Wisconsin To Waive Unemployment Benefit Charges

By June 30, 2020July 15th, 2020COVID-19, News, Regional, Tax Implications

The Wisconsin Department of Workforce Development has announced that it will not include unemployment benefits charged from March 15, 2020 to June 30, 2020 when calculating employer’s unemployment tax rates for 2021.

Under Emergency Rule 2018, published June 29th in the state administrative register, the Department is to assume that all benefits charged from March 15 to June 30 are related to the COVID-19 pandemic for purposes of calculating 2021 tax rates.

The calculation of an employer’s 2021 tax rate generally would include benefits charged up to June 30, 2020, but Wisconsin Act 185 signed in April requires virus-related benefits to be charged to the state unemployment balancing account instead of to individual employers.

The Department has indicated that redirecting the charges from employer’s accounts to the general balancing account will have to be completed manually and is expected to take thousands of hours. The process is not completed by June 30th because of the high volume of benefit claims, so the rule is to allow the Department to avoid charging employers for virus-related benefits in 2021.

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Josh Kendall

Author Josh Kendall

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