108.18 Contributions to the fund.

759 words·~3 min read·/wi/chapter-108/108-18-2

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Total rate.

(a)Unless a penalty applies under s. 108.16

(m), each employer shall pay contributions to the fund for each calendar year at whatever rate on the employer’s payroll for that year duly applies to the employer pursuant to this section.

(b)An employer’s contributions shall be credited to the employer’s account in the fund, but only after any solvency contribution or special contribution paid or payable by the employer under subs.

(8)to

(9m)has been credited to the fund’s balancing account.

(2)Initial rates.

(a)Except as provided in pars.

(c)and

(d), an employer’s contribution rate shall be 2.5 percent on its payroll for each of the first 3 calendar years with respect to which contributions are credited to its account, except as additional contributions apply under this section.

(c)An employer engaged in the construction of roads, bridges, highways, sewers, water mains, utilities, public buildings, factories, housing, or similar construction projects shall pay contributions for each of the first 3 calendar years at the average rate for construction industry employers as determined by the department on each computation date, rounded up to the next highest rate. This rate may in no case be more than the maximum rate specified in the schedule in effect for the year of the computation under sub.

(4).

(d)No later than 90 days after the department issues an initial determination that a person is an employer, any employer other than an employer specified in par.

(c), having a payroll exceeding $10,000,000 in a calendar year may elect that its contribution rate shall be one percent on its payroll for the first 3 calendar years with respect to which contributions are credited to its account. In such case, the department shall credit the amount collected in excess of this amount against liability of the employer for future contributions after the close of each calendar year in which an election applies. If an employer qualifies for and makes an election under this paragraph, the employer shall, upon notification by the department, make a special contribution after the close of each quarter equivalent to the amount by which its account is overdrawn, if any, for the preceding quarter. The department shall credit any timely payment of contributions to the employer’s account before making a determination of liability for a special contribution under this paragraph. An employer does not qualify for an alternate contribution rate under this paragraph at any time during which the employer’s special contribution payment is delinquent. An employer that is the transferee of a business enterprise but does not qualify to be treated as a successor under s. 108.16

(im)does not qualify for an alternate contribution rate under this paragraph.

(3)Requirements for reduced rate. As to any calendar year, an employer shall be permitted to pay contributions to the fund at a rate lower than the standard rate on its payroll for that year only when, as of the applicable computation date:

(a)Benefits have been chargeable to the employer’s account during the 18 months preceding such date; and

(b)Such lower rate applies under this section; and

(c)Permitting the employer to pay such lower rate is consistent with the relevant conditions then applicable to additional credit allowance for such year under 26 USC 3303 (a), any other provision to the contrary notwithstanding.

(3m)Application of schedules. For purposes of subs.

(4)and

(9):

(a)“Schedule A” is in effect for any calendar year whenever, as of the preceding June 30, the fund has a cash balance of less than $300,000,000.

(b)“Schedule B” is in effect for any calendar year whenever, as of the preceding June 30, the fund has a cash balance of at least $300,000,000 but less than $900,000,000.

(c)“Schedule C” is in effect for any calendar year whenever, as of the preceding June 30, the fund has a cash balance of at least $900,000,000 but less than $1,200,000,000.

(d)“Schedule D” is in effect for any calendar year whenever, as of the preceding June 30, the fund has a cash balance of at least $1,200,000,000.

(4)Experience rates. Except as otherwise specified in this section, an employer’s contribution rate on the employer’s payroll for a given calendar year shall be based on the reserve percentage of the employer’s account as of the applicable computation date, as follows: [See Figure 108.18

(4)following]

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