Fiscal Impact
The proposed rule will have no fiscal impact on state or local government.
Agency Contact Person
Written Comments
An electronic copy of the proposed rule is available at
http://adminrules.wisconsin.gov. This site allows you to view documents associated with this rule's promulgation, register to receive email notification whenever the Department posts new information about this rulemaking order, and submit comments and view comments by others during the public comment period. You may receive a paper copy of the rule or fiscal estimate by contacting:
Elaine Pridgen
Office of Legal Counsel
Dept. of Workforce Development
P.O. Box 7946
Madison, WI 53707-7946
(608) 267-9403
Written comments on the proposed rules received at the above address, email, or through the
http://adminrules.wisconsin.gov web site no later than May 31, 2007, will be given the same consideration as testimony presented at the hearing.
Notice of Hearing
Workforce Development
NOTICE IS HEREBY GIVEN that pursuant to ss.
108.02 (26),
108.14 (2),
108.015, and
227.11 (2) (a), Stats., the Department of Workforce Development proposes to hold a public hearing to consider rules relating to wages for unemployment insurance benefit purposes.
Hearing Information
May 30, 2007
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Madison
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Wednesday
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G.E.F. 1 Building, H306
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1:30 p.m.
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201 E. Washington Avenue
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Interested persons are invited to appear at the hearing and will be afforded the opportunity to make an oral presentation of their positions. Persons making oral presentations are requested to submit their facts, views, and suggested rewording in writing.
Visitors to the GEF 1 building are requested to enter through the left East Washington Avenue door and register with the customer service desk. The entrance is accessible via a ramp from the corner of Webster Street and East Washington Avenue. If you have special needs or circumstances regarding communication or accessibility at the hearing, please call (608) 267-9403 at least 10 days prior to the hearing date. Accommodations such as ASL interpreters, English translators, or materials in audiotape format will be made available on request to the fullest extent possible.
Analysis Prepared by the Department of Workforce Development
Explanation of agency authority. Section
108.02 (26), Stats., defines what is and what is not included as “wages" for purposes of unemployment insurance, unless the department otherwise specifies by rule.
Section
108.015, Stats., provides that unless the department otherwise provides by rule, s.
108.02 (26), Stats., shall be interpreted consistently with
26 USC 3306 (b).
26 USC 3306 (b) is the federal definition of “wages" for purposes of unemployment insurance.
Section
108.14 (2), Stats., provides that the department may adopt and enforce all rules which it finds necessary or suitable to carry out Chapter
108, Stats., regarding unemployment insurance.
Summary of the proposed rule. Chapter
DWD 130 clarifies how the department applies the definition of wages at s.
108.02 (26), Stats., for benefit purposes. The current Chapter
DWD 130 has not been updated since Wisconsin adopted the federal definition of wages at s.
108.02 (26), Stats.
The proposed rule will repeal s.
DWD 130.03, relating to the treatment of tips. This section contains obsolete terms and cross-references and inaccurately states that there is a different treatment of tips for contribution purposes and benefit purposes based on an obsolete statutory provision. The current treatment of tips is governed solely by s.
108.02 (26) (b) 3., Stats., which provides that “wages" includes the value of tips that are received while performing services which constitute employment, and that are included in a written statement furnished to an employer under
26 USC 6053 (a).
The proposed rule will also repeal s.
DWD 130.07, which contains obsolete information on supplemental unemployment benefit plans. Under s.
108.02 (26) (c) 16., Stats., any contribution made by an employer into or payment made from a supplemental unemployment benefit plan for employees is not considered wages if the contribution or payment is not considered wages under
26 USC 3306 (b), regardless of whether the plan is part of an employer profit-sharing plan.
The proposed rule creates a new section that provides that when s.
108.02 (26), Stats., or the Federal Unemployment Tax Act,
26 USC 3301 to
3311, require that a payment meet the requirements of a particular section of the internal revenue code to not be considered wages, the employer shall demonstrate to the satisfaction of the department that the payment meets such requirements. This standard will apply to the determination of whether supplemental unemployment benefit plans are considered wages, as well as other issues raised under s.
108.02 (26), Stats., or FUTA.
The proposed rule also corrects an obsolete cross-reference and clarifies language in the section on the value of room or meals.
Summary of factual data and analytical methodologies. The provision on tips is repealed because the information on the treatment of tips for contribution purposes is obsolete and the information on the treatment of tips for benefit purposes duplicates the statute. The provision on supplemental unemployment benefit plans is repealed because it does not add to the information in the statute.
Comparison with rules in adjacent states. The department did not find rules on the specific issues in the proposed rules in the adjacent states.
Effect on small business. The proposed rule does not affect small businesses. The DWD Small Business Regulatory Coordinator is Jennifer Jirschele, (608) 266-1023,
jennifer.jirschele@dwd.state.wi.us.
Analysis used to determine effect on small business. The proposed rule repeals obsolete provisions and brings the rule into conformity with current statutory provisions. There are no significant substantive changes.
Fiscal Impact
The proposed rule will have no fiscal impact on state or local government.
Agency Contact Person
Written Comments
An electronic copy of the proposed rules is available at
http://adminrules.wisconsin.gov. This site allows you to view documents associated with this rule's promulgation, register to receive email notification whenever the Department posts new information about this rulemaking order, and submit comments and view comments by others during the public comment period. You may receive a paper copy of the rule or fiscal estimate by contacting:
Elaine Pridgen
Office of Legal Counsel
Dept. of Workforce Development
P.O. Box 7946
Madison, WI 53707-7946
(608) 267-9403
Written comments on the proposed rules received at the above address, email, or through the
http://adminrules.wisconsin.gov web site no later than May 31, 2007, will be given the same consideration as testimony presented at the hearing.
