1995 Wisconsin Act 118

118,26 Section 26 . 108.05 (10) of the statutes is created to read:

108.05 (10) Deductions from benefit payments. After calculating the benefit payment due to be paid for a week under subs. (1) to (7), the department shall make deductions from that payment to the extent that the payment is sufficient to make the following payments in the following order:

(a) First, to recover forfeitures assessed under s. 108.04 (11).

(b) Second, to recover overpayments under s. 108.22 (8) (b).

(c) Third, to pay child support obligations under s. 108.13 (4).

(d) Fourth, to withhold federal income taxes under s. 108.135.

(e) Fifth, to withhold state income taxes under s. 108.135.

(f) Sixth, to deduct amounts for any purpose authorized under s. 108.13 (5).

118,27 Section 27 . 108.06 (2) (a) (intro.) of the statutes is amended to read:

108.06 (2) (a) (intro.) A claimant may establish a benefit year by written request to the department, filed in the manner that prescribed by the department prescribes by rule, whenever the claimant qualifies to start a benefit year under s. 108.04 (4) (a) and:

118,28 Section 28 . 108.07 (3) of the statutes is amended to read:

108.07 (3) Except as provided in sub. (7), if a claimant earns wages during his or her benefit year for work performed for an employer from which the claimant has base period wages, if a claimant receives sick pay, holiday pay, vacation pay or termination pay that is treated as wages under s. 108.05, if any amount that the claimant would have earned from that employer is treated as wages under s. 108.05 (3) (a) or if any combination of wages and such pay or amount is received or treated as received during the claimant's benefit year from such an employer, the department shall charge benefits otherwise chargeable to the account of that employer to the fund's balancing account for each week in which the claimant earns, receives or is treated as receiving such remuneration equal to at least 3.8% 6.4% of the wages paid by that employer to the claimant during the 2 quarters in the claimant's base period in which the highest wages were paid by that employer to the claimant same quarter of the prior calendar year as the quarter which includes that week.

118,29 Section 29 . 108.07 (3m) of the statutes is amended to read:

108.07 (3m) If a claimant has base period wages with an employer constituting less than 5% of the claimant's total base period wages, the department shall not charge the benefits to the account of that employer. If benefits are otherwise chargeable to the account of any employer whose share of a claimant's total base period wages is less than 5%, the department shall charge the benefits to the remaining employers with which the claimant has base period wages. The department shall distribute such charges in the same proportion that the claimant's base period wages from such employers bear to the claimant's total base period wages from all such employers. This subsection does not apply to claims for benefits based in whole or in part on employment for the federal government under 5 USC 8501 to 8509, employment with the armed forces under 5 USC 8521 (a) (1) as federal civilian employes or former military personnel under 5 USC ch. 85, or work covered by the unemployment compensation laws of 2 or more jurisdictions under s. 108.14 (8n).

118,30 Section 30 . 108.07 (3r) of the statutes is created to read:

108.07 (3r) Except as otherwise provided in sub. (7), if a claimant has been paid or is treated as having been paid base period wages with respect to work performed for an employer that is subject to the contribution requirements of ss. 108.17 and 108.18 and whose account has been charged for benefits paid to that claimant for an immediately preceding benefit year, the department shall not charge the benefits payable in the subsequent benefit year to the account of that employer if the claimant has not had employment with that employer since the start of the immediately preceding benefit year. The department shall charge benefits otherwise chargeable to the account of that employer to the fund's balancing account.

118,31 Section 31 . 108.07 (5) (c) of the statutes is amended to read:

108.07 (5) (c) If 2 or more employers from which the claimant has base period wages are not subject to the contribution requirements of ss. 108.17 and 108.18, and one or more employers from which the claimant has base period wages are subject to the contribution requirements of ss. 108.17 and 108.18, that percentage of the employe's base period wages benefits which would otherwise be chargeable to the fund's balancing account under sub. (3) or s. 108.04 (1) (f) or (5), or under s. 108.16 (6m) (e) for benefits specified in s. 108.16 (3) (b), shall be charged to the administrative account and paid from the appropriation under s. 20.445 (1) (gd).

118,32 Section 32 . 108.07 (8) of the statutes is created to read:

108.07 (8) (a) In this subsection, “prisoner" has the meaning given in s. 301.01 (2).

(b) If a claimant is a prisoner of a state prison, as defined in s. 302.01, and has employment with an employer other than the department of corrections or a private business leasing space within a state prison under s. 303.01 (2) (em), and the claimant's employment terminates because conditions of incarceration or supervision make it impossible to continue the employment, the department shall charge to the fund's balancing account any benefits based on the terminated employment that are otherwise chargeable to the account of an employer that is subject to the contribution requirements under ss. 108.17 and 108.18.

118,33 Section 33 . 108.09 (2) (bm) of the statutes is created to read:

108.09 (2) (bm) In determining whether an individual meets the conditions specified in s. 108.02 (12) (b) 2. a. or b., the department shall not consider documents granting operating authority or licenses, or any state or federal laws or federal regulations granting such authority or licenses.

118,34 Section 34 . 108.09 (4) (a) (title) of the statutes is created to read:

108.09 (4) (a) (title) Opportunity to be heard.

118,35 Section 35 . 108.09 (4) (b) (title) of the statutes is created to read:

108.09 (4) (b) (title) Scheduling of hearing.

118,36 Section 36 . 108.09 (4) (c) to (e) of the statutes are repealed and recreated to read:

108.09 (4) (c) Late appeal. If a party files an appeal which is not timely, the department may schedule a hearing concerning the issue of whether the party's failure to timely file the appeal was for a reason beyond the party's control. The department may also provisionally schedule a hearing concerning any matter in the determination. If, after hearing testimony, the appeal tribunal finds that the party's failure to timely file the appeal was not for a reason beyond the party's control, the appeal tribunal shall issue a decision containing this finding and dismissing the appeal. If, after hearing testimony, the appeal tribunal finds that the party's failure to timely file an appeal was for a reason beyond the party's control, the appeal tribunal shall issue a decision containing this finding. The same or another appeal tribunal established by the department for this purpose shall then issue a decision under sub. (3) (b) after conducting a hearing concerning any matter in the determination.

(d) Appellant's failure to appear. 1. If the appellant fails to appear at a hearing held under this section and due notice of the hearing was mailed to the appellant's last-known address, the appeal tribunal shall issue a decision dismissing the request for hearing unless subd. 2. applies.

2. If the appellant delivers or transmits a written explanation for nonappearance to the department which is received before a decision under subd. 1., is mailed, the department may so notify each party and schedule a hearing concerning whether there was good cause for the appellant's nonappearance. The department may also provisionally schedule a hearing concerning any matter in the determination. If, after hearing testimony, the appeal tribunal finds that the appellant's explanation does not establish good cause for nonappearance, the appeal tribunal shall issue a decision containing this finding and dismissing the appeal. If, after hearing testimony, the appeal tribunal finds that the appellant's explanation establishes good cause for nonappearance, the appeal tribunal shall issue a decision containing this finding. The same or another appeal tribunal established by the department for this purpose shall then issue a decision under sub. (3) (b) after conducting a hearing concerning any matter in the determination.

3. If the appellant delivers or transmits a written explanation for nonappearance to the department which is received within 21 days after a decision under subd. 1. is mailed, the appeal tribunal may set aside the decision dismissing the appeal and the department may schedule a hearing concerning whether there was good cause for the appellant's nonappearance. The department may also provisionally schedule a hearing concerning any matter in the determination. If, after hearing testimony, the appeal tribunal finds that the appellant's explanation does not establish good cause for nonappearance, the appeal tribunal shall issue a decision containing this finding and reinstating the dismissal. If, after hearing testimony, the appeal tribunal finds that the appellant's explanation establishes good cause for nonappearance, the appeal tribunal shall issue a decision containing this finding. The same or another appeal tribunal established by the department for this purpose shall then issue a decision under sub. (3) (b) after conducting a hearing concerning any matter in the determination.

(e) Respondent's failure to appear. 1. If the respondent fails to appear at a hearing held under this section but the appellant is present, and due notice of the hearing was mailed to the respondent's last-known address, the appeal tribunal shall hold the hearing and shall issue a decision under sub. (3) (b) unless subd. 2. applies.

2. If the respondent delivers or transmits a written explanation for nonappearance to the department which is received before a decision favorable to the respondent is mailed under subd. 1., the appeal tribunal shall acknowledge receipt of the explanation in its decision but shall take no further action concerning the explanation at that time. If the respondent delivers or transmits a written explanation for nonappearance to the department which is received before a decision unfavorable to the respondent is mailed under subd. 1., the department may so notify each party and may schedule a hearing concerning whether there was good cause for the respondent's nonappearance. The department may also provisionally schedule a hearing for further testimony concerning any matter in the determination. If, after hearing testimony, the appeal tribunal finds that the respondent's explanation does not establish good cause for nonappearance, the appeal tribunal shall issue a decision containing this finding. The same or another appeal tribunal established by the department for this purpose shall also issue a decision based on the testimony and other evidence presented at the hearing at which the respondent failed to appear. If, after hearing testimony, the appeal tribunal finds that the respondent's explanation establishes good cause for nonappearance, the appeal tribunal shall issue a decision containing this finding. The same or another appeal tribunal established by the department for this purpose shall then issue a decision under sub. (3) (b) after conducting a hearing concerning any matter in the determination. If such a 2nd hearing is held concerning any matter in the determination, the appeal tribunal shall only consider testimony and other evidence admitted at that hearing in making a decision.

3. If the respondent delivers or transmits a written explanation for nonappearance to the department which is received within 21 days after a decision favorable to the respondent is mailed under subd. 1., the department shall notify the respondent of receipt of the explanation and that since the decision was favorable to the respondent no further action concerning the explanation will be taken at that time. If the respondent delivers or transmits a written explanation for nonappearance to the department which is received within 21 days after a decision unfavorable to the respondent is mailed under subd. 1., the appeal tribunal may set aside the original decision and the department may schedule a hearing concerning whether there was good cause for the respondent's nonappearance. The department may also provisionally schedule a hearing concerning any matter in the determination. If the original decision is not set aside, the appeal tribunal may on its own motion amend or set aside that decision within 21 days after the decision concerning whether there was good cause for the respondent's nonappearance is mailed under subd. 1. If, after hearing testimony, the appeal tribunal finds that the respondent's explanation does not establish good cause for nonappearance, the appeal tribunal shall issue a decision containing this finding and, if necessary, reinstating the decision which was set aside. If, after hearing testimony, the appeal tribunal finds that the respondent's explanation establishes good cause for nonappearance, the same or another appeal tribunal established by the department for this purpose shall issue a decision containing this finding. The same or another appeal tribunal established by the department for this purpose shall then issue a decision under sub. (3) (b) after conducting a hearing concerning any matter in the determination. If such a 2nd hearing is held concerning any matter in the determination, the appeal tribunal shall only consider the testimony and other evidence admitted at that hearing in making a decision.

118,37 Section 37 . 108.09 (4) (f) (title) of the statutes is created to read:

108.09 (4) (f) (title) Postdecision changes.

118,38 Section 38 . 108.09 (4) (f) of the statutes is repealed.

118,39 Section 39 . 108.09 (4) (g) of the statutes is renumbered 108.09 (4) (f) 1. and amended to read:

108.09 (4) (f) 1. Within Except as provided in par. (e) 3., within 21 days after its decision was mailed to the parties the appeal tribunal may on its own motion amend or set aside its decision and may thereafter make new findings and issue a decision on the basis of evidence previously submitted in such case, or the same or another appeal tribunal may make new findings and issue a decision after taking additional testimony.

118,40 Section 40 . 108.09 (4) (h) of the statutes is renumbered 108.09 (4) (f) 2.

118,41 Section 41 . 108.09 (4) (hm) of the statutes is renumbered 108.09 (4) (f) 3. and amended to read:

108.09 (4) (f) 3. Unless a party has filed a timely petition for review of the appeal tribunal decision by the commission, the appeal tribunal may, within one year after the date of the decision, reopen its decision if it has reason to believe that a party offered false evidence or a witness gave false testimony on an issue material to its decision. Thereafter, and after receiving additional evidence or taking additional testimony, the same or another appeal tribunal may set aside its original decision and, make new findings and issue a decision.

118,42 Section 42 . 108.09 (4) (i) of the statutes is repealed.

118,43 Section 43 . 108.09 (4s) of the statutes is created to read:

108.09 (4s) Employe status. In determining whether an individual meets the conditions specified in s. 108.02 (12) (b) 2. a. or b., the appeal tribunal shall not take administrative notice of or admit into evidence documents granting operating authority or licenses, or any state or federal laws or federal regulations granting such authority or licenses.

118,44 Section 44 . 108.13 (title) and (1) to (3) of the statutes are amended to read:

108.13 (title) Assignment Deductions from benefit payments. (1) (title) Assignment before payment. Except as provided in sub. subs. (4) and (5) and s. 108.135, no claim for benefits under this chapter nor any interest in the fund is assignable before payment. This subsection does not affect the survival of such a claim or interest.

(2) (title) Liability of claimant. Except as provided in sub. subs. (4) and (5), no claim for benefits awarded, adjudged or paid or any interest in the fund may be taken on account of any liability incurred by the party entitled thereto. This subsection does not apply to liability incurred as the result of an overpayment of unemployment compensation benefits under the law of any state or the federal government.

(3) (title) Death of claimant. In case an employe If a claimant dies during or after the close of a week of unemployment in which the employe claimant was otherwise eligible to receive benefits and for which benefits are payable under this chapter, the department may designate any person who might in its judgment should properly receive such the benefits , and a in lieu of the claimant. A receipt or an indorsement endorsement from the person so designated shall fully discharge discharges the fund from liability for such the benefits.

118,45 Section 45 . 108.13 (5) of the statutes is created to read:

108.13 (5) Other deductions. The department may make a deduction from a claimant's benefit payments for any purpose that is permitted by federal law.

118,46 Section 46 . 108.135 of the statutes is created to read:

108.135 Income tax withholding. (1) The department shall advise each claimant filing a new claim for unemployment compensation, at the time of filing the claim, that:

(a) Unemployment compensation is subject to federal and Wisconsin income taxes.

(b) Requirements exist under federal law pertaining to estimated tax payments.

(c) The claimant may elect to have federal income taxes and, if permitted under sub. (3), Wisconsin income taxes withheld and to change each election once during a benefit year.

(2) The department shall permit a claimant to elect to have federal income tax deducted and withheld from the claimant's benefit payments. Except as provided in sub. (5), if a claimant elects federal income tax withholding, the department shall deduct and withhold federal income tax at the rate specified in 26 USC 3402 (p) (2).

(3) The department may permit a claimant to elect to have state income tax deducted and withheld from the claimant's benefit payments. Except as provided in sub. (5), if the department permits and a claimant elects state income tax withholding, the department shall deduct and withhold state income tax at the rate specified by the department.

(4) The department shall permit a claimant to change each previously elected withholding status under sub. (2) or (3) one time within a benefit year.

(5) If any benefit payment due for a week under s. 108.05 (1) to (7), after making any deductions under s. 108.05 (10), is insufficient to equal the amounts required to be withheld under sub. (2) or (3), the department shall deduct and withhold the entire remaining benefit payment for that week.

(6) Upon making a deduction under this section, the department shall transfer the amount deducted from the fund to the federal internal revenue service or to the department of revenue.

(7) The department shall follow all procedures specified by the U.S. department of labor and the federal internal revenue service pertaining to the deducting and withholding of income tax.

118,47 Section 47 . 108.14 (8n) (e) of the statutes is amended to read:

108.14 (8n) (e) The department shall charge this state's share of any benefits paid under this subsection to the account of each employer by which the employe claiming benefits was employed in the applicable base period, in proportion to the total amount of wages he or she earned from each employer in the base period, except that if s. 108.04 (1) (f), (5), (7) (a), (c), (d), (e), (k), (L), (o), (p) or (q), (7m) or (8) (a) or 108.07 (3) or , (3r), (5) (b) or (8) would have applied to employment by such an employer who is subject to the contribution requirements of ss. 108.17 and 108.18, the department shall charge the share of benefits based on employment with that employer to the fund's balancing account, or, if s. 108.04 (1) (f) or (5) or 108.07 (3) would have applied to an employer that is not subject to the contribution requirements of ss. 108.17 and 108.18, the department shall charge the share of benefits based on that employment in accordance with s. 108.07 (5) (a) and (b). The department shall also charge the fund's balancing account with any other state's share of such benefits pending reimbursement by that state.

118,48 Section 48 . 108.141 (1) (d) and (7) (a) of the statutes are amended to read:

108.141 (1) (d) “Extended benefits" means benefits (, including benefits payable to federal civilian employes and to individuals who were formerly engaged in federal service pursuant to former military personnel under 5 USC ch. 85), payable to an individual under this section for weeks of unemployment in that individual's eligibility period.

(7) (a) The department shall charge the state's share of each week of extended benefits to each employer's account in proportion to the employer's share of the total wages of the employe receiving the benefits in the employe's base period, except that if the employer is subject to the contribution requirements of ss. 108.17 and 108.18 the department shall charge the share of extended benefits to which s. 108.04 (1) (f), (5), (7) (a), (c), (d), (e), (k), (L), (o), (p) or (q), (7m) or (8) (a) or 108.07 (3) or , (3r), (5) (b) or (8) applies to the fund's balancing account.

118,49 Section 49 . 108.15 (3) (a) and (e) and (9) (a) and (c) of the statutes are amended to read:

108.15 (3) (a) It shall file a written notice to that effect with the department before the beginning of such year except that if the government unit became newly subject to this chapter as of the beginning of such year, it shall file the notice within 30 days after the date of mailing to it a written notification by the department that it is subject to this chapter. Such election shall remain in effect for not less than 2 3 calendar years.

(e) Each time a government unit elects or reelects contribution financing its initial contribution rate shall be 2.7% on its payroll for each of the first 2 3 calendar years in which such election or reelection is in effect, plus any contributions payable under s. 108.18 (2) (b). If a government unit terminates its election of contribution financing it may not reelect contribution financing within a period of 2 3 calendar years thereafter.

(9) (a) The group will be treated as one employer for at least 2 3 calendar years and the group may be discontinued or dissolved at the beginning of any subsequent calendar year by filing advance written notice thereof with the department before the beginning of such subsequent calendar year.

(c) The group shall be dissolved at the beginning of any calendar year after the required 2 3 calendar years of participation if any member of the group files written notice with the department in advance of such calendar year of its intended withdrawal from the group.

118,50 Section 50 . 108.151 (1), (2) (b) and (6) (a) of the statutes are amended to read:

108.151 (1) Employer's contribution rate. Each nonprofit organization which is or becomes an employer subject to this chapter shall be subject to all its provisions except as it may elect reimbursement financing in accordance with sub. (2). If such an approved election is terminated, the employer's contribution rate shall be 2.7% on its payroll for each of the next 2 3 calendar years, plus any contributions payable under s. 108.18 (2) (b).

(2) (b) An employer whose prior election of reimbursement financing has been terminated pursuant to sub. (3) may not thereafter reelect reimbursement financing unless it has been subject to the contribution requirements of ss. 108.17 and 108.18 for at least 2 3 calendar years thereafter and is not, at the time of filing such reelection, delinquent under s. 108.22.

(6) (a) They shall be so treated for at least the 2 3 calendar years following their request, unless their election of reimbursement financing is terminated under sub. (3), but they may discontinue their group arrangement as of the beginning of any subsequent calendar year by filing advance notice with the department. A member of such a group may discontinue its participation in the group and the group shall be dissolved at the beginning of any calendar year after the 2nd 3rd year.

118,51 Section 51 . 108.16 (6m) (a) of the statutes is amended to read:

108.16 (6m) (a) The benefits thus chargeable under s. 108.04 (1) (f), (5), (7) (h), (8) (a) or (13) (c) or (d), 108.07 (3), (3r), (5) (b), (5m) or , (6) or (8), 108.14 (8n) (e), 108.141 or 108.151 or sub. (6) (e) or (7) (a) and (b).

118,52 Section 52 . 108.18 (2) (a), (b) (intro.), (c) and (d) of the statutes are amended to read:

108.18 (2) (a) Except as provided in pars. (c) and (d), an employer's contribution rate shall be 2.7% on its payroll for each of the first 2 3 calendar years with respect to which contributions are credited to its account, except as additional contributions apply under this section.

(b) (intro.) As to each of those first 2 3 calendar years, if the employer's payroll for any such year was $20,000 or more, it shall be required to pay an additional contribution at the rate of 1.3% on that calendar year's payroll, within 60 days after notice from the department that such additional contribution is payable, if its account:

(c) An employer engaged in the construction of roads, bridges, highways, sewers, water mains, utilities, public buildings, factories, housing, or similar construction projects shall pay contributions for each of the first 2 3 calendar years at the average rate for construction industry employers as determined by the department on each computation date, rounded up to the next highest rate, except as additional contributions apply under par. (b). This rate may in no case be more than the maximum rate specified in the schedule in effect for the year of the computation under sub. (4).

118,53 Section 53 . 108.18 (2) (d) of the statutes is amended to read:

108.18 (2) (d) No later than 90 days after the department issues an initial determination that a person is an employer, any employer other than an employer specified in par. (c), having a payroll exceeding $10,000,000 in a calendar year may elect that its contribution rate shall be one percent on its payroll for the first 2 3 calendar years with respect to which contributions are credited to its account. In such case, the department shall credit the amount collected in excess of this amount against liability of the employer for future contributions after the close of each calendar year in which an election applies. If an employer qualifies for and makes an election under this paragraph, the employer shall, upon notification by the department, make a special contribution after the close of each quarter equivalent to the amount by which its account is overdrawn, if any, for the preceding quarter. The department shall credit any timely payment of contributions to the employer's account before making a determination of liability for a special contribution under this paragraph. An employer does not qualify for an alternate contribution rate under this paragraph at any time during which the employer's special contribution payment is delinquent.

118,54 Section 54 . 185.981 (5) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

185.981 (5) Every such cooperative association is a charitable and benevolent corporation, and its employes are excluded from the provisions of ch. 108 as provided in s. 108.02.

118,55 Section 55 . Initial applicability.

(1) The treatment of sections 71.67 (7), 108.05 (9) and (10) (d) to (f), 108.13 (1), (2) and (5) and 108.135 of the statutes first applies to unemployment compensation payments made on January 1, 1997.