108.18 Contributions to the fund.

1,262 words·~6 min read·/wi/chapter-108/108-18-3

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]

- See PDF for table

(5)Limitation. Except as provided in subs.

(2)and

(8), the contribution rate for any calendar year of an employer whose reserve percentage equals or exceeds zero may in no case exceed by more than one percent on the employer’s payroll the rate which applied to the employer at the close of the preceding calendar year, and the contribution rate for any calendar year of an employer whose reserve percentage is less than zero may in no case exceed by more than 2 percent on the employer’s payroll the rate which applied to the employer at the close of the preceding calendar year.

(5m)Limitation, computation. The limitation of sub.

(5)shall be computed from the employer’s experience rate assigned to it under subs.

(4),

(5)and

(6), rounded to the next highest rate.

(6)Computation in special cases. If during the year ending on a computation date an employer has been liable for contributions but has had no payroll, the employer’s reserve percentage as of that computation date shall be computed on the basis of the employer’s most recent year (ending on a computation date which applied to the employer) of some payroll; but the employer’s contribution rate for the calendar year following the computation date shall in no case be less than one percent.

(7)Voluntary contributions.

1. Except as provided in pars.

(b)to

(i), any employer may make payments to the fund during the month of November in excess of those required by this section and s. 108.19

(1),

(1e), and

(1f). Each payment shall be credited to the employer’s account for the purpose of computing the employer’s reserve percentage as of the immediately preceding computation date.

2. Each payment shall be treated as a contribution required and irrevocably paid under this chapter with respect to payrolls preceding the date it is credited except as a refund or credit is authorized under par.

(b),

(e),

(h), or

(i).

(b)Except as provided in par.

(i), no employer may, by means of a voluntary contribution under par.

(a), reduce the employer’s contribution rate to a rate lower than the next lower rate which would have applied to the employer for the following calendar year. Any contributions in excess of the amount required to reduce an employer’s rate to the extent permitted under this paragraph shall be applied against any outstanding liability of the employer, or if there is no such liability shall be refunded to the employer or established as a credit, without interest, against future contributions payable by the employer, at the employer’s option.

(c)No employer whose overdrafts have been charged to the fund’s balancing account under s. 108.16

(c)may make a voluntary contribution under par.

(a)prior to the 5th calendar year commencing after the date of the most recent such charge. Any voluntary contribution made prior to that year shall be treated as an excess contribution under par.

(b).