As states continue to offer tax return filing, payment deferrals and other assistance measures in light of the COVID-19 pandemic, we take a closer look at Wisconsin.
Learn more about relief efforts identified in other states in which our firm is located in our easy-to-use spreadsheet tracker
Relief: The State of Wisconsin 2019 Act 185 issued April 15, 2020, offers relief to a broad range of entities and industries impacted by the COVID-19 outbreak. The Act also requires the Wisconsin Economic Development Corporation (WEDC) to submit a report to the legislature and the Governor by June 30, 2020, that includes a plan for providing support to the major industries in Wisconsin that have been adversely affected by COVID-19.
Who this Impacts: All businesses and individuals filing Wisconsin tax returns.
The Act makes a number of changes to conform Wisconsin’s tax law to federal CARES tax changes. Specifically, the Act:
The Act also waives the one week waiting period for unemployment. Now individuals applying for employment assistance after March 12, 2020, and before February 7, 2021, do not need to wait one week between application for and receipt of unemployment benefits.
Relief: The Work-Share Program is an alternative to layoffs for employers. It allows workers to remain employed and employers to retain trained staff during times of reduced business activity. Under the plan, employers reduce employee hours to avert a layoff. The employee works the reduced hours and receives unemployment benefits that are pro-rated for the partial work reduction.
Who this Impacts: Employers with at least two employees that are considering employee layoffs.
Assembly Act 185 also suspends the following requirements for work-share plans until December 31, 2020:
In addition, the employer’s unemployment insurance account is charged for the payments to each employee for the week, similar to unemployed workers who receive benefits. Employees are not required to search for work during the plan.
Relief: Wisconsin will postpone the requirement for 2019 contributions to eligible plans until July 15, 2020, which is the postponed 2019 income tax return deadline.
Note that Wisconsin is not providing an extension past April 15 for a 2019 income deduction for contributions to a Wisconsin 529 college savings plan.
Who this Impacts: All Wisconsin residents.
Relief: The Wisconsin Department of Revenue deferred the income tax deadline to July 15, 2020, in conformity with the federal tax filing and payment extension of approximately 90 days for 2019 income and franchise tax returns with an original deadline of April 15, 2020.
As with the IRS extension, Wisconsin will also waive interest and penalties on tax due payments made during the extension. Additionally, all taxpayers making non-income tax filings and payments may request a one month filing extension prior to the original deadline of various non-income tax returns, including Withholding Deposit Returns (WT-6), sales and use tax returns and excise tax returns (which include motor fuel, alcohol and tobacco). Note that the one month extension only applies to filing the non-income tax return. Wisconsin is not providing an extension to pay the taxes, and the Department will impose interest on late payments.
Who this Impacts: All businesses and individuals filing Wisconsin tax returns.
Relief: The Brew City Match Small Business Emergency Loan Fund provides loans from $5,000 to $10,000 to cover rent, payroll and other fixed expenses at a 0% interest rate. The application fee has been waived due to support from sponsors.
Additionally, the Brew City Match Small Business Grant provides awards up to $1,200 to be used for commercial rental assistance or to meet payroll for current employees.
Who these Impact: Retail, restaurant or service businesses located within specified historic commercial corridors (Historic King Drive, North Avenue Marketplace BID, Near West Side, Cesar Chavez Drive and surrounding neighborhoods).
Brew City Match applications will be reviewed on a rolling basis, and businesses will be notified within five business days on the status of their application.
Relief: The Small Business 20/20 Grant Program provides funds to approved community development financial institutions (CDFIs). Approved CDFIs will award grants of up to $20,000 to their existing loan clients to assist with cash flow challenges resulting from COVID-19.
Who this Impacts: Existing, for-profit CDFI loan clients with 20 or fewer employees and less than $2 million in annual revenue.
Contact Karen Raghanti or a member of your service team to discuss this topic further.
Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law with your professional advisers.