Plain Language Summary of the 2001 UI Law
A complete Plain Language Summary (PDF)
|108.05(7)(f)||Reduction and Subsequent
Elimination of the Social Security Offset.
Current UI law requires that 50% of weekly social security benefits be deducted from the amount of unemployment insurance (UI) benefits received. The bill would reduce the amount deducted to 25% in 2002 and eliminates the offset thereafter
|108.05(1)||Increase in the Benefit Rate.
The bill would increase weekly benefit rate by $11 in 2002 and by $5 in 2003.
|108.14(19)||Benefit Fraud Report.
Department of Workforce Development (Department) would issue an annual Benefit Fraud Report outlining the Department's activities in detecting and prosecuting claimant fraud.
|Extend requirement for two work
searches through 2003.
requires two work searches through the end of 2001.
|108.04(7)(h)||Charge Balancing Account for Quits
to Enter TAA or WIA Training.
The bill would charge the Reserve Fund's balancing account for UI benefits rather than employer accounts when claimants terminate employment considered substandard under the federal program to enter training approved by them.
|108.04(8)(c)||Charge to Balancing
Account when Employee Fails to Receive Notice of Recall.
The bill would charge the balancing account for benefits when an employer's proper notice of recall to work is not received by a claimant and the claimant later requalifies for benefits.
|Verification of Work Search.
Department would increase the number of eligibility reviews performed by UI staff. Accordingly, the Department would refocus current staff to check that claimants are actively searching for work.
|108.17(2c)||Tax Payment Deferral Program.
Under current law, the first $10,500 in wages paid to each employee in the calendar year is taxed. Under the bill, an employer that has a first quarter tax liability of $5,000 or more and is not delinquent in making its contribution payments or paying any interest, penalties or fees assessed for UI purposes would have the option to reduce the first quarter liability so that it is spread throughout the year.
|Creation of a Professional Employer
The bill would create a definition for "professional employer organization" or "PEO" (PEOs have also been described as "leasing companies"). The definition would provide that leased employees are the employees of the PEO. The corporate officers of a PEO would be included as its employees, as would employees whose direction and control may be shared or concurrent with another employer besides the PEO.
|108.16(8)||Elimination of Partial Successorship.
The bill would provide that the transfer of a business's reserve fund balance can occur only when 100% of the business is transferred to a single transferee or new owner/operator. Department would no longer transfer only part of a business's reserve fund balance if a part of a business is sold, except when the transfer is mandatory and the transferor has a negative balance account.
|108.02(15)(j)6||Tax Exclusion for Certain
Non-Immigrant Visa Holders.
Under the Federal Unemployment Tax Act (FUTA) and the Federal Insurance Contributions Act (FICA), services performed for any employer by a non-resident alien temporarily in the United States under an F1, J1, M1, or Q visa are excluded from the definition of "employment" and therefore are not taxable. Under the bill, Wisconsin's UI tax law would be consistent with federal law.
|Requirement That Service Companies
File Electronic Reports.
The bill would require agents who file quarterly contribution and wage reports for 25 or more employers to file tax and wage information electronically.
|Coverage Exclusion for Services to
Certain Medicaid Recipients.
The bill would exclude from the definition of "employment" nursing and respiratory care services to medicaid recipients by individuals certified by the Department of Health and Family Services as medicaid providers in independent practice.
|108.14(2e)||Expand Department Use of Electronic Interchange. Upon request, the Department would authorize the use of electronic means (e.g., e-mail and fax) to send and receive UI documents and other communications to conduct business.|
|108.152||Mandatory Coverage of Indian Tribes. Amendments to the Federal Unemployment Tax Act require all states to cover service for Indian tribes and offer a reimbursement financing option to the tribes. The bill would bring Wisconsin into conformity with the federal law.|
|108.14(2)||Extension of Administrative Fee for
Current law assessing an administrative fee for the UI tax and accounting technology system "sunsets" at the end of 2001. The bill would extend the assessment for two additional years. The bill would also broaden the use of the assessment to include other UI technology projects for those two years.
|108.09(3)||Hiring Retired ALJs.
Current law permits the department to appoint only permanent employees as administrative law judges (ALJs). The bill would permit the Department to secure the services of retired ALJs to serve as reserve administrative law judges.
|Nonstatutory Text||Authority to Hire 15 Project Staff.
The bill would permit 15 two year project positions to fill in temporarily for staff encumbered by UI system redesign. These positions are federally funded and will not require state funds.
|Nonstatutory Text||Appropriation for Disallowed Costs of
The bill would authorize appropriating up to $250,000 in interest and penalty funds to pay for the disallowance of costs by the Department of Labor for employment services.
Collections Proposals. The bill would expand the tools by which the Department can collect unpaid funds that are due:
|108.22(1m)||As part of the normal collection process to obtain unpaid funds from taxable employers, the Department can file a lien with the circuit court to place an encumbrance on property. The bill would extend this practice to collect unpaid funds from reimbursable employers and those penalized for aiding and abetting fraud as well.|
|108.225||Current UI law does not provide the authority for the Department to impose a levy on the assets of delinquent reimbursable employers or employers who have aided and abetted claimants in committing fraud. The bill would permit the Department to impose a levy in these situations.|
(1)(b) & (c)
|The bill would permit the Department to place a levy on the assets of a third party who has not responded to a levy.|
PDF format requires Adobe Acrobat reader - free download available