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Employer Bulletin

WRS Employers
Vol. 18, No. 8
June 22, 2001

Bulletin Provides Further Details on Act 11 Employer Credit

1999 Wisconsin Act 11 provides for a $200 million employer credit. The credit is intended to give employers a holiday from making prior service payments, or in the event that an employer has no unfunded liability balance, a holiday from making an employer required payment. This employer credit was prorated among employers based on their 1998 WRS reported earnings. Your portion of the employer credit is stated on the accompanying invoice.

The employer contribution rates on your 2001 Monthly Remittance Reports will not change. You will receive employer credit invoices based on the credit you have earned which may be offset from future contributions payable to the WRS. The employer credit invoices will be issued in three phases.

Phase 1 - The accompanying invoice represents credits earned for calendar year 2000. If your total credit account has not been exhausted, you will receive a Phase 2 employer invoice credit.

Phase 2 - Approximately August 10, 2001, you will receive an employer invoice credit representing the year to date calendar 2001 credit. (For most employers this will be January through June 2001) If your total credit account has not been exhausted, you will begin receiving Phase 3 employer invoices.

Phase 3 - Approximately the 10th of each month you will receive another employer invoice credit based on the credit earned in the previous month until your total credit account has been exhausted.

Employers may begin using their employer invoice credit as soon as desired. You may begin using it immediately, or may delay use of your credit. Your credit will not be forfeited if you don't begin using it immediately. The typical employer is expected to use all or most of their credit by the end of calendar year 2001.

To use your credit, you must complete the upper portion of your Monthly Remittance Report, as usual.Please fill in the earnings, compute the contributions, and enter the amount owed for the appropriate employment category. Enter amounts on line 1 for over or under/interest due and line 2 for additional contributions, if appropriate. Enter the applicable invoice number and amount of invoice for any other invoices owed as well as the invoice number for the employer credit you are using in the invoice detail section and carry the total of all invoices to Line 3.

The accompanying invoice credit may be larger than the amount due on your report.Please compute the credit you wish to use. Line 5, Grand Total of all lines above, may be zero. However, do not attempt to use a credit that is larger than the total monthly remittance amount you owe. If you cannot use the full amount of the invoice credit in one month, you will receive a statement showing the remaining credit balance available on each invoice. On subsequent reports, reference the employer invoice number again and use the remainder of the invoice until exhausted.

Invoice numbers will be different on each invoice credit you receive.Simply reference the appropriate invoice number and corresponding amount in the invoice detail section. You may use a combination of invoice credits and invoice numbers on the same report.

The invoice credit may be used to offset both the required contributions due to the WRS and voluntary payments made to reduce the employer unfunded liability balance.You may apply the entire credit or a portion of your credit to the unfunded liability balance as desired. To apply the credit as an unfunded liability payment, reference the credit on Line 3 and then enter the amount of payment as a positive amount on Line 4, Other Payments. Please indicate that you are making an unfunded liability (prior service) payment.

You may take your credit on the first available reports and make a lump sum prior service payment later.Interest on the unfunded liability balance is assessed annually. The interest rate is currently 8%. Payments made on the December report, due January 31, 2002, will be subtracted before interest is assessed.

Please keep this bulletin for reference in completing your Monthly Remittance Reports (ET-1515). If you have further questions, please contact Nancy Kittleson at (608) 267-9034.


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