108.02(21)(a)(a) "Payroll" means all wages paid directly or indirectly by an employer within a certain period to individuals with respect to their employment by that employer, and includes all such wages for work which is excluded under
sub. (15) (k) if the wages paid for such work:
108.02(21)(a)1.
1. Are subject to a tax under the federal unemployment tax act or are exempted from that tax only because the federal unemployment tax act (
26 USC 3301 to
3311) applies to a lesser amount of wages paid to an individual during a calendar year than the amount specified in
par. (b); and
108.02(21)(a)2.
2. Are not subject to contributions under another unemployment insurance law.
108.02(21)(b)
(b) Notwithstanding
par. (a), an employer's payroll includes only the first $10,500 of wages paid by an employer to an individual during a calendar year, including any wages paid for any work covered by the unemployment insurance law of any other state, except as authorized in
s. 108.17 (5).
108.02(21)(c)
(c) If the federal unemployment tax is amended to apply to a higher amount of wages paid to an individual during a calendar year than the amount specified in
par. (b), then the higher amount shall likewise apply under
par. (b), as a substitute for the amount there specified, starting with the same period to which the federal amendment first applies.
108.02(21m)
(21m) Quarter. "Quarter" means a 3-month period ending on March 31, June 30, September 30 or December 31.
108.02(21s)
(21s) Related corporations. "Related corporations" means 2 or more corporations to which at least one of the following conditions applies:
108.02(21s)(a)
(a) The corporations are members of a controlled group of corporations, as defined in
26 USC 1563, or would be members if
26 USC 1563 (a) (4) and (b) did not apply and if the phrase "more than fifty percent" were substituted for the phrase "at least eighty percent" wherever it appears in
26 USC 1563 (a).
108.02(21s)(b)
(b) If the corporations do not issue stock, either 50% or more of the members of one corporation's governing body are members of the other corporation's governing body, or the holders of 50% or more of the voting power to select such members are concurrently the holders of more than 50% of that power in respect to the other corporation.
108.02(21s)(c)
(c) Fifty percent or more of one corporation's officers are concurrently officers of the other corporation.
108.02(21s)(d)
(d) Thirty percent or more of one corporation's employees are concurrently employees of the other corporation.
108.02(22)
(22) Reserve percentage. "Reserve percentage" shall for contribution purposes refer to the status of an employer's account, as determined by the department as of the applicable "computation date". In calculating an employer's net reserve as of any computation date, the employer's account shall be charged with benefits paid on or before said date, and shall be credited with contributions, on the employer's payroll through said date, if paid by the close of the month which follows said date or if paid pursuant to
s. 108.18 (7) and within the period therein specified. The employer's "reserve percentage" means the net reserve of the employer's account as of the computation date, stated as a percentage of the employer's "payroll" in the year ending on such date or in the year applicable under
s. 108.18 (6).
108.02(22m)
(22m) School year employee. "School year employee" means an employee of an educational institution or an educational service agency, or an employee of a government unit or nonprofit organization which provides services to or on behalf of an educational institution, who performs services under an employment contract which does not require the performance of services on a year-round basis.
108.02(23)
(23) Seasonal employer. "Seasonal employer" means an employer designated by the department under
s. 108.066.
108.02(24)
(24) Standard rate. As to any calendar year, "standard rate" means the combined rate of contributions from the applicable schedules of
s. 108.18 (4) and
(9) which is closest to but not less than 5.4%.
108.02(25)
(25) Total unemployment. An employee is "totally unemployed" in any week for which he or she earns no wages.
108.02(25e)
(25e) Trucker. "Trucker" means a contract operator with a trucking carrier.
108.02(25m)
(25m) Valid new claim week. "Valid new claim week" means the first week of an employee's benefit year.
108.02(26)
(26) Wages. Unless the department otherwise specifies by rule:
108.02(26)(a)
(a) "Wages" means every form of remuneration payable, directly or indirectly, for a given period, or payable within a given period if this basis is permitted or prescribed by the department, by an employing unit to an individual for personal services.
108.02(26)(b)1.
1. Any payment in kind or other similar advantage received from an individual's employing unit for personal services, except as provided in
par. (c).
108.02(26)(b)2.
2. The value of an employee achievement award that is compensation for services.
108.02(26)(b)3.
3. 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).
108.02(26)(b)4.
4. Any payment under a deferred compensation and salary reduction arrangement which is treated as wages under
26 USC 3306 (r).
108.02(26)(b)5.
5. Any payment made by a corporation electing to be taxed as a partnership under subchapter S of
chapter 1 of the federal internal revenue code,
26 USC 1361 to
1379, to an officer, which is reasonable compensation for services performed for the corporation, or the reasonable value of services performed by an officer for such a corporation, if the officer receives no payment for the services or less than the reasonable value of the services, except:
108.02(26)(b)5.a.
a. A distribution of earnings and profits which is in excess of any such payment;
108.02(26)(b)5.b.
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 such a corporation as a loan to the officer;
108.02(26)(b)5.c.
c. A repayment of a loan or payment of interest on a loan made by an officer to such a corporation and recorded in the records of the corporation as a liability of the corporation;
108.02(26)(b)5.d.
d. A reimbursement by such a corporation of reasonable corporate expenses incurred by an officer which is documented by a written expense voucher and recorded in the records of the corporation as corporate expenses; or
108.02(26)(b)5.e.
e. A reasonable lease or rental payment to an officer who owns property which is leased or rented to such a corporation.
108.02(26)(c)1.
1. The amount of any payment, including any amount paid by an employer for insurance or annuities or into an account to provide for such payment, made to or on behalf of an employee or any of his or her dependents under a plan or system established by an employer which makes provision for its employees generally, or for its employees generally and their dependents, or for a class or classes of its employees, or for a class or classes of its employees and their dependents, on account of:
108.02(26)(c)1.a.
a. Sickness or accident disability, except that in the case of payments made to an employee or any of his or her dependents, "wages" excludes only payments which are received under
ch. 102 or under any federal law which provides for payments on account of a work-related injury or illness analogous to those provided under
ch. 102 as a result of employment for an employer;
108.02(26)(c)1.b.
b. Medical or hospitalization expenses in connection with sickness or accident disability; or
108.02(26)(c)2.
2. Any payment for 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.
108.02(26)(c)3.
3. Any payment made to or on behalf of an employee or his or her beneficiary under a cafeteria plan, within the meaning of
26 USC 125, if the payment would not be treated as wages without regard to that plan and if
26 USC 125 would not treat the payment as constructively received.
108.02(26)(c)4.
4. Except as provided in
par. (b) 4., any payment made to, or on behalf of, an employee or his or her beneficiary:
108.02(26)(c)4.a.
a. From or to a trust described in
26 USC 401 (a) which is exempt from taxation under
26 USC 501 (a) at the time of the payment unless the payment is made to an employee of the trust as remuneration for services rendered as an employee and not as a beneficiary of the trust;
108.02(26)(c)4.d.
d. Under or to an annuity contract described in
26 USC 403 (b), other than a payment for the purchase of such a contract which is made by reason of a salary reduction agreement, whether evidenced by a written instrument or otherwise;
108.02(26)(c)4.f.
f. To supplement pension benefits under a plan or trust described in
subd. 4. a. to
e. to take into account some portion or all of the increase in the cost of living, as determined by the U.S. secretary of labor, since retirement but only if the payment is under a plan which is treated as a welfare plan under
29 USC 1002 (2) (B) (ii).
108.02(26)(c)5.
5. The payment by an employer, without deduction from the remuneration of an employee, of the tax imposed on the employee under
26 USC 3101 with respect to remuneration paid to the employee for domestic service in a private home of the employer or for agricultural labor.
108.02(26)(c)6.
6. Remuneration paid in any medium other than cash to an employee for service not in the course of the employer's trade or business.
108.02(26)(c)7.
7. Remuneration paid to or on behalf of an employee if and to the extent that at the time of the payment it is reasonable to believe that a corresponding deduction is allowable under
26 USC 217, determined without regard to
26 USC 274 (n).
108.02(26)(c)8.
8. Any payment or series of payments by an employer to an employee or any of his or her dependents which is paid:
108.02(26)(c)8.a.
a. Upon or after the termination of an employee's employment relationship because of the employee's death or retirement for disability; and
108.02(26)(c)8.b.
b. Under a plan established by the employer which makes provision for its employees generally or a class or classes of its employees, or for such employees or class or classes of employees and their dependents, other than a payment or series of payments which would have been paid if the employee's employment relationship had not been so terminated.
108.02(26)(c)9.
9. Any contribution, payment or service provided by an employer which may be excluded from the gross income of an employee, or the employee's spouse or dependents, under the provisions of
26 USC 120 relating to amounts received under qualified group legal services plans.
108.02(26)(c)10.
10. Any payment made or benefit furnished to or for the benefit of an employee if, at the time of the payment or furnishing, it is reasonable to believe that the employee will be able to exclude the payment or benefit from income under
26 USC 127 or
129.
108.02(26)(c)11.
11. The value of any meals or lodging furnished by or on behalf of an employer if, at the time of the furnishing, it is reasonable to believe that the employee will be able to exclude such items from income under
26 USC 119.
108.02(26)(c)12.
12. Any payment made by an employer to a survivor or the estate of a former employee after the year in which the employee died.
108.02(26)(c)13.
13. Any benefit provided to or on behalf of an employee if at the time the benefit is provided it is reasonable to believe that the employee will be able to exclude the benefit from income under
26 USC 117 or
132.
108.02(26)(c)14.
14. The amount of any refund required to be made by an employer under section 421 of the federal medicare catastrophic coverage act of 1988,
P.L. 100-360.
108.02(26)(c)15.
15. Remuneration for services performed in a fishing rights-related activity of an Indian tribe by a member of that tribe for another member of that tribe or for a qualified Indian entity, as provided in
26 USC 7873.
108.02(26)(c)16.
16. Any contribution 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
26 USC 3306 (b), regardless of whether the plan is part of an employer profit-sharing plan.
108.02(27)
(27) Week. "Week" means calendar week, starting Sunday and ending Saturday; but, where an employee starts a working shift on a given Saturday, all of the employee's hours and pay for that shift shall be counted in the calendar week which includes that Saturday.
108.02(28)
(28) Weekly benefit rate. An employee's "weekly benefit rate" from a given employer means the amount computed in accordance with
s. 108.05.
108.02 History
History: 1971 c. 53;
1971 c. 213 s.
5;
1973 c. 247;
1975 c. 223,
343;
1975 c. 373 s.
40;
1977 c. 29,
133;
1979 c. 52,
221;
1981 c. 36,
353;
1983 a. 8 ss.
4 to
12,
54;
1983 a. 168;
1983 a. 189 ss.
158 to
161,
329 (25), (28);
1983 a. 384,
477,
538;
1985 a. 17,
29,
332;
1987 a. 38 ss.
6 to
22,
134;
1987 a. 255;
1989 a. 31;
1989 a. 56 ss.
151,
259;
1989 a. 77,
303;
1991 a. 89;
1993 a. 112,
213,
373,
492;
1995 a. 27 ss.
3777,
9130 (4);
1995 a. 118,
225;
1997 a. 3,
27,
39;
1999 a. 15,
82,
83.
108.02 Annotation
An employee can at the same time be an employer, responsible for unemployment compensation contributions. Price County Telephone Co. v. Lord,
47 Wis. 2d 704,
177 N.W.2d 904.
108.02 Annotation
Under sub. (3), 1981 stats. [now sub. (12)] the person must first be found to be an employee under par. (a); the second step is to determine whether an exemption applies. Transport Oil, Inc. v. Cummings,
54 Wis. 2d 256,
195 N.W.2d 649.
108.02 Annotation
CETA employees are disqualified for unemployment compensation by sub. (5) (g) 1., 1981 stats. [now sub. (15) (g) 1.]. Bliss v. DILHR,
101 Wis. 2d 245,
304 N.W.2d 783 (Ct. App. 1981).
108.02 Annotation
Owner-operators of semitractors who leased services to a trucking company were considered employees of the trucking company. Stafford Trucking, Inc. v. DILHR,
102 Wis. 2d 256,
306 N.W.2d 79 (Ct. App. 1981).
108.02 Annotation
Corporate owner-operators of trucks were both employers and employees under this section. Wisconsin Cheese Service, Inc. v. DILHR,
108 Wis. 2d 482,
322 N.W.2d 495 (Ct. App. 1982).
108.02 Annotation
Truck owner-operators who leased trucks to a trucking company were not company employees despite inclusion of PSC 60.03 (2), Wis. Adm. Code, in the lease agreement. Star Line Trucking Corp. v. DILHR,
109 Wis. 2d 266,
325 N.W.2d 872 (1982).
108.02 Annotation
In determining whether sub. (3) (b) 2., 1981 stats. [now sub. (12) (b) 2.] has been satisfied, a court may apply a proprietary - interest test or test of independently established business in which individual is customarily engaged. Coverage under sub. (3) (a), 1981 stats. [now sub. (12) (a)] is broad, almost presumptive. Princess House, Inc. v. DILHR,
111 Wis. 2d 46,
330 N.W.2d 169 (1983).
108.02 Annotation
Graduate students preparing dissertations were "regularly attending classes" under sub. (5) (i) 1., 1981 stats. [now sub. (15) (i) 1.] even though they attended no class meetings. Bachrach v. DILHR,
114 Wis. 2d 131,
336 N.W.2d 698 (Ct. App. 1983).
108.02 Annotation
"Wages" includes salaries and benefits received while taking compensatory time off. Transportation Dept. v. LIRC,
122 Wis. 2d 358,
361 N.W.2d 722 (Ct. App. 1984).
108.02 Annotation
The status of a contractor under sub. (3) (e), 1981 stats. [now sub. (12) (e)] is discussed. Robert Hansen Trucking, Inc. v. LIRC,
126 Wis. 2d 323,
377 N.W.2d 151 (1985).
108.02 Annotation
Profit-sharing distributions are includable under the definition of "wages." La Crosse Footwear v. LIRC,
147 Wis. 2d 419,
434 N.W.2d 392 (Ct. App. 1988).
108.02 Annotation
The commission's conclusion that an employer failed to prove that migrant workers met the sub. (12) (b) exception was reasonable. Yeska v. LIRC,
149 Wis. 2d 363,
440 N.W.2d 823 (Ct. App. 1989).
108.02 Annotation
As the refund of dues to union stewards was not remuneration for services, it did not constitute "wages" under sub. (26), and was not assessable to the union for contribution purposes. Local No. 695 v. LIRC,
154 Wis. 2d 75,
452 N.W.2d 368 (1990).
108.02 Annotation
An employee who provides services on a regular part-time basis while also holding other full-time employment may still qualify as having customarily engaged in an independently established business under sub. (12) (b) 2. Grutzner S.C. v. LIRC,
154 Wis. 2d 648,
453 N.W.2d 920 (Ct. App. 1990).
108.02 Annotation
The determination of nonemployee status under sub. (12) (b) is discussed. Larson v. LIRC,
184 Wis. 2d 378,
516 N.W.2d 456 (Ct. App. 1994).
108.02 Annotation
The direct seller exclusion under sub. (15) (k) 16. is not restricted to persons who actually make sales to consumers in the home, but includes distributors who sell to dealers engaged in the sale of products for resale in the home whose compensation is directly related to the amount of sales made. National Safety Associates, Inc. v. LIRC,
199 Wis. 2d 106,
543 N.W.2d 584 (Ct. App. 1995).
108.02 Annotation
An employment contract under sub. (22m) need not be in writing. Ashleson v. LIRC,
216 Wis. 2d 23,
573 N.W.2d 554 (Ct. App. 1997).
108.02 Annotation
There are 5 factors to determine whether an individual performed services in an independently established trade in which customarily engaged within the meaning of sub. (12) (b) 2.: (1) integration; (2) advertising or holding out; (3) entrepreneurial risk; (4) economic dependence; and (5) proprietary interest. Margoles v. LIRC,
221 Wis. 2d 260,
585 N.W.2d 596 (Ct. App. 1998).
108.02 Annotation
Institutions of higher education, including VTAE [technical college] districts, are included within the unemployment compensation act by reason of 26 U.S.C.A., sec. 3309 (a) and (d). 61 Atty. Gen. 18.
108.02 Annotation
Strict compliance with all criteria in sub. (12m) and s. 108.065 is required before a company will qualify as an employee service company and the employer for unemployment compensation purposes.
80 Atty. Gen. 154.
108.025
108.025
Coverage of certain corporate officers. 108.025(1)
(1) In this section, "principal officer" means an individual named as a principal officer in the corporation's most recent annual report or, if that information is not current, an individual holding an office described in the corporation's most recent annual report as a principal officer.
108.025(2)
(2) If an employer having no annual payroll for the calendar year preceding an election or an employer having an annual payroll of less than the amount specified in
s. 108.18 (9) which establishes separate solvency contribution rates for the calendar year preceding an election files a notice of election, in the manner prescribed by the department, to exclude the service of all of its principal officers who have a direct or indirect substantial ownership interest in the corporation, employment does not include the service of those officers.
108.025(3)
(3) An election of an employer under this section does not apply in any calendar year if the annual payroll of the employer for the preceding calendar year equaled or exceeded the amount specified in
s. 108.18 (9) which establishes separate solvency contribution rates.
108.025(4)
(4) An employer which files an election under this section may reelect coverage of its principal officers under this section by filing a notice of reelection with the department. An employer which reelects coverage of its principal officers is not eligible to file a notice of election of noncoverage under this section.
108.025(5)
(5) To be effective for any calendar year, a notice of election or reelection must be received by the department no later than March 31 except that in the case of an employing unit which becomes an employer during a calendar year, notice of election must be received by the department no later than the date on which the initial contributions of the employer become payable under
s. 108.17 (1m), and except that if the due date for a notice of election or reelection falls on 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. If a notice of election or reelection is mailed, it is timely if it is either postmarked by the due date or received by the department no later than 3 days after that date. An election is effective for each calendar year until the employer files a timely notice of reelection.
108.025(6)
(6) A principal officer has a direct or indirect substantial ownership interest in a corporation under this section if 25% or more of the ownership interest, however designated or evidenced, in the corporation is owned or controlled, directly or indirectly, by the officer.
