Unemployment News for Employers

UI Modernization  |  UI Public Hearing  |  Work-Share  |  Payrolling  |  Interest Rate on Delinquent UI Taxes  |  Labor Law Training  |  Employer Handbook

Message from DWD Secretary Pechacek

Dear Wisconsin Employer:

Exciting news for Wisconsin employers! Once again, tax rates for 2025 will remain in the lowest rate schedule, Schedule D. Schedule D has been in effect since 2018, and the UI Trust Fund balance on June 30, 2024, was sufficient to stay with the lowest rate schedule next calendar year.

I am also pleased to share that Wisconsin's economy has continued its record-breaking momentum this year. In July, for the third consecutive month, we set a new record for number of Wisconsinites employed. This combined with our high labor force participation rate and near record low unemployment, Wisconsin is truly on a winning streak.

While this signals optimism for the future, we know many Wisconsin employers continue to face challenges in meeting their workforce needs. This worker quantity challenge is not unique to Wisconsin, with businesses across the nation feeling the impact of demographic trends decades in the making. Contributing factors include the aging and retirement of Baby Boomers and the gradual rise of employment barriers, including lack of access to affordable childcare, transportation, housing, and broadband.

Gov. Evers proclaimed 2024 the Year of the Worker, and here at DWD we are working with our statewide partners to deliver innovative workforce solutions to not only connect workers to new skills, but to help employers find the talent they need. If you are seeking qualified job candidates, I strongly encourage you to reach out to a DWD business services representative at your nearest Job Center of Wisconsin location. Our workforce experts offer tailored assistance to help you meet your recruitment and retention goals.

Visit www.wisconsinjobcenter.org/directory/business_services.htm to get in touch with your local business services team today!

Thank you,

Amy Pechacek
Secretary

UI Modernization – Employer Portal Project

As part of DWD's multifaceted strategy to replace outdated computer systems, integrate new technology, overhaul training, and reinforce the agency's focus on a thriving Wisconsin economy, DWD has undertaken a project to update the UI employer portal. The new employer portal will not only retain existing functionality but incorporate the modern features Wisconsin employers need to maintain efficiency and flexibility in a user-friendly format. Some features expected in the new employer portal include secure messaging, online form requests, detailed claims tracking/due dates, and enhanced account access capabilities.

As part of this project, DWD conducted focus groups with 14 Wisconsin employers to solicit feedback on one important piece of the employer experience – the home page. The employer portal home page will serve as a starting point for your interactions with department staff. DWD is eager to incorporate the feedback received from the focus group sessions as we continue work on this project.

As additional opportunities for collaboration and feedback become available, the department will work to ensure employer input is heard.

UI Public Hearing

Do you have program improvement ideas or law change suggestions? The Unemployment Insurance Advisory Council (UIAC) holds a public hearing every two years and wants to hear from you! You can provide input to the UIAC at the next public hearing which will be held in November 2024.

For information on attending the 2024 public hearing or to submit your comments electronically, visit: dwd.wisconsin.gov/uibola/uiac

Work-Share

The Work-Share program helps employers and employees – instead of laying off workers, a qualified employer can plan to reduce work hours for at least two employees. Employees whose hours are reduced under an approved Work-Share plan receive unemployment benefits that are pro-rated for the partial work reduction.

Work-Share plans avoid layoffs, allowing employees to remain employed and employers to retain trained staff during times of reduced business activity. For more details on the Work-Share program, visit: dwd.wisconsin.gov/uitax/workshare.htm.

Payrolling: A Common and Costly Reporting Error

Employee wages must be reported under the Wisconsin Unemployment Insurance Tax Account assigned to the legal entity for which those employees perform services. It does not matter which legal entity pays the wages or whether one legal entity reimburses another for the wages paid. A legal entity may not report wages paid to another legal entity's employees. This practice is known as payrolling and is not allowed under state and federal law. For more details on payrolling, please visit: dwd.wisconsin.gov/uitax/payrolling.htm.

Interest Rate on Delinquent UI Taxes

The interest rate on delinquent UI tax payments is subject to change based on the U.S. prime rate. Wisconsin Statute s. 108.22(1)(a) requires the annualized interest rate charged on delinquent UI taxes to be the greater of 9% (0.75% monthly) or 2% more than the prime rate as published in the Wall Street Journal as of September 30 of the preceding year.

The current prime rate is 8.5% per www.wsj.com/market-data/bonds/moneyrates. If this prime rate holds until the end of September 2024, the annualized interest rate effective January 1, 2025, would stay at 10.5% (the 10.5% rate first went into effect on January 1, 2024). This rate would continue to be applied to interest assessed for months going forward.

Any future changes to the interest rate on delinquent UI tax payments will be posted to this site: dwd.wisconsin.gov/uitax/interestrate

Labor Law Training

Open to the public, DWD offers interactive, educational virtual half-day Labor Law Clinics and two-hour web conferences called Friday Fundamentals. DWD staff explain many of the laws and rules the agency administers on the following topic areas: Fair Employment, Wage and Hour, Worker's Compensation, Vocational Rehabilitation, Unemployment Insurance, and Employment and Training.

The registration fee for each clinic or session includes reference materials in advance of each session. A certificate of attendance is available for continuing education credits. Visit dwd.wisconsin.gov/laborlaw to view or register for upcoming training or to receive email notifications when new trainings are scheduled.

Employer Handbook

The UI Handbook for Employers helps employers meet their obligations under the Wisconsin UI law, Chapter 108 of the Wisconsin Statutes. To keep up-to-date on all UI program laws and policies, please view or print the handbook at: dwd.wisconsin.gov/ui201.

Publication UCT-17289-P (Rev. 10/2024)