How to Establish Compliance

UCT-1, Wisconsin Employer's Report Form

Time Limit on Liability

Reimbursement Financing

You are required to pay UI contributions on your payroll after you've met the statutory coverage liability. Not all employers are "covered" employers. Those that do not meet the coverage requirements or maintain only excluded employment are not subject to the UI law.

A.

Determining Coverage Liability

• You paid wages of $1,500 or more in a quarter in any calendar year or;

• You employed one or more individuals in employment for some part of a day in 20 or more weeks in any calendar year. The weeks need not be consecutive and part-time employees must be included in the employee count.

• You paid cash wages for agricultural labor of $20,000 or more in a quarter in any calendar year or;

• You employed ten or more individuals in agricultural labor for some part of a day in 20 or more weeks of any calendar year.

• You paid cash wages of $1,000 or more in a quarter for domestic service in any calendar year.

• Other nonprofit organizations (i.e., non 501(c)(3)) fall under the commercial employer's conditions for liability (see #A1 above).

• Government employers have mandatory coverage.

• You've paid any wages for Wisconsin employment and you have a liability for that year under the Federal Unemployment Tax Act (FUTA) or;

• You've taken over part or all of the business of an employer already covered under the law (see Part 6: "BUSINESS TRANSFERS AND TAKING OVER A UI ACCOUNT") or;

You have no liability by law, but you voluntarily elected to become a covered employer (with the Department's approval).

B.

How to Establish Compliance

It can be found on the DWD home page (http://dwd.wisconsin.gov) under Unemployment Insurance, then New Employer Registration.

or

Contact us by:

or

If you prefer a paper form, contact us at:

Bureau of Tax & Accounting
Division of Unemployment Insurance
P.O. Box 7942
Madison, WI 53707

We will send you an employer's report and an account number to establish your account. You can also request the necessary forms
by:

Telephone: (608) 261-6700

FAX: (608) 267-1400

C.

UCT-1, Wisconsin Employer's Report Form

The Employer's Report, Form UCT-1, (Example 1 - 2006 Wisconsin Employer's Report Form, UCT-1)is used to determine if an employer is subject to the unemployment insurance law. The Employer's Report should be completed by all employers who may have a liability to pay unemployment insurance taxes.

The form is used to obtain information such as the employer's trade and legal names, address, type of business and business location. The form will also ask for information regarding an employer's payroll through the date the form is being completed. Employers completing this form should pay particular attention to employment that is excluded from coverage under the law. Types of employment that are excluded are detailed on this form. Corporations should also include wages paid to the officers of the corporation.

D.

Time Limit on Liability

E.

Reimbursement Financing

Accounts for nonprofit organizations are normally set up on the tax financing method but reimbursement financing can be elected. Accounts for governmental units are initially set up on the reimbursement financing method but tax financing can be elected.

Indian tribes are normally set up on the tax financing method but as of 1/1/2002 they can now elect reimbursement financing as of the beginning of any calendar year.

Indian Tribes & Nonprofit employers electing reimbursement financing must file an assurance of reimbursement with the department. The assurance can be in the form of a surety bond, letter of credit, certificate of deposit, or any other nonnegotiable instrument of fixed value.

The employer's original assurance has to cover the 5-year period starting from the beginning of the year in which the employer's reimbursement financing election takes effect. The amount of the assurance must be at least equal to 4% of the employer's taxable wages for the past calendar year. The adequacy of the assurance amount is redetermined every other year. If the employer ceases business or converts to tax financing, the assurance must remain in effect for up to 2 1/2 years to cover the period of benefit claim liability. At the end of this period, the assurance is returned to the employer.

Beginning in 2006, certain non-profit employers electing reimbursement financing may be subject to an annual assessment for payment of uncollectible benefit reimbursements due from employers no longer in business.  The assessment will only be made in years where the amount uncollectible debts exceeds $5,000.  The total assessment against all employers in limited to no more than $200,000 annually.

When a governmental unit, nonprofit organization or Indian Tribe chooses to convert to reimbursement financing, the positive or negative balance in their tax account remains in the Unemployment Reserve Fund and is transferred to the Fund's balancing account.

A government unit, nonprofit organization or Indian Tribe interested in obtaining further information about reimbursement financing should contact us at:

Internet:  http://dwd.wisconsin.gov/uitax

or

Bureau of Tax & Accounting
Division of Unemployment Insurance
P.O. Box 7942
Madison, WI 53707

or

Deaf, hearing or speech-impaired callers may reach us through WI TRS.

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