108.18(1)(a)(a) Unless a penalty applies under s.
108.16 (8) (m), 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 2.5 percent 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. An employer that is the transferee of a business enterprise but does not qualify to be treated as a successor under s.
108.16 (8) (im) does not qualify for an alternate contribution rate under this paragraph.
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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(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 percent 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
(i), 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),
(1e), and
(1f). 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),
(h), or
(i).
108.18(7)(b)
(b) Except as provided in par.
(i), 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, without interest, 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.
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),
(1e), and
(1f) and contributions other than those submitted during the month of November or authorized under par.
(f) or
(i) 2. as a credit, without interest, against future contributions payable by the employer or shall refund the contributions at the employer's option.
108.18(7)(i)1.1. An employer that suffers physical damage to its business caused by a catastrophic event for which the employer is not primarily responsible, and incurs benefit charges to its account for layoffs due to that damage may, by means of a voluntary contribution under par.
(a), increase the employer's reserve percentage to no greater than the reserve percentage that would have applied to the employer as of the next computation date had that damage not caused the employer to lay off its employees. An employer that makes a voluntary contribution under this subdivision shall notify the department of its election to have its contribution treated in the manner provided in this paragraph and shall submit proof, in the form and manner prescribed by the department, to establish that its employees were laid off due to the catastrophic event.
108.18(7)(i)2.
2. If an employer makes a payment under subd.
1. after November 30 and before November 1 of the succeeding year, the department shall establish the payment as a credit and apply the payment as a voluntary contribution to the employer's account when the next rate computation occurs. Any amount paid to the department in excess of the amount that may be applied under subd. 1 in any year may continue to be held as a credit, without interest, against future required or voluntary contributions for a calendar year or refunded to the employer, at the employer's option.
108.18(8)
(8) Solvency contributions. Each employer's solvency contribution for each calendar quarter of any year shall be figured by applying the solvency rate determined for that year under sub.
(9) to the employer's payroll for that quarter, and shall be payable to the fund's balancing account by the due date for payment of contributions by the employer for that quarter.
108.18(9)
(9) Solvency rates. Except as provided in subs.
(9c) and
(9e), an employer's solvency rate on its payroll for a given calendar year shall be based solely on the contribution rate of its account for the calendar year under this section. For purposes of rate determination under this subsection, an employer's payroll shall be calculated for the 12-month period ending with the computation date preceding the calendar year to which the rate applies. [See Figure 108.18 (9) following]
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(9c) Reduction of solvency rate. The department shall reduce the solvency rate payable under sub.
(9) by each employer for each year by the rates payable by that employer under s.
108.19 (1e) (a) and
(1f) (a) for that year.
108.18(9e)
(9e) Seasonal employer solvency rate. A seasonal employer shall pay an additional solvency contribution of 2 percent 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;
2005 a. 86;
2007 a. 59;
2009 a. 287;
2011 a. 260;
2013 a. 20;
2015 a. 334.
108.19
108.19
Contributions to the administrative account and unemployment interest payment and program integrity funds. 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 percent 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 2010 equal to the lesser of 0.01 percent 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(1f)(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 for each year equal to the lesser of 0.01 percent 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. Assessments under this paragraph shall be deposited in the unemployment program integrity fund.
108.19(1f)(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. The department shall consider the balance of the unemployment reserve fund before prescribing the levy under par.
(a). The secretary of workforce development shall consult with the council on unemployment insurance before the department prescribes the levy under par.
(a).
108.19(1f)(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 sub.
(1s) (b) 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(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 unemployment interest payment fund at a rate established by the department sufficient to pay interest due on advances from the federal unemployment account under Title XII of the federal 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 percent 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 employment and wage reports filed by the employer under s.
108.205 (1) or, in the absence of the filing of such reports, estimates made by the department. Each assessment made under this subsection is due within 30 days after the date the department issues the assessment. If the amounts collected from employers under this subsection exceed the amounts needed to pay interest due, the department shall use any excess to pay interest owed in subsequent years on advances from the federal unemployment account. If the department determines that additional interest obligations are unlikely, the department shall transfer the excess to the balancing account of the fund, the unemployment program integrity fund, or both in amounts determined by the department.
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(1q)
(1q) There is created a separate, nonlapsible trust fund designated as the unemployment interest payment fund consisting of all amounts collected under sub.
(1m) and all interest and penalties on those amounts collected under s.
108.22.
108.19(1s)(a)(a) There is created a separate, nonlapsible trust fund designated as the unemployment program integrity fund consisting of all of the following:
108.19(1s)(a)2.
2. Assessments levied and deposited into the unemployment program integrity fund under sub.
(1f).
108.19(1s)(b)
(b) The department shall use the moneys in the unemployment program integrity fund for payment of costs associated with program integrity activities.
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 percent 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 percent, then the standard contribution rate as to all employers under this chapter shall, by a rule of the department, be increased from 2.7 percent 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) (gg) that 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 expend the remainder to 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, to conduct research relating to the condition of the unemployment reserve fund under s.
108.14 (6), to administer the unemployment insurance program and federal or state unemployment insurance programs authorized by the governor under s.
16.54, to assist the department of justice in the enforcement of this chapter, to 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 to 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.
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.
108.20 History
History: 1973 c. 90 s.
559;
1981 c. 36 ss.
38,
39,
45;
1983 a. 8,
388;
1985 a. 17,
29,
40;
1987 a. 27,
38,
403;
1989 a. 77;
1991 a. 89;
1997 a. 27,
39,
252;
1999 a. 15;
2001 a. 35;
2003 a. 33;
2005 a. 86;
2007 a. 20,
59;
2009 a. 287.
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 employer shall file the report no later than the last day of the month following the completion of each quarter.
108.205(1m)(a)(a) The department shall prescribe the manner and form for filing reports under sub.
(1) electronically.
108.205(1m)(b)
(b) Each employer agent shall file its reports electronically in the manner and form prescribed by the department.
108.205(2)
(2) Each employer of 25 or more employees, as determined under s.
108.22 (1) (ae), that does not use an employer agent to file its reports under this section shall file the quarterly report under sub.
(1) electronically in the manner and form prescribed by the department. An employer that becomes subject to an electronic reporting requirement under this subsection shall file its initial report under this subsection for the quarter during 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.
