T3161 Bid Solicitation 7.30.26.docx

Bid Solicitation #

26DPP01325

T3161 NJ Labor Tax Integrated Solution for UI, TDI, FLI, Workforce and Audits

Due Date For Electronic Questions Refer to Bid Solicitation Section 2.1 for more information.

Optional Pre-Quote Submission Conference Refer to Bid Solicitation Section 2.5 for more information.

Mandatory/Optional Site Visit Refer to Bid Solicitation Section 2.4 for more information.

NOT APPLICABLE

Quote Opening Date Refer to Bid Solicitation Section 3 for more information.

Dates are subject to change. All times contained in the Bid Solicitation refer to Eastern Time.

All changes will be reflected in Bid Amendments to the Bid Solicitation posted on www.njstart.gov.

SET-ASIDES

Small Business Set-Aside For Goods and Services:

☒ I ☒ II ☒ III

For Construction:

☐ IV ☐ V ☐ VI

☐ Not Applicable ☐ Entire Contract ☐ Partial Contract ☒ Subcontracting Only ☐ Preference

☐ Entire Contract ☐ Partial Contract ☐ Subcontracting Only ☐ Preference

Bid Solicitation Issued By:

State of New Jersey Department of the Treasury Division of Purchase and Property Trenton, New Jersey 08625‑0230 On Behalf of:

State of New Jersey New Jersey Department of Labor and Workforce Development Office of Income Security

Date: 7/29/2026

TABLE OF CONTENTS

ATTACHMENTS:

ATTACHMENT 1 – Combined State of New Jersey Standard Terms and Conditions (Rev. 6/3/2025) ATTACHMENT 2 – Standard Procurement Forms Packet ATTACHMENT 3 – State-Supplied Price Sheet ATTACHMENT 4 – State of New Jersey Due Diligence Third-Party Information Security Questionnaire

APPENDICES:

APPENDIX A – Employer Accounts Requirements APPENDIX B – Employer Accounts Interface List APPENDIX C – Employer Accounts Context Diagram APPENDIX D – Employer Accounts and FileNET Architecture Current State iv

INTRODUCTION AND SUMMARY OF THE BID SOLICITATION

This Bid Solicitation is issued by the Department of the Treasury, Division of Purchase and Property (Division), Procurement Bureau, on behalf of the New Jersey Department of Labor and Workforce Development (NJDOL), Office of Income Security. Quotes submitted in response to this Bid Solicitation shall be through the State of New Jersey’s eProcurement system, NJSTART. Bidders are advised to thoroughly read all sections of this Bid Solicitation and follow all instructions.

Bidders are strongly encouraged to visit the NJSTART Vendor Support Page, which contains Quick Reference Guides (QRGs), supporting videos, a glossary of NJSTART terms, and helpdesk contact information. Bidders should utilize the QRGs before attempting to submit a Quote through NJSTART. It is the Bidder’s responsibility to ensure that the Quote and attachments have been properly submitted. Inquiries concerning the use of NJSTART may be directed to njstart@treas.nj.gov. The Division will not respond to substantive questions related to the Bid Solicitation or any other Contract via this email address.

PURPOSE AND INTENT

The purpose of this Bid Solicitation is to solicit Quotes for the NJDOL, Office of Income Security, for a comprehensive web-enabled Software as a Service (SaaS) solution, including COTS, MOTS, configurable modules or a combination thereof. NJDOL seeks a statewide NJ Labor Tax Integrated Solution for UI, TDI, FLI, Workforce and Audits (the “Solution”), which encompasses Unemployment Insurance Tax (UI Tax), Temporary Disability Insurance Tax (TDI Tax), Family Leave Insurance Tax (FLI Tax) and Workforce Tax (WF Tax). The purpose of this Solution is to replace the current Division of Employer Accounts systems, including the Employer Accounts System (EAS), Employer Accounts Audits Application, and Employer Access that meet the business objectives of the NJDOL, Office of Income Security, established by State and federal requirements. The State of New Jersey (State) intends to implement the Solution within one (1) year of Contract award. This timeline includes, but is not limited to, planning, design and configuration, conversion, training, implementation milestones, and maintenance and operations schedule. The proposed timeframe of implementation milestones and maintenance and operation schedule shall be mutually agreed upon between the State and Contractor.

It is the intent of the State to award a Contract to that responsible Bidder whose Quote, conforming to this Bid Solicitation, is most advantageous to the State, price and other factors considered. The State may award any or all price lines. The State, however, reserves the right to separately procure individual requirements/enhancements that are the subject of the Contract during the Contract term, when deemed by the Assistant Commissioner of Income Security to be in the State’s best interest.

The State does not wish to procure a software application still under development. The Solution shall be operational (i.e., not under development) and generally available before the due date of the Quote. The State intends to award to one (1) Bidder, with a set-aside for New Jersey Small Business Enterprise (SBE) for Subcontracting.

The State of New Jersey Standard Terms and Conditions (SSTCs) included with this Bid Solicitation will apply to all Contracts made with the State. These terms are in addition to the terms and conditions set forth in this Bid Solicitation and should be read in conjunction with them unless the Bid Solicitation specifically indicates otherwise.

The Solution will:

· Replace the existing system of record, known as the EAS and ancillary employer accounts systems, including Employer Accounts Audits Application and Employer Access with advanced technology that will meet or exceed all business and technical requirements. Specific details of these systems will be discussed upon Contract award.;

· Replace the existing employer portal known as Employer Access with a modern technology for self-service/virtual service delivery and electronic communication amongst all customers including all employers/Authorized Agents as outlined in the requirements and the Office of Income Security;

· Replace the existing Employer Accounts Audits Application to support more effective and efficient audit processes;

· Integrate, scale, and consolidate the management of employer accounts as required by federal and State rules and regulations that allows for ongoing adaptability to accommodate potential legislative federal and/or State mandates;

· Collaborate with other State departments to streamline the registration, reporting and payment processes between the NJ Department of Treasury including the Division of Taxation (Taxation) and the NJ Division of Revenue and Enterprise Services (DORES);

· Provide functionality to capture document imaging and electronic communications including electronic signatures;

· Improve interface with multiple federal and State agency partners’ ancillary systems to improve data integrity for federal and State reporting;

· Provide data conversion, data migration, and integration strategies;

· Maintain comprehensive federal and State required reporting, while enhancing functionality to include accurate ad-hoc reporting and query capabilities that allow for continued data interoperability; and

· Provide automated contingent workflow/business rule capabilities that allow for scalability based on future changes or newly established rules and regulations.

The State’s objectives and vision for the Solution are to:

· Improve customer experience by offering diverse communication channels and methods for employers to ensure seamless interactions;

· Increase operational efficiencies and effectiveness through interactive features and business intelligence-driven service enhancements, while promoting cost savings and providing premier customer satisfaction to fulfill NJDOL's strategic objectives;

· Integrate internal workflow and document management within the Solution, ensuring a modernized and efficient user experience that enhances productivity and collaboration;

· Provide employers with access to status updates and information online, eliminating the need for calls and ensuring a more efficient, transparent, and user-friendly experience;

· Enhance and streamline the experience rating process for total and partial transfers;

· Strengthen data management by facilitating robust data exchanges and utilizing advanced technology to ensure consistent, accurate, timely and complete data transfers to/from federal and State Partner Agencies. This includes future integrations between the Solution and the NJDOL departmental data lake/data warehouse to uphold data integrity and standardized governance;

· Provide dynamic rate calculations that encompass flat tax rates, adaptable table-driven rates informed by employer account data, and comprehensive assessments of penalties and interest;

· Foster seamless collaboration within NJDOL and alongside other State agencies, creating streamlined registration, reporting, and payment processes;

· Expand reporting functionality to improve the ability of business users to generate ad hoc reports;

· Enhance fraud detection, monitoring and mitigation capabilities, including collaborating on information sharing, and educating stakeholders to effectively identify and respond to fraudulent activities;

· Streamline audit processes by consolidating audit capabilities, enabling comprehensive analysis, selection and execution of audits for greater efficiency and effectiveness;

· Advance technology capabilities, ensuring flexibility and scalability to adapt to evolving needs; and

· Enhance and automate comprehensive federal and State reporting requirements to include ad-hoc reporting, query capabilities, and improved data interoperability, while also streamlining federal performance reporting and data validation functions.

The new Solution shall support NJDOL’s long-term objectives, as well as IT goals based on tactical and strategic planning, which include but are not limited to, increasing accessibility to government, facilitating IT collaboration and partnerships, ensuring a trusted and reliable technical environment, creating a reputation of performance for technology, and increasing Division of Employer Accounts productivity through the use of technology.

BACKGROUND

The NJDOL, Office of Income Security operates within the NJDOL and is comprised of five divisions: Division of Employer Accounts, Unemployment Insurance, Appeal Tribunal, Board of Review, and Fraud Prevention and Risk Management.

In 2024 there were approximately 294,106 active employers in the system, as well as 1,024,476 inactive employers. The total current wage records number is 81,190,932. The Division of Employer Accounts also completed 3,231 audits from October 2023 through September 2024.

The Division of Employer Accounts collects contributions and ensures the integrity of the State's benefits trust funds. Employers and employees pay these quarterly contributions (taxes), which finance the Unemployment Insurance Trust Fund, State Disability Trust Fund, and the Workforce Development Partnership Fund. Contributions are submitted with the Employer’s Quarterly Report (Form NJ-927) and Employer Report of Wages Paid (Form WR-30) https://www.nj.gov/treasury/taxation/businesses/payroll/payroll-filing.shtml.

This responsibility is accomplished by:

· Determining an employer’s subjectivity to New Jersey UI Tax, TDI Tax, FLI Tax, and WF Tax;

· Receiving worker withholdings for NJDOL programs through employer contributions;

· Calculating an employer’s annual experience rate;

· Maintaining separate accounting records for each employer;

· Enforcing employers’ compliance with federal and State rules and regulations through a systematic collection of contributions from both workers and employers;

· Initiating field audits, including making determinations of misclassified workers; and

· Collecting and maintaining individual worker data used in the determination of Unemployment, workforce, Temporary Disability and Family Leave Insurance benefit eligibility based on established federal and State rules and regulations.

The description of each fund is as follows:

· Unemployment Insurance Trust Fund - Monies held in an account, separate from all public monies or funds of the State, by the State which are paid to eligible workers who become unemployed, which is funded by employer and employee contributions.

· State Disability Trust Fund - Monies held in an account by the State which are paid to eligible workers who become disabled or who require leave from work to participate in the providing of care for a family member made necessary by a serious health condition of the family member or to bond with a newborn or newly adopted child. This is funded by employer and/or employee contributions, or a combination thereof.

· Workforce Development Partnership Fund - Provides funding that supports our job training efforts and is funded through a dedicated assessment on workers and their employers.

· Health Care Subsidy Fund - a non-lapsing New Jersey state fund administered by the Department of Health. It collects revenue from hospital assessments, employer/employee contributions, and other sources to finance charity care, hospital subsidies, and low-income health insurance programs like NJ FamilyCare.

Employer responsibilities:

Employers in New Jersey have several responsibilities under the unemployment compensation, temporary disability, and family leave benefits laws. These include, but are not limited to:

1) Wage and contribution reporting: Employers must file the "Employer's Quarterly Report" (Form NJ-927) and "Employer Report of Wages Paid" (Form WR-30) each calendar quarter, except for domestic employers who file annually.

2) Record keeping: Employers must maintain detailed employee records, including names, Social Security numbers (SSNs), and remuneration details. These records must be kept for the current year and the four preceding years.

3) Contribution payments: Employers must pay contributions based on taxable wages for Unemployment and Temporary Disability Insurance, as well as other funds like the Workforce Development Partnership Fund and Family Leave Insurance.

4) Compliance with audits: Employers may be audited to ensure compliance with the laws. They must provide records for examination and may need to answer questions regarding payroll and employee classification.

5) Liability determination: Employers must notify the Division of Employer Accounts if they employ one or more persons, to determine their subjectivity to the laws.

6) Assessment payments: Employers are liable for various assessments, including those for administrative costs, deficit offsets, and specific funds like Catastrophic Illness, Right to Know, and Pollution Prevention.

Employers must adhere to these responsibilities to ensure compliance with State laws. For more information regarding employer responsibilities, please view the NJ employer accounts guide at:

https://nj.gov/labor/ea/assets/PDFs/EmployerAcctsGuide.pdf

New Jersey employer wage and contribution reporting and payment requirements:

Each calendar quarter, all employers, other than domestic employers, subject to the provisions of the New Jersey Unemployment Compensation Law (NJUC) are required to file the "Employer's Quarterly Report" (Form NJ-927) and "Employer Report of Wages Paid" (Form WR-30). Both forms, NJ-927 and WR-30, must be submitted for the quarters ending March 31, June 30, September 30, and December 30 of each year. Reports and tax contributions due must be filed by no later than the 30th day of the month immediately following the quarter. The due dates for reports and tax contributions are April 30, July 30, October 30, and January 30. The employer is also required to remit the taxes due through an electronic payment (EFT - ACH credit, ACH debit, eCheck, or credit card). Employers who fail to comply with reporting and payment requirements will be subject to penalties and interest.

In order to submit wage and contribution reports and payments, an employer must:

1) Register their business with the New Jersey Department of Treasury, DORES via: https://www.njportal.com/DOR/BusinessRegistration Note: Any changes to an employer’s filing status (partnerships and proprietorships only), business mailing address, business tax or employer eligibilities, or to replace a temporary tax/employer ID with an official tax/employer ID will require updating here.

2) Submit their NJ-927 and WR-30 and make worker withholding payments electronically to the NJ Department of Treasury, Taxation, online via https://www1.state.nj.us/TYTR_BusinessFilings/jsp/common/Login.jsp?taxcode=45&_gl=1*1hq0sth*_ ga*MjYxNzA5ODc2LjE2MzcwOTM2MDY.*_ga_N8RFJ4LE4D*MTc0MjQzNjExNy4xMTIuMS4xNzQyNDM3MzA4LjAuMC4w*_ga_2F7W0D0NDJ*MTc0MjQzNjExOC42My4xLjE3NDI0MzczMDkuMC4wLjA.&_ga=2.37771174.481021149.1742436119-261709876.1637093606 or via secure file transfer by using Premier Business Services (PBS) at https://www16.state.nj.us/NJ_PREMIER_EBIZ/jsp/home.jsp or via bulk uploads using Axway at https://mft-sonj.axwaycloud.com/.

3) Create a login with the NJDOL employer portal, known as the Employer Access application (Formerly known as Tax Web Enabled System or TWES) in order to view their existing NJDOL employer account information including payment history and any deficiencies, employer and worker contribution rates, and annual contribution rate notices. For more information regarding NJDOL’s Employer Access portal, please visit: https://www.nj.gov/labor/ea/employer-services/register-update/employeraccess.shtml

Pursuant to N.J.A.C. 12:16-13.1 and 12:16-13.7, employers are required to file NJ-927 and WR-30 to the State. Currently this is reported to Taxation and DORES, which then transmits the data daily to the NJDOL tax server. Once the wage record and contribution report are received, the information is ingested for the employer’s account into the EAS. System logic in the EAS determines if the employer paid the correct amount, overpaid or underpaid, and initiates the immediate bill process for any underpayment of five (5) dollars or more.

For additional information regarding Division of Employer Accounts (UI, TDI-FLI, WF) Tax reporting requirements for the State, please visit: https://nj.gov/labor/handbook/content/contents.html

DIVISION OF EMPLOYER ACCOUNTS BUSINESS FUNCTIONS

The Division of Employer Accounts performs business functions that align with various agencies, organized into multiple service units according to the current NJDOL statutory requirements. An employer account is a record for an employer who is subject to unemployment and disability insurances within the State, maintained by the Division of Employer Accounts. This record includes, but is not limited to, the maintenance of the employer’s addresses of record, current and historical contribution rates, balance due, billing history, benefit charge history, field auditing, and collection history. The following description serves as a general guide and should not be interpreted as a comprehensive list. It is noted that this information outlines the current functions, not a future "to-be" vision for the Solution.

1) Establishing and maintaining employer accounts involves registering employers, determining their subjectivity, and managing their tax contribution methods, as well as recording essential contact information and assigning registration numbers. Additionally, it encompasses maintaining rate tables, assigning individual rates, and adjusting rates based on legal business entity changes, while also allowing for updates and archival of employer information.

2) Contribution and wage data involves maintaining quarterly contribution and wages reports by employers to the NJ Department of Treasury, DORES with subsequent interfacing to NJDOL for review and allocation, including manual entries from audits or amendments. It encompasses maintaining employer accounting records, performing account adjustments, and supporting tax operations such as Federal Unemployment Tax Act (FUTA) certification, statistical compilation, inquiries, audits, and cross-matching wage data.

3) Collection and contribution enforcement involves pursuing employers who are late in submitting reports or have unpaid dues, using methods such as notifications, civil actions, and payment negotiations. Additionally, annual special assessments are calculated and applied to employer accounts for various programs like State and private disability insurance plans, Right-to-Know, Catastrophic Illness, and Pollution Prevention, for additional details visit: https://www.nj.gov/labor/ea/bill-notice/assessments/.

4) Field auditing is designed to ensure compliance with NJUCs and equitable tax collection. It involves auditing approximately one (1) percent of employers annually, following federal guidelines according to TPS mandated by the USDOL. These audits verify reported payroll and exclusions, ensure accurate benefit charges, and address inquiries related to NJUC. This includes audits arising from UI and TDI claims, Division of Wage and Hour inquiries, and referrals from federal and State agencies.

5) Reporting and data validation function manages the tax program by overseeing reporting to the federal Employment and Training Administration (ETA), developing tax policy, and ensuring the system performs functions required by TPS standards. Additionally, it involves sampling and data validation, measuring program performance, reviewing proposed legislation, and executing management actions for effective program administration.

The image below (Figure 1) includes more specific functions included for each of the business functions identified above. Additional information may also be obtained by visiting the NJ Division of Employer Account’s website at: https://www.nj.gov/labor/ea/.

Additionally, all units perform operations to support the tax system on a day-to-day basis. This process is comprised of five (5) main functions including the FUTA certification, compiling program statistics, answering inquiries, audit and investigation, and combining external entity (cross matching) wage data.

The Division of Employer Accounts Director’s staff performs all functions related to the management of the tax program. This includes reporting to the federal ETA, developing and implementing tax policy, measuring program performance, reviewing proposed legislation, and taking management action.

Figure 1.

The diagram below is Appendix C - Employer Accounts Context Diagram (Figure 2). Its purpose is to provide a high-level overview of the operations of the Division of Employer Accounts. The diagram illustrates both the internal entities within the Division of Employer Accounts, such as Employer Status, Wage and Contribution Reporting, and Debt Collections, and their interactions. Additionally, it depicts how Division of Employer Accounts interfaces with external entities, including employers and various federal and State agency partners.

Figure 2.

ORGANIZATIONAL UNITS WITHIN NJ DIVISION OF EMPLOYER ACCOUNTS

One of the primary functions of all Division of Employer Accounts units is to manage employer accounts. This involves establishing, maintaining, and updating accounting records for each employer. These accounts encompass reported wage information, contribution amounts, benefit payment amounts, assessments, penalties, and interest. Additionally, funds temporarily held in suspense are allocated to employer accounts in this area. Necessary adjustments due to errors or changes, as well as processing refunds to employers and workers, are also part of this process. These responsibilities are handled by the Bureau of Contributors’ Service and Audit & Field Services.

The Division of Employer Accounts, Bureau of Contributors’ Service consists of the following sections:

· Registration/Employer Accounts Status Unit (25 staff)

· Refund Unit (29 staff)

· Contributions Unit (22 staff)

· Hotline/Employer Files Unit (3 staff)

· Collections Unit (30 staff)

· Legal Processes Unit (16 staff)

The Division of Employer Accounts, Audit & Field Services consists of the following locations:

· Audit & Field Services Unit (75 staff):

· Newark - 25 staff

· New Brunswick – 28 staff

· Vineland – 22 staff

The Division of Employer Accounts Director’s staff (11 staff)

The primary office location for the NJ Division of Employer Accounts is at the NJDOL building in Trenton, N.J. There are additional Division of Employer Accounts staff located in three (3) field offices in Newark, New Brunswick, and Vineland, N.J.

REGISTRATION/EMPLOYER ACCOUNTS STATUS UNIT

This Unit is responsible for registering and maintaining employer accounts status. The function of maintaining employer status includes all the activities for registering an employer and maintaining that employer’s status in the EAS. This includes determining the employer’s subjectivity and the date of that subjectivity, establishing the UI and TDI Tax contribution method and the type of disability insurance plan, recording the applicable address and contact information, as well as assigning the registration number. File status maintenance functions also reside here, including changing recorded information as required, and inactivating, terminating, and archiving information as needed.

Another function performed by this Unit is setting employer rates, which includes operations to maintain rate tables and assign individual rates to specific employers. Taxable wage, contribution, and benefit charge data are used in these calculations. This also includes the functions of determining and maintaining rate history for all employers and adjusting rates for legal business entity (predecessor/successor) changes.

Staff also make determinations as to whether employers are subject to the NJUC, establishing and maintaining accounts for subject employers and calculating their rates and maintaining the Authorized Agent database and powers of attorney filed for the Division of Employer Accounts.

Additional functions include:

· Determining if an employer is subject to NJUC and temporary disability law and establishing subject status date and employer contribution dates;

· Processing address changes, making accounts inactive, canceling accounts and making liability date changes;

· Registering and maintaining Professional Employer Organizations (PEO) and assurance organizations;

· Registering and maintaining Authorized Agents and joint accounts;

· Processing and maintaining powers of attorney for an employer;

· Establishing predecessor/successor accounts;

· Maintaining reimbursable group accounts;

· Approving and denying Shared Work Program applications for UI;

· Investigating for possible State Unemployment Tax Act (SUTA) dumping activity;

· Calculating an employer's unemployment and temporary disability experience rates;

· Processing voluntary contributions;

· Returning employer accounts to active status;

· Determining an employer's financing option–reimbursable or contributory–for governmental entities and not-for-profit businesses; and

· Managing and maintaining partial transfers of unemployment experience ratings.

REFUND UNIT

This Unit is responsible for processing employer and employee refund requests and ensuring that the requests are made within the timeframe allowed by law. Employer refund requests are initiated from various sources, including but not limited to direct requests, internal requests, and mailed credit redemption certificates. Any employer who wishes to request a refund can return the credit certificate indicating their request. Alternatively, the credit can be applied to future liabilities. This Unit is responsible for ensuring all requests meet certain criteria before the request is approved.

Additional functions include:

· Issuing employer refunds as result of general overpayments;

· Issuing employer refunds as result of overpayment due to a change in subjectivity, experience rate, disability coverage, overstating taxable wages and audit findings;

· Issuing employee refunds for excess deductions of UI, UI admin, TDI, FLI, and/or workforce due to having multiple employers; and

· Processing claims for excess amounts against New Jersey gross income tax (NJGIT), with any claims not payable by Taxation being paid by Refund Unit.

CONTRIBUTIONS UNIT

The main goal of the Contributions Unit is to collect employer reports and payments. This process includes all functions related to the electronic filing and payment of quarterly contribution reports and wage reports by employers, or their Authorized Agents. The reports and payments are filed electronically with the DORES. The reports and payments are submitted to NJDOL from DORES via interfacing. Division of Employer Accounts staff reviews the reports for accuracy and ensures that payments are allocated correctly. This process includes the pursuit of employers who are delinquent in filing their reports. Contribution and wage reports can also be entered manually as a result of an audit or amendment.

Additionally, special assessments are made on a yearly basis for State and private disability insurance plans, Right-to-Know, Catastrophic Illness, and Pollution Prevention programs. These assessments are calculated and applied to employer accounts as required, for additional details please visit: https://www.nj.gov/labor/ea/bill-notice/assessments/ The Contributions Unit consists of three (3) sub-sections and performs the following functions:

WR-30 unit & delinquency:

· Processes WR-30 reports in error corrections and SSN verifications;

· Processes bulk requests;

· Transfers WR-30 reports to correct Employer Identification Numbers (EINs);

· Reviews the quarterly report on wages paid – WR-30;

· Corrects WR-30 in suspense to ensure processing into the tax system;

· Corrects employee name changes;

· Coordinates delinquency notices for employers who fail to submit NJ-927 and WR-30 reports;

· Corrects missing WR-30 information per completed WR-30A; and

· Assists employers with filing delinquent reports and/or amending reports.

Allocation:

· Responsible for crediting employers' accounts with all payments received as the result of billings;

· Allocates payments according to the allocation rules;

· Ensure payments are allocated to a proper account and receivable;

· Allocates payments by installment arrangement, judgment, bankruptcy, settlement or criminal complaint agreements;

· Corrects payments in suspense to ensure the payment can be processed in the tax system;

· Abates penalties per decision of the penalty abatement committee;

· Generates and processes annual allocation forms and notify employers to complete;

· Issues statements certifying no outstanding liability covered by a particular judgment, so that a warrant for satisfaction can be issued by the Superior Court; and

· Responsible for annual assessments.

NJ-927/ report:

· Reviews non-processable NJ-927 reports and posts the reports to the EAS;

· Reviews returns which could not be processed;

· Adjusts total wages, excess wages, taxable wages per correspondence from employers and their representatives, field audits and/or review of the quarterly return;

· Adjusts an employer account as a result of a change in subjectivity, experience rate and/or disability coverage;

· Adjusts an employer account as result of a field audit; and

· Conducts federal recertification (In addition to State UI, employers must also pay FUTA. The employer may take credit for taxes paid timely to NJ when he is completing his annual 940 federal return. The Contributions Unit verifies or certifies to the IRS the amount paid by an employer on his State UI return so that the IRS can either grant or deny the amount of credit the employer has requested).

HOTLINE/EMPLOYER FILES UNIT (PART OF THE CONTRIBUTIONS UNIT)

The clerical and hotline staff processes incoming mail/faxes, manages the imaging of the Division of Employer Accounts’ documents and subsequent insertion into the FileNet application, transfers electronic images to NJDOL servers, indexing and transferring images to the appropriate work queue, provides support for Employer Access, and acts as a help desk and directs callers to appropriate units or divisions.

COLLECTIONS UNIT

This Unit is responsible for promoting payment compliance and managing account receivables by holding businesses accountable for failing to satisfy their outstanding liabilities to the State for violations of State wage, benefit and tax laws enforced by Division of Employer Accounts. This Unit provides customer service by responding to telephone or written inquiries from employers inquiring about the collection status of their accounts, initiating installment agreements, and requesting settlements or payoffs. The Collections Unit also processes incoming payments from employers, or their representatives. Additionally, through an automated collection process, this Unit sends bills on employer accounts with outstanding balances, and initiates collection enforcement with the Legal Processes Unit for employers that are noncompliant.

Additional functions include:

· Initiating collection processes;

· Billing employers, including immediate bills, summary bills, cycle bills, reimbursement bills, ad hoc bills;

· Responding to employer correspondence and telephone inquiries;

· Creating combined annual assessment bills and federal loan interest (FLINT) assessments, as required;

· Negotiating installment arrangements;

· Managing stop work order process;

· Coordinating with Office of Strategic Enforcement and Compliance (OSEC), regarding the substantial good standing process;

· Managing garnishment and the Treasury Offset Program (TOP);

· Negotiating, managing and processing settlements, installments and payoffs via direct contact with employers and/or representatives; and

· Coordinating collection activity with field auditors and investigators.

LEGAL PROCESSES UNIT

This Unit is responsible for monitoring and managing employer accounts that have outstanding liabilities and judgments. This is done through progressive collection remedies, whereby judgments are attached to an employer’s account and docketed as a State-wide lien. Remedies include obtaining a writ of execution from the Superior Court of New Jersey and instructing the various sheriffs’ offices within the State to conduct asset and/or bank levies and going through the proper legal channels to obtain turnover orders for any levied funds. In addition to monitoring judgments, this Unit is also responsible for processing and tracking penalty abatement requests submitted by employers or their representatives. The final component of legal processes is to identify insolvent accounts that have filed for bankruptcy and ensure that the State’s interest is protected by filing a Proof of Claim with the appropriate bankruptcy court, claims agent, or assignee. This Unit consists of three (3) subunits:

Judgments:

This team sends prejudgment letters via certified mail, sends judgment letters via certified mail, requests writs of execution from Superior Court, issues writs to sheriffs’ offices for levies, sends documents to Attorney General’s office for turnover motions, and files warrants of satisfaction with the Superior Court after the judgments have been satisfied.

Penalty abatements:

This team processes, logs and tracks penalty abatement requests submitted by the employers or their representatives.

Bankruptcy:

This team identifies insolvent accounts and files Proof of Claims with bankruptcy courts, claims agents, or assignee electronically or by mail.

Additional functions include:

· Mailing prejudgment and judgment letters;

· Processing judgments;

· Processing writs of execution;

· Submitting writs to Superior Court;

· Communicating with sheriff offices, banks, and courts;

· Processing sheriff and court cost payments;

· Processing turnover orders;

· Updating judgments;

· Processing judgment and writ adjustments;

· Processing checks from the sheriff;

· Issuing warrants of satisfaction;

· Issuing clear statements; and

· Submitting Proof of Claim to bankruptcy courts.

AUDIT AND FIELD SERVICES UNIT

This Unit is responsible for implementing a comprehensive field audit program as an efficient means of ensuring compliance with the NJUC and the timely collection of taxes on an equitable basis. Each year, about one (1) percent of New Jersey employers are selected for audits, according to federal TPS guidelines.

Audits are performed to verify employer reported payroll and exclusions taken for unemployment compensation purposes, to ensure that benefits have been charged correctly to their account. Audits are also conducted resulting from referrals from UI claims, TDI claims, Division of Wage and Hour inquiries, federal and State agency referrals.

Additional functions include:

· Investigating entities with operations in the State to determine if they are properly registered, either by verifying recorded status or determining correct status;

· Investigating worker and employer relationships to ensure proper employment classifications are recognized;

· Establishing the correct number of contributions due either through a thorough audit of books and records or as determined by a field investigation;

· Securing proper wage and tax reports in accordance with the law;

· Locating employers that are delinquent in the filing of reports or the payment of contributions;

· Ensuring employers are maintaining books and records required by law and regulation;

· Verifying those businesses operating in the State are bona fide businesses;

· Determining the financial condition of a business to recommend the appropriate collection action;

· Recommending assessments for delinquent periods, to replace arbitrary assessments or to adjust reported wages that are known to be incorrect;

· Participating in administrative court proceedings for contested audits; and

· Securing settlement agreements.

CURRENT SYSTEM OVERVIEW

The Division of Employer Accounts within the NJDOL utilizes three (3) primary systems for managing employer tax accounting, auditing, archiving, and providing a customer portal. The EAS serves as the main platform for maintaining records related to employer tax accounting, ensuring accurate tracking and management of all employer-related tax activities. The Employer Accounts Audits Application, sharing a similar design philosophy with the EAS, is dedicated to auditing employer taxes, facilitating thorough and efficient processes to ensure compliance with tax regulations. Employer Access, formerly known as TWES, is a web-based portal that enables employers to view their account information online. Through this portal, employers can access their account summaries, payment histories, and any deficiencies. They can also review employer and worker contribution rates and receive annual contribution rate notices.

More detailed descriptions of all the systems utilized by the Division of Employer Accounts for employer tax accounting, auditing, archiving, and customer portal purposes are as follows:

EMPLOYER ACCOUNTS SYSTEM

The EAS is an Oracle Forms 6.1-based application operating on an Oracle database version 11.2 (11g). It serves as the primary employer tax accounting system for NJDOL. Initially implemented in 1997, the system is an on-premises solution maintained by the NJDOL and the New Jersey Office of Information Technology (NJOIT). While ongoing upgrades have been made over the years, the technology is now unsupported and has reached end-of-life support.

The EAS consists of a series of screens (forms) providing various functionalities. Its core functions include managing employer status (such as address, officer information, and status), billing, reconciliation, and collection activities related to UI, TDI-FLI, and WF Taxes that employers pay to meet their mandated contributions under NJUC and temporary disability law. Additionally, the EAS generates United States Department of Labor (USDOL) and State-specific mandated reports and facilitates interfaces and data exchanges with State and federal systems. The system incorporates multiple data-sharing integrations (APIs, interfaces, secure FTP, or batch) with multiple State and federal partners/agencies.

The current EAS database comprises 680 tables and holds 1.1 TB of records per instance, including Production, UAT, Pre-Production/Staging, and Development/Configuration Environments.

EMPLOYER ACCOUNTS AUDITS APPLICATION

The Employer Accounts Audits Application operates similarly to the EAS, utilizing Oracle Forms 6.1 and an Oracle database (version 11.2, 11g). Field auditors conduct audits to ensure accurate worker classification and verify employer taxes as reported to the NJDOL based on current federal and State rules and regulations. The Application includes a production database (auditprd) and a local database (audits) used by the field auditors to perform their job functions. Field auditors perform the audits locally on the (audits) database housed on their laptops and then regularly upload the completed audits to the production (auditprd) database.

Once uploaded, the system requires further human intervention to process the application adjustments (if required) through a multistep process involving both the Employer Accounts Audits Application and the EAS. This process involves review and subsequent approval by a supervising field auditor. Once approved and if changes are required, a supervising auditor generates a system email sent from the Employer Accounts Audits Application to the proper unit(s) within the Division of Employer Accounts. Through these notification emails, tax examiners within the Division of Employer Accounts then make employer account adjustments.

The Employer Accounts Audits Application database contains 85 tables and holds 5.998 GB of records.

EMPLOYER ACCESS

Employer Access, formerly known as TWES, is an online portal developed by the NJDOL for employers. This custom web application allows employers to electronically access and view payment details, delinquencies, historical rates and rate notices, as well as specified data elements included in previously submitted NJ-927 and WR-30 quarterly reports. Additionally, through Employer Access, employers can update their address with the Division of Employer Accounts.

Employer Access uses the myNJ portal for authentication. Employers must first register with myNJ and create an account. After registration, they must verify their eligibility through a provided link. Once authorized, an authorization code is emailed to the employer, allowing them to link their myNJ account with Employer Access. The Employer Access application will then appear on their myNJ page for convenient access.

FILENET

FileNet is a document management and workflow solution from IBM provided by the DORES at https://www.nj.gov/treasury/revenue/ that is integrated into both the EAS and the Employer Accounts Audits Application. It serves as a centralized repository and workflow automation tool, allowing seamless access and management within these systems rather than functioning as a separate entity.

Both examiners and auditors must log into the FileNet application, granting direct access to the FileNet server from the EAS and the Employer Accounts Audits Application. This integration enables examiners to manage work items in their unit work queues, archive completed tasks and assign workflows to other units within the Division of Employer Accounts.