Wisconsin Unemployment Insurance

Wisconsin unemployment insurance taxes are set by the State Of Wisconsin Department Of Workforce Development. Every year, this group sets Wisconsin employment insurance tax rates that qualifying businesses must pay. Any company in Wisconsin that pays $14,000 in a single calendar year to at least one employee must pay taxes on that amount. However, if an employee makes more than $14,000 in a year, the employer does not pay taxes on the remainder.

Currently, employers with a taxable payroll under $500,000 pay a rate of 3.25 percent on each new employee. Employers over that payroll start at 3.4 percent. Unemployment tax rates max out at 12 percent, depending on the percentage of money an employer puts in their reserve fund. The more money set aside in this way, the higher the tax rate.

The funds raised through unemployment insurance taxes provides benefits if you become separated from employment through no fault of your own. Unemployment insurance is not a form of welfare. It is considered taxable income, and must be claimed on your state and federal income tax returns. When you apply for unemployment insurance benefits, you can choose to have taxes withheld from weekly benefits, or to claim the income on your yearly return. Though unemployment insurance will not replace all of your wages, weekly benefits help supplement your income while you find employment.

The best way to know if you qualify for unemployment insurance benefits in Wisconsin is to submit an application. There are no penalties for claimants who submit non-qualifying applications, so long as all information provided is accurate.