News of the Day

President Biden to Order Raising Federal Contractor Minimum Wage to $15

Posted on April 27, 2021 by

President Biden on Tuesday is expected to sign an executive order raising the minimum wage for federal contractors to $15 by March 2022.

At that time, the order will result in a 37-percent raise for federal contractors making the current contracting minimum $10.95, and setting their salary at over double the regular statutory federal minimum wage, which has been stuck at $7.25 since 2009.

Biden’s order would also phase out the tipped minimum wage, which stands at $7.25 by 2024, and set minimum wages for workers with disabilities on par with the standard minimum wage for contractors.

Federal agencies will have to begin incorporating the new wages into their contract solicitations by January 30, 2022, for implementation no later than March 30.

The new wages will apply to existing and multi-year contractors when their contracts receive their annual renewals, meaning some workers won’t see the benefits until later in the year.

Foxconn, State of Wisconsin Reach New Deal on Scaled Back Project

Posted on April 19, 2021 by

Foxconn Technology Group has reached a new deal with reduced tax breaks for its scaled back project in southeast Wisconsin.

Gov. Tony Evers and the world’s largest electronics manufacturer announced the new deal on Monday. Details of the new agreement were not immediately released.

It was scheduled to be approved at a Tuesday meeting of the Wisconsin Economic Development Corp., the state’s top jobs agency that previously negotiated the initial deal with Foxconn.

Senate Republican Leader: No Legal Marijuana, but Tax Cuts Possible

Posted on April 16, 2021 by

Senate Majority Leader Devin LeMahieu on Thursday closed the door to legalizing medical or recreational marijuana in Wisconsin in the foreseeable future, but said Republicans will seek to hold the line, or possibly cut taxes, during the upcoming state budget negotiations.

LeMahieu, R-Oostburg, said Senate Republicans do not have the votes to pass any marijuana legislation on their own, driving a stake through another one of Gov. Tony Evers’ signature policy goals for the state budget process.

“We have some societal concerns,” LeMahieu said. “We don’t have support from the caucus. We don’t have 17 votes” — which would be a majority of the Senate where Republicans hold a 21-12 advantage.

LeMahieu said the discussion around medicinal marijuana needs to start at the federal level because the drug is still on the list of federally controlled substances. He said he’s not comfortable with Wisconsin becoming a “rogue state,” legalizing it beforehand without federal blessing. Seventeen states, including neighboring Michigan and Illinois, have legalized recreational marijuana.

LeMahieu said Republicans are still interested in holding the line on tax levels and potentially even cutting taxes, specifically through reductions in income tax or eliminating personal property taxes for small businesses.

Governor Evers Approves Plans for Ho-Chunk Casino in Beloit

Posted on March 26, 2021 by

Gov. Tony Evers signed off Wednesday on the Ho-Chunk Nation’s plans to open a casino and entertainment complex in Beloit, hailing the project as job creator that will help the region recover from the economic damage of the COVID-19 pandemic.

The U.S. Department of the Interior in April approved taking 32 acres just north of the Illinois border into trust for the purpose of developing the complex. Federal law gives governors the power to approve or reject off-reservation casinos.

The complex would include one of the largest casinos in the state as well as a 300-room hotel with more than 45,000 square feet of meeting and convention space, and a 40,000-square-foot indoor waterpark.

The Department of the Interior now must issue a final determination on taking the land into trust. Evers and the Ho-Chunk then must amend the tribe’s gaming compact with the state.

“As we work to bounce back from this pandemic, we must do everything we can to support economic development in communities across our state,” Evers said in a statement.

The Ho-Chunk already run three casinos in Wisconsin — one in Nekoosa, one in Baraboo and one in Black River Falls. The tribe’s gaming compact with the state allows it to operate a fourth. Plans for the Beloit facility have been in the works for more than 20 years.

Beloit voters approved the project in a 1999 referendum. The tribe purchased the land in 2009 and has been working to win federal and gubernatorial approval to build a casino there since 2012.

Wisconsin Legislature Approves Funding Bill for Utility Ratepayer Advocate

Posted on March 24, 2021 by

Wisconsin lawmakers have approved a bill to provide the state’s consumer advocate with funding to negotiate more favorable utility rates.

The bill, passed by the Senate Tuesday, would direct $900,000 a year from ratepayers of Wisconsin’s investor-owned utilities to the Customer Utility Board (CUB), an independent nonprofit organization established by the Legislature to represent utility customers. Funding would be administered by the Public Service Commission, which would have oversight of the organization’s budget.

“Wisconsin homeowners, renters and small businesses will now have an even more effective consumer advocate working on their behalf in the years ahead,” said CUB executive director Tom Content.

Content said the additional revenue will allow CUB to expand its staff and better represent ratepayer interests under a 2018 law that encourages utilities to negotiate rates with consumer advocates and other interested parties.

The new model is expected to cost customers of investor-owned utilities a little less than 2 cents a month. Content said that in the past 15 years CUB has saved ratepayers $3.6 billion, a return of $170 on the dollar.

The bill prohibits CUB from using that funding on lobbying or work on rates and practices of municipal utilities, though it would be eligible to receive up to $100,000 in additional funding from the PSC for other work, such as intervention in a water rate case.

The bill also streamlines some PSC regulatory procedures, including:

  • Allowing utilities to file a single application to build a generator and associated transmission line; current law requires a separate application for the line.
  • Doubling the cost threshold to $5 million for natural gas projects requiring commission approval.
  • Eliminating the requirement for the PSC to conduct an environmental review of its 2-year strategic energy plan.

The bill, passed unanimously by the Senate and Assembly, now heads to Gov. Tony Evers, who previously endorsed the proposal and included most of the language in his biennial budget.

February Wisconsin Housing Market Remarkably Robust

Posted on March 23, 2021 by

Strong February housing sales pushed what are typically the three slowest months of the year into record territory, according to the most recent analysis of the existing home market by the Wisconsin REALTORS® Association (WRA). February 2021 sales increased 5.5% compared to February 2020, which was the last month before the recession began. Inventories continued to be very tight, which has led to a sustained period of very strong price appreciation. The median price rose to $215,000 in February, which is 13.2% higher than 12 months earlier. In fact, median prices have grown at an annual rate of 9.7% or higher each month since July of last year.

This is the strongest seller’s market on record, and it pushed prices up sharply in February,” said WRA President & CEO Michael Theo. The inventory problem shows no sign of abating. The state had just 2.1 months of available supply in February, which is the second straight month of record-low inventory levels. “Every price range of homes, every region of the state, and every type of county, from the most urban to the most rural, have very strong seller’s markets,” said Theo.

“One bright spot has been the new construction market,” said Theo. A review of Wisconsin single-family permit data compiled by the U.S. Census Bureau shows an increase of 13.7% in 2020 compared to 2019, and housing permits were up 19% in January compared to 12 months earlier. The number of permits is a reliable predictor of housing starts. “Most buyers who build a new home are trading up from an existing home, so the strong seller’s market is helping to fuel the new home market,” said Theo. Since the average time from a housing start to completion is 7.4 months in the Midwest, the increased permit activity in 2020 should help mitigate the supply problem in 2021. “We still need to see more inventory of existing homes, but this is a good sign going into the peak sales season,” he said.

DHS Secretary Implores Employers to Help Vaccine Rollout Effort

Posted on March 9, 2021 by

As eligibility for the COVID-19 widens to more groups in the coming weeks, the state’s top health official said employers will play an important role in helping their employees access the vaccine when the time comes.

Interim Wisconsin Department of Health Services secretary Karen Timberlake said the role of employers varies, but could include allowing employees to take off work to get vaccinated, hosting on-site vaccine clinics or simply sharing information about vaccine safety with employees.

“We think you have a role to play,” Timberlake told GMC members. “And we do think that the most important thing you can be doing is helping your employees with access to good, fact-based, science-based information about vaccine efficacy and safety, vaccine availability, what the plan is for your workplace when your employees become eligible.”

“We know that employers are a very trusted messenger for their employees around these kinds of matters, so our job as a health department is to equip you with the facts you need,” she added.

Employers should consider how transportation challenges could prevent employees from accessing the vaccine and potentially partner with a local health department or health systems to ease those issues. With vaccine appointments generally being held during traditional work hours, Timberlake said employers should also consider allowing employees to get their shot on paid time.

Wisconsin Legislature to Vote on Half-Billion Dollar Tax Cut

Posted on February 16, 2021 by

The Wisconsin Legislature was scheduled to vote Tuesday on approving a half-billion dollar tax cut for businesses that received loans to help them keep employees on the payroll during the pandemic, one of several measures related to the coronavirus that are slated for consideration.

The bill cutting business taxes by $540 million by the middle of 2023 was up for a vote in both the Senate and Assembly. If passed, it would then go to Democratic Gov. Tony Evers who was non-committal last week about whether he would sign or veto the measure.

The bill would benefit recipients of loans administered through the federal government’s Paycheck Protection Program. The loans are already tax deductible under federal law and Republicans say they are simply trying to bring state tax code into compliance. But Democratic opponents said the move would blow a hole in the state budget.

The Senate was voting Tuesday on a myriad of virus-related bills, including ones to bar employers from mandating vaccinations for workers, not allow prisoners to get priority for vaccinations and prohibit the closing of churches during the pandemic.

Governor Evers Proposes Allowing Local Governments to Raise Taxes

Posted on February 15, 2021 by

Governor Tony Evers wants to allow counties to be able to double their existing sales tax and allow larger municipalities to impose a new half-cent sales tax, if local voters approve.

The proposal announced Friday drew widespread support from local governments that would benefit from the additional money, which they said would lessen their reliance on property taxes. But the idea divided the state’s business community, with the statewide chamber of commerce opposing it but Milwaukee economic development groups backing it.

Evers said state budget plan will include the tax increase option for those local governments, which could generate additional money that he said could be put toward local roads, services, maintenance, public safety and public health.

Evers’ proposal would require approval of a referendum in the affected county or municipality before the local sales tax could be increased. Evers said by doing that, those who live in the area and would be affected by higher taxes could decide if they want to impose it on themselves.

Current law allows counties to impose a half-cent sales tax. Evers’ plan would allow them to double that. All but four of the state’s 72 counties currently impose the tax. Under the plan, municipalities with 30,000 or more residents could impose a half-cent sales tax for the first time. That would apply to more than two dozen cities across the state, including Milwaukee, Madison, Green Bay, Kenosha, Racine, Appleton, Eau Claire, Oshkosh, Janesville, La Crosse, Wausau and Beloit.

The state sales tax rate is 5%.

IRS Updates FAQs on Paid Sick Leave Credit and Family Leave Credit

Posted on February 1, 2021 by

On Friday, the Internal Revenue Service (IRS) posted updated FAQs about recent legislation that extended and amended tax relief to certain small- and mid-sized employers under the Families First Coronavirus Response Act (FFCRA).

The FAQs are available at COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs.

The updates to the FAQs cover how the COVID-related Tax Relief Act of 2020, enacted December 27, 2020, extends the availability of the tax credits created by the FFCRA to eligible employers for paid sick and family leave provided through March 31, 2021, as well as other amendments to the credits.

The paid sick and family leave credits, which previously were available only until the end of 2020, have been extended for periods of leave taken through March 31, 2021.

In addition, an eligible employer can receive the paid sick leave credit for employees who are unable to work due to caring for someone with coronavirus or caring for a child because the child’s school or place of care is closed, or the paid childcare provider is unavailable due to the coronavirus. Eligible employers may claim the credit for paid sick leave provided to an employee for up to two weeks (up to 80 hours) at 2/3 the employee’s regular rate of pay, or up to $200 per day and $2,000 in total.

Employers are also entitled to a paid family leave credit for paid family leave provided to an employee equal to 2/3 of the employee’s regular pay, up to $200 per day and $10,000 in total. Up to 10 weeks of qualifying leave can be counted towards the family leave credit.

Eligible employers are entitled to immediately receive a credit in the full amount of the paid sick leave and family leave plus related health plan expenses and the employer’s share of Medicare tax on the leave provided through March 31, 2021. The refundable credit is applied against certain employment taxes on wages paid to all employees.

Eligible employers may claim the credits on their federal employment tax returns (e.g., Form 941, Employer’s Quarterly Federal Tax Return), but they can benefit more quickly from the credits by reducing their federal employment tax deposits. If there are insufficient federal employment taxes to cover the amount of the credits, an eligible employer may request an advance payment of the credits from the IRS by submitting a Form 7200, Advance Payment of Employer Credits Due to COVID-19.