Form U00588 - Memorandum On Employer Liability
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1MEMORANDUM ON EMPLOYER LIABILITY
Page 3
I. ARE YOU AN EMPLOYER LIABLE UNDER THE WISCONSIN UNEMPLOYMENT INSURANCE ACT?
A. An employer is required to comply with the payroll tax provisions of the Wisconsin UI Law on all coverable Wisconsin payroll:
Retroactive to January 1
1.
of a calendar year if the employer:
Paid
or
incurred
a
liability
to
pay
wages
for
employment
in
Wisconsin
which
totaled
$1,500
or
more
during
(a)
any
calendar
quarter
in
either
that
year
or
the
preceding
year,
or
Employed
one
individual
(full
or
part-time
and
not
necessarily
the
same
person)
in
each
of
20
or
more
(b)
calendar
weeks
in
Wisconsin
either
that
year
or
the
preceding
calendar
year;
or
2.
Retroactive
to
the
first
Wisconsin
payroll
of
a
calendar
year,
if
the
employer
is
subject
to
the
Federal
Unemployment
Tax on its total payroll in all states; or
3.
Effective
as
of
the
date
an
employer
acquires
all
or
some
portion
of
a
business
already
covered
by
the
statute.
Not
all
business
transfers
result
in
a
mandatory
successorship.
The
statutes
require
that
both
the
transferor
(seller)
and
transferee
(buyer)
give
notice
of
any
business
transfer
within
30
days
of
the
transfer
date.
Appropriate
information
and
forms will be provided after notice is received.
II. PART-TIME WORKERS, PAID CORPORATE OFFICERS, AND COMMISSION PAID SALES PERSONS ARE EMPLOYEES
"Wages"
means
any
form
of
remuneration
for
a
given
period.
It
is
immaterial
whether
wages
are
paid
on
any
hourly
basis,
fixed
salary
per
payroll
period,
on
a
commission
basis,
piecework
or
job
arrangement,
or
by
payment
in
kind
(board,
room
or
merchandise).
An
employer
operating
more
than
one
business
under
the
same
legal
ownership
must
combine
payrolls
and
employment for purposes of determining employer liability and reporting tax liability under this statute.
III. 2014 INITIAL TAX RATES
The
tax
rate
for
new
employers
engaged
in
business
in
the
construction
industry
in
2014
is
6.60%.
The
rate
for
other
new
employers is 3.60%. Taxes are assessed on the first $14,000 in wages paid each employee within a calendar year.
Tax
due
dates
for
new
employers
vary
according
to
the
date
liability
is
incurred.
The
latest
due
date
for
2014
taxes
is
January
31,
2015.
If
you
do
not
have
appropriate
forms
to
establish
compliance
by
January
31,
2015,
be
certain
to
send
your
check
in
payment
of
taxes
by
that
date.
Penalties
may
then
be
avoided
for
at
least
the
fourth
quarter,
and
possibly
for
other
quarters,
depending on the date liability was incurred. Forms for processing your tax payment will then be sent.
IV. COMMON PERMITTED EXCLUSIONS
In
determining
employer
liability,
individuals
employed
in
types
of
employment listed below are permitted as deductions
(as
excluded
employment)
from
the
count
of
employees.
Wages
paid
to
individuals in excluded employment should be
deducted
from
quarterly
payrolls.
Agricultural
labor
-
unless
performed
for
an
employer subject to this chapter (i.e., any employer who paid cash
A.
wages
for
agricultural
labor
which
totaled
$20,000
in
any
calendar
quarter of the current or preceding year or
employed
as
many
as
10
persons
in
agricultural
labor
for
some
portion of a day in 20 different weeks of the
current
or
preceding
year).
Domestic
service
in
the
employer's
private
home
-
unless performed for an individual subject to this chapter on
B.
domestic
employment
(i.e.,
any
employer
of
any
individual
in
domestic
service who paid cash wages of $1,000 or
more
in
any
calendar
quarter
of
either
the
current
or
preceding
calendar
year).
C.
Persons
(under
the
age
of
18)
selling
or
distributing
newspapers
or
magazines on the street or from house to house.
D.
Individuals
covered
by
the
Railroad
Unemployment
Insurance
Act.
E.
Crews
of
commercial
fishing
vessels
of
10
net
tons
or
less.
F.
Insurance
or
real
estate
salespeople
paid
by
commissions
only.
G.
Unpaid
officers
of
a
corporation
or
association.
H.
Individuals
employed
entirely
outside
of
Wisconsin.
(Some
minor
exceptions.)
I.
Any
person
earning
less
than
$50
in
a
calendar
quarter
in
the
employ
of an organization exempt from federal income
tax
under
S.501(a)
of
the
Internal
Revenue
Code.
J.
A
sole
proprietor's
father,
mother,
spouse,
or
any
of
his/her
children
under the age of 18.
K.
Service
performed
by
a
full-time
student
as
a
formal
and
accredited
part of a work-study program certified to the
employer
by
the
school.
L.
An Individual selling consumer products in a location other than in a permanent retail establishment if substantially all
of the individual's compensation is based on sales rather than hours worked.
M.
Service performed by a nonresident alien for the period he or she is temporarily present in the United States as a
nonimmigrant under an F, J, M or Q visa. Services of the spouse and minor children of the nonresident alien are also
excluded.
N.
Personal care or companionship services performed for an ill or disabled family member who directly employs the
individual providing services is excluded. For purposes of this exclusion, "family member" means a spouse, parent,
child, grandparent, or grandchild of an individual, by blood or adoption, or an individual's step parent, step child or
domestic partner within the meaning of Chapter 770.01(1).
O.
Service of an official elected by vote of the public.
(U00588) (R. 01/28/2014)
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