108.17(2c)(d)
(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.
108.17(2c)(e)
(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)
(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.
108.17(2m)
(2m) When a written statement of account is issued to an employer by the department, showing as duly credited a specified amount received from the employer under this chapter, no other form of state receipt therefor is required.
108.17(3)
(3) If an employing unit makes application to the department to adjust an alleged overpayment by the employer of contributions or interest under this chapter, and files such an application within 3 years after the close of the calendar year in which such payment was made, the department shall make a determination under
s. 108.10 as to the existence and extent of any such overpayment, and said section shall apply to such determination. Except as provided in
sub. (3m), the department shall allow an employer a credit for any amount determined under
s. 108.10 to have been erroneously paid by the employer, without interest, against its future contribution payments; or, if the department finds it impracticable to allow the employer such a credit, it shall refund such overpayment to the employer, without interest, from the fund or the administrative account, as the case may be.
108.17(3m)
(3m) If an appeal tribunal or the commission issues a decision under
s. 108.10 (2), or a court issues a decision on review under
s. 108.10 (4), in which it is determined that an amount has been erroneously paid by an employer, the department shall, from the administrative account, credit the employer with interest at the rate of 0.75% per month or fraction thereof on the amount of the erroneous payment. Interest shall accrue from the month which the erroneous payment was made until the month in which it is either used as a credit against future contributions or refunded to the employer.
108.17(4)
(4) An employer's contribution rate for any year, once determined by the department, shall not be redetermined after the last day of February in the year for which the rate was determined unless the rate was determined based on payroll which should have been reported under a different employer's account, in which case the department may redetermine the rates with respect to all affected employers' accounts.
108.17(5)
(5) Upon application of an employer, the department may permit employers which are component members of a controlled group of corporations under
26 USC 1563 to combine wages of a single employee for purposes of determining the employers' payroll under
s. 108.02 (21) (b) if the employee is subject to transfer between the employers under the terms of a single collective bargaining agreement. The application shall specify the calendar year in which the combination is proposed to occur. This subsection does not apply to any employer for which the department has written off overdrafts under
s. 108.16 (7) (c) within the 2 calendar years preceding the year in which the combination is proposed to occur, nor to any employer whose account is overdrawn by 6% or more on the computation date for the calendar year preceding the year in which the combination is proposed to occur. If the department approves the application, the department shall specify the calendar year in which the combination is effective and the method by which the component members will report the payroll of the employee to the department.
108.17(6)
(6) If the department determines that a trustee paying wage claims for an employer in a state or federal liquidation proceeding in which priority is given to specified wage claims has insufficient funds to pay all wage claims given priority, and contributions on the wage claims given priority, in full, the department may accept less than the full amount of contributions owed by the employer on those wage claims.
108.17 Cross-reference
Cross Reference: See also ss.
DWD 110.07 and
110.08, Wis. adm. code.
108.18
108.18
Contributions to the fund. 108.18(1)(a)(a) Each employer shall pay contributions to the fund for each calendar year at whatever rate on the employer's payroll for that year duly applies to the employer pursuant to this section.
108.18(1)(b)
(b) An employer's contributions shall be credited to the employer's account in the fund, but only after any solvency contribution or special contribution paid or payable by the employer under
subs. (8) to
(9m) has been credited to the fund's balancing account.
108.18(2)(a)(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 3 calendar years with respect to which contributions are credited to its account, except as additional contributions apply under this section.
108.18(2)(c)
(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 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. 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).
108.18 Cross-reference
Cross Reference: See also ch.
DWD 102, Wis. adm. code.
108.18(2)(d)
(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 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.
108.18(3)
(3) Requirements for reduced rate. As to any calendar year, an employer shall be permitted to pay contributions to the fund at a rate lower than the standard rate on its payroll for that year only when, as of the applicable computation date:
108.18(3)(a)
(a) Benefits have been chargeable to the employer's account during the 18 months preceding such date; and
108.18(3)(b)
(b) Such lower rate applies under this section; and
108.18(3)(c)
(c) Permitting the employer to pay such lower rate is consistent with the relevant conditions then applicable to additional credit allowance for such year under section 3303 (a) of the federal unemployment tax act, any other provision to the contrary notwithstanding.
108.18(3m)(a)
(a) "Schedule A" is in effect for any calendar year whenever, as of the preceding June 30, the fund has a cash balance of less than $300,000,000.
108.18(3m)(b)
(b) "Schedule B" is in effect for any calendar year whenever, as of the preceding June 30, the fund has a cash balance of at least $300,000,000 but less than $900,000,000.
108.18(3m)(c)
(c) "Schedule C" is in effect for any calendar year whenever, as of the preceding June 30, the fund has a cash balance of at least $900,000,000 but less than $1,200,000,000.
108.18(3m)(d)
(d) "Schedule D" is in effect for any calendar year whenever, as of the preceding June 30, the fund has a cash balance of at least $1,200,000,000.
108.18(4)
(4) Experience rates. Except as otherwise specified in this section, an employer's contribution rate on the employer's payroll for a given calendar year shall be based on the reserve percentage of the employer's account as of the applicable computation date, as follows: [See Figure 108.18 (4) following]
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See PDF for table 108.18(5)
(5) Limitation. Except as provided in
subs. (2) and
(8), the contribution rate for any calendar year of an employer whose reserve percentage equals or exceeds zero may in no case exceed by more than one percent on the employer's payroll the rate which applied to the employer at the close of the preceding calendar year, and the contribution rate for any calendar year of an employer whose reserve percentage is less than zero may in no case exceed by more than 2% on the employer's payroll the rate which applied to the employer at the close of the preceding calendar year.
108.18(5m)
(5m) Limitation, computation. The limitation of
sub. (5) shall be computed from the employer's experience rate assigned to it under
subs. (4),
(5) and
(6), rounded to the next highest rate.
108.18(6)
(6) Computation in special cases. If during the year ending on a computation date an employer has been liable for contributions but has had no payroll, the employer's reserve percentage as of that computation date shall be computed on the basis of the employer's most recent year (ending on a computation date which applied to the employer) of some payroll; but the employer's contribution rate for the calendar year following the computation date shall in no case be less than one percent.
108.18(7)(a)1.1. Except as provided in
pars. (b) to
(h), any employer may make payments to the fund during the month of November in excess of those required by this section and
s. 108.19 (1) and
(1e). Each payment shall be credited to the employer's account for the purpose of computing the employer's reserve percentage as of the immediately preceding computation date.
108.18(7)(a)2.
2. Each payment shall be treated as a contribution required and irrevocably paid under this chapter with respect to payrolls preceding the date it is credited except as a refund or credit is authorized under
par. (b),
(e) or
(h).
108.18(7)(b)
(b) No employer may, by means of a voluntary contribution under
par. (a), reduce the employer's contribution rate to a rate lower than the next lower rate which would have applied to the employer for the following calendar year. Any contributions in excess of the amount required to reduce an employer's rate to the extent permitted under this paragraph shall be applied against any outstanding liability of the employer, or if there is no such liability shall be refunded to the employer or established as a credit against future contributions payable by the employer, at the employer's option.
108.18(7)(c)
(c) No employer whose overdrafts have been charged to the fund's balancing account under
s. 108.16 (7) (c) may make a voluntary contribution under
par. (a) prior to the 5th calendar year commencing after the date of the most recent such charge. Any voluntary contribution made prior to that year shall be treated as an excess contribution under
par. (b).
108.18(7)(d)
(d) A payment under this subsection is timely if it is received by the department no later than November 30 following the computation date for the calendar year to which it applies, or if mailed is either postmarked no later than that date or is received by the department no later than 3 days after that date.
108.18(7)(e)
(e) The department may refund a voluntary contribution made under
par. (a) if, due to an error of the department or an employer, the department makes an adjustment after the computation date or the November voluntary contribution period to the employer's account or payroll used to calculate the employer's reserve percentage that nullifies the rate reduction obtained by the voluntary payment. No refund may be authorized after the close of the calendar year for which the rate changed by the voluntary contribution applied.
108.18(7)(f)
(f) Notwithstanding
par. (a), the department shall authorize an employer to make a voluntary contribution for the purpose of computing the employer's reserve percentage as of the immediately preceding computation date after the month of November, but in no case later than 120 days after the beginning of the calendar year to which the reserve percentage applies, in an amount sufficient to obtain a contribution rate that was:
108.18(7)(f)1.
1. Nullified by an erroneous charge or credit to the employer's account made by the department; or
108.18(7)(f)2.
2. Increased to a higher contribution rate by an erroneous charge or credit to the employer's account made by the department.
108.18(7)(g)
(g) Any payment under
par. (f) must be received by the department within 30 days after the date of notice of the rate change caused by the adjustment and within 120 days after the beginning of the year to which the rate applies.
108.18(7)(h)
(h) The department shall establish contributions other than those required by this section and
s. 108.19 (1)
and
(1e) and contributions other than those submitted during the month of November or authorized under
par. (f) as a credit against future contributions payable by the employer or shall refund the contributions at the employer's option.
108.18(8)
(8) Solvency contributions. Each employer's solvency contribution for each period of a calendar year shall be figured by applying the solvency rate determined for that year under
sub. (9) to the employer's payroll for that period, and shall be payable to the fund's balancing account by the due-date of its contribution report.
108.18(9c)
(9c) Reduction of solvency rate. The department shall reduce the solvency rate payable under
sub. (9) by each employer for each year by the rate payable by that employer under
s. 108.19 (1e) (a) for that year.
108.18(9e)
(9e) Seasonal employer solvency rate. A seasonal employer shall pay an additional solvency contribution of 2% on its payroll for each calendar year unless that rate would result in the employer paying more than the maximum total contribution and solvency rate applicable to any employer in the same year in which the rate applies, in which case the employer shall pay that solvency rate which, when combined with its contribution rate, equals that maximum total rate.
108.18(9m)
(9m) Solvency contribution exemption. No solvency contribution is required of any employer which qualifies for and elects an alternate contribution rate under
sub. (2) (d).
108.18 History
History: 1971 c. 42,
53,
211;
1973 c. 247;
1975 c. 343;
1977 c. 133;
1979 c. 12,
52;
1983 a. 8,
27,
99;
1983 a. 189 s.
329 (28);
1983 a. 384;
1985 a. 17,
40,
332;
1987 a. 38 ss.
113 to
121,
134;
1989 a. 56 s.
259;
1989 a. 77,
359;
1991 a. 89;
1993 a. 373,
492;
1995 a. 118,
225,
417;
1997 a. 39;
1999 a. 15;
2001 a. 43.
108.19
108.19
Contributions to the administrative account. 108.19(1)(1) Each employer subject to this chapter shall regularly contribute to the administrative account at the rate of two-tenths of one per cent per year on its payroll, except that the department may prescribe at the close of any fiscal year such lower rates of contribution under this section, to apply to classes of employers throughout the ensuing fiscal year, as will in the department's judgment adequately finance the administration of this chapter, and as will in the department's judgment fairly represent the relative cost of the services rendered by the department to each such class.
108.19(1e)(a)(a) Except as provided in
par. (b), each employer, other than an employer that finances benefits by reimbursement in lieu of contributions under
s. 108.15,
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 2008 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.
108.19(1e)(b)
(b) The levy prescribed under
par. (a) is not effective for any year unless the department, no later than the November 30 preceding that year, publishes a class 1 notice under
ch. 985 giving notice that the levy is in effect for the ensuing year.
108.19(1e)(c)
(c) Notwithstanding
par. (a), the department may, if it finds that the full amount of the levy is not required to effect the purposes specified in
par. (d) for any year, prescribe a reduced levy for that year and in such case shall publish in the notice under
par. (b) the rate of the reduced levy.
108.19(1e)(d)
(d) The department may expend the moneys received from assessments levied under this subsection in the amounts authorized under
s. 20.445 (1) (gh) for the renovation and modernization of unemployment insurance information technology systems, specifically including development and implementation of a new system and reengineering of automated processes and manual business functions.
108.19(1m)
(1m) 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 to
1324). The rate established by the department for employers who finance benefits under
s. 108.15 (2),
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).
108.19(1n)
(1n) The department shall publish as a class 1 notice under
ch. 985 any rate established under
sub. (1m) within 10 days of the date that the rate is established.
108.19(1p)
(1p) Notwithstanding
sub. (1m), an employer having a payroll of $25,000 or less for the preceding calendar year is exempt from any assessment under
sub. (1m).
108.19(2)
(2) If the department finds, at any time within a fiscal year for which it has prescribed lower contribution rates to the administrative account than the maximum rate permitted under
sub. (1), that such lower rates will not adequately finance the administration of this chapter or are excessive for that purpose, the department may by general rule prescribe a new schedule of rates in no case exceeding the specified maximum to apply under this section for the balance of the fiscal year.
108.19(2m)
(2m) Within the limit specified by
sub. (1), the department may by rule prescribe at any time as to any period any such rate or rates or schedule as it deems necessary and proper hereunder. Unless thus prescribed, no such rate or rates or schedule shall apply under
sub. (1) or
(2).
108.19(3)
(3) If the federal unemployment tax act is amended to permit a maximum rate of credit against the federal tax higher than the 90% maximum rate of credit permitted under section
3302 (c) (1) of the internal revenue code on May 23, 1943, to an employer with respect to any state unemployment insurance law whose standard contribution rate on payroll under that law is more than 2.7%, then the standard contribution rate as to all employers under this chapter shall, by a rule of the department, be increased from 2.7% of payroll to that percentage of payroll which corresponds to the higher maximum rate of credit thus permitted against the federal unemployment tax; and such increase shall become effective on the same date as such higher maximum rate of credit becomes permissible under the federal amendment.
108.19(4)
(4) If section 303 (a) (5) of title III of the social security act and section
3304 (a) (4) of the internal revenue code are amended to permit a state agency to use, in financing administrative expenditures incurred in carrying out its employment security functions, some part of the moneys collected or to be collected under the state unemployment insurance law, in partial or complete substitution for grants under title III, then this chapter shall, by rule of the department, be modified in the manner and to the extent and within the limits necessary to permit such use by the department under this chapter; and the modifications shall become effective on the same date as such use becomes permissible under the federal amendments.
108.19 Cross-reference
Cross Reference: See also ch.
DWD 150, Wis. adm. code.
108.20
108.20
Administrative account. 108.20(1)
(1) To finance the administration of this chapter and to carry out its provisions and purposes there is established the "administrative account". This account shall consist of all contributions and moneys not otherwise appropriated paid to or transferred by the department for the account under
s. 108.19, and of all moneys received for the account by the state or by the department from any source, including all federal moneys allotted or apportioned to the state or the department for the employment service or for administration of this chapter, or for services, facilities or records supplied to any federal agency from the appropriation under
s. 20.445 (1) (n). The department shall make to federal agencies such reports as are necessary in connection with or because of such federal aid.
108.20(2)
(2) All amounts received by the department for the administrative account shall be paid over to the secretary of administration and credited to that account for the administration of this chapter and the employment service, for the payment of benefits chargeable to the account under
s. 108.07 (5) and for the purposes specified in
sub. (2m).
108.20(2m)
(2m) From the moneys not appropriated under
s. 20.445 (1) (ge),
(gf) and
(gg) which are received by the administrative account as interest and penalties under this chapter, the department shall pay the benefits chargeable to the administrative account under
s. 108.07 (5) and the interest payable to employers under
s. 108.17 (3m) and may pay interest due on advances to the unemployment reserve fund from the federal unemployment account under title XII of the social security act,
42 USC 1321 to
1324, may make payments to satisfy a federal audit exception concerning a payment from the fund or any federal aid disallowance involving the unemployment insurance program, or may make payments to the fund if such action is necessary to obtain a lower interest rate or deferral of interest payments on advances from the federal unemployment account under title XII of the social security act, except that any interest earned pending disbursement of federal employment security grants under
s. 20.445 (1) (n) shall be credited to the general fund. Any moneys reverting to the administrative account from the appropriations under
s. 20.445 (1) (ge) and
(gf) shall be utilized as provided in this subsection.
108.20(4)
(4) Any moneys transferred to the administrative account from the federal administrative financing account pursuant to
s. 108.161 shall be expended or restored to that account in accordance with
s. 108.161.
108.205
108.205
Quarterly wage reports. 108.205(1)
(1) Each employer shall file with the department, in such form as the department by rule requires, a quarterly report showing the name, social security number and wages paid to each employee who is employed by the employer in employment with the employer during the quarter. The department may also by rule require each employer to include in the report any salary reduction amounts that are not wages and that would have been paid to each such employee by the employer as salary during the quarter but for a salary reduction agreement under a cafeteria plan, within the meaning of
26 USC 125. The employer shall file the report no later than the last day of the month following the completion of each quarter.
108.205(2)
(2) All employers of 100 or more employees, as determined under
s. 108.22 (1) (ae), shall file the quarterly report under
sub. (1) using an electronic medium approved by the department for such employers. An employer that becomes subject to the reporting requirement under this subsection shall file its initial report under this subsection for the 4th quarter beginning after the quarter in which the employer becomes subject to the reporting requirement. Once an employer becomes subject to the reporting requirement under this subsection, the employer shall continue to file its quarterly reports under this subsection unless that requirement is waived by the department.
108.205 Cross-reference
Cross Reference: See also ch.
DWD 111, Wis. adm. code.
108.21
108.21
Record and audit of payrolls. 108.21(1)
(1) Every employing unit which employs one or more individuals to perform work in this state shall keep an accurate work record for each individual employed by it, including full name, address and social security number, which will permit determination of the weekly wages earned by each such individual, the wages paid within each quarter to that individual and the salary reduction amounts that are not wages and that would have been paid by the employing unit to that individual as salary but for a salary reduction agreement under a cafeteria plan, within the meaning of
26 USC 125. Each such employing unit shall permit any authorized representative of the department to examine, at any reasonable time, the work record and any other records which may show any wages paid by the employing unit, or any salary reduction amounts that are not wages and that would have been paid by the employing unit as salary but for a salary reduction agreement under a cafeteria plan, within the meaning of
26 USC 125, regardless of the format in which such a record is maintained. If such a record is maintained by an employing unit in machine-readable format, the employing unit shall provide the department with information necessary to retrieve the record. If the department determines that the employing unit is unable to provide access to such a record or that the retrieval capability at the site where the record is maintained is not adequate for efficient examination, the employing unit shall provide a copy of the record to the department and shall allow the department to remove the copy from that site for such period as will permit examination at another location. Each such employing unit shall furnish to the department upon demand a sworn statement of the information contained in any such record.
108.21(2)
(2) The findings of any such authorized representative of the department, based on examination of the records of any such employing unit and embodied in an audit report mailed to the employing unit, shall constitute a determination within the meaning of
s. 108.10.
108.21(3)
(3) If any such employing unit fails to keep adequate work records under this section or fails to file the reports required by this chapter or required by the department under this chapter, the employing unit's contribution liability with respect to the period for which such records are lacking or deficient or for which such reports have not been filed may be estimated by the department in a determination made under
s. 108.10.
108.21 Cross-reference
Cross Reference: See also ch.
DWD 110, Wis. adm. code.
108.22
108.22
Timely reports, notices and payments. 108.22(1)(a)(a) If any employer, other than an employer which has ceased business and has not paid or incurred a liability to pay wages in any quarter following the cessation of business, is delinquent in making by the assigned due date any contribution report, or other report or payment to the department required of it under this chapter except a quarterly report under
s. 108.205 or a voluntary contribution, the employer shall pay interest on any delinquent payment at the rate of one percent per month or fraction thereof from the date such payment became due. If any such employer is delinquent in making any quarterly report under
s. 108.205 by the assigned due date, the employer shall pay a tardy filing fee for each delinquent quarterly report as follows:
