Wis. Admin. Code Department of Workforce Development DWD 136.03

Current through October 28, 2024
Section DWD 136.03 - Levy to recover benefit overpayments
(1) Except as provided in sub. (2), in the case of benefit overpayments, an individual is entitled to an exemption from department levy of 80% of the individual's disposable earnings pursuant to s. 108.225(16) (am) 1, Stats. For purposes of computing the amount of the exemption, the department shall provide the third party employer with a schedule of the federal poverty guidelines and a worksheet to assist the third party in computing the amount of the exemption that is based on earnings per pay period and that provides as follows:
(a) If the individual's gross earnings for the pay period are below the federal poverty guidelines based on the individual's household size, the individual's wages are totally exempt from department levy. If the individual's gross earnings are not below the federal poverty guidelines based on the individual's household size, the individual's disposable earnings shall be computed and the individual is entitled to an exemption from department levy of 80% of the individual's disposable earnings.
(b) The department may levy 20% of the individual's disposable earnings unless any of the following apply:
1. The individual's gross earnings for the pay period minus the 20% department levy amount equal an amount less than the federal poverty guidelines for the individual's household size.
2. The total aggregate of all levies against the individual for the pay period will exceed 25% of the total of the individual's disposable earnings plus prior levies for the pay period.
3. The total aggregate of all levies against an individual for the pay period will exceed the amount by which the individual's weekly disposable earnings exceed 30 times the federal minimum hourly wage. If the pay period is other than weekly, the department levy shall be calculated using the amount exempt for pay periods other than weekly under s. DWD 136.04.
(c) If the department may not levy 20% of the individual's disposable earnings under par. (b), the department may levy the lesser of the following:
1. The difference between the individual's gross earnings for the pay period and the federal poverty guidelines for the individual's household size.
2. The difference between 25% of the total of the individual's disposable earnings plus prior levies for the pay period, and the amount of prior levies in effect for the pay period.
3. The difference between the individual's weekly disposable earnings and 30 times the federal minimum hourly wage. If the pay period is other than weekly, the department levy shall be calculated using the amount exempt for pay periods other than weekly under s. DWD 136.04.

Note: Form UCT-8306-E is used to calculate the exemption. This form is available from the Unemployment Insurance Division, Department of Workforce Development, 201 East Washington Avenue, P.O. Box 7888, Madison, Wisconsin 53707-7888.

(2) If a final determination has been issued under s. 108.09, Stats., or a judgment has been entered under s. 108.24(1), Stats., in which the individual has been found guilty of making a false statement or representation to obtain benefits, the department shall calculate the exemption from levy as provided in sub. (1).
(3) The department shall use the federal poverty guidelines schedule for earnings exempt from garnishment adopted by the judicial conference annually under s. 812.34(3), Stats., covering earnings commencing each July 1 to the following June 30. If the schedule under s. 812.34, Stats., is unavailable, the department shall prepare a comparable schedule using the federal poverty guidelines as published in the Federal Register.

Wis. Admin. Code Department of Workforce Development DWD 136.03

CR 08-059: cr. Register November 2008 No. 635, eff. 12-1-08.
Amended by, corrections in (1) (c) 3. (Note) made under s. 35.17, Stats., Register May 2019 No. 761, eff. 6/1/2019.