Wisconsin’s tax season was extended to May 17 this year due to COVID-19. To date, 2.85 million tax filers submitted returns out of an expected 3 million, and the average refund year to date is $793, up from $719 at this point last year.

Taxpayers can file an extension request with the IRS if they won’t make the May 17 deadline.

• Request an extension from the Internal Revenue Service (IRS) by May 17 to avoid late filing penalties.

• Go to the IRS website at www.irs.gov and search “extension” for more information. Taxpayers who file an extension request with the IRS automatically receive an extension from the state.

• Keep a copy of the IRS federal extension application (Form 4868) for your records. Please keep in mind that even if you have an extension of time to file your return, you will owe interest on any tax not paid by May 17.

• Avoid interest charges during the extension period by paying any estimated amount owed by May 17, using a 2020 Wisconsin Estimated Tax Voucher.

Support for small businesses, restaurants and bars will remain a priority for federal COVID-19 stimulus money in Wisconsin despite a $700 million decline in anticipated aid, Gov. Tony Evers said Wednesday.

The U.S. Department of Treasury announced Monday that Wisconsin will receive $2.5 billion in aid under the latest federal coronavirus bill — $700 million less than Congressional Research Service estimated the state would receive when the bill passed. The department also said it plans to disburse money to some states, including Wisconsin, in two payments staggered 12 months apart, rather than a lump sum. States set to receive staggered payments saw lower unemployment rates increases during the pandemic.

Evers, who controls how federal money directed to the state is spent, had already announced plans to spend $2.5 billion on economic development aid, $500 million on continued pandemic response and $200 million on infrastructure, including statewide broadband expansion.

In his initial plan, Evers said $600 million would be directed to small businesses, including the continuation of a grant program funded by previous federal coronavirus response bills. According to the state Department of Administration, about 53,000 small businesses statewide have already received about $125 million through a state recovery program funded by the first federal coronavirus aid bill and second federal COVID-19 bill, which passed in December.  

A growing number of Republican governors will end state participation in pandemic-era federal unemployment programs amid concerns over a nationwide labor shortage.

The Biden administration extended the federal unemployment benefits to an additional $300 per week through Sept. 6, an effort to ease the transition as the economy slowly reopens.

In early May, Gov. Greg Gianforte (R-MT) made Montana the first state to announce their withdrawal from the program, saying the extra federal unemployment benefits were “doing more harm than good” and preventing potential employees from returning to work. Beginning June 27, unemployed workers in the state will no longer receive the $300 in weekly extra benefits. Instead, the state will launch a new program incentivizing unemployed workers who return to work by giving them a one-time $1,200 bonus after they have completed four weeks in their new jobs.

Days after Gianforte’s announcement, South Carolina’s Republican Gov. Henry McMaster said the state would make a similar move to leave the federal unemployment programs, citing an “unprecedented” workforce shortage across the state. The state will opt out of the coronavirus pandemic assistance programs beginning June 30.

A startlingly weak jobs report for April, which was released last Friday by the Bureau of Labor Statistics, only served to buoy these concerns.  The jobs report fell far short of the expectations of economists, many of whom predicted the country would add as many as 1 million jobs. But the economy added only 266,000 jobs last month, despite reporting an increase of 916,000 in March and 468,000 in February.

Hours after the report was released, Arkansas’ Republican Gov. Asa Hutchinson directed the Division of Workforce Services to end the state’s participation in the enhanced unemployment benefits program after June 26.

Just this week, the GOP governors of Alabama, Iowa, Mississippi and Missouri announced they would similarly end their states’ participation in the program, all citing concerns over labor shortages.

President Biden announced Monday that his administration would affirm that workers cannot turn down a “suitable” job they are offered and continue to take federal unemployment benefits.

The Labor Department is expected to send a letter to states this week to “reaffirm that individuals receiving UI may not continue to receive benefits if they turn down a suitable job due to a general, non-specific concern about COVID-19,” the White House said in a release.

Workers are exempt from the policy if they are unable to take the job due to child care responsibilities or the worksite is not complying with federal or state health guidelines.

Biden is also directing Labor Secretary Marty Walsh to work with states to reinstate work search requirements for those receiving unemployment insurance if it is healthy and safe, the White House said.

The U.S. Small Business Administration (SBA) has stopped accepting new Paycheck Protection Program (PPP) applications from most lenders almost a full month before the $292 billion program’s application deadline.

The SBA informed lenders Tuesday afternoon that the PPP general fund was out of money and that the only remaining funds available for new applications are $8 billion set aside for community financial institutions (CFIs), which typically work with businesses in underserved communities. The agency also has set aside $6 billion for PPP applications still in review status or needing more information due to error codes.

Congress in late March extended the PPP application deadline two months to May 31, in part to give the SBA and lenders time to resolve error codes that were holding up nearly 200,000 applications in the SBA’s PPP platform. The unresolved error codes were related to validation checks instituted by the SBA to help prevent fraudulent applications from being funded.

The PPP Extension Act of 2021, P.L. 117-6, did not include any additional funding for the current round of the PPP, which Congress provided with more than $290 billion to make forgivable loans to small businesses and not-for-profits suffering economic loss related to the COVID-19 pandemic.

The SBA reported Monday that it had approved more than 5.6 million PPP loans totaling more than $258 billion from the program’s reopening on Jan. 11 through May 2. First-draw PPP loans accounted for $57.3 billion, and second-draw loans totaled nearly $201 billion.

Republican lawmakers plan to remove hundreds of proposals from Gov. Tony Evers’ state budget next week, from an expansion of Medicaid to the legalization of marijuana to the partial restoration of public sector union bargaining rights.

The move is the first step — and a big one — toward rewriting the budget from the ground up, something GOP leaders have been hinting at since the Governor  introduced his budget in February.

While many of the biggest financial decisions are yet to be resolved, the plan Republicans on the Legislature’s budget committee hope to pass Thursday will remove hundreds of Evers priorities from the budget. Many of those items will substantially reduce the amount of money lawmakers have to spend in the budget for the next two years.

For example, the expansion of Medicaid would bring the state an influx of $1.6 billion in federal funding. And the legalization of recreational marijuana was projected to generate $165 million.

While hardly unexpected, other sources of new revenue would also be wiped out. They include Evers’ proposal to reduce a tax break for capital gains, which was projected to generate an estimated $350 million. They also include his plan to scale back a tax break for manufacturers, which would generate an estimated $488 million.

The list of items up for removal also includes a wide array of policy ideas, from Evers’ call for automatic voter registration to a proposal for nonpartisan redistricting. Evers’ plan to raise the minimum wage would also be gone.

While the proposals could in theory be restored later in the budget-writing process, many if not most will face an uphill battle with Republicans who followed a similar process two years ago.

Gross domestic product, the sum of all goods and services produced in the economy, jumped 6.4% for the first three months of the year on an annualized basis. Outside of the reopening-fueled third-quarter surge last year, it was the best period for GDP since the third quarter of 2003.

“This signals the economy is off and running and it will be a boom-like year,” said Mark Zandi chief economist at Moody’s Analytics. “Obviously, the American consumer is powering the train and businesses are investing strongly.”

Consumers, who account for 68.2% of the economy, accelerated spending by 10.7% in the quarter, compared with a 2.3% increase in the previous period. The expenditures were largely focused on goods, which increased 23.6%, but spending on services, which had been the missing link in the recovery, still grew by 4.6%.

On the goods side, spending exploded by 41.4% on durable goods like appliances and other long-lasting purchases.

While the numbers indicated that many used the free money to spend, they also tucked a good portion of it away, as the savings rate soared to 21%, from 13% in Q4.

“With the elevated saving rate, households are still flush with cash and, now that restrictions are being eased as the vaccination program proves a success, that will allow them to boost spending on the worst-affected services, without needing to pull back too much on goods spending,” wrote Paul Ashworth, chief U.S. economist at Capital Economics.

Tens of thousands of people in Wisconsin whose applications for COVID-19 pandemic unemployment benefits were denied could be eligible for up to 79 weeks of unemployment payments.

There are three main categories of newly eligible workers:

• Those who declined to return to work at a site that wasn’t complying with COVID-19 safety standards, such as requiring face masks and physical distancing.
• Those working for an educational institution who became unemployed or partially unemployed after COVID-19 scrambled workers’ schedules.
• Those who were laid off or had their hours reduced as a result of COVID-19 measures, including restaurant workers.

Officials with the state Department of Workforce Development said they would be mailing notices to nearly 28,000 people who were denied benefits under the federal Pandemic Unemployment Assistance program to let them know they are eligible to reapply under the expanded guidelines. If they were denied before but found to be eligible now, they could be paid for the entire period of the pandemic thus far.

The Biden administration announced expanded eligibility for the federal program in February after President Joe Biden in an executive order said workers whose employers didn’t follow safety protocols could get the benefits. The Wednesday announcement by DWD follows from that executive order and guidance from Biden’s Department of Labor.

Wisconsinites who weren’t previously denied federal Pandemic Unemployment Assistance can also apply under the expanded eligibility. However, they’ll be limited in the number of weeks of back payments they can claim.

Gov. Tony Evers signed into law Senate Bill (SB) 11, now Wisconsin Act 29, which will allow public safety officers—including law enforcement and firefighters—who have been diagnosed with post-traumatic stress disorder under certain conditions to receive worker’s compensation benefits.

“We know the toll post-traumatic stress can take on our first responders might otherwise go unseen, but today we’re going to help make sure it doesn’t go unheard,” said Gov. Evers. “We’re saying today that we want to dismantle that stigma around post-traumatic stress and mental health—we want our first responders to know that we see these effects, we’re going to call it like it is, and there’s no shame in talking about it or getting help.”

SB 11, now Wisconsin Act 29:

• Allows payment of worker’s compensation benefits if a public safety officer, such as a law enforcement officer or firefighter, is diagnosed with post-traumatic stress disorder by a licensed psychologist or psychiatrist, and the mental injury is not accompanied by a physical injury if if proven by a preponderance of the evidence and the mental injury is not a result of a good faith employment action by the employer; and

• Limits the liability for treatment of such injuries and claims to no more than 32 weeks after the injury is first reported, and restricts compensation for such injuries and diagnoses to three times within an individual’s lifetime regardless of a change in employment status.

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.