Wednesday, January 26, 2011

Upcoming WI Tax Increase!

Well, ain't this wonderful.

The State of Wisconsin owes the Feds $1.5Bn for unemployment comp borrowings.

Next September,

...the state will owe at least $50 million in annual interest payments alone. That comes on top of an estimated $3.3 billion deficit in the upcoming state budget.

Moreover, under the complicated federal rules, states are not allowed use general fund revenue to cover their unemployment fund borrowing shortfalls. That means employers who’ve been paying into the system may have to pick up the tab by paying in even more.

That will be a VERY significant increase for construction contractors, among others.

HT: Owen

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