CONTACT: DWD Communications, 608-266-2722
Common-sense reforms and pro-growth policies contribute to significant decline in UI taxes
MADISON – Governor Scott Walker announced today that the Department of Workforce Development’s (DWD) latest estimates show that Wisconsin employers who are covered by the state’s Unemployment Insurance (UI) program are estimated to experience a reduction of $45 million in UI taxes for tax year 2019 when compared to tax year 2018. This brings the total UI tax savings for covered employers to $744 million since 2013. The savings have been achieved through a combination of tax schedule changes and better experience ratings for employers due to the strong Wisconsin economy.
“Pro-growth policies have created an environment where employers in Wisconsin are now able to utilize tax savings to invest and grow their business and workforce right here, in Wisconsin,” Governor Walker said. “Significant reforms have been made to the UI program over the last several years, resulting in a program that is fiscally strong and available to workers who lose their employment through no fault of their own and better able to detect and deter fraud schemes designed to take advantage of both Wisconsin employers and eligible workers who are forced to rely on the program in their time of need.”
In addition to the estimated $744 million reduction in UI taxes paid by employers, the UI Trust Fund achieved a balance of $1.7 billion in July of 2018, its largest positive balance since July 2001.
“When Governor Walker took office, the UI Trust Fund was in shambles, fraud against the UI program was increasing and the state was forced to rely on federal loans to make statutorily required benefit payments to eligible workers,” DWD Secretary Ray Allen said. “Fast forward to 2018 and the UI program is on a fiscally strong and sustainable path that promotes rapid reemployment for individuals forced to rely on the program and strong program integrity and accountability measures that will help ensure that the program remains solvent for years to come.”
For more information on the UI program, please visit https://dwd.wisconsin.gov/ui/
