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WISCONSIN UNEMPLOYMENT INSURANCE EMPLOYER COVERAGE AND LIABILITY

This page is based on a pamphlet UCT-8928-P describing employer coverage and liability. If you would like a copy of this pamphlet or have a question(s) please call the number listed below.

WISCONSIN UNEMPLOYMENT INSURANCE EMPLOYER COVERAGE AND LIABILITY CHAPTER  108 WISCONSIN  STATUTES

INTRODUCTION

This pamphlet provides information for new employers about the coverage and liability provisions of the Wisconsin Unemployment Insurance (UI) Law.

Wisconsin's UI law provides benefits to covered workers who are out-of-work and eligible.   These benefits are financed by employers who are subject to the federal/state UI laws.

Private employers pay state unemployment taxes on their payroll.  Taxes are paid under an experience rating system designed to encourage steadier work and wages.   Governmental units and certain nonprofit organizations may finance their benefit costs on a direct reimbursement basis or a tax basis.

DO I HAVE TO PAY UI TAXES?

Employers are subject to UI tax liability if they pay $1,500 or more in wages in any calendar quarter or have full or part-time employees working for them in 20 weeks or more during a calendar year.  Special provisions apply to the following types of employers

An employer engaged in agriculture is subject if 10 or more persons are working on farm labor on the same day in 20 or more weeks during a calendar year or the payroll for this work is at least $20,000 in any calendar quarter.  An employer of persons working in domestic service is subject if the wages for this work are $1,000 or more in any calendar
quarter.

A nonprofit organization which is classified 501(c)(3) by the Internal Revenue Service is subject if it has four or more employees on the same day in 20 weeks within a calendar year.

WHICH PAYMENTS ARE CONSIDERED WAGES FOR UI PURPOSES?  (Return to Top)

Wages include salaries, commissions, vacation pay, dismissal pay, bonuses, tips, the reasonable value of board and room, rent, payments in kind and any other similar benefit received from the employer.  Payment for part-time and temporary employment is considered wages.

HOW DO I GET A WISCONSIN UI ACCOUNT NUMBER?  ( Return to Top)

Contact the department by mail or telephone.  The appropriate forms (application) will be mailed to you.  Information supplied by you will be used to determine if you have a tax liability.  If you do, you will be provided forms and instructions on quarterly reporting.

IS THERE ANY EMPLOYMENT WHICH IS EXCLUDED FOR UI PURPOSES?  (Return to Top)

Individuals performing services in certain types of employment are specifically excluded from covered employment.  Being excluded means that the employer does not pay tax based on those earnings and their employees are not eligible for UI benefits. Examples of excluded employment are:

• the spouse and parents of a sole proprietor
• the children of a sole proprietor under the age of eighteen.
• an individual employed as a real estate or insurance salesperson paid by commission only.
an individual paid solely by commission,overrides, bonuses or differentials derived from in-person sales, primarily in the home.
• corporate officers, if the corporation has an annual payroll of less than $400,000 ($500,000 as of January 1, 1995), and the corporation has filed an election with the department to exclude paid officers.

HOW WILL I KNOW HOW MUCH TAX TO PAY?  ( Return to Top)

Currently only the first $10,500 in wages paid each employee in a calendar year are taxed. Employers in their first two years of business pay at a fixed new employer rate.  There is a separate new employer rate for construction employers which is re-calculated annually.

HOW ARE UI TAXES PAID? (Return to Top)

Each employer subject to the UI law must file a quarterly Contribution and Wage report.   The report and payment is due by the close of the month following the end of a calendar quarter on forms supplied by the department.  The due dates for each report are:

First Quarter - April 30
Second Quarter - July 31
Third Quarter - October 31
Fourth Quarter - January 31

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

WHAT IF I HAVE OTHER QUESTIONS ABOUT MY COVERAGE AND LIABILITY?  (Return to Top)

You may write to us at:

Division of Unemployment Insurance
P.O. Box 7942
Madison, WI 53707-7942

Or you may call:

Employer Service Team
(608) 261-6700
FAX (608) 267-1400