance taxes from over 54,000 employers
NM Employers Pay
Unemployment Insurance Tax
FederalTrust Fund
Weekly UI Benefits to Qualified Applicants
Introduction• Current System
– 20+ year old mainframe system– Costly to maintain – Manual process for employees and
taxpayers– Labor and paper intensive
5
Unemployment Insurance
UI Tax Project CertificationImplementation Phase
Request for release of additional fundsRequesting:
$ 9,010,000 – FF (Reed Act) $ 51,724 -- FY09 Remaining Bal
TOTAL: $ 9,061,724
ITC Certifications June 7, 2006 - $200k April 7, 2007 - $1.75M
Benefits of New UI Tax System
• Electronic scanning of paper tax forms eliminates manual data entry and improves timeliness and accuracy
• Integrated Workflow & Rules Management
• Improved on-line services for NM employers• Electronic payment processing provides improved
convenience for customers• Real-time registration & account maintenance for employers
7
UI Tax: Project Progress
• Project RFP in Award Phase– Met legislative contingency – RFP by Sept. 1
• RFP for multi-year IV&V & PM– IV&V managed through DoIT, MOU with DoIT signed– Interim IV&V contract in process, simutaneous reports to
DoIT and DWS– State PM in place pending selection of RFP award
8
UI Tax: Planning PhaseAccomplishments
• UI Tax Requirements Definitions– Tier Technologies, Inc.
• Business & Technical– Validated requirements – Albuquerque Chamber of Commerce, Taxpayer Professional
Association, and the CPA Society
• Market Analysis of possible vendors• Multi-state collaboration for best practices• Industry RFI• RFP (specifications) presented to TARC
• Redundancy, System performance specification, Network bandwidth specifications
• Webinars with Minnesota Dept of Labor to assess in-production vendor solution. December 8 & 9
9
UI Tax System Modernization Project Steering Committee
Neil MeoniProject Sponsor
Casandra EnciniasBusiness Owner
Jason LewisAdministrative
Oversight
John SalazarTechnical Owner & Steering Committee
Chair
Clyde DeMerssemanLegal Counsel
UI Tax Vendors
Technical SMEs
Business SME’s
External Stakeholders
UI Tax Project Manager
Lloyd GarleyBusiness Owner
DoITProject Oversight and Compliance Division
IV&V Contractor
Timeline
July 2009
August 14, 2009
December 15, 2009
June 30, 2010
2011
2012 - 2013
Finalize UI Tax System RFP & Requirements Validation
Issue RFP for UI Tax System
Contract Award
Hardware & Framework purchased and delivered to ensure that $9.01 of Reed
Act Appropriations is applied to the project
Employer Self-service Module Implemented
Complete UI Tax System
Project Readiness
• Solid Requirements Definition• RFI / Market Analysis• Requirements Validation for RFP Release• External Stakeholder Input • Current and Future State Use Cases Documented using
Rational Unified Process Methodology• Business Project Engineering• Executive Management Support / Steering Committee• DoIT Coordination• Retained Services of Professional Procurement Manager • Integration with State Financial System
12
UI Tax: Budget & Timeline• $12.5M REED Act Funds
– $1.3M UI Claims– $240k IVR Upgrade
• Balance: $10.96M– $1.95M UI Tax start-up
• UI Tax Net Available: $9,061,724 (per audit reconciliation)
Phase Amount Funding Source Timeframe
InitiationCert Date: June 2006
$200k Reed Act
Planning Cert Date: April 2007
$1.75M Reed Act
Implementation Phase 1December 16, 2009
$9.01M Reed Act 1-year
$ 51.7k FY09 Bal
Total Request – Phase 1 $9,061,724
Implementation Phase 2December 16, 2009
$ TBD ARRA 1-year
CloseJune 16, 2011 (plan)
$ 0
13
UI Tax: Benefits
• Improved Online services– E-payment processing– E-Registration
• Integrated document scanning• Integrated Workflow & Business Rules
Management
14
Thank You
UI Tax Project Team12/16/2009