September 25, 2020

Volume X, Number 269

September 25, 2020

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September 24, 2020

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September 23, 2020

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Wisconsin Employers Must Act Before August 15 to Secure Unemployment Insurance Account Credit Benefits

Wisconsin employers with layoffs due to the COVID-19 pandemic must act before August 15th if they want to take advantage of Wisconsin law intended to afford a reduction of employer charges associated with their UI Account. The Wisconsin Department of Workforce Development (“DWD”) has issued guidance, based on its new interpretation of a law that provides a temporary reprieve for employers affected by the COVID-19 pandemic. However, employers need to act before the August 15, 2020 deadline to ensure their unemployment insurance (“UI”) taxes do not spike in the future because of certain COVID-19 related claims.

In April, the Wisconsin Legislature passed Act 185 to modify the state’s UI program in response to the COVID-19 pandemic.  For unemployment claims that are COVID-19-related and filed after March 16, 2020, the Act shifts the cost of those initial claims from employer accounts to the balancing account of the state’s trust fund.  By drawing from the balancing account instead of employer accounts, the Act protects employers from the increased UI taxes that otherwise would result from pandemic-related unemployment claims.

However, the DWD recently announced that the Act’s automatic cost-shifting provisions only apply to COVID-19-related claims filed between March 16 and May 15, 2020.  To receive the benefit of the cost-shifting provisions for later COVID-19-related unemployment claims filed between May 16 and June 30, Wisconsin employers must complete and submit the newly created UCB-18823-E form to the DWD by August 15, 2020.  For unemployment claims filed on July 1 or later, employers must submit the new form within 30 days of the initial claim (essentially, creating a rolling submission whenever new claims are filed against the employer’s account).

The requirement to submit the claim applies to non-profit and for profit organizations alike.

© 2020 Foley & Lardner LLPNational Law Review, Volume X, Number 219


About this Author

Scott Allen, Foley Lardner, litigation employer lawyer, labor attorney

Scott T. Allen is an associate and litigation lawyer with Foley & Lardner LLP. He is a member of the firm’s Labor & Employment Practice.

Prior to joining Foley, Mr. Allen served as a legislative aide for U.S. Senator Herb Kohl, and as a press assistant for U.S. Senator Blanche Lincoln. During law school, he was a summer associate with Foley.

Mr. Allen earned a law degree from Georgetown University Law Center (J.D., dean’s list, 2014). He served as a senior editor of The Tax Lawyer, and participated in...

Alexander R. P. Dunn Litigation Lawyer Foley Lardner Law Firm

Alexander Dunn is an associate and litigation lawyer with Foley & Lardner LLP and is a member of the Labor & Employment Practice.

Prior to joining Foley, Alexander served as a research assistant at the Georgetown University Law Center, a judicial intern for the Hon. Pamela Pepper of the U.S. District Court for the Eastern District of Wisconsin, and as a legislative assistant and legislative intern for the Office of State Senator Mark Miller. He also taught English as a Peace Corps Volunteer in Macedonia.