Last Updated: October 27, 2020

DWD Unemployment Benefit Charges Relief

The Wisconsin Department of Workforce Development (DWD) announced that employers who laid off employees due to the Executive Order #72 public health emergency, may qualify for relief from unemployment insurance (UI) benefit charges.

Per the DWD announcement, form UCB-18823-E must be submitted within 30 days preceding the filing of the initial claim and should be used for initial claims filed from May 17 to June 30, 2020. Employers are encouraged to submit the relief application by the deadline of August 15, 2020.  

For specific filing instructions, please see the DWD website.

Provisions for Contributory Employers

According to the DWD, if employees of a contributory employer are laid off due to the public health emergency, and the initial unemployment claims were filed weeks after May 16, 2020, the employer may qualify for relief by filing form UCB-18823-E.

Provisions for Reimbursing Employers

Please note that for reimbursable employers, half of the UI benefits that occur from March 15 to December 26, 2020, due to the COVID-19 public health emergency, will be charged the DWD’s interest and penalty account. For the remaining half, reimbursable employers will receive federal reimbursement following the payment of the DWD amounts.  To request relief for the other half of benefit charging, reimbursing employers must file form UCB-18823-E.

For example, if employees of a reimbursable employer receive $5,000 for initial claims related to Governor Ever’s Executive Order #72 (COVID-19 public health emergency) in April 2020. Then $2,500 will be charged to the interest and penalty account, of which the employer will not be required to pay. The employer must pay the remaining half ($2,500) to the DWD. Following payment, the employer may request relief of the portion the employer paid.

As the DWD is manually processing these applications, they anticipate the UI charge relief may take months to complete. Therefore an emergency rule has been issued that UI benefit charges and adjustments for March 15 to June 30, will not affect 2021 employer contributions, even in the event that an employer’s charging relief application has not completed processing.

To learn more, please visit the DWD Frequently Asked Questions Page or contact payroll solutions at info@solutionsforpayroll.com.