State of Wisconsin asks Unemployed Residents to Return $300 in Jobless Aid if Congress Passes New Relief

Wisconsin residents receiving an extra $300 in weekly unemployment benefits are being asked to pay back the money if Congress enacts new legislation to replace the jobless aid created by President Trump’s executive action last month.

A spokesman from the Wisconsin Department of Workforce Development said the state is following guidance from the Federal Emergency Management Agency, which is funding Trump’s Lost Wages Assistance program, and the Department of Labor. FEMA, however, said that states administer the program while the agency provides the funds.

The $300 weekly benefit is retroactive to Aug. 1 for workers who qualify. Wisconsin’s DWD doesn’t anticipate that it will be forced to claw back the aid from claimants, although its own website posted the warning to out-of-work residents who tried to file unemployment claims.

It remains unclear whether future aid from Congress will be made retroactive to Aug. 1, meaning the payments would overlap, a spokesman said.

The DWD is anticipating that if Congress passes new legislation, it will begin once Trump’s Lost Wages Assistance program lapses for the week ended Sept. 5 so that there would be no overlap, they added.

State Transportation Revenue Dips amid drop in fuel taxes, registration fees

The state’s transportation fund took in almost 5 percent less in 2019-20 than was expected, driven largely by people driving less amid the COVID-19 pandemic.

According to the Legislative Fiscal Bureau, the transportation fund took in nearly $1.9 billion over the fiscal year, about $97.3 million less than what the state expected when Gov. Tony Evers signed the budget in July 2019.

For the year, motor fuel taxes came in $69.1 million less than had been expected, a drop of 6.4 percent. The state also took in $45.8 million less than it had projected for registration and title fees, a decline of 6.9 percent.

Those shortfalls were partially offset by boosts elsewhere. For example, the transfer from the petroleum inspection fund, funded with a fee of 2 cents per gallon of fuel sold, was $16 million higher than expected.

The transportation fund also received $8.5 million more in miscellaneous department revenue and earned an additional $3.4 million on investments than had been projected.

State Business Advocacy Groups Urge Support for Civil Liability Protections for COVID-19 Claims

Over 60 business associations, non-profits and local chambers of commerce, including Wisconsin Independent Businesses, sent a letter to lawmakers on Wednesday asking them to sign on and support legislation that would shield Wisconsin businesses, schools, universities and other entities from the threat of predatory lawsuits alleging liability for COVID-19 exposures.

The bill – LRB-6434/2 – is currently being circulated by Sen. Chris Kapenga (R-Delafield), Rep. Mark Born (R-Beaver Dam) and Rep. Dan Knodl (R-Germantown).

“The legislation would create a safe harbor for all property owners/occupants who are good actors against frivolous lawsuits alleging a plaintiff was infected with COVID-19 at a specific premises,” the letter reads. “The bill is not business community specific and would protect homeowners, non-profits, schools, universities, and any other premises including outdoor events and festivals. The safe harbor would not protect bad actors. An entity would lose the liability exemption if they knowingly violated a public health order or spread COVID-19 by acting in a reckless, wanton, or intentional manner.”

The 60-plus organizations call on the legislature to act quickly to protect businesses, non-profits and individuals who are doing the right thing, while ensuring bad actors could still be held liable.

 

GOP Proposes ‘Targeted’ Virus Aid, but Dems say not Enough

 The Senate prepared to vote this week on a trimmed-down Republican coronavirus relief package, though it only has a slim chance of passage in the face of Democrats’ insistence for more sweeping aid.

Senate Majority Leader Mitch McConnell released the approximately $500 billion measure on Tuesday as senators returned to Washington for an abbreviated pre-election session, but hopes were dimming for another coronavirus relief bill — or much else.

McConnell’s bill would provide $105 billion to help schools reopen, enact a shield against lawsuits for businesses and others that are powering ahead to reopen, create a scaled-back $300-per-week supplemental jobless benefit, and write off $10 billion in earlier debt at the U.S. Postal Service. There’s $31 billion for a coronavirus vaccine, $16 billion for virus testing and $15 billion to help child care providers reopen. There is additionally $20 billion for farmers.

Democrats demanded a far larger bill, including hundreds of billions of dollars for state and local governments, more generous jobless benefits, and help for renters and homeowners, along with other provisions in the House Democrats’ $3.5 billion relief bill that passed in May.

Wisconsin Exports Down Slightly in July

After three months of double-digit percentage declines, Wisconsin exports dropped 3.1% in July, according to new data from the U.S. Census Bureau.

The state exported $1.67 billion in goods during the month, bringing its 2020 total to $11.41 billion, a decline of 10.1% from last year.

July’s relatively stronger performance, which ranked ninth in the country, was boosted by a 14.3% increase to $107 million in exports to China and an 8.8% increase to $346.6 million for exports to Europe.

Exports to the rest of Asia were down 13.1%. The state’s exports were also hurt by a 22.6% decline to $215.2 million in exports to Mexico and a 3.1% decline to $526.8 million in exports to Canada.

For the first seven months of the year, exports to Canada, the top destination for Wisconsin exports, are down 14.2%. Exports to Europe are down 8.5% and shipments to Mexico are down 30.8%.

Asia has been a bright spot with exports up 2.8%, including a 15.6% increase in exports to China compared to last year. Trade tensions were increasing between the U.S. and China for much of 2019.

Economy Adds 1.4 Million Jobs in August, Unemployment Rate Falls to 8.4%

The U.S. added 1.4 million jobs in August, the Labor Department reported Friday.

The unemployment rate declined to 8.4 percent from 10.2 percent in July, according to the August jobs report, falling below 10 percent for the first time since March. Labor force participation also increased by 0.3 percent in August, an indication of both increasing strength in the job market and rising confidence among job-seekers.

August marks the fourth consecutive month of job gains and declining unemployment since the U.S. economy bottomed out in April. More than 20 million Americans lost their jobs that month, pushing the unemployment rate to a post-Great Depression high of 14.7 percent.

The economy has now recovered roughly 10.7 million of the jobs lost to the pandemic as of August, though the number of unemployed Americans is still 11.5 million above its pre-coronavirus level in February.

August also brought declines in the number of Americans unemployed for less than five weeks and those unemployed for anywhere between five and 14 weeks, while the number of long-term unemployed Americans was little changed.

Bill Would Protect Wisconsin Businesses from some COVID-19 Lawsuits

The Wisconsin Legislature may consider legislation to stop frivolous lawsuits over possible exposure to the Covid-19 virus in schools and businesses.

The bill by Sen. Chris Kapenga (R-Delafield) would provide a “safe harbor” liability exemption to business owners and others who own or rent a public space as long as they obey public health orders and are taking reasonable precautions to protect the public from the Covid-19 virus.

“With many businesses struggling due to the impacts of COVID-19, the threat of a frivolous lawsuit is the last thing they need while trying to rebound,” said Kapenga in a statement on Tuesday. “Most entities have adapted and taken precautions over the past six months to protect both their customers and employees. These businesses should not be living in constant fear of litigation for something that is beyond their control.”

The bill would also provide legal protection to schools, universities and even homeowners.

“As students around the state return to school this week, many schools are starting in a virtual environment,” Kapenga said. “For some districts across the state, this can be attributed to school boards fearful of being held liable for an increase in cases. This bill is needed to restore confidence, so our economy and our schools can return to a level of normalcy.”

Over a dozen states have enacted similar laws, according to Kapenga.

CDC Issues Temporary Halt On Evictions Nationwide

The Trump administration is ordering a halt on evictions nationwide through December for people who have lost work during the pandemic and don’t have other good housing options.

The new eviction ban is being enacted through the Centers for Disease Control and Prevention. The goal is to stem the spread of the COVID-19 outbreak, which the agency says in its order “presents a historic threat to public health.”

Under the rules of the order, renters have to sign a declaration saying they don’t make more than $99,000 a year — or twice that if filing a joint tax return — and that they have no other option if evicted other than homelessness or living with more people in close proximity.

Evictions for reasons other than nonpayment of rent will be allowed. The government says it will impose criminal penalties on landlords who violate the ban.

Despite COVID-19 Shutdowns, Preliminary Figures Show State Tax Collections Increased

Despite concerns that the COVID-19 pandemic — and subsequent shutdown of businesses — would drastically limit state tax revenue, Wisconsin’s latest tax collections report shows a slight increase from last year.

The Legislative Fiscal Bureau on Monday reported state tax collections totaled more than $17.5 billion in the 2019-20 fiscal year, a 1.1% increase from the previous year. That’s about $112.6 million, or only 0.6%, less than projected in January, according to the state Department of Revenue.

“I think we can say the collections were better than folks anticipated as we went through these last months, especially in the beginning of the pandemic,” LFB director Bob Lang said Monday.

The tax filing date for individual and corporate taxes was shifted from April to July, and Lang said tax collections “got a little stronger and stronger each month.”

A final report released in October will include expenditures and revenues, but Lang said he doesn’t anticipate any major changes and the state will likely end the fiscal year with “a relatively large balance.”

IRS Guidance Issued on Payroll Tax Deferral

Late on Friday, the IRS issued much-anticipated guidance on the payroll tax deferral that was ordered by President Donald Trump in a presidential memorandum on Aug. 8 (Notice 2020-65). The notice allows employers to defer withholding on affected employees’ compensation during the last four months of 2020 and then withhold those deferred amounts during the first four months of 2021

Under the guidance, employers can defer the withholding, deposit, and payment of certain payroll taxes on wages paid from Sept. 1 through Dec. 31, 2020. The deferral applies to the employee portion of the old-age, survivors, and disability insurance (OASDI) tax under Sec. 3101(a) and Railroad Retirement Act Tier 1 tax under Sec. 3201. The due date for withholding and payment of these taxes is postponed until the period beginning Jan. 1, 2021, and ending April 30, 2021.

The deferral applies to any employee whose pretax wages or compensation during any biweekly pay period generally is less than $4,000.

Under the notice, the determination of applicable wages is to be made on a pay-period-by-pay-period basis — meaning that if the amount of compensation payable to an employee for a particular pay period is less than the threshold amount ($4,000 for biweekly pay periods), then the payroll tax deferral applies to that compensation, irrespective of the amount paid to that employee in other pay periods.

The notice requires affected employers to withhold and pay the deferred taxes from wages and compensation paid during the period between Jan. 1, 2021, and April 30, 2021. Interest, penalties, and additions to tax will begin to accrue on unpaid taxes starting May 1, 2021. The notice says, that, if it is necessary, employers can “make arrangements to otherwise collect the total Applicable Taxes from the employee” but does not provide details on that requirement.