Form U00023 - Memorandum On Employer Liability
ADVERTISEMENT
1
2MEMORANDUM ON EMPLOYER LIABILITY
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
U.I.
Law
on
all
coverable
Wisconsin
payroll:
Retroactive
to
January
1
(1)
of
a
calendar
year
if
the
employer,
(a)
Paid
or
incurred
a
liability
to
pay
wages
for
employment
in
Wisconsin
which
totaled
$1,500
or
more
during
any
calendar
quarter
in
either
that
year
or
the
preceding
year;
or
(b)
Employed
one
individual
(full
or
part-time
and
not
necessarily
the
same
person)
in
each
of
20
or
more
calendar
weeks
in
Wisconsin
in
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
Effective
as
of
the
date
an
employer
acquires
all
or
some
portion
of
a
Wisconsin
business
already
covered
by
this
statute.
Not
all
(3)
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.
The
Wisconsin
U.I.
Law
contains
separate
provisions
relating
to
the
coverage
of
nonprofit
organizations,
and
the
coverage
of
agricultural
labor
B.
and
domestic
employment.
If
you
are
a
nonprofit
organization
or
an
employer
of
agricultural
or
domestic
labor,
request
the
appropriate
coverage information.
C.
If
conditions
develop
which
indicate
a
liability
under
the
law,
the
Unemployment
Insurance
Division
of
the
Department
of
Workforce
Development must be notified. Prompt compliance where a liability exists will avoid the assessment of late filing fees and interest charges.
II.
PART-TIME
WORKERS,
PAID
CORPORATE
OFFICERS,
AND
COMMISSION
PAID
SALES
PERSONS
ARE
EMPLOYEES.
"EMPLOYER"
means
any
person,
partnership,
association,
corporation,
whether
domestic
or
foreign,
or
their
legal
representative.
"EMPLOYEE"
means
any
individual
performing
some
service
for
"wages".
"WAGES"
means
any
form
of
remuneration
for
a
given
period.
It
is
immaterial
whether
wages
are
paid
on
an
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
in
Wisconsin
UNDER
THE
SAME
LEGAL
OWNERSHIP
must
combine
payrolls
and
employment
for
the
purpose
of
determining
employer
liability
and
reporting
tax
liability
under
this
statute.
Part-time
employees
must
be
counted
even
though
they
may
be
otherwise
engaged
in
self-employment
or
in
employment
with
another
employer.
Paid
corporate
officers
must
be
included
in
any
employee
count
even
though
their
salaries
may
be
on
an
accrual
basis.
Individuals
working
as
commission
paid
sales
persons
are
employees
under
this
law,
unless
they
are
insurance
or
real
estate
sales
persons
paid
solely
by
means
of
commission,
or
engaged
in
"direct" sales.
III.
EMPLOYERS
ENGAGED
IN
CONSTRUCTION
TRADES.
Employers
in
Wisconsin
engaged
in
the
construction
of
roads,
bridges,
highways,
sewers,
watermains,
utilities,
public
buildings,
factories,
housing
or
similar
construction
projects
must
pay
contributions
at
the
average
rate
for
all
construction
industry
employers
on
their
first
three
years of Wisconsin payroll.
IV.
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
4th
quarter,
and
possibly
for
other
quarters,
depending
on
the
date
liability
was
incurred. Forms for processing your tax payment will then be sent.
(U00023) (R. 11/25/2013)
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