Contribution rate schedules
Currently, all employers that engage employes in work which is covered under
the unemployment compensation law, other than governmental and nonprofit
employers which elect to pay directly for the cost of benefits, must pay contributions
(taxes) to finance unemployment compensation benefits. The total contributions of
an employer are the sum of the employer's contribution rate and the employer's
solvency rate, each of which vary with the employment stability of the employer and
the solvency of the unemployment reserve fund, from which benefits are paid. An
employer's contributions payable as a result of its contribution rate are credited to
the employer's account, while an employer's contributions payable as a result of its
solvency rate are credited to the fund's balancing account, which is used to fund
benefits not payable from any employer's account. Currently, there are 3 schedules
of contribution and solvency rates. The schedule that applies for any year depends
upon the solvency of the fund on June 30 of the preceding year. The schedule that
results in the lowest contribution rates for most employers is currently in effect for
any year when the fund has a cash balance of at least $1,000,000,000 on June 30 of
the preceding year. This bill creates an additional schedule which is in effect for any
year after 1997 when the fund has a cash balance of at least $1,200,000,000 on June
30 of the preceding year. The schedule provides for lower contribution rates than are
provided under current schedules for most employers for any year in which their
accounts have positive balances on June 30 of the preceding year.
Special assessments and offset of solvency rates
In addition to regular contributions currently payable by employers, this bill
levies an assessment on each employer that is currently subject to a contribution
requirement in the amount of 0.01% of an employer's taxable payroll for each year
prior to the year 2000 (unless the employer currently pays a solvency rate less than
0.01% in which case the assessment is equal to the employer's current solvency rate
as applied to the employer's taxable payroll). The bill permits DWD to reduce or
eliminate the levy for any year. The bill also directs DWD to reduce the solvency rate
of each employer that pays an assessment for any year in which an assessment is
levied by the assessment rate applicable to that employer for that year.
Under the bill, revenue received from the assessment may only be used for the
purpose of design or development of unemployment insurance information
technology systems. The bill also appropriates $1,450,000 from existing federal
revenues and existing revenues received by DWD as interest on late payments and
penalties for late payments and certain other violations of the unemployment
compensation law to be used for the same purpose. The bill directs DWD to submit
quarterly reports to the council on unemployment insurance describing the use of
any moneys expended by DWD for this purpose and the status of any project for
which moneys were expended.
Personal liability for certain business obligations
Currently, if an individual is an officer, employe, member or manager holding
at least 20% of the ownership interest of a corporation or limited liability company,
if the individual has control of or responsibility for filing unemployment
compensation contribution reports or making unemployment compensation
payments and the individual wilfully fails to file such reports or to make such
payments, the individual may be found personally liable for any payments due,
including interest, tardy payment or filing fees, costs and other fees if the corporation
or limited liability company is unable to make these payments. This bill provides
that ownership interest of a corporation or limited liability company for these
purposes includes ownership or control, directly or indirectly, by the individual, by
the individual's spouse or child, by the individual's parent if the individual is under
age 18, or by a combination of 2 or more of them, as well as such ownership of an
interest in a parent corporation or limited liability company of which the corporation
or limited liability company is a wholly owned subsidiary.
Other changes
Law name change
The bill changes the name of the unemployment compensation law to the
"unemployment insurance" law and makes terminology changes throughout the
statutes to effect the name change.
Performance of services for customers of employe service companies
Currently, an employe service company is considered to be the employer of an
individual for unemployment compensation purposes if the individual performs
services for a client or customer of the employe service company and the employe
service company is taxed under the Federal Unemployment Tax Act on the basis of
that employment. This bill substitutes a rule that an employe service company is
considered to be the employer of an individual who the company engages in
employment to perform services for a client or customer of the company.
Set aside, amendment, reopening, reversal or modification of certain
determinations and decisions
Currently, DWD may set aside or amend an initial determination concerning
the eligibility of a claimant to receive unemployment compensation benefits within
one year of the determination to correct a mistake, unless a party has filed a timely
request for a hearing as to the determination. Unless a party has filed a timely
petition for review of a decision, an appeal tribunal (hearing examiner) may similarly
reopen any decision concerning benefit eligibility or the status of an employer within
one year of the decision if the tribunal determines that false testimony was given or
false evidence was offered. The labor and industry review commission (LIRC) may
set aside any final determination of DWD or any decision of an appeal tribunal or
LIRC within one year of the determination or decision upon the grounds of mistake
or newly discovered evidence. Currently, DWD is not authorized to set aside any
decision of an appeal tribunal and is not authorized to reverse, modify or set aside
any decision of LIRC. This bill extends from one year to 2 years the period during
which determinations and decisions may be set aside, amended or reopened under
the circumstances currently provided. The bill also permits DWD to set aside or
amend an initial determination at any time if DWD determines that the benefits paid
or payable to a claimant have been affected by wages earned by the claimant which
have not been paid, and DWD is provided with notice from the appropriate state or
federal court or agency that a wage claim for those wages will not be paid in whole
or in part, unless a party has filed a timely request for a hearing concerning that
determination. Similarly, the bill permits an appeal tribunal to set aside a decision
of the appeal tribunal at any time (unless a party has filed a timely petition for review
of the decision with LIRC), and permits LIRC to set aside a final determination of
DWD or a decision of an appeal tribunal or LIRC at any time (regardless of whether
an appeal or petition for review has been filed) under similar circumstances if the
appeal tribunal or LIRC is provided with similar notice of an unpaid wage claim. In
addition, the bill permits DWD to set aside or amend any decision of an appeal
tribunal adverse to a claimant that has been issued within the 4-year period
preceding the day the bill becomes law, and permits DWD to reverse, modify or set
aside any decision of LIRC adverse to a claimant that has been issued within that
period, if DWD finds that the benefits paid or payable to the claimant have been
affected by wages earned by the claimant which have not been paid, and DWD is
provided with notice from the appropriate state or federal court or agency that a wage
claim for those wages will not be paid in whole or in part, unless a timely petition for
review by LIRC has been filed or a timely action for judicial review has been
commenced.
Coverage of Wisconsin service corps and Wisconsin conservation corps
employes
Under current state laws governing the Wisconsin service corps (WSC) and the
Wisconsin conservation corps (WCC), no corps enrollee in the WSC and no corps
member or assistant crew leader in the WCC is eligible for unemployment
compensation benefits by virtue of his or her employment in the corps. Conflicting
provisions of the same laws provide that to the extent permitted by federal law, the
WSC and WCC programs shall be considered work-relief and work-training
programs for the purpose of determining eligibility for unemployment compensation
benefits.
Under current state law governing the unemployment compensation program,
no corps member or assistant crew leader in the WCC is eligible for unemployment
compensation benefits by virtue of his or her employment in the WCC. In addition,
an individual serving in a position receiving work relief or work training as a part
of a work-training or work-relief program assisted or funded by a state agency is not
eligible for unemployment compensation benefits based on such service except as the
agency otherwise elects with the approval of DWD. This provision is based on federal
law, which generally requires states participating in the federal-state
unemployment compensation program to provide benefits for employes of state
agencies except, if a state elects, for individuals performing service as a part of an
unemployment work-relief or work-training program assisted or funded by a state
agency if the individuals receive work relief or work training under the program [
26
USC 3309 (b) (5)]. "Work relief" and "work training" are interpreted by DWD in
accordance with standards imposed by the U.S. department of labor.
This bill deletes the provisions of current state laws governing the WSC and
WCC programs. In addition, the bill deletes the provision of current state law
governing the unemployment compensation program specifying that a corps
member or assistant crew leader in the WCC is ineligible to receive unemployment
compensation benefits by virtue of his or her employment in the WCC, but retains
the disqualification for individuals receiving state-assisted work relief or work
training.
Other
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB327, s. 1
1Section
1. 6.10 (9) of the statutes is amended to read:
SB327,8,42
6.10
(9) No person loses the right to vote at the person's place of residence while
3receiving public assistance or unemployment
compensation insurance even if the
4legal settlement for assistance is elsewhere.
SB327,9,97
15.227
(3) (title)
Council on unemployment
compensation insurance. There
8is created in the department of workforce development a council on unemployment
9compensation insurance appointed by the secretary of workforce development to
10consist of 5 representatives of employers and 5 representatives of employes
11appointed to serve for 6-year terms and a permanent classified employe of the
12department of workforce development who shall serve as nonvoting chairperson. In
13making appointments to the council, the secretary shall give due consideration to
1achieving balanced representation of the industrial, commercial, construction,
2nonprofit and public sectors of the state's economy. One of the employer
3representatives shall be an owner of a small business or a representative of an
4association primarily composed of small businesses. In this subsection, "small
5business" means an independently owned and operated business which is not
6dominant in its field and which has had less than $2,000,000 in gross annual sales
7for each of the previous 2 calendar years or has 25 or fewer employes. A member
8vacates his or her office if the member loses the status upon which his or her
9appointment is based.
SB327, s. 3
10Section
3. 16.48 (1) (a) (intro.) of the statutes is amended to read:
SB327,9,1311
16.48
(1) (a) (intro.) A statement of unemployment
compensation insurance 12financial outlook, which shall contain the following, together with the secretary's
13recommendations and an explanation for such recommendations:
SB327, s. 4
14Section
4. 16.48 (1) (a) 1., 2. and 6. and (b) of the statutes are amended to read:
SB327,9,1815
16.48
(1) (a) 1. Projections of unemployment
compensation insurance 16operations under current law through at least the 2nd year following the close of the
17biennium, including benefit payments, tax collections, borrowing or debt
18repayments and amounts of interest charges, if any.
SB327,9,2019
2. Specific proposed changes in the laws relating to unemployment
20compensation insurance financing, benefits and administration.
SB327,9,2221
6. If unemployment
compensation insurance program debt is projected at the
22end of the forecast period, the reasons why it is not proposed to liquidate the debt.
SB327,9,2423
(b) A report summarizing the deliberations of the council on unemployment
24compensation insurance and the position of the council, if any, concerning each
1proposed change in the unemployment
compensation insurance laws submitted
2under par. (a).
SB327,10,125
16.48
(2) Upon receipt of the statement and report under sub. (1), the governor
6may convene a special committee consisting of the secretary of workforce
7development and the legislative leaders specified in sub. (1) to review the statement
8and report. Upon request of 2 or more of the legislative leaders specified in sub. (1),
9the governor shall convene such a committee. The committee shall attempt to reach
10a consensus concerning proposed changes to the unemployment
compensation 11insurance laws and shall submit its recommendations to the governor and
12legislature concurrently with the statement furnished under sub. (3).
SB327,10,18
13(3) On or about February 15 of each odd-numbered year, the secretary of
14workforce development, under the direction of the governor, shall submit to each
15member of the legislature an updated statement of unemployment
compensation 16insurance financial outlook which shall contain the information specified in sub. (1)
17(a), together with the governor's recommendations and an explanation for such
18recommendations, and a copy of the report required under sub. (1) (b).
SB327, s. 6
19Section
6. 19.85 (1) (ee) of the statutes is amended to read:
SB327,10,2220
19.85
(1) (ee) Deliberating by the council on unemployment
compensation 21insurance in a meeting at which all employer members of the council or all employe
22members of the council are excluded.
SB327,11,143
20.445
(1) (gd)
Unemployment interest and penalty payments. From the
4moneys received as interest and penalties collected under ss. 108.04 (11) (c) and
5108.22 and assessments under s. 108.19 (1m), all moneys not appropriated under
6pars. (ge)
and, (gf)
and (gg) and all moneys transferred to this appropriation account
7from the appropriation account under par. (gh) for the payment of benefits specified
8in s. 108.07 (5) and
1987 Wisconsin Act 38, section
132 (1) (c), for the payment of
9interest to employers under s. 108.17 (3m)
and, for the payment of interest due on
10advances from the federal unemployment account under title XII of the social
11security act to the unemployment reserve fund, and for payments made to the
12unemployment reserve fund to obtain a lower interest rate or deferral of interest
13payments on these advances, except as otherwise provided in s. 108.20, and for the
14payment of career counseling center grants under s. 106.14.
SB327,12,143
20.445
(1) (gd)
Unemployment interest and penalty payments. From the
4moneys received as interest and penalties collected under ss. 108.04 (11) (c) and
5108.22, assessments under s. 108.19 (1m) and forfeitures under s. 103.05 (5), all
6moneys not appropriated under par. (ge)
and, (gf)
and (gg) and all moneys transferred
7to this appropriation account from the appropriation account under par. (gh) for the
8payment of benefits specified in s. 108.07 (5) and
1987 Wisconsin Act 38, section
132 9(1) (c), for the payment of interest to employers under s. 108.17 (3m)
and, for the
10payment of interest due on advances from the federal unemployment account under
11title XII of the social security act to the unemployment reserve fund, and for
12payments made to the unemployment reserve fund to obtain a lower interest rate or
13deferral of interest payments on these advances, except as otherwise provided in s.
14108.20, and for payment of career counseling center grants under s. 106.14.
SB327,13,317
20.445
(1) (gd)
Unemployment interest and penalty payments. From the
18moneys received as interest and penalties collected under ss. 108.04 (11) (c) and
19108.22, assessments under s. 108.19 (1m) and forfeitures under s. 103.05 (5), all
20moneys not appropriated under par. (ge)
and, (gf)
and (gg) and all moneys transferred
21to this appropriation account from the appropriation account under par. (gh) for the
22payment of benefits specified in s. 108.07 (5) and
1987 Wisconsin Act 38, section
132 23(1) (c), for the payment of interest to employers under s. 108.17 (3m)
and, for the
24payment of interest due on advances from the federal unemployment account under
25title XII of the social security act to the unemployment reserve fund, and for
1payments made to the unemployment reserve fund to obtain a lower interest rate or
2deferral of interest payments on these advances, except as otherwise provided in s.
3108.20.
SB327, s. 11
4Section
11. 20.445 (1) (gf) of the statutes is amended to read:
SB327,13,125
20.445
(1) (gf)
Employment security administration. From the moneys received
6as interest and penalties collected under ss. 108.04 (11) (c) and (13) (c) and 108.22,
7the amounts in the schedule for the administration of employment service programs
8and unemployment
compensation insurance programs under ch. 108 and s. 106.09
9and federal or state unemployment
compensation insurance programs authorized by
10the governor under s. 16.54; and for payments to satisfy any federal audit exception
11concerning a payment from the unemployment reserve fund or any federal aid
12disallowance involving the unemployment
compensation
insurance program.
SB327, s. 12
13Section
12. 20.445 (1) (gg) of the statutes is created to read:
SB327,13,1714
20.445
(1) (gg)
Unemployment information technology systems; interest and
15penalties. From the moneys received as interest and penalties collected under ss.
16108.04 (11) (c) and (13) (c) and 108.22, as a continuing appropriation, the amounts
17in the schedule for the purpose specified in s. 108.19 (1e).
SB327, s. 13
18Section
13. 20.445 (1) (gh) of the statutes is created to read:
SB327,13,2319
20.445
(1) (gh)
Unemployment information technology systems; assessments.
20All moneys received from assessments levied under s. 108.19 (1e) and 1997
21Wisconsin Act .... (this act), section 164 (2), for the purpose specified in s. 108.19 (1e).
22The treasurer of the unemployment reserve fund may transfer moneys from this
23appropriation account to the appropriation account under par. (gd).
SB327, s. 14
24Section
14. 20.445 (1) (n) of the statutes is amended to read:
SB327,14,11
120.445
(1) (n)
Unemployment administration; federal moneys. All federal
2moneys received for the employment service under s. 106.09 (4) to (6)
or, for the
3administration of unemployment
compensation under ch. 108, and any federal
4moneys paid to the department insurance or for the performance of
its the
5department's functions under ch. 108,
and for its conduct of public employment
6offices consistent with s. 106.09 (4) to (6), and for its other efforts to regularize
7employment
;, to pay the compensation and expenses of appeal tribunals and of
8councils
; and to pay allowances stimulating education during unemployment
, to be
9used for such purposes, and to transfer to par. (nb) an amount determined by the
10treasurer of the unemployment reserve fund not exceeding the lesser of the amount
11specified in s. 108.161 (4) (d) or the amounts in the schedule under par. (nb).
SB327, s. 15
12Section
15. 20.445 (1) (nb) of the statutes is created to read:
SB327,14,2413
20.445
(1) (nb)
Unemployment information technology systems; federal moneys. 14The amounts in the schedule, as authorized by the governor for this purpose under
15s. 16.54, for the purpose specified in s. 108.19 (1e). All moneys transferred from par.
16(n) for this purpose shall be credited to this appropriation account. Notwithstanding
17s. 20.001 (3) (a), the treasurer of the unemployment reserve fund shall transfer any
18unencumbered balance in this appropriation account that is not needed or available
19to carry out the purpose of this appropriation to the appropriation account under par.
20(n). No moneys may be expended from this appropriation unless the treasurer of the
21unemployment reserve fund determines that such expenditure is currently needed
22for the purpose specified in s. 108.19 (1e). No moneys may be encumbered from this
23appropriation account after the beginning of the 3rd 12-month period beginning
24after the effective date of this paragraph .... [revisor inserts date].
SB327, s. 16
25Section
16. 40.02 (22) (b) 3. of the statutes is amended to read:
SB327,15,1
140.02
(22) (b) 3. Unemployment
compensation insurance benefits.
SB327, s. 17
2Section
17. 40.65 (5) (b) 2. of the statutes is amended to read:
SB327,15,43
40.65
(5) (b) 2. Any unemployment
compensation insurance benefit payable to
4the participant because of his or her work record.
SB327, s. 18
5Section
18. 45.71 (9) (a) of the statutes is amended to read:
SB327,15,96
45.71
(9) (a) Part-time or overtime pay, unemployment
compensation 7insurance and income of the veteran's spouse are considered income only if the
8department or authorized lender deems such sources of income to be regular and
9dependable.
SB327, s. 19
10Section
19. 46.27 (5) (i) of the statutes is amended to read:
SB327,16,511
46.27
(5) (i) In the instances in which an individual who is provided long-term
12community support services under par. (b) for which the individual receives direct
13funding, serve directly as a fiscal agent or contract with a fiscal intermediary to serve
14as a fiscal agent for that individual for the purposes of performing the responsibilities
15and protecting the interests of the individual under the unemployment
16compensation insurance law. The county department or aging unit may elect to act
17as a fiscal agent or contract with a fiscal intermediary to serve as a fiscal agent for
18an individual who is provided long-term support services under s. 46.275, 46.277,
1946.278, 46.495, 51.42 or 51.437. The fiscal agent under this paragraph is responsible
20for remitting any federal unemployment compensation taxes or state unemployment
21compensation insurance contributions owed by the individual, including any
22interest and penalties which are owed by the individual; for serving as the
23representative of the individual in any investigation, meeting, hearing or appeal
24involving ch. 108 or the federal unemployment tax act (
26 USC 3301 to
3311) in which
25the individual is a party; and for receiving, reviewing, completing and returning all
1forms, reports and other documents required under ch. 108 or the federal
2unemployment tax act on behalf of the individual. An individual may make an
3informed, knowing and voluntary election to waive the right to a fiscal agent. The
4waiver may be as to all or any portion of the fiscal agent's responsibilities. The waiver
5may be rescinded in whole or in part at any time.
SB327, s. 20
6Section
20. 47.035 (1) of the statutes is amended to read:
SB327,16,227
47.035
(1) Except as authorized in sub. (2) if an individual receives direct
8funding for personal assistance services that are provided to the individual under s.
947.02 (4) (c), and the services are provided through a county department of human
10services or social services or an aging unit, the county department or aging unit
11through which the services are provided shall serve directly as a fiscal agent or
12contract with a fiscal intermediary to serve as a fiscal agent for that individual for
13the purposes of performing the responsibilities and protecting the interests of the
14individual under the unemployment
compensation insurance law. The fiscal agent
15under this subsection is responsible for remitting any federal unemployment
16compensation taxes or state unemployment
compensation
insurance contributions
17owed by the individual, including any interest and penalties which are owed by the
18individual; for serving as the representative of the individual in any investigation,
19meeting, hearing or appeal involving ch. 108 or the federal unemployment tax act (
26
20USC 3301 to
3311) in which the individual is a party; and for receiving, reviewing,
21completing and returning all forms, reports and other documents required under ch.
22108 or the federal unemployment tax act on behalf of the individual.
SB327, s. 21
23Section
21. 49.19 (4) (dm) 4. of the statutes is amended to read:
SB327,16,2524
49.19
(4) (dm) 4. Qualifies for unemployment
compensation insurance but
25refuses to apply for or accept unemployment
compensation insurance; or
SB327, s. 22
1Section
22. 59.40 (2) (e) of the statutes is amended to read:
SB327,17,52
59.40
(2) (e) Keep a judgment and lien docket of all money judgments of the
3court, transcripts from judgment and lien dockets of other Wisconsin courts and of
4federal courts, warrants for unemployment
compensation
insurance and warrants
5for delinquent Wisconsin income or franchise taxes.
SB327, s. 23
6Section
23. 59.57 (2) (b) of the statutes is amended to read:
SB327,18,117
59.57
(2) (b)
Findings. It is found and declared that industries located in this
8state have been induced to move their operations in whole or in part to, or to expand
9their operations in, other states to the detriment of state, county and municipal
10revenue arising through the loss or reduction of income and franchise taxes, real
11estate and other local taxes, and thereby causing an increase in unemployment; that
12such conditions now exist in certain areas of the state and may well arise in other
13areas; that economic insecurity due to unemployment is a serious menace to the
14general welfare of not only the people of the affected areas but of the people of the
15entire state; that such unemployment results in obligations to grant public
16assistance and in the payment of unemployment
compensation insurance; that the
17absence of new economic opportunities has caused workers and their families to
18migrate elsewhere to find work and establish homes, which has resulted in a
19reduction of the tax base of counties, cities and other local governmental jurisdictions
20impairing their financial ability to support education and other local governmental
21services; that security against unemployment and the preservation and
22enhancement of the tax base can best be provided by the promotion, attraction,
23stimulation, rehabilitation and revitalization of commerce, industry and
24manufacturing; that there is a need to stimulate a larger flow of private investment
25funds from banks, investment houses, insurers and other financial institutions; that
1means are necessary under which counties so desiring may create instrumentalities
2to promote industrial development and such purpose requires and deserves support
3from counties as a means of preserving the tax base and preventing unemployment.
4It is therefore declared to be the policy of this state to promote the right to gainful
5employment, business opportunities and general welfare of the inhabitants thereof
6and to preserve and enhance the tax base in counties and municipalities by the
7creation of bodies, corporate and politic, which shall exist and operate for the purpose
8of fulfilling the aims of this subsection and such purposes are hereby declared to be
9public purposes for which public money may be spent and the necessity in the public
10interest for the provisions herein enacted is declared a matter of legislative
11determination.
SB327, s. 24
12Section
24. 66.30 (6) (c) 1. of the statutes is amended to read:
SB327,18,1913
66.30
(6) (c) 1. Provide for acquisition, construction, operation and
14administration of a facility, and establish the functions, projects and services to be
15provided in the facility, including, without limitation because of enumeration,
16proration of all expenses involved, operational and fiscal management including
17deposit and disbursement of funds appropriated, designation of the municipal
18employer for purposes of compliance with s. 111.70, teacher retirement, worker's
19compensation and unemployment
compensation insurance.
SB327, s. 25
20Section
25. 66.30 (6) (h) of the statutes is amended to read:
SB327,19,221
66.30
(6) (h) School district boards entering into a contract under this
22subsection shall designate for each employe providing services under the contract
23either a school district entering into the contract or a cooperative educational service
24agency under ch. 116 as the employer for purposes of compliance with s. 111.70,
1teacher's retirement, worker's compensation and unemployment
compensation 2insurance.
SB327, s. 26
3Section
26. 66.521 (1) (a) of the statutes is amended to read:
SB327,20,54
66.521
(1) (a) It is found and declared that industries located in this state have
5been induced to move their operations in whole or in part to, or to expand their
6operations in, other states to the detriment of state, county and municipal revenue
7raising through the loss or reduction of income and franchise taxes, real estate and
8other local taxes, and thereby causing an increase in unemployment; that such
9conditions now exist in certain areas of the state and may well arise in other areas;
10that economic insecurity due to unemployment is a serious menace to the general
11welfare of not only the people of the affected areas but of the people of the entire state;
12that unemployment results in obligations to grant public assistance and in the
13payment of unemployment
compensation insurance; that the absence of new
14economic opportunities has caused workers and their families to migrate elsewhere
15to find work and establish homes, which has resulted in a reduction of the tax base
16of counties, cities and other local governmental jurisdictions impairing their
17financial ability to support education and other local governmental services; that
18security against unemployment and the preservation and enhancement of the tax
19base can best be provided by the promotion, attraction, stimulation, rehabilitation
20and revitalization of commerce, industry and manufacturing; that there is a need to
21stimulate a larger flow of private investment funds from banks, investment houses,
22insurance companies and other financial institutions. It is therefore declared to be
23the policy of this state to promote the right to gainful employment, business
24opportunities and general welfare of the inhabitants thereof and to preserve and
25enhance the tax base by authorizing municipalities to acquire industrial buildings
1and to finance such acquisition through the issuance of revenue bonds for the
2purpose of fulfilling the aims of this section and such purposes are hereby declared
3to be public purposes for which public money may be spent and the necessity in the
4public interest for the provisions herein enacted is declared a matter of legislative
5determination.
SB327, s. 27
6Section
27. 71.05 (6) (a) 12. of the statutes is amended to read:
SB327,21,107
71.05
(6) (a) 12. All alimony deducted for federal income tax purposes and paid
8while the individual paying the alimony was a nonresident of this state; all penalties
9for early withdrawals from time savings accounts and deposits deducted for federal
10income tax purposes and paid while the individual charged with the penalty was a
11nonresident of this state; all repayments of supplemental unemployment
12compensation benefits benefit plan payments deducted for federal income tax
13purposes and made while the individual making the repayment was a nonresident
14of this state; all reforestation expenses related to property not in this state, deducted
15for federal income tax purposes and paid while the individual paying the expense
16was not a resident of this state; all contributions to individual retirement accounts,
17simplified employe pension plans and self-employment retirement plans and all
18deductible employe contributions, deducted for federal income tax purposes and in
19excess of that amount multiplied by a fraction the numerator of which is the
20individual's wages and net earnings from a trade or business taxable by this state
21and the denominator of which is the individual's total wages and net earnings from
22a trade or business; the contributions to a Keogh plan deducted for federal income
23tax purposes and in excess of that amount multiplied by a fraction the numerator of
24which is the individual's net earnings from a trade or business, taxable by this state,
25and the denominator of which is the individual's total net earnings from a trade or
1business; the amount of health insurance costs of self-employed individuals
2deducted under section
162 (L) of the internal revenue code for federal income tax
3purposes and in excess of that amount multiplied by a fraction the numerator of
4which is the individual's net earnings from a trade or business, taxable by this state,
5and the denominator of which is the individual's total net earnings from a trade or
6business; and the amount of self-employment taxes deducted under section
164 (f)
7of the internal revenue code for federal income tax purposes and in excess of that
8amount multiplied by a fraction the numerator of which is the individual's net
9earnings from a trade or business, taxable by this state, and the denominator of
10which is the individual's total net earnings from a trade or a business.
SB327,23,213
71.52
(6) "Income" means the sum of Wisconsin adjusted gross income and the
14following amounts, to the extent not included in Wisconsin adjusted gross income:
15maintenance payments (except foster care maintenance and supplementary
16payments excludable under section
131 of the internal revenue code), support money,
17cash public assistance (not including credit granted under this subchapter and
18amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross
19amount of any pension or annuity (including railroad retirement benefits, all
20payments received under the federal social security act and veterans disability
21pensions), nontaxable interest received from the federal government or any of its
22instrumentalities, nontaxable interest received on state or municipal bonds,
23worker's compensation, unemployment
compensation
insurance, the gross amount
24of "loss of time" insurance, compensation and other cash benefits received from the
25United States for past or present service in the armed forces, scholarship and
1fellowship gifts or income, capital gains, gain on the sale of a personal residence
2excluded under section
121 of the internal revenue code, dividends, income of a
3nonresident or part-year resident who is married to a full-year resident, housing
4allowances provided to members of the clergy, the amount by which a resident
5manager's rent is reduced, nontaxable income of an American Indian, nontaxable
6income from sources outside this state and nontaxable deferred compensation.
7Intangible drilling costs, depletion allowances and depreciation, including first-year
8depreciation allowances under section
179 of the internal revenue code,
9amortization, contributions to individual retirement accounts under section
219 of
10the internal revenue code, contributions to Keogh plans, net operating loss
11carry-forwards and capital loss carry-forwards deducted in determining Wisconsin
12adjusted gross income shall be added to "income". "Income" does not include gifts
13from natural persons, cash reimbursement payments made under title XX of the
14federal social security act, surplus food or other relief in kind supplied by a
15governmental agency, the gain on the sale of a personal residence deferred under
16section
1034 of the internal revenue code or nonrecognized gain from involuntary
17conversions under section
1033 of the internal revenue code. Amounts not included
18in adjusted gross income but added to "income" under this subsection in a previous
19year and repaid may be subtracted from income for the year during which they are
20repaid. Scholarship and fellowship gifts or income that are included in Wisconsin
21adjusted gross income and that were added to household income for purposes of
22determining the credit under this subchapter in a previous year may be subtracted
23from income for the current year in determining the credit under this subchapter.
24A marital property agreement or unilateral statement under ch. 766 has no effect in
1computing "income" for a person whose homestead is not the same as the homestead
2of that person's spouse.
SB327, s. 29
3Section
29. 71.67 (7) (title) of the statutes is amended to read:
SB327,23,44
71.67
(7) (title)
Withholding from unemployment compensation insurance.
SB327,23,127
71.67
(7) (a) The department of workforce development may, in accordance
8with s. 108.135, deduct and withhold from any unemployment
compensation 9insurance payment, on a form prepared by the department of workforce
10development, a portion of the payment as Wisconsin income tax. The department of
11workforce development shall deposit the amounts withheld, on a monthly basis, as
12provided in s. 108.135 (6).
SB327, s. 31
13Section
31. 71.67 (7) (b) 2. of the statutes is amended to read:
SB327,23,1514
71.67
(7) (b) 2. The gross amount of unemployment
compensation insurance 15that is subject to withholding under par. (a).
SB327, s. 32
16Section
32
. 71.80 (16) (a) of the statutes is amended to read:
SB327,24,1517
71.80
(16) (a) All nonresident persons, whether incorporated or not, engaging
18in construction contracting in this state as contractor or subcontractor and not
19otherwise regularly engaged in business in this state, shall file a surety bond with
20the department, payable to the department of revenue, to guarantee the payment of
21income or franchise taxes, required unemployment
compensation insurance 22contributions, sales and use taxes and income taxes withheld from wages of
23employes, together with any penalties and interest thereon. The department shall
24approve the form and contents of such bond. The amount of the bond shall be 3% of
25the contract or subcontract price on all contracts of $50,000 or more or 3% of
1contractor's or subcontractor's estimated cost-and-profit under a cost-plus contract
2of $50,000 or more. When the aggregate of 2 or more contracts in one calendar year
3is $50,000 or more the amount of the bond or bonds shall be 3% of the aggregate
4amount of such contracts. Such surety bond must be filed within 60 days after
5construction is begun in this state by any such contractor or subcontractor on any
6contract the price of which is $50,000 or more (or the estimated cost-and-profit of
7which is $50,000 or more), or within 60 days after construction is begun in this state
8on any contract for less than $50,000, when the amount of such contract, when
9aggregated with any other contracts, construction on which was begun in this state
10in the same calendar year, equals or exceeds $50,000. If the department concludes
11that no bond is necessary to protect the tax revenues of the state, including
12contributions under ch. 108, the requirements under this subsection may be waived
13by the secretary of revenue or the secretary's designated departmental
14representative. The bond shall remain in force until the liability thereunder is
15released by the secretary or the secretary's designated departmental representative.