(d) If the Indian tribe or tribal unit is an employer prior to the effective date of an election, ss. 108.17 and 108.18 shall apply to all employment prior to the effective date of the election, but after all benefits based on prior employment have been charged to any account that it has had under s. 108.16 (2), the department shall transfer any positive balance or charge any negative balance remaining therein to the balancing account as if s. 108.16 (6) (c) and (6m) (d) applied.
(2) Termination of election. (a) An Indian tribe or tribal unit that elected reimbursement financing may terminate its election as of the close of the 2nd calendar year to which the election applies, or at the close of any subsequent calendar year, by filing a written notice of termination with the department before the close of that year.
(b) If an Indian tribe or tribal unit terminates an election under this subsection, the employer's contribution rate is 2.7% on its payroll for each of the next 3 calendar years.
(3) Assurance of reimbursement. An Indian tribe or tribal unit electing reimbursement financing under sub. (1) shall file assurance of reimbursement in the same manner and subject to the conditions provided for other employers under s. 108.151 (4).
(4) Reimbursement account. The department shall maintain a reimbursement account, as a subaccount of the fund's balancing account, for each Indian tribe, tribal unit, or combination of tribal units in accordance with any valid election made under subs. (1) and (5) and subject to the procedures and conditions provided for other employers under s. 108.151 (5).
(5) Group reimbursement account. An Indian tribe that has elected reimbursement financing for tribal units or one or more combinations of tribal units may request to have specified tribal units treated as one employer for purposes of this chapter. The department shall approve any such request subject to the following conditions:
(a) The tribal units shall be so treated for a period of at least the 3 calendar years following their request, unless their election of reimbursement financing is terminated under sub. (2) or (6), but the Indian tribe may discontinue the treatment as of the beginning of any calendar year following that period by filing notice with the department prior to the beginning of that calendar year.
(b) The tribal units shall be jointly and severally liable for any required reimbursements, together with any interest thereon and any penalties or tardy filing fees.
(c) The Indian tribe shall designate one or more individuals to act as an agent for all members of the group for all fiscal and reporting purposes under this chapter.
(6) Failure to make required payments or file assurance of reimbursement. (a) If an Indian tribe or tribal unit fails to pay required contributions, reimbursements in lieu of contributions, penalties, interest, or fees within 90 days of the time that the department transmits to the tribe a final notice of delinquency, or fails to file or maintain the required assurance of reimbursement as provided in subs. (1) (c) and (3):
1. The department shall immediately notify the federal internal revenue service and the federal department of labor of that failure.
2. Any valid election of reimbursement financing is terminated as of the end of the current calendar year and any pending election that fails to meet the requirement to file an assurance of reimbursement under sub. (1) (c) is terminated immediately.
3. The department may consider the Indian tribe not to be an employer and may consider services performed for the tribe not to be employment for purposes of this chapter.
(b) An Indian tribe whose prior election of reimbursement financing has been terminated under par. (a) 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 one calendar year thereafter and is not delinquent under s. 108.22 at the time that it files a request for reelection.
(c) The final notice of delinquency specified in par. (a) shall include information that failure to make full payment within the prescribed time will cause the Indian tribe to be liable for taxes under the federal Unemployment Tax Act (26 USC 3301
, et seq.), will cause the tribe to be precluded from electing reimbursement financing, and may cause the department to determine that the tribe is not an employer and that services performed for the tribe are not employment for purposes of this chapter.
108.16 (6) (g) of the statutes is amended to read:
108.16 (6) (g) Any payment received for the balancing account under s. 108.15 or 108.152.
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), (6), or (8), 108.14 (8n) (e), 108.141 or, 108.151, or 108.152 or sub. (6) (e) or (7) (a) and (b).
108.16 (8) (b) (intro.) of the statutes is amended to read:
108.16 (8) (b) (intro.) If the business of any employer is transferred to a single transferee, the transferee is deemed a successor for purposes of this chapter, if the department determines that all of the following conditions have been satisfied:
108.16 (8) (b) 2. of the statutes is amended to read:
108.16 (8) (b) 2. The transfer included at least 25% 100% of the transferor's total business as measured by comparing the payroll experience assignable to the portion of the business transferred with the transferor's total payroll experience for the last 4 completed quarters immediately preceding on the date of the transfer.
108.16 (8) (b) 3. of the statutes is amended to read:
108.16 (8) (b) 3. The same financing provisions under s. 108.15, 108.151, 108.152, or 108.18 apply to the transferee as applied to the transferor on the date of the transfer.
108.16 (8) (c) 3. of the statutes is amended to read:
108.16 (8) (c) 3. The same financing provisions under s. 108.15, 108.151, 108.152, or 108.18 apply to the transferee as applied to the transferor on the date of transfer.
108.16 (8) (c) 4. of the statutes is created to read:
108.16 (8) (c) 4. The transferor transfers 100% of the transferor's total business on the date of the transfer or the transferor's account was overdrawn on the date of the transfer.
108.16 (8) (e) 3. of the statutes is amended to read:
108.16 (8) (e) 3. The same financing provisions under s. 108.15, 108.151, 108.152, or 108.18 apply to the transferee as applied to the transferor on the date of the transfer.
108.16 (8) (e) 4. of the statutes is created to read:
108.16 (8) (e) 4. The transferor transfers 100% of the transferor's total business on the date of the transfer or the transferor's account was overdrawn on the date of the transfer.
108.16 (8) (f) of the statutes is amended to read:
108.16 (8) (f) The successor shall take over and continue the transferor's account, including its positive or negative balance and all other aspects of its experience under this chapter,. If the transfer included less than 100% of the transferor's total assets on the date of the transfer, the department shall allocate the transferor's experience to the successor in proportion to the payroll assignable to the transferred business. The and the liability of the successor shall be proportioned to the extent of the transferred business. The transferor and the successor shall be jointly and severally liable for any amounts owed by the transferor to the fund and to the administrative account at the time of the transfer, but a successor under par. (c) is not liable for the debts of the transferor except in the case of fraud or malfeasance.
108.16 (8) (L) of the statutes is created to read:
108.16 (8) (L) A professional employer organization is not considered to be the successor to the employer account of its client under this section by virtue of engaging the prior employees of the client to perform services for the client under an employee leasing agreement.
108.17 (2) of the statutes is amended to read:
108.17 (2) Every employer that is subject to a contribution requirement shall file quarterly reports of contributions required under this chapter with the department, and pay contributions to the department, for such periods and in such manner as the department prescribes. Each contribution report and payment is due at the close of the month next following the end of the applicable reporting period calendar quarter, except as authorized in sub. (2c) or as the department may assign a later due date pursuant to sub. (1m) or general department rules.
108.17 (2c) of the statutes is created to read:
108.17 (2c) (a) Except as provided in pars. (d) and (e), an employer that has a first quarter contribution liability of $5,000 or more may defer payment to later due dates beyond the due date established under sub. (1m) or (2) of not more than 60% of its first quarter contribution liability, without payment of interest, as follows:
1. The employer shall pay at least 30% of the first quarter contribution liability on or before July 31 of the year in which the liability accrues.
2. The employer shall pay at least an additional 20% of the first quarter contribution liability on or before October 31 of the year in which the liability accrues.
3. The employer shall pay any remaining balance of the first quarter contribution liability on or before January 31 of the year after the year in which the liability accrues.
(b) An employer that elects to defer a payment under par. (a) may pay more than the specified minimum deferred amount or all of the deferred amount at any time before the due date under par. (a).
(c) If an employer fails to pay at least the specified minimum deferred amount for the first quarter, together with the full amount of contributions payable for any subsequent quarter, by a specified due date, then all unpaid contribution liability of that employer for the first quarter is delinquent under s. 108.22 and interest thereon is payable from April 30 of the year in which the liability accrues.
(d) If an employer fails to pay at least 40% of its first quarter contribution liability on or before April 30 of the year in which the liability accrues, the employer is not permitted to defer the balance of the liability under this subsection.
(e) An employer is not permitted to defer its first quarter contribution liability under this subsection for any year unless the employer pays all delinquent contributions, together with any interest, penalties, and fees assessed under this chapter, prior to April 30 of the year in which the liability accrues.
108.17 (2g) of the statutes is created to read:
108.17 (2g) An employer agent that files reports under sub. (2) on behalf of 25 or more employers shall file those reports using an electronic medium and format approved by the department. An employer agent that becomes subject to the reporting requirement under this subsection shall file its initial reports under this subsection for the 4th quarter beginning after the quarter in which the employer agent becomes subject to the reporting requirement. Once an employer agent becomes subject to the reporting requirement under this subsection, the employer agent shall continue to file its reports under this subsection unless that requirement is waived by the department.
108.19 (1e) (a) and (d) of the statutes are amended to read:
108.19 (1e) (a) Except as provided in par. (b), each employer, other than an employer which that finances benefits by reimbursement in lieu of contributions under s. 108.15 or, 108.151, or 108.152 shall, in addition to other contributions payable under s. 108.18 and this section, pay an assessment to the administrative account for each year prior to the year 2002 2004 equal to the lesser of 0.01% of its payroll for that year or the solvency contribution that would otherwise be payable by the employer under s. 108.18 (9) for that year.
(d) The department may expend the moneys received from assessments levied under this subsection for the renovation and modernization of the unemployment insurance information technology systems, including the tax and accounting system, and specifically including development and implementation of a new system and reengineering of automated processes and manual business functions.
108.19 (1m) of the statutes is amended to read:
Each employer subject to this chapter as of the date a rate is established under this subsection shall pay an assessment to the administrative account at a rate established by the department sufficient to pay interest due on advances from the federal unemployment account under title XII of the social security act (42 USC 1321
). The rate established by the department for employers who finance benefits under s. 108.15 (2) or
108.151 (2), or 108.152 (1)
shall be 75% of the rate established for other employers. The amount of any employer's assessment shall be the product of the rate established for that employer multiplied by the employer's payroll of the previous calendar year as taken from quarterly contribution reports filed by the employer or, in the absence of the filing of such reports, estimates made by the department. Each assessment made under this subsection is due on the 30th day commencing after the date on which notice of the assessment is mailed by the department. If the amounts collected under this subsection are in excess of the amounts needed to pay interest due, the amounts shall be retained in the administrative account and utilized for the purposes specified in s. 108.20 (2m).
108.20 (3) of the statutes is amended to read:
108.20 (3) There shall be included in the moneys governed by sub. (2m) any amounts collected by the department under ss. 108.04 (11) (c) and (cm) and 108.22 (1) (a) and, (ac), and (ad) as tardy filing fees, forfeitures, interest on delinquent payments, or other penalties and any excess moneys collected under s. 108.19 (1m).
108.22 (1) (ad) of the statutes is created to read:
108.22 (1) (ad) An employer agent that is subject to the reporting requirements under s. 108.17 (2g) and that fails to file a contribution report in accordance with s. 108.17 (2g) may be assessed a penalty by the department in the amount of $25 for each employer whose report is not filed using an electronic format and medium approved by the department.
108.22 (1) (am) of the statutes is amended to read:
108.22 (1) (am) The interest, penalties, and the tardy filing fees levied under par. pars. (a), (ac), and (ad) shall be paid to the department and credited to the administrative account.
108.22 (1) (b) of the statutes is amended to read:
108.22 (1) (b) If the due date of a report or payment under s. 108.15 (5) (b), 108.151 (5) (f), 108.16 (8), 108.17 (2), or 108.205 would otherwise be a Saturday, Sunday, or legal holiday under state or federal law, the due date is the next following day which is not a Saturday, Sunday, or legal holiday under state or federal law.
108.22 (1) (e) of the statutes is amended to read:
108.22 (1) (e) Any notice filed under s. 108.15 (3) (a) or (b) or, 108.151 (3) (a), or 108.152 (2) (a) or assurance filed under s. 108.151 (2) (a) or (4) (a) 2. is timely if it is received by the department by December 31 or, if mailed, is either postmarked no later than that due date or is received by the department no later than 3 days after that due date.
108.22 (1m) of the statutes is amended to read:
108.22 (1m) If an employer owes any contributions, reimbursements under s. 108.15 or 108.151, interest
or, fees, or payments for forfeitures or other penalties to the department under this chapter and fails to pay the amount owed, the department has a perfected lien upon the employer's right, title, and interest in all of its real and personal property located in this state in the amount finally determined to be owed, plus costs. Except where creation of a lien is barred or stayed by bankruptcy or other insolvency law, the lien is effective when the department issues a determination of the amount owed under s. 108.10 (1) and shall continue until the amount owed, plus costs and interest to the date of payment, is paid. If a lien is initially barred or stayed by bankruptcy or other insolvency law, it shall become effective immediately upon expiration or removal of such bar or stay. The perfected lien does not give the department priority over lienholders, mortgagees, purchasers for value, judgment creditors, and pledges whose interests have been recorded before the department's lien is recorded.
108.225 (1) (a) to (c) of the statutes are amended to read:
108.225 (1) (a) "Contributions" include "Contribution" includes a reimbursement under s. 108.15, 108.151, or 108.152, interest for a nontimely payment, fees, and any penalties payment due for a forfeiture imposed upon an employing unit under s. 108.04 (11) (c) or other penalty assessed by the department under this chapter.
(b) "Debt" means a delinquent contribution or repayment of a benefit overpayment, or any liability of a 3rd party for failure to surrender to the department property or rights to property subject to levy after proceedings under sub. (4) (b) and s. 108.10 to determine that liability.
(c) "Debtor" means a person who owes the department delinquent contributions or a benefit overpayment a debt.
108.225 (16) (intro.) of the statutes is amended to read:
108.225 (16) Wages exempt from levy. (intro.) In the case of benefit overpayments, the and forfeitures imposed upon an employing unit under s. 108.04 (11) (c), an individual debtor is entitled to an exemption from levy of the greater of the following:
230.12 (1) (g) of the statutes is created to read:
230.12 (1) (g) Temporary reserve appeal tribunal. The compensation plan shall include a provision authorizing the department of workforce development to pay any individual who was previously employed by the department of workforce development and who is appointed to limited term employment as a temporary reserve appeal tribunal under s. 108.09 (3) (a) 2. not more than the base pay rate that the individual was paid at the time of his or her separation from the department of workforce development, plus any across-the-board and discretionary intervening adjustments that were made under the compensation plan or applicable collective bargaining agreement to the base pay rate for the position that was previously filled by the individual during the time between the individual's separation from the department of workforce development and the individual's appointment as a temporary reserve tribunal. For the purpose of calculating the amount of any discretionary intervening adjustment, the amount shall be limited to the amount that would have been generated by the employee.
(1) Offset of social security benefits.
(a) In this Section:
1. "Base period wages" has the meaning given in section 108.02 (4m) of the statutes.
2. "Employer" has the meaning given in section 108.02 (13) of the statutes.
(b) Notwithstanding section 108.04 (7), 1999 stats., for each week of unemployment beginning in 2002, if a claimant receives a payment under the federal Social Security Act (42 USC 301
, et seq.) that is contributed to by an employer from which the claimant has base period wages, the reduction that applies to the benefits payable to the claimant for that week is 50% of the amount that would otherwise apply for that week under section 108.04 (7), 1999 stats.
(2) Rule making.
(a) The department of workforce development shall submit in proposed form rule changes to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 11th month beginning after the effective date of this paragraph:
1. To amend section DWD 100.02 (28), Wisconsin Administrative Code, for the purpose of decreasing the number of hours per week, for work to be considered full time, to 32.
2. To establish a specified level of repeated absenteeism or repeated tardiness that constitutes misconduct for purposes of section 108.04 (5) of the statutes.
3. To specify, in accordance with applicable administrative and judicial interpretations, what constitutes an "establishment" for purposes of the disqualification from receipt of unemployment insurance benefits because of a labor dispute in an establishment in which an employee is or was employed under section 108.04 (10) of the statutes.
(b) The department of workforce development shall promulgate an emergency rule under section 227.24 of the statutes to amend section DWD 129.01 (1), Wisconsin Administrative Code, for the purpose of extending the deadline for filing an initial claim for unemployment insurance benefits by 7 days. Notwithstanding section 227.24 (1) (c) and (2) of the statutes, the emergency rule may remain in effect until the first day of the 11th month beginning after the effective date of this paragraph or until the date on which a permanent rule relating to the same subject matter takes effect, whichever is sooner. Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the department is not required to provide evidence that promulgating a rule under this paragraph as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this paragraph.
(3) Initial election of reimbursement financing by Indian tribes and tribal units. Notwithstanding section 108.152 (1) (a) of the statutes, as created by this act, an Indian tribe or tribal unit may file a written notice of election of reimbursement financing for unemployment insurance benefits under that paragraph for the 2002 calendar year no later than March 31, 2002.
(4) Initial reports by professional employer organizations. Notwithstanding section 108.067 (1) of the statutes, as created by this act, each professional employer organization that has entered into an employee leasing agreement with any client that is in effect on March 31, 2002, shall disclose in its initial report under section 108.067 (1) of the statutes, as created by this act, the identity of each client with whom the organization has an employee leasing agreement on that date.