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In This Issue

Unemployment Insurance Update
4th Quarter, 2007

Account Number Changes

The Account Number that appears on your Quarterly Contribution Report and Quarterly Wage Report has been changed. In the past, this 14-digit Account Number contained your 9-digit Federal Employer Identification Number (FEIN). To protect the confidentiality of your FEIN, a new 14-digit Account Number will appear on your reports for 4th Quarter 2007, containing the first 6 digits of your UI Account Number. This number will also appear on other correspondence from the UI Division.

This change is being made to prepare for deployment of the State Unemployment Insurance Tax Enterprise System (SUITES), our new automated tax and accounting system.

Notice to Employer Agents

Employer agents who prepare reports on behalf of 25 or more employers must file their TAX and WAGE reports electronically using one of the reporting options described on our web site http://dwd.wisconsin.gov/uitax/serv_providers.htm

Employer agents who prepare reports on behalf of fewer than 25 employers must file the TAX reports via the application at http://uiqtwrs.wisconsin.gov and the WAGE reports via that same application or the other automated media reporting options.

Not complying with these requirements will result in penalties of $25 for each tax report filed on paper and $10 per employee for wage reports filed on paper. If you have any questions, please call our employer service line at 608-261-6700.

Deferral of 1st Quarter Tax Payment

Employers who elected to defer payment on a portion of their first quarter 2007 tax liability are reminded that the final installment is due January 31, 2008. If the final 10% installment payment and any fourth quarter tax liability is not made by that date, interest will be assessed back to the April 30, 2007 first quarter due date.

Information regarding the first quarter 2008 deferral will be posted and/or mailed in March. If you have any questions, please call 608-261-6700.

Corporate Officer Exclusion for 2008

Corporations, and LLCs electing to be treated as Corporations, with UI taxable payroll of $500,000 or less during 2007 can elect to exclude certain principal officers from "employment" under Wisconsin’s UI Law. The election means that the wages of all officers having at least 25% ownership would not be subject to Wisconsin UI tax or be usable for UI benefits.

The corporation, or LLCs electing to be treated as a corporation, must file an election with the Department by March 31, 2008. Corporations, or LLCs electing to be treated as a corporation, who currently have an approved election do not need to file a new election unless they no longer wish to exclude the officers’ wages. This can be done with a letter to the Department.

Since the officers’ wages would continue to be subject to the FUTA (federal unemployment tax), we also have a worksheet and we recommend that you take the time to determine if the exclusion will benefit your corporation. An election form (Election to Exclude Principle Officers, UCT-7937) and worksheet (Worksheet -Corporate Officer Exclusion, UCT-8055) can be obtained by visiting our website at http://dwd.wisconsin.gov/ui/ and click on “Forms” or calling 608-261-6700.

FUTA Tax Credit

Each year the federal government asks us to certify that the wages and tax payments you listed on Form 940 as having been paid to Wisconsin are correct and were paid timely. This certification is done by a computer cross match utilizing your FEIN (Federal Employer Identification Number). To properly certify your offset credit, please be sure we have your correct FEIN on our records and that it matches the FEIN shown on your Form 940.

Important Reminder: When completing your Form 940, be sure to use your State Unemployment Account number when asked for your State reporting number.

No Payroll to Report?

Employers who do not pay wages during a quarter can file their quarterly contribution/wage report by calling 608-261-4571. This eliminates the need to send a paper report. When filing a zero report, you can also file an out-of-business report if applicable.

All Governmental Units

Please note that amounts paid to elected officials chosen by public vote serving solely in their elected capacity should not be reported to us on the quarterly contribution or wage reports.

If an elected official is paid for work that person was not elected to do (such as plow snow, maintain buildings, etc.), those amounts should be reported on the quarterly reports.

If you have previously reported amounts paid to elected officials serving solely in their elected capacity, please send us a list of the names, social security numbers and the amounts reported by quarter and we will correct the reports.

If you have any questions, please call 608-266-9404.

WORKNET

WORKnet can help you make decisions about your work world!

WORKnet is a user-friendly interactive web application developed by the Department of Workforce Development. It provides economic, employment, demographic and career information to the business community, jobseekers, policy makers, workforce development partners and others. Through WORKnet, customers have 24/7 access to accurate, timely local-level information and resources that enable them to make informed decisions about jobs, wages, workforce and other related issues.

What’s on WORKnet?

Customized modules have been developed for distinct customer groups:

Check it out! http://worknet.wisconsin.gov

New Hire Reporting

State and federal law requires all employers with a Federal Employer Identification Number to report all newly hired employees as well as those rehired, recalled, or returning to work after an unpaid interval of more than 90 days.

New Hire reports are due within 20 days after the employee begins working or returns to work. Reports should include all employees (even short-term or no longer employed).

The easiest and most cost-effective way to submit a New Hire report is through the Internet. To begin reporting, visit the New Hire web site at http://dwd.wisconsin.gov/ui/ and follow the link to New Hire Reporting. If you would like more information, please call the New Hire Processing Center toll free at 1-888-300-4473.

If you have employees in more than one state and want to report all of your new hires to only one state, you will find information about how to register as a multi-state employer at http://dwd.wisconsin.gov/uinh/multi.htm.

The New Hire program’s primary aim is to locate individuals with child support obligations. The reported employment start dates are vital to the program. More information is available at http://dwd.wisconsin.gov/uinh/.

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 laws such as Wisconsin’s anti-discrimination, unemployment insurance, worker's compensation, and labor standards laws.

Clinics are scheduled as follows:

Presentations provide an initial orientation to the topic. Speakers are “hands-on” experts working within the program area and are available to respond to a wide range of questions about their programs. In addition, extensive resource materials such as employer handbooks, law text, and required posters are available free of charge.

Registration for the clinic is required. A registration form is available from the DWD web site http://dwd.wisconsin.gov/laborlaw/ , or by contacting Yvonne Hagen at 608-266-3100 or Egon Breckner at 608-267-9796 or 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.

UCB-11618 (R. 11/2007)

Updated November 19, 2007
Division of Unemployment Insurance
Content Contact: Unemployment Insurance Staff


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