Unemployment Insurance Law Summaries
Wisconsin, Unemployment Insurance Law Summaries
Wisconsin's unemployment insurance law is located in Chapter 108, Title XIII, Wisconsin Statutes, 1983-1984, as amended Secs. 108.01 to 108.26 (for full text, see Unemployment Insurance Reports UI-WI ¶4002 et seq. ); and in the Rules of the Department of Industry, Labor and Human Relations, Wisconsin Administrative Code, Rules 100.01 to 103.01, 105.001 to 105.04. 107.001 to 107.05, 110.001 to 111.07, 113.001 to 113.07, 115.001 to 115.11, 120.01 and 120.02, 123.01 and 123.03, 126.01 to 130.07, 132.001 to 132.05, 135.001 to 135.04, 140.001 to 140.21, 145.01, 147.01 and 147.02, 149.001 to 149.09, and 150.03 and 150.05.
DEFINITIONS
“Employer” means one who employed at least one individual in each of 20 or more calendar weeks in a calendar year or in the preceding calendar year, or who paid or incurred a liability to pay wages of $1,500 or more during any calendar quarter during a calendar year or the preceding calendar year. Generally, an employer who is subject to the federal law is automatically an employer under the Wisconsin law.
“Employer” includes a person who pays wages to an individual on account of sickness or accident disability if the person is classified as an employer under Department rules. If the person is so classified, no other person is an employer by reason of making such payments.
“Employer” does not include a county department or aging unit that serves as a fiscal agent or contracts with a fiscal intermediary to serve as a fiscal agent, as to any person receiving long-term support services or personal assistance services.
“Employer” includes all partnerships consisting of the same partners, except that “employer” means each partnership consisting of the same partners if each partnership maintains separate accounting records, otherwise qualifies as an employer, and files a written request to be treated as an employer; the Department must approve the request.
“Employer” includes any limited liability company or limited liability companies consisting of the same members if each of the companies maintains separate accounting records, otherwise qualifies as an employer, and files a written request to be treated as an employer, which request is approved by the Department.
“Employment:” Service, including service in interstate commerce performed by an individual for pay and service as a corporate principal officer having direct or indirect ownership interest (unless an exclusion is elected by the employer), with these exceptions:
A temporary help company is the employer of an individual who is engaged in performing services for a client or customer of the company if the company is taxed under the FUTA on the basis of that employment.
Other exceptions from employment are listed below.
“Employee:” Any individual who is or has been performing services in employment, whether or not he is paid directly by an employer. An individual performing services is not an employee if it is shown that
he is free from employer's control or direction both under his contract of hire and in fact, and
such services are performed in independently established trade, business, or profession in which individual is customarily engaged.
“Wages” includes every form of remuneration payable, directly or indirectly, for a given period or payable within a given period, by an employing unit to an individual for personal services. Wages includes:
any payment in kind or other similar advantage received from an individual's employing unit for personal services (except as excluded, below);
the value of an employee achievement award that is compensation for services;
the value of tips that are received while performing services that constitute employment and that are included in a written statement furnished to an employer;
any payment under a deferred compensation and salary reduction arrangement that is treated as wages;
any payment made by a corporation electing to be taxed as a partnership to an officer that is reasonable compensation for services performed for the corporation, or the reasonable value of services performed by an officer for the corporation, if the officer receives no payment for the services or less than the reasonable value of the services, except for (a) a distribution of earnings and profits that is in excess of any such payment, (b) a loan to an officer evidenced by a promissory note signed by the officer prior to the payment of the loan proceeds and recorded in the records of the corporation, (c) a repayment of a loan or payment of interest on a loan made by an officer to a corporation and so recorded; (d) a reimbursement by the corporation of reasonable corporate expenses incurred by an officer that is documented by a written expense voucher and so recorded; or (e) a reasonable lease or rental payment to an officer who owns property that is leased or rented to such corporation.
The term “wages” does not include:
For 2008, remuneration over $10,500 a year paid to an individual with respect to employment in a calendar year, counting remuneration paid by the employer's predecessor and remuneration paid for service in another state. Wisconsin's taxable wage base is scheduled to increase as follows: $12,000 for 2009 and 2010; $13,000 for 2011 and 2012; $14,000 after 2012.
COVERAGE
Generally, an employer who is subject to the federal law is automatically an employer under the Wisconsin law.
“Employer” includes a person who pays wages to an individual on account of sickness or accident disability if the person is classified as an employer under Department rules. If the person is so classified, no other person is an employer by reason of making such payments.
“Employer” does not include a county department or aging unit that serves as a fiscal agent or contracts with a fiscal intermediary to serve as a fiscal agent, as to any person receiving long-term support services or personal assistance services.
“Employer” includes all partnerships consisting of the same partners, except that “employer” means each partnership consisting of the same partners if each partnership maintains separate accounting records, otherwise qualifies as an employer, and files a written request to be treated as an employer; the Department must approve the request.
“Employer” includes any limited liability company or limited liability companies consisting of the same members if each of the companies maintains separate accounting records, otherwise qualifies as an employer, and files a written request to be treated as an employer, which request is approved by the Department.
Service, including service in interstate commerce performed by an individual for pay and service as a corporate principal officer having direct or indirect ownership interest (unless an exclusion is elected by the employer), with these exceptions:
An employee service company is the employer of an individual who is engaged in performing services for a client or customer of the company if the company is taxed under the FUTA on the basis of that employment. Other exclusions from coverage are listed below.
Agricultural and domestic employers.- Services performed in agricultural labor are covered if performed for an employer who employed ten or more workers in such labor in 20 different weeks in the current or preceding calendar year or paid or incurred a liability to pay cash remuneration of $20,000 or more for such labor in any quarter of the current or preceding calendar year. When agricultural labor is supplied by a crew leader, the employing unit for which the services are performed is the employer of the crew members unless the crew leader is registered under the Farm Labor Contractor Registration Act of 1963, or substantially all of the crew members operate or maintain mechanized equipment that is provided by the crew leader. In either of these instances, the crew leader is the employer.
Still excluded are services for an employer engaged in the canning of fresh perishable fruits or vegetables if the individual has been employed solely within the active processing season and his base period wages with that employer are less than the wages required to start a benefit year (see “Benefit eligibility,” below, for current qualifying requirements), unless he was paid wages of $200 or more in other work during the four most recently completed quarters preceding his first week of employment with the processing employer in that year.
Service performed for a seasonal employer is excluded if the individual received written notice from the seasonal employer that the service is potentially excludable, unless the individual is employed by the seasonal employer for 90 days or more or is paid or is treated as having been paid wages or other remuneration of $500 or more during the base period for services performed for at least one employer other than the seasonal employer.
Domestic service.- Domestic service in a private home, local college club or local chapter of a college fraternity or sorority is covered if performed for an employing unit that paid or incurred a liability to pay cash remuneration of $1,000 or more in any quarter of the current or preceding calendar year for such service.
Government, Indian tribe, and nonprofit employers.- A nonprofit organization employing at least four individuals for some portion of a day on at least 20 days, each day being in a different calendar week, in either a calendar year or the preceding year is a covered employer.
All state governmental units and Indian tribes are covered, with the exceptions listed below.
EXCEPTIONS
Wages.- The term “wages” does not include:
For 2008, remuneration over $10,500 a year paid to an individual with respect to employment in a calendar year, counting remuneration paid by the employer's predecessor and remuneration paid for service in another state. Wisconsin's taxable wage base is scheduled to increase as follows: $12,000 for 2009 and 2010; $13,000 for 2011 and 2012; $14,000 after 2012.
Amounts paid by an employer for insurance or annuities, payments for sickness or accident disability made under a workers' compensation law, payments for medical or hospitalization expenses connected to sickness or accident disability, or payments of death benefits.
Payments on account of sickness or accident disability or medical or hospitalization expenses in connection with sickness or accident disability made by an employer to or on behalf of an employee after the expiration of 6 months following the last month in which the employee worked for the employer.
Certain payments to an employee or a beneficiary under a cafeteria plan if the payment would not be treated as wages without regard to that plan and if the payment would not be treated as constructively paid under the Code.
Certain payments to an employee or a beneficiary from a trust, annuity plan, simplified employee pension plan, annuity contract, exempt governmental deferred compensation plan, or supplemental pension plan.
Certain remuneration paid to an employee for domestic service in a private home of the employer or for agricultural labor that would have a corresponding deduction under the Internal Revenue Code.
Certain payment or series of payments by an employer to an employee or his or her dependents that is paid upon or after the termination of the employee's employment relationship because of death or retirement for disability.
The value of any meals or lodging furnished by or on behalf of an employer if, at the time of furnishing, it is reasonable to believe that the employee will be able to exclude such items from income.
The amount of any refund required to be made by an employer under the Federal Medicare Catastrophic Coverage Act of 1988.
Remuneration for services performed in a fishing rights-related activity of an Indian tribe by a member of that tribe for another member of the tribe or for a qualified Indian entity.
Contributions made by an employer into or payment made from a supplemental unemployment benefit plan for employees, if the contribution or payment is not considered wages under the Code, regardless of whether the plan is part of an employer profit-sharing plan.
Payment by an employer, without deduction from the employee's remuneration, of FICA tax or FUTA tax with respect to remuneration paid for domestic service or agricultural labor.
Remuneration paid in any medium other than cash for service not in the course of the employer's trade or business.
Certain payments under group legal services plans.
Any payment made by an employer to a survivor or the estate of a former employee after the year in which the employee died.
Any amount of money that a claimant earns for services performed as a volunteer firefighter, volunteer emergency medical technician or volunteer first responder.
Any item that is excluded from the definition of “wages ” under the FUTA.
Employment.- “Employment” does not include:
Caddies on a golf course.
Family employment, i.e., service for son, daughter, or spouse, or by child under 18 in employ of parent.
Insurance agents or insurance solicitors performing their services solely on a commission basis.
Managers of limited liability companies, if they are unpaid.
Maritime employees excluded from coverage of Federal Act.
Newsboys selling or distributing newspapers or magazines on the street or from house to house.
Officers of corporation or association if they are unpaid.
Real estate agents or salesmen performing services solely on a commission basis.
Railroad employees covered by Railroad Unemployment Insurance Act.
Religious, charitable, educational, or other organization described in §501(c)(3) of the Internal Revenue Code, and exempt under §501(a). Service for organizations exempt under §501(a) (other than organizations described in §401(a)), if remuneration for such service is less than $50 per quarter.
Service covered under any other unemployment compensation law under a reciprocal arrangement, and service for an employer who would be subject to the Wisconsin law only because he is subject to the FUTA, if the services are covered by arrangement with another jurisdiction.
Service for a hospital by a patient of the hospital.
Service by an intern.
Service by a student nurse for a nurses' training school or a hospital.
Service for an educational institution by (a) a student who is enrolled and regularly attending classes; or (b) the spouse of a student if the spouse's employment is under a program to provide assistance to the student.
Service performed by an individual who is enrolled at a nonprofit or public educational institution that normally maintains a regular faculty and curriculum and normally has a regularly organized student body, as a student in a full-time program which combines academic instruction with work experience.
Service performed by an individual whose remuneration consists solely of commissions, overrides, bonuses or differentials directly related to sales or other output derived from in-person sales to or solicitation of orders from ultimate consumers, primarily in the home.
Service performed by an individual as a court reporter if the individual receives wages on a per diem basis.
Service performed by an individual who leases a taxi or taxi equipment if he or she retains the income earned during the lease term, receives no direct compensation from the lessor and the amount of the lease payment is not contingent on income generated through the use of the taxi or equipment during the lease term.
Any type of maritime service specifically excluded under FUTA.
Service performed by a nonresident alien for the period that he or she is temporarily present in the United States as a nonimmigrant under 8 USC 1101(a)(15)(F), (J), (M), or (Q), if the service is performed to carry out the purpose for which the alien is admitted to the U.S., or by the spouse or minor child of such an alien if the spouse or child was also admitted to the U.S. under 8 USC 1101(a)(15)(F), (J), (M), or (Q) for the same purpose.
Service provided to a recipient of medical assistance under the state's medical assistance provisions by an individual who is not an employee of a home health agency, if the service is (1) private-duty nursing service or part-time intermittent care authorized under the state's medical assistance provisions, for which medical assistance reimbursement is available as a covered service, provided by an individual who is certified by the Department of Health and Family Services as a nurse in independent practice or as an independent nurse practitioner; or (2) respiratory care service for ventilator-dependent individuals authorized under the state's medical assistance provisions, for which medical assistance reimbursement is available as a covered service, provided by an individual who is certified by the Department of Health and Family Services as provider of respiratory care services in independent practice.
Agricultural and domestic employers.- Still excluded are services for an employer engaged in the canning of fresh perishable fruits or vegetables if the individual has been employed solely within the active processing season and his base period wages with that employer are less than the wages required to start a benefit year (see “Benefit eligibility,” below, for current qualifying requirements), unless he was paid wages of $200 or more in other work during the four most recently completed quarters preceding his first week of employment with the processing employer in that year.
Service performed for a seasonal employer is excluded if the individual received written notice from the seasonal employer that the service is potentially excludable, unless the individual is employed by the seasonal employer for 90 days or more or is paid or is treated as having been paid wages or other remuneration of $500 or more during the base period for services performed for at least one employer other than the seasonal employer.
Government, Indian tribe, and nonprofit employers.- A nonprofit organization employing at least four individuals for some portion of a day on at least 20 days, each day being in a different calendar week, in either a calendar year or the preceding year is a covered employer.
All state governmental units and Indian tribes are covered, with the exception of the following (note that coverage may be elected for these services):
Officials elected by vote of the public.
Services in major nontenured policymaking or advisory positions.
Officials appointed to fill part or all of the unexpired term of a position normally filled by vote of the public.
Members of a legislative body or the judiciary.
Members of the Wisconsin National Guard in a military capacity.
Individuals serving on a temporary basis in case of fire, storm, snow, earthquake, flood or similar emergency.
Inmates of penal and custodial institutions.
Individuals receiving unemployment work-relief or work-training under a program financed by a federal agency or an agency of a state or political subdivision.
“Indian tribe” has the meaning given in 25 USC 450b(e) and includes any subdivision, subsidiary, or business enterprise that is wholly owned by such entity.
The following services for a nonprofit organization are not covered:
Church or organization operated primarily for religious purposes and which is controlled by a church.
Religious duties of a minister or member of a religious order.
Patients performing services in a rehabilitation facility or sheltered workshop.
Individual receiving unemployment work-relief or work-training under program financed by a federal agency or an agency of a state or political subdivision.
PROCEDURES
Base period.- The first four of the five most recently completed quarters preceding the benefit year.
Benefit year.- 52-week period beginning with a “valid new claim week, ” except that the benefit year of an employee who files consecutive claims will be extended to 53 weeks whenever necessary to avoid utilizing the same quarter as a part of the base period for two consecutive benefit years. A “valid new claim week” may not begin in an unexpired benefit year or where claimant has benefit credits still available under an outstanding benefit determination, or where the claimant is not otherwise eligible.
Weekly benefit amount.- Benefit amount determined as 4% of claimant's base period wages paid during the high quarter, rounded down to nearest whole dollar, except that if that amount is less than the minimum amount in the benefit schedule in the law, no benefits are payable and if that amount is more than the maximum in the schedule, the benefit amount will be that maximum. Minimum is 19% of the maximum weekly benefit amount, adjusted at six-month intervals. Maximum monthly benefit amount is also adjusted at six-month intervals to 66
% of statewide average weekly wage in the year ending on the preceding June 30 or December 31. For the period beginning on and after January 4, 2009, the maximum weekly benefit amount is $363 and the minimum weekly benefit amount is $54. If a claimant earns wages in a given week, the first $30 is disregarded and his weekly benefit will be reduced by 67% of the remaining amount, except that he is ineligible if his benefit payment would be less than $5 in any week.
Note that, although benefit payments are not assignable, claimants may choose to have income taxes withheld from their weekly benefit amounts (Sec. 108.135). Moreover, deductions for unpaid child support obligations may also be taken from a claimant's benefit payment (Sec. 108.13).
Maximum total benefits.- Lower of 26 times weekly benefit amount or 40% of claimant's base period wages; however, if a claimant's base period wages are reduced, canceled, or suspended under various disqualification provisions, he or she may not receive total benefits greater than the lower of 26 times his or her weekly benefit amount or 40% of the base period wages that are not reduced, canceled, or suspended.
In addition, during certain periods of high unemployment, payment of extended benefits at weekly extended benefit rate (total regular benefits paid claimant in most recent benefit year divided by number of weeks for which benefits were paid, rounded to nearest whole dollar). A supplemental benefit program has also been established.
Benefit eligibility: Requirements-
Claimant eligible if-
able and available and seeking suitable work,
has base period wages equal to at least 35 times his/her weekly benefit rate, including combined wages equal to at least four times his/her weekly benefit rate outside the high quarter (Sec. 108.04(4), as amended by Act 59 (S. 431), L. 2007, enacted March 5, 2008);
earned wages equal to at least eight times the weekly benefit rate for the most recent benefit year subsequent to the start of the most recent benefit year.
In addition, claimants must now participate in reemployment services, such as job search assistance services, as part of their obligation to register for work if such services are considered necessary.
Persons claiming benefits based on employment with certain family corporations must fulfill special requirements as to reporting and search for work. Special registration and reporting requirements may also apply to persons who have earned some wages during a period of unemployment. Generally, benefits may not be denied to individuals in approved training.
Benefits are not payable based on services in any other capacity for an educational institution, governmental unit or nonprofit organization during periods between academic years or terms if there is reasonable assurance of reemployment in the second year or term. Any nonprofessional employee of an educational institution, governmental unit or nonprofit organization may receive retroactive payments of benefits if he/she is not given an opportunity to work after such reasonable assurance is offered.
Employees of educational institutions, governmental units or nonprofit organizations are similarly disqualified during vacation periods and holiday recesses.
Professional athletes are ineligible for periods between two successive sport seasons if there is reasonable assurance that they will perform services in both such seasons.
Benefits are not payable to an alien unless he/she has been lawfully admitted for permanent residence or is otherwise permanently residing in the United States under color of law.
An employee is ineligible for benefits from an employer's account while he/she is physically unable to work, or substantially unavailable for work (otherwise available with the employer beginning 10/1/85), if his/her employment was suspended or terminated for that reason; he/she is also ineligible while on a voluntary leave of absence for a definite period.
Special eligibility requirements or conditions may apply to employees of employers engaged in canning fresh perishable fruits or vegetables. Students also are subject to special provisions.
A claimant who does not provide sufficient information for determination of whether he/she is subject to certain disqualifications is ineligible for the week in which the disqualifying act occurs.
A claimant is ineligible if engaged in employment with an employer from which he/she was paid at least 80% of his/her base period wages (unless claimant is paid solely by way of commission) and
he/she works for that employer at least 35 hours in the week at the same or a greater rate of pay, excluding bonuses, incentives, overtime, or any other supplement, as he/she was paid by that employer in the high quarter of his/her base period or any amount that the employee would have earned from that employer in available work that is treated as wages is equivalent to pay for at least 35 hours at the same or a greater rate of pay; or
the employee receives from that employer sick pay, holiday pay, vacation pay, or termination pay which, by itself or in combination with wages earned for work performed in that week or any amount that the employee would have earned in available work that is treated as wages within that week, is equivalent to pay for at least 35 hours of work at the same or a greater rate of pay.
A claimant is ineligible for any week for which benefits are paid because he/she knowingly provided a false social security number.
An individual is ineligible for any week in which he/she fails to comply with a request to provide information relating to his/her eligibility unless there is good cause for failure to do so.
Disqualifications-Period
Discharge for misconduct connected with work-until seven weeks have elapsed since the week in which the discharge occurs and the claimant has earned at least 14 times his/her weekly benefit amount. For purposes of requalification, wages paid to claimant by the employer that terminated his/her employment for misconduct will be excluded from his/her base period wages for purposes of benefit entitlement.
Disciplinary suspension for good cause connected with work -ineligible until three weeks have elapsed since the week in which the suspension occurs or until the suspension is terminated, whichever occurs first.
Voluntary termination without good cause-until four weeks have elapsed since the week in which termination occurs and the claimant earns wages equal to at least four times his/her weekly benefit amount. “Good cause” must be attributable to the employer and includes, but is not limited to, a request, suggestion, or directive by the employer that the employee violate federal or Wisconsin law.
No disqualification if claimant terminates part-time work consisting of not more than 30 hours per week if he/she is otherwise eligible because of the loss of his/her full-time employment and such loss makes it economically unfeasible to continue part-time work.
No disqualification if employee terminates work to accept other work and earned wages in subsequent work are equal to at least four times the weekly benefit amount if the worked offered average weekly wages at least equal to the average weekly wages in the terminated work, offered the same or a greater number of hours as the terminated work, offered the opportunity for significantly longer term work or offered the opportunity to accept a position for which the duties were primarily discharged at a location significantly closer to the employee's home than the terminated work.
No disqualification if the employee terminates work with a labor organization if the termination causes the employee to lose seniority rights granted under a collective bargaining agreement and results in the loss of the employee's employment with the employer that is a party to that agreement, unless work is terminated in a position serving as a part-time or appointed member of a governmental body or representative of employees, the employee was engaged in work for an employer other than the one for which he/she worked at the time of termination, or the employee was paid wages for the terminated work constituting not more than 5% of his/her base period wages.
No disqualification if employee terminates work for one of two or more concurrently held positions at least one of which consists of more than 30 hours per week if the employee terminates work before receiving notice of termination from a position that consists of more than 30 hours per week.
Disqualification is not applicable if claimant terminated because he/she had no reasonable alternative resulting from physical inability to do his/her work, or because of the health of a member of his/her immediate family. However, if claimant is found physically unable to work or substantially unavailable for work, he/she will be ineligible for the duration of his/her inability or unavailability.
Where employee terminated because he/she was transferred by his/her employer to work paying less than
of his/her former rate, the disqualification for voluntary leaving does not apply, but claimant is ineligible for benefits for the week of termination and the four following weeks. Where a claimant voluntarily leaves work to return to his/her permanent residence, claimant will not be disqualified if his/her work had been reduced to less than 20 hours per week in at least two consecutive weeks. Disqualification does not apply if:
suspension or termination of claimant's employment was in lieu of suspension or termination by the employer of another employee's employment,
the employee terminated employment to accept a recall to work for a former employer within 52 weeks after having last worked for such employer or
employee accepted work that he/she could have refused with good cause, or terminated such employment with same good cause before working long enough to lift the disqualification.
No disqualification where claimant quit because employer made employment, compensation, promotion or job assignments contingent on consent to sexual contact or sexual intercourse. No disqualification if the employee left or lost his/her work because of reaching the compulsory retirement age used by the employing firm.
Refusal of suitable work without good cause-until four weeks have elapsed since the week in which the failure occurs and he/she has earned at least four times his/her weekly benefit amount. Similar disqualifications apply for failure to apply for suitable work and failure to return to suitable work with a former employer.
Labor dispute (other than lockout)-duration of dispute.
An individual subject to one of the above disqualifications may still establish a benefit year, by written request to the Department, if he/she qualifies for benefits and:
is eligible for benefits,
has experienced a reduction in hours of employment of at least 25% in one week as compared to his/her average number of hours of employment for the preceding 13 weeks, or
reasonably expects to be eligible to receive benefits during the next 13 weeks.
Government license (needed to perform work) suspended, revoked, or not renewed-until worker again has a valid license, no benefits based on that employer's account. Also, employee is ineligible to receive benefits based on employment with other employers until five weeks have elapsed since the end of the week in which the suspension or termination occurs or until the license is reinstated or renewed, whichever occurs first.
Fraudulent claim-recovery of overpayment and forfeiture of not less than 25% of or more than four times the weekly benefit amount for any act of concealment that results in an overpayment of less than 50% of weekly benefit amount and forfeiture of not less than one or more than four times the weekly benefit amount for any act of concealment that results in an overpayment of 50% or more of the weekly benefit amount.
Receipt of unemployment benefits under federal or state law -period for which payment is made. Special provisions apply to recipients of allowances under the “Trade Expansion Act of 1962. ”
Receipt of governmental or other pension, retirement or retired pay, annuity or other similar payment based on previous work from a plan contributed to by a base-period employing unit, whether or not payable on a periodic basis-reduction of weekly benefit amount by
of railroad retirement payment and by
of any other pension based on work or remuneration for work that affected the claimant's eligibility for or increased the amount of such pension. Reduction applies only to the portion of a pension payment financed by other than the claimant's own contributions. For each week of unemployment beginning in 2002, weekly benefit amount will be reduced by 50 percent if claimant receives a payment under Social Security that is contributed to by an employer from which the claimant has base period wages. For weeks of unemployment beginning on January 5, 2003, pension payments that may reduce a claimant's weekly benefit will not include payments received under Social Security.
WHAT THE EMPLOYER MUST DO
Pay the standard rate.- The combined rate from the basic schedule and the solvency schedule that is closest to, but not less than 5.4%. Maximum basic rate is 8.9%. These figures do not include any special assessments --see below. No employee tax. Note that an employer is permitted a contribution rate lower than the standard rate for any calendar year only if (1) it has paid contributions for 3 years, (2) benefits have been chargeable to its account during the past 18 months, and (3) additional credit is allowable under the FUTA.
Experience rates.- An employer's contribution rate for a calendar year is 2.7% for each of the first three calendar years with respect to which contributions are credited to its account. Note that the new employers discussed here are subject also to a 0.9% “solvency” contribution discussed below.
An employer engaged in the construction of roads, bridges, highways, sewers, water mains, utilities, public buildings, factories, housing or similar projects will pay contributions for each of the first three years at the average rate for construction industry employers, plus any additional contributions that are required. In no case may this rate be more than the maximum rate specified in the schedule in effect for the year.
Other employers are “experience rated,” and pay at variable rates up to a maximum rate of 8.9% (plus applicable solvency rate-see below). The minimum rate is zero. The basic factor used in setting any experience-rated employer's tax rate is its “reserve percentage,” which is, generally, the relationship between benefits charged to its account, and contributions credited to its account, stated as a percentage of its taxable payroll.
In order for an employer to obtain a rate of less than 2.7%, it is required that benefits must have been chargeable to its account for the 18 months preceding the June 30 computation date.
Certain other factors are also considered in setting rates. A “solvency rate” is added to each employer's rate for the purposes of financing the balancing account.
There are four schedules of basic rates, with corresponding schedules of solvency taxes:
Schedule A, which is in effect for a year if the cash balance of the fund on the preceding June 30 is less than $300 million, ranges from 0.27% to 3.57% for positive-balance employers and from 5.7% to 8.9% for negative-balance employers. Solvency taxes under Schedule A range from zero to 0.9% for employers with payrolls of under $500,000 and from 0.43% to 0.9% for employers with payrolls of $500,000 or more.
Schedule B, which is in effect when the cash balance of the fund on the preceding June 30 is at least $300 million, but less than $900 million, ranges from zero to 4.0% for positive-balance employers and from 5.7% to 8.9% for negative-balance employers. Solvency taxes under Schedule B range from .05% to 0.9% for employers with payrolls of under $500,000 and from 0.1% to 0.9% for employers with payrolls of $500,000 or more.
Schedule C, which is in effect when the cash balance of the fund on the preceding June 30 is at least $900 million, but less than $1,200,000,000, ranges from zero to 4.0% for positive-balance employers and from 5.7% to 8.9% for negative-balance employers. Solvency taxes under Schedule C range from .02% to .85% for employers with payrolls of under $500,000 and from .05% to .85% for employers with payrolls of $500,000 or more.
Schedule D, which is in effect when the cash balance of the fund on the preceding June 30 is at least $1,200,000,000, ranges from zero to 3.90% for positive-balance employers and from 5.7% to 8.9% for negative-balance employers. Solvency taxes under Schedule D range from zero to .85% for employers with payrolls of under $500,000 and from .05% to .85% for employers with payrolls of $500,000 or more.
For calendar year 2009, Schedule B is in effect. Thus, positive-balance employers with payrolls of under $500,000 pay total rates (including solvency taxes) ranging from 0.05% to 4.65%, while positive-balance employers with payrolls of $500,000 or more pay total rates ranging from 0.10% to 4.70%. All negative-balance employers pay total rates ranging from 6.6% to 9.80% for 2009. New construction employers with payrolls of under $500,000 pay 6.6% for 2009, and new construction employers with payrolls of $500,000 or more pay 6.6% for 2009. Other new employers with payrolls of under $500,000 pay 3.25%, and other new employers with payrolls of $500,000 or more pay 3.4% for 2009.
A seasonal employer pays an additional solvency contribution of 2.0% unless that rate would result in the employer paying more than the maximum total contribution and solvency rate applicable to any employer for that year, in which case the seasonal employer pays the solvency rate which, when combined with its contribution rate, equals that maximum total rate.
The rate of an employer whose reserve percentage equals or exceeds zero may not increase by more than 1% from one year to the next and the rate of an employer whose reserve percentage is less than zero may not increase by more than 2% from one year to the next. The employers who are the exceptions to this rule are some new employers and some employers with negative account balance percentages.
An employer (other than a construction employer) having a payroll of over $10 million in a calendar year may elect a 1.0% rate on its payroll for the first three calendar years that contributions are credited to its account.
Nonprofit organizations have the option of financing the payment of benefits by the regular contributions or the reimbursement methods, but nonprofit organizations which elect coverage are required to use the reimbursement method. Under reimbursement financing, employers are required to make payments equal to the full amount of regular benefits plus
the extended benefits paid to claimants.
A nonprofit organization whose election of reimbursement financing has been terminated cannot reelect such financing until it has paid contributions for at least three calendar years and is not delinquent. During the three years, the rate will be 2.7%. A nonprofit organization, other than an institution of higher education, which elects reimbursement financing must file a surety bond or deposit securities equal to the value of the bond.
Any state governmental unit will use reimbursement financing unless it elects to pay contributions. A governmental unit which elects or reelects to pay contributions pays 2.7% for the first three years of liability.
Each Indian tribe may, in lieu of paying contributions, elect reimbursement financing for itself as a whole or for any tribal unit or any combinations of tribal units which are wholly owned subdivisions, subsidiaries or business enterprises. If an Indian tribe or tribal unit terminates an election of reimbursement financing, then the Indian tribe or tribal unit will pay contributions as a rate of 2.7% for each of the next three calendar years.
SUTA dumping.- If, after the transferee of a business has been deemed a successor under the law, the department determines that a substantial purpose of the transfer of the business was to obtain a reduced contribution rate, then the department will treat the transfer as having no effect and will, retroactively to the date of the transfer, reassign to the transferor all aspects of the transferor’s account experience and liability that had been assigned to the transferee, together with all aspects of the transferee’s account experience related to the transferred business, and shall recompute the transferor’s contribution rate.
The department will determine or redetermine the contribution rate for the successor effective as of the beginning of the first quarter following the date of the transfer of the business. The department will thereafter redetermine the contribution rate whenever necessary. In addition, it will determine the experience of the successor’s account by allocating to the successor’s account for each period in question the respective proportions of the transferor’s payroll and benefits which the department determines to be properly assignable to the business transferred.
A transferee who is not subject to the UI law on the date of transfer of a business will not be considered a successor to the transferor if the department determines that the transfer occurred solely or primarily for the purpose of obtaining a lower contribution rate for the transferee than the rate that would otherwise apply if the transferee were considered a new employer. In determining whether a business was transferred solely or primarily for the purpose of obtaining a lower contribution rate for the transferee than the rate that would otherwise apply, the department will use objective factors, which may include the cost of acquiring the business, whether the transferee continued the business enterprise of the transferred business, the length of time that the business enterprise was continued or whether a substantial number of new employees were hired for the performance of duties unrelated to the business activity conducted by the transferor prior to the transfer.
Note that an employer that is the transferee of a business enterprise but does not qualify to be treated as a successor under the above paragraph does not qualify for an alternate contribution rate.
Penalties.- If any person knowingly makes or attempts to make a false statement or representation to the department in connection with any investigation to determine whether an employer qualifies to be deemed a successor for the purpose of determining the assignment of a contribution rate, or if any person knowingly advises another person to do so, including by willful evasion, nondisclosure or misrepresentation, the person is subject to the following penalties:
If the person is an employer, then the department will assign the employer the highest contribution rate assignable for the year, during which the violation or attempted violation occurs and the three succeeding years, except that if the department assigns the employer the highest contribution rate for any such year or if the increase in the employer’s contribution rate would be less than two percent on its payroll for any year, then the department will increase the employer’s contribution rate by two percent on its payroll for each year in which a penalty applies.
If the person is not an employer, the person may be required to forfeit not more than $5,000. In addition, the person is guilty of a Class A misdemeanor.
Voluntary payments.- Voluntary contributions are to be paid during the month of November, for the purpose of computing the reserve percentage as of the immediately preceding computation date (June 30). Such payments are timely if received no later than November 30 or, if mailed, are either postmarked no later than November 30 or received no later than three days following that date; may be refunded if, due to a departmental or employer error, the Department makes an adjustment after the computation date or the November voluntary contribution period. Voluntary contributions may be made after the month of November under certain circumstances, but no later than 120 days after the beginning of the calendar year to which the reserve percentage applies.
A voluntary contribution may not reduce an employer's rate to a lower rate than the one next lower to that rate it would otherwise be required to pay. No employer whose overdrafts have been charged to the balancing account may make a voluntary contribution prior to the fifth calendar year beginning after the date of the most recent such charge.
DEADLINES
Tax and wage.- Employers must complete Form UCT-101A, Employer's Quarterly Contribution/Wage Report, and submit remittance, quarterly on or before last day of following month. Contribution report and/or payment must be postmarked by the due date. Employers who do not pay wages may file their report by phone. Internet filing is available and encouraged. Employers with 50 or more employees are required to file using the state website. Employers with 150 or more employees, may attach a wage detail file when reporting via the website. Employer Service Providers (ESPs) who prepare reports for employers must file using an electronic medium and format. ESPs that prepare fewer than 25 contribution tax reports must file online. ESPs preparing 25 or more reports may use the online system or may submit a file on approved magnetic media.
ENFORCEMENT
The Wisconsin Unemployment Reserves and Compensation Act is administered by the Department of Industry, Labor, and Human Relations.
A warrant for collection of past-due contributions may be issued by the Department to the clerk of the circuit court of any county in the state. The clerk shall enter in the judgment docket the name of the employer and the amount of contributions, interest, costs, and other fees for which the warrant is issued. A warrant so docketed is considered in all respects as a final judgment creating a perfected lien upon the employer's right, title and interest in all of its real and personal property located in the county wherein the warrant is docketed.
The fund's treasurer may write off any delinquent contributions, reimbursements in lieu of contributions, tardy payments or filing fees or interest, for which the employer's liability to the fund has been established, upon receipt of certification by the Department that reasonable efforts have been made to recover the delinquency and that the delinquency is uncollectible.
Records.- The Department may require from employers, whether subject to the Act or not, any reports on employment, wages, hours and related matters that it deems necessary to carry out the provisions of the Act. Reports received by the Department are to be open to public inspection only when and to the extent that the Department deems advisable in the interests of the unemployment compensation program. No person may permit inspection or disclosure of any record provided to it by the Department or Commission unless authorized to do so.
The Department may also provide records to any government unit, corresponding unit in the government of another state, or any unit of the federal government, but no such unit may permit inspection or disclosure of any record so provided unless the Department authorizes the inspection or disclosure.
WHO TO CONTACT
The Wisconsin Unemployment Reserves and Compensation Act is administered by the Department of Industry, Labor, and Human Relations, 201 E. Washington Ave., Box 7905, Madison, Wisconsin 53707; Telephone (608) 266-6993.
RECORDKEEPING
Every employer of one or more persons in Wisconsin must keep such an accurate work record of all individuals employed by it, including full name, address and social security number, as will permit the determination of the weekly wages earned by each such individual and the wages paid within each quarter to that individual. Wage records must be kept open to the inspection of any authorized Department representative. Employers must keep work records for six years from the date on which the individual last performed services for the employer.
In the event that an employer fails to keep adequate employment and payroll records, the Department has the authority and discretion to determine the employer's contribution or benefit liability, as the case may be, on the basis of such evidence as may be available. Such determination will be made by a deputy but the employer may have a hearing by request within 21 days after the mailing date of the determination.
POSTING
Each employer whose benefit liability has started must inform its employees of the method of registering for benefits by duly posting such registration “notices to employees” as the Department may supply. Such notices are to be permanently posted by each employer at suitable points (on bulletin boards, near time-clocks, etc., where all employees will readily see them) in each of the employer's workplaces and establishments in Wisconsin. See ¶51-9900 .
PENALTIES
Interest and penalties.- If an employer is delinquent in making any contribution or reimbursement report or payment it will be liable for interest on such delinquent payment at the rate of 1% per month or fraction thereof.
If any employer is delinquent in making any quarterly report by the assigned due date, the employer must pay a tardy filing fee for each delinquent report as follows:
for 1 to 100 employees, $15;
for 101 to 200 employees, $40;
for 201 to 300 employees, $65;
for 301 to 400 employees, $90; and
for more than 400 employees, $115.
The Department may waive any tardy filing fee otherwise imposed for wage reports if the failure is for a reason that is beyond the control of the employer.
Penalties are provided by the Act for false statements or representations in connection with any reports or information required; for knowing refusal or failure to keep records or to furnish reports or information, and for deduction of contributions from wages. Such penalties range from a fine of not less than $100 nor more than $500 to imprisonment for not longer than 90 days, or both a fine and imprisonment.
The Department may require any employer to make such arrangements as will reasonably assure the Department that the employer will keep such records, make such reports, and pay such contributions as are required under the Act. If the employer fails to make such arrangements within 20 days after notice, the Department, by action in the Dane county circuit court, may have the employer enjoined from doing business in the state until it has made such arrangements.
Liens.- If an employer fails to pay the amount of contributions or reimbursement payments determined to be due under the Act, and the period for appeal or review of the determination has expired, the Department may issue a warrant directed to a sheriff, levying upon the employer's real or personal property. The warrant will be entered in the judgment docket and the amount of the warrant becomes a lien on the employer's property.
Bankruptcy.- In the event of an employer's dissolution, reorganization, bankruptcy, receivership, assignment for benefit of creditors, judicially confirmed extension proposal or composition, or any analogous situation including the administration of estates in courts of probate, the payments required of employers under the Act will have preference over all claims of general creditors and shall be paid next after the payment of preferred claims for wages. If, however, the employer has taxes due under FUTA and a claim for such taxes has been filed, the amount of contributions which should be paid to allow the employer the maximum offset against such taxes is given preference over preferred claims for wages and is on a par with debts due the United States, if by such preference the offset against the federal tax can be secured under FUTA.
<p>Bankruptcy.— In the event of an employer's dissolution, reorganization, bankruptcy, receivership, assignment for benefit of creditors, judicially confirmed exte</p>
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