Buying or Selling a Business in Wisconsin? Don’t Neglect to Report to DWD.
Jeff Storch | 03.07.19
Buyers and sellers of businesses in Wisconsin with employees should be aware that each party is required to notify the Wisconsin Department of Workforce Development (DWD) of the business transfer. See Wisconsin Statutes Section 108.16(8)(k)):
(k) Any time a business is transferred, as provided in par. (a), both the transferor and the transferee shall notify the department in writing of the transfer, within 30 days after the date of transfer; and both shall promptly submit to the department in writing such information as the department may request relating to the transfer.
Form UCT-115‑E is used to meet the reporting requirement. This form can be completed on behalf of both parties on one form or submitted separately by the former owner and the new owner.
The form also includes an option for the new owner to acquire the unemployment insurance experience of the former owner. The new owner may wish to elect this where the former owner had a favorable unemployment insurance experience. In certain circumstances, DWD may require the former owner’s experience to be transferred to the new owner, whether the new owner elects or not.
If the new owner wishes to acquire the former owner’s experience, the request needs to be made by the deadline outlined in the form. The election can be done at the same time as the business transfer is reported or it can be done later (e.g., if the new owner does not yet have information on the former owner’s experience), provided it is done by the applicable deadline.
DISCLAIMER: The information provided is for general informational purposes only. This post is not updated to account for changes in the law and should not be considered tax or legal advice. This article is not intended to create an attorney-client relationship. You should consult with legal and/or financial advisors for legal and tax advice tailored to your specific circumstances.