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Misreporting adjustment

An estimate of the wages and salaries that were not reported by employers is added to the BLS Quarterly Census of Employment and Wages (QCEW) data for each private industry. Because state and county data are unavailable, the national estimate for each industry is allocated to states and counties in proportion to the QCEW payroll data for the industry.

The national estimate for each industry is prepared in two parts: One part is prepared for the payrolls that were underreported by employers, and one part is prepared for the payrolls that were not reported, because employers failed to file a report.

In addition, tips are assumed to be understated in the UI contribution reports from the following covered industries: Agricultural services excluding contract labor; taxicabs, which is part of local and interurban passenger transit; eating and drinking places; hotels and other lodging places; membership organizations; amusement and recreation services; and personal services. For each of these industries, the national estimate of the unreported tips, which is derived in the preparation of BEA's input/output accounts for benchmark years and interpolated and extrapolated for other years, is allocated to states and counties in proportion to the QCEW payroll data for the industry.