New Law Changes 2007-2008
2007 Wisconsin Act 59

Benefit Changes

• Increased wage amounts required to qualify for unemployment insurance benefits.
• Increased maximum weekly benefit rate by $8 in 2009.
• Changed criteria for determining when a claimant is unable to work or unavailable for work.
• Simplified eligibility of claimants who decline available work, take leave of absence or who separate from an employer because they are unable or unavailable for their work.
• Removed benefit reduction for parents who are employees in their child’s business.

Tax Changes

• Increased the “taxable wage base.” Beginning in 2009, each employer will pay unemployment taxes on the first $12,000 of wages paid to each employee annually; $13,000 in 2011; and $14,000 in 2013.
• Decreased basic tax rates and increased the solvency tax rates by the same amount.
• Required employers with 25 or more employees to file wage and tax reports electronically.
• Required all employer agents and certain large employers to pay taxes electronically.
• Allowed employers with at least $1,000 in first quarter taxes to defer payments.
• Clarified the due date for wage and tax reports and payments.

Other Changes

• Increased penalties for benefit fraud and for employers who collude in benefit fraud.
• A study committee is to be appointed by the Unemployment Insurance Advisory Council to study the definitions of “employee” and “independent contractor” for possible changes.

A plain language summary of the law changes is available at http://dwd.wisconsin.gov/uibola/plainlang2007.htm.

New Hire Reporting

Did you know that businesses are required by law to report every new employee within 20 days of hire? There are several available methods for reporting your new hires. For more information about your options and the program, see http://dwd.wisconsin.gov/uinh/

New Due Date Requirement

A recent law change requires that all quarterly contribution/wage reports and payments must be received by the Department on or before the due date. Any reports and/or payments received after the due date, even if post marked by the due date, will be subject to penalty and interest. This change takes effect with the third quarter report and payment due Oct. 31, 2008.

Electronic Reporting

Due to a recent law change, quarterly reporting requirements will change for employers with 25 or more employees, beginning with reports filed for third quarter 2008.

Contribution Reports: Employers with 25 or more employees who prepare and file their own reports must file via QTWRS, our web-based reporting application http://uiqtwrs.wisconsin.gov.

Wage Reports: Employers with 25 or more employees who file their own reports must file electronically, via QTWRS or one of the other automated media reporting options described on our website http://dwd.wisconsin.gov/uiben/wagehome.htm.

Penalties: Failure to comply with these filing requirements will result in penalties of $25 for each Contribution Report filed on paper, and $15 per employee for Wage Reports filed on paper.

Deferral of 1st Quarter Tax Payment

Those employers who opted to defer some of their first quarter 2008 tax are reminded that the second installment is due with your second quarter 2008 report and payment.

Also, your 2009 tax rate is based on your reserve fund balance as of June 30, 2008 (including all payments made through July 31, 2008).

At the time you are ready to file your second quarter report, you should determine whether your 2009 tax rate will be adversely affected if you choose not to pay your first quarter liability in full by July 31, 2008.

If you need assistance in determining your 2009 tax rate, please call our employer service line at 608-261-6700.

Labor Law Clinics

The Department of Workforce Development (DWD) has scheduled various Labor Law Clinics for Wisconsin area business leaders and employees. Labor Law Clinics are educational seminars focusing on topics chosen by local employers about Wisconsin’s laws.

Clinics are scheduled as follows:

July 16, 2008 – Mosinee
August 21, 2008 – La Crosse
September 24, 2008 – Green Bay

Registration for the clinic is required. A registration form is available from the DWD web site http://dwd.wisconsin.gov/laborlaw/ or by sending an email to laborlawclinic@dwd.state.wi.us. To receive notification of future clinic dates, an email subscription service is available through the web site at http://dwd.wisconsin.gov/laborlaw/maillists.

UIAC 2008 Public Hearings

The public is invited to attend hearings on Wisconsin’s unemployment program before the Wisconsin Unemployment Insurance Advisory Council. The Council represents employee and employer interests and recommends changes to the unemployment law to the Legislature.

The public hearings begin at 1:30 PM

The purpose is to receive public comments on the unemployment program.

If you cannot attend a hearing, you may send your comments to:
Unemployment Insurance Advisory Council
c/o Chairperson Daniel J. LaRocque
P.O. Box 8942
Madison, WI 53708
Daniel.LaRocque@dwd.state.wi.us

For additional information regarding public hearings call Robin Gallagher at (608)267-1405.

For information regarding the activities of the Wisconsin Unemployment Advisory Council, visit dwd.wisconsin.gov/uibola/uiac

UCB-11618 (R. 5/2008)