Wisconsin Administrative Code › Department of Workforce Development › DWD 100-150 - Unemployment Insurance › Chapter DWD 110 - Coverage And Related Records And Reports › Section DWD 110.06 - Liability due to sickness or accident disability payments

Current through June 24, 2024
(1) POLICY. Under s.
				108.02(13)
				(j), Stats., an employer includes a person
				who makes sickness or accident disability payments if the person is classified
				as an employer under rules promulgated by the department. This section
				specifies the circumstances under which persons who make sickness or accident
				disability payments are to be considered employers for contribution purposes
				under ch. 108, Stats. This section also specifies the procedures such employers
				shall follow in reporting payments and making contributions.
(2) AMOUNTS INCLUDED AS TAXABLE WAGES. The
				department shall treat as wages for contribution purposes under ch. 108,
				Stats., any sickness or accident disability payments whether made by an
				employer, a third party payor, or a multiemployer benefit plan. Whichever
				employer, third party payor or multiemployer benefit plan is liable for payment
				of contributions under this section shall report these payments as wages on the
				contribution report for the quarter in which the payments are made.
(3) PAYMENTS MADE DIRECTLY BY EMPLOYERS. An
				employer which makes sickness or accident disability payments directly to an
				employee or his or her dependents shall be treated as the employer for
				contribution purposes under ch. 108, Stats., with respect to these
				payments.
(4) PAYMENTS BY THIRD
				PARTY PAYORS AND MULTIEMPLOYER BENEFIT PLANS.
(a)
General rule for third party
				payors.
Except as provided in pars. (b) to (f), a third party payor
				which makes sickness or accident disability payments shall be treated as the
				employer for contribution purposes under ch. 108, Stats., with respect to these
				payments.
(b)
Notice by
				third party payors to shift tax.
If a third party payor timely
				notifies the employer for which services are normally performed of the amount
				of the sickness or accident disability payments made during any quarter, the
				employer shall be treated as the employer for contribution purposes under ch.
				108, Stats. The third party payor shall notify the employer, in writing, by the
				15th day of the month after the end of the quarter in which the payments are
				made. In this paragraph, the employer for which services are normally performed
				is the last employer which made contributions on behalf of the employee to the
				plan or system under which the sickness or accident disability payments are
				being made and for which the employee worked prior to the sickness or
				disability.
(c)
Third party
				payors as agents or insurers.
A third party payor which makes sickness
				or accident disability payments as an agent for the employer or directly to the
				employer may not be treated as the employer for contribution purposes under ch.
				108, Stats., unless the agency agreement so provides. The determining factor as
				to whether a third party payor is an agent of the employer is whether the third
				party payor bears any insurance risk and is reimbursed on a cost plus fee
				basis. If the third party payor bears no insurance risk and is reimbursed on a
				cost plus fee basis, the third party payor is an agent of the employer even if
				the third party payor is responsible for determining eligibility of the
				employee or dependent for sickness or accident disability payments. If the
				third party payor is paid an insurance premium and is not reimbursed on a cost
				plus fee basis, the third party payor is not an agent of the employer but
				rather a third party insurer and shall be treated as the employer for
				contribution purposes under ch. 108, Stats., unless the third party insurer
				complies with par. (b).
(d)
Relationship among third party insurers, multiemployer benefit plans
				and employers.
A third party insurer under a contract of insurance
				with a multiemployer benefit plan which is required to make sickness or
				accident disability payments pursuant to a collective bargaining agreement
				shall be treated as the employer for contribution purposes under ch. 108,
				Stats., with respect to these payments unless the third party insurer notifies
				the multiemployer benefit plan of the amount of these payments, in writing, by
				the 15th day of the month after the end of the quarter in which the payments
				are made. If such timely notice is given, the multiemployer benefit plan shall
				be treated as the employer unless, within 6 business days after receipt of the
				notice, the multiemployer benefit plan notifies the employer for which services
				are normally performed of the amount of the sickness or accident disability
				payments made during the quarter. If the multiemployer benefit plan gives such
				timely notice, the employer for which services are normally performed shall be
				treated as the employer for contribution purposes under ch. 108, Stats. In this
				paragraph, the employer for which services are normally performed is the last
				employer which made contributions on behalf of the employee to the plan or
				system under which the sickness or accident disability payments are being made
				and for which the employee worked prior to the sickness or
				disability.
(e)
Multiemployer benefit plans as insurers.
If the multiemployer
				benefit plan is the insurer under par. (d), the multiemployer benefit plan
				shall be treated as the employer for contribution purposes under ch. 108,
				Stats., unless the plan notifies the employer of the amount of the sickness or
				accident disability payments, in writing, by the 15th day of the month after
				the end of the quarter in which the payments are made.
(f)
Third party administrators for
				multiemployer benefit plans.
A third party administrator which makes
				sickness or accident disability payments as an agent for a multiemployer
				benefit plan may not be treated as the employer for contribution purposes under
				ch. 108, Stats.