Wisconsin’s Unemployment Insurance (Tax) is a complicated and often confusing system. In this Tip we will address the funding side of the program, how the amount an employer pays is calculated. We will leave the benefit eligibility side for another issue.
What is the unemployment insurance program?
What is the relationship between Wisconsin’s Unemployment Insurance Law and the Federal Unemployment Tax Act (FUTA)?
When is the tax paid?
How is the Quarterly Tax (contribution) Calculated?
What are the State Statutory Rates?
What is Eligible Payroll?
How is the Statutory Rate Adjusted for Experience?
Some business owners question whether it is better to lay off employees and pay the higher tax in the future needed to replenish their reserve account or keep the employees on the payroll. The straight financial answer appears to favor lay-offs especially for higher paid employees.