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