To cover the rising cost of unemployment, the Wisconsin Department of Workforce Development has been forced to borrow $1.3 billion federal funds. Unless Congress acts to waive the interest attributable to this loan, the first interest payment will become due on October 1, 2011. Although it is still possible for Congress to waive the interest attributable to this loan, the Department has enacted a Special Assessment to meet the approaching deadline.
Wisconsin unemployment law contains a provision to assess employers an additional rate to cover the interest due on an outstanding federal loan to the state trust fund. Currently the Department estimates the Special Assessment at 0.20% (max $24 per employee) for tax-paying entities and 0.15% (max $18 per employee) for reimbursing entities. The assessment will be applied to the total 2010 taxable wages of each employer with a gross taxable payroll in excess of $25,000.
Currently the Department anticipates that individual assessments reflecting the actual amount due will be mailed to each employer in early August and will be payable the first week of September.
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