Register July 2014 No. 703
Chapter DWD 113
SETTLEMENT OF DISPUTES AND COMPROMISE OF LIABILITIES
DWD 113.001   Definitions.
DWD 113.01   Purposes.
DWD 113.02   Settlement.
DWD 113.025   Waiver of interest.
DWD 113.03   Compromise of employer liability.
DWD 113.04   Compromise of personal liability.
DWD 113.05   General procedural provisions.
DWD 113.06   Disposition of warrants.
DWD 113.07   Reopening compromised liability.
Ch. DWD 113 Note Note: Chapter ILHR 113 was effective on March 1, 1994, except that ss. ILHR 113.03 and 113.04 are also applicable to installment payment agreements entered on or after January 7, 1990. Chapter ILHR 113 was renumbered Chapter DWD 113 under s. 13.93 (2m) (b) 1., Stats. and corrections made under s. 13.93 (2m) (b) 6. and 7. Stats., Register, June, 1997, No. 498.
DWD 113.001 DWD 113.001 Definitions.
DWD 113.001(1)(1) In general. Except as provided in sub. (2), unless the context clearly indicates a different meaning, the definitions in ch. DWD 100 apply to this chapter.
DWD 113.001(2) (2)In this chapter. Notwithstanding ch. DWD 100, the following words and phrases have the designated meanings unless the context clearly indicates a different meaning:
DWD 113.001(2)(a) (a) "Action" means a circuit court proceeding for judicial review of a commission decision or an appeal to either the court of appeals or the supreme court.
DWD 113.001(2)(b) (b) "Decision" means a written resolution by an administrative law judge of an appeal from a determination or a written resolution of a petition for review by the commission or a written resolution of an action for judicial review by a court of competent jurisdiction.
DWD 113.001(2)(c) (c) "Determination" means an initial determination issued under s. 108.10 (1), Stats.
DWD 113.001(2)(d) (d) "Employer", in addition to the meaning contained in s. 108.02 (13), Stats., includes an employing unit which was formerly an employer under s. 108.02 (13), Stats.
DWD 113.001 History History: Cr. Register, February, 1994, No. 458, eff. 3-1-94, r. (intro.), (5), renum. (1), (4), (6) and (7) to be (2) (a), (b), (c) and (d), renum. (2), (3), (8), (9) and (10) to be 110.02 (9), (10), (44), (51) and (52), cr. (1), (2), Register, September, 1995, No. 477, eff. 10-1-95.
DWD 113.01 DWD 113.01 Purposes.
DWD 113.01(1)(1) This chapter establishes standards for the following circumstances:
DWD 113.01(1)(a) (a) The settlement of disputes between the department and parties to determinations, decisions or actions.
DWD 113.01(1)(b) (b) The compromise of liabilities for contributions, reimbursements in lieu of contributions, interest, penalties and costs assessed under ch. 108, Stats.
DWD 113.01(1)(c) (c) In limited circumstances, waiving or decreasing the interest charged under s. 108.22 (1) (a) or 108.17 (2c) (c), Stats.
DWD 113.01(2) (2) This chapter does not affect the application of s. 108.10 (1) and (6), Stats.
DWD 113.01 History History: Cr. Register, February, 1994, No. 458, eff. 3-1-94; CR 13-106: am. (1) (intro.), cr. (1) (c) Register July 2014 No. 703, eff. 8-1-14.
DWD 113.02 DWD 113.02 Settlement.
DWD 113.02(1)(1) Under s. 108.10 (8), Stats., the department may settle in whole or in part:
DWD 113.02(1)(a) (a) Any determination which has been appealed, which has not become final and which has been referred from the bureau of tax and accounting to the bureau of legal affairs; and
DWD 113.02(1)(b) (b) Any decision or action which has not become final.
DWD 113.02(2) (2) Settlement shall be based upon advice of counsel for the unemployment compensation division, who shall certify that, after having fully investigated the matter, it is his or her opinion that one or more of the following conditions exists:
DWD 113.02(2)(a) (a) The department has made an error of law or fact which, if corrected, would negate or change the initial determination issued in the case.
DWD 113.02(2)(b) (b) Given the available evidence, there is significant doubt as to the ability of the department to prevail in the dispute with respect to one or more specific issues and there is little or no likelihood of producing sufficient additional evidence in favor of the department regarding the issues prior to or at a hearing under s. 108.10 (2), Stats.
DWD 113.02(2)(c) (c) Prior to a hearing under s. 108.10 (2), Stats., the department has discovered additional relevant and material evidence which would negate or change the initial determination in the case.
DWD 113.02(2)(d) (d) Given the evidence in the record or the nature of a decision at a lower level, or both, there is significant doubt as to the ability of the department to prevail on appeal with respect to one or more specific issues.
DWD 113.02(2)(e) (e) All or part of any interest liability was incurred as a result of undue delay on the part of the department such that there is valid reason to cancel that liability.
DWD 113.02(2)(f) (f) There are valid legal defenses of estoppel or laches against the department as to all or part of the initial determination(s).
DWD 113.02(3) (3) A settlement may be implemented by any one or more of the following methods:
DWD 113.02(3)(a) (a) Under s. 108.10 (1), Stats., the department may amend any initial determination affected by the settlement prior to a hearing on the determination(s).
DWD 113.02(3)(b) (b) Under s. 108.10 (1), Stats., the department may set aside the applicable initial determination(s) prior to a hearing on the determination(s) and issue whatever new initial determination(s) are necessary to reflect the terms of the settlement.
DWD 113.02(3)(c) (c) The department and the opposing party may enter into a written stipulation which sets forth the terms of the settlement. The stipulation is subject to the approval of the administrative law judge assigned to the case.
DWD 113.02(3)(d) (d) The opposing party may withdraw all or part of the appeal of the department's initial determination(s).
DWD 113.02 History History: Cr. Register, February, 1994, No. 458, eff. 3-1-94.
DWD 113.025 DWD 113.025 Waiver of interest.
DWD 113.025(1)(1) Except as provided in s. DWD 113.02 or 113.03, the department may grant a waiver or decrease of interest owed by an employer if the employer satisfies all of the following conditions:
DWD 113.025(1)(a) (a) The employer pays the full payment of any taxes and assessments due within 30 days following resolution of all issues. Until the employer pays all of the correct amount of taxes and assessments due, the department may not waive or decrease any of the interest owed by the employer.
DWD 113.025(1)(b) (b) The employer files any wage or tax report due within 30 days following resolution of all issues. Until the employer files all of the wage or tax reports that are due, the department may not waive or decrease any of the interest owed by the employer.
DWD 113.025(1)(c) (c) The employer has no other outstanding reports, contributions, interest, penalty, or other fees due.
DWD 113.025(1)(d) (d) The employer was determined within the last year to be subject to Wisconsin unemployment insurance law or has a history of timely filing required reports, including wage and tax reports, and of making payments in a timely manner.
DWD 113.025(1)(e) (e) The employer or a business for which the employer is a successor, pursuant to the requirements of s. 108.16 (8), Stats., has never previously received a waiver or decrease in interest charged under s. 108.22 (1) (a) or 108.17 (2c) (c), Stats.
DWD 113.025(1)(f) (f) There has not been a hearing before an administrative law judge on an appeal under s. 108.10, Stats., regarding the tax liability associated with the interest.
DWD 113.025(2) (2) If all of the conditions of sub. (1) are satisfied, the department may waive or decrease the interest charged under s. 108.22 (1) (a) or 108.17 (2c) (c), Stats., if the interest charged resulted from any of the following circumstances:
DWD 113.025(2)(a) (a) The employer failed to pay taxes or underpaid taxes by the required due date established by the department as a result of excusable neglect. An erroneous contention regarding the unemployment insurance law or misunderstanding of the obligations under the law shall not constitute excusable neglect.
DWD 113.025 Note Note: The following are examples of excusable neglect:
DWD 113.025 Note Embezzlement by an accountant or an employee who is not related to the employer such that the embezzlement caused the interest to be due.
DWD 113.025 Note Inaccurate written communication given to the employer by the Wisconsin Division of Unemployment Insurance that affirmatively misled the employer as to its duties and obligations such that the inaccurate written communication caused the interest to be due.
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