108.225 Levy for delinquent contributions or benefit overpayments.

1,294 words·~6 min read·/wi/chapter-108/108-225

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

(1)Definitions. In this section:

(a)“Contribution” includes a reimbursement or assessment under s. 108.15 , 108.151 , 108.152 , or 108.155 , interest for a nontimely payment, fees, and any payment due for a forfeiture imposed upon an employing unit under s. 108.04

(c)or other penalty assessed by the department under this chapter.

(b)“Debt” means any amount due under this chapter.

(c)“Debtor” means a person who owes the department a debt.

(d)“Disposable earnings” means that part of the earnings of any individual after the deduction from those earnings of any amounts required by law to be withheld, any life, health, dental or similar type of insurance premiums, union dues, any amount necessary to comply with a court order to contribute to the support of minor children, and any levy, wage assignment or garnishment executed prior to the date of a levy under this section.

(e)“Federal minimum hourly wage” means that wage prescribed by 29 USC 206

(a)(1).

(f)“Levy” means all powers of distraint and seizure.

(g)“Property” includes all tangible and intangible personal property and rights to such property, including compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus or otherwise, periodic payments received pursuant to a pension or retirement program, rents, proceeds of insurance and contract payments.

(2)Powers of levy and distraint. If any debtor who is liable for any debt neglects or refuses to pay that debt after the department has made demand for payment, the department may collect that debt and the expenses of the levy by levy upon any property belonging to the debtor. Whenever the value of any property that has been levied upon under this section is not sufficient to satisfy the claim of the department, the department may levy upon any additional property of the debtor until the debt and expenses of the levy are fully paid.

(3)Duties to surrender. Any person in possession of or obligated with respect to property or rights to property that is subject to levy and upon which a levy has been made shall, upon demand of the department, surrender the property or rights or discharge the obligation to the department, except that part of the property or rights which is, at the time of the demand, subject to any prior attachment or execution under any judicial process.

(4)Failure to surrender; enforcement of levy.

(a)Any debtor who fails or refuses to surrender any property or rights to property that is subject to levy, upon demand by the department, is subject to proceedings to enforce the amount of the levy.

(b)The department may assess a person who fails to comply with sub.

(3)a penalty in the amount of 50 percent of the debt. The department shall serve a final demand as provided under sub.

(13)on any person who fails to comply with sub.

(3). The department shall issue a determination under s. 108.10 to the person for the amount of the assessment under this subsection no sooner than 7 days after service of the final demand. Assessments under this subsection shall be deposited in the unemployment program integrity fund.

(c)When a 3rd party surrenders the property or rights to the property on demand of the department or discharges the obligation to the department for which the levy is made, the 3rd party is discharged from any obligation or liability to the debtor with respect to the property or rights to the property arising from the surrender or payment to the department.

(5)Actions against this state.

(a)If the department has levied upon property, any person, other than the debtor who is liable to pay the debt out of which the levy arose, who claims an interest in or lien on that property and claims that that property was wrongfully levied upon may bring a civil action against the state in the circuit court for Dane County. That action may be brought whether or not that property has been surrendered to the department. The court may grant only the relief under par.

(b). No other action to question the validity of or restrain or enjoin a levy by the department may be maintained.

(b)In an action under par.

(a), if a levy would irreparably injure rights to property, the court may enjoin the enforcement of that levy. If the court determines that the property has been wrongfully levied upon, it may grant a judgment for the amount of money obtained by levy.

(c)For purposes of an adjudication under this subsection, the determination of the debt upon which the interest or lien of the department is based is conclusively presumed to be valid.

(6)Determination of expenses. The department shall determine its costs and expenses to be paid in all cases of levy.

(7)Use of proceeds.

(a)The department shall apply all money obtained under this section first against the expenses of the proceedings and then against the liability in respect to which the levy was made and any other liability owed to the department by the debtor.

(b)The department may refund or credit any amount left after the applications under par.

(a), upon submission of a claim therefor and satisfactory proof of the claim, to the person entitled to that amount.

(8)Release of levy. The department may release the levy upon all or part of property levied upon to facilitate the collection of the liability or to grant relief from a wrongful levy, but that release does not prevent any later levy.

(9)Wrongful levy. If the department determines that property has been wrongfully levied upon, the department may return the property at any time, or may return an amount of money equal to the amount of money levied upon.

(10)Preservation of remedies. The availability of the remedy under this section does not abridge the right of the department to pursue other remedies.

(11)Evasion. Any person who removes, deposits or conceals or aids in removing, depositing or concealing any property upon which a levy is authorized under this section with intent to evade or defeat the assessment or collection of any debt is guilty of a Class I felony and shall be liable to the state for the costs of prosecution.

(12)Notice before levy. If no appeal or other proceeding for review permitted by law is pending and the time for taking an appeal or petitioning for review has expired, the department shall make a demand to the debtor for payment of the debt which is subject to levy and give notice that the department may pursue legal action for collection of the debt against the debtor. The department shall make the demand for payment and give the notice at least 10 days prior to the levy, personally or by any type of mail service which requires a signature of acceptance, at the address of the debtor as it appears on the records of the department. The demand for payment and notice shall include a statement of the amount of the debt, including interest and penalties, and the name of the debtor who is liable for the debt. The debtor’s refusal or failure to accept or receive the notice does not prevent the department from making the levy. Notice prior to levy is not required for a subsequent levy on any debt of the same debtor within one year of the date of service of the original levy.

(13)Service of levy.

(a)The department shall serve the levy upon the debtor and 3rd party by personal service or by any type of mail service which requires a signature of acceptance.