Best Practices
Sales Roundtable
October 17th
October 13th
OCTOBER 2014
Obamacare 2015: Navigating the Maze: Jim Mueller Mueller, QAAS
INSIDE THIS ISSUE: KEATING: TO GET COMPETITIVE U.S. HAS MUCH WORK AHEAD ON TAXES AND REGULATIONS
LAUBER: REMOVING THE MYSTERY FROM THE EMPLOYER’S UNEMPLOYMENT CONTRIBUTION
IBAW IN WASHINGTON: BRIEFING WITH PAUL RYAN
Networking matters
At AT&T, we know that making connections is critical to success. In Wisconsin and across the nation, we link businesses with their customers and the world through our wireless network with access to the nation’s largest Wi-fi network. It’s just another way we help our customers stay connected. AT&T is proud to support the Independent Business Association of Wisconsin.
© 2014 AT&T Intellectual Property. All rights reserved.
IBAW thanks AT&T for it’s continued sponsorship.
IBAW MEDIA LINK Executive Director Steve Kohlmann President John Weber Hypneumat Secretary Charles Fry Robert W. Baird & Co., Inc Senator Ron Johnson appears with Chris Matthews on Hard Ball discussing ISIS and the appropriate measures to combat it. To view, click here.
President Elect 2014 Membership / Sponsorship Jim Leef ITU AbsorbTech VP. State & National Programs Jeff Hoffman Boerke Treasurer Casey Malek Sikich
XXXX XXX Senator Ron Johnson discusses the Senate races and which ones to watch.
Directors Bart Adams Sikich Ann Barry Hanneman Simandl Law Group S.C Heather Baylor Park Bank Richard Blomquist Blomquist Benefits Lisa Mauer Blackhawk Industrial Jason Kuwayama Godfrey & Kahn Tom Boelkow BSI Design, Build, Furnish
IBAW Mission: To advance business prosperity through insightful programming, executive networking and member-driven public policy and advocacy.
Craig Coursin MSI General Robert Gross Gross Automation
Business Education Series FIVE STAR Programing
October 17th Meeting “Healthcare 2015: Navigating the Maze”
Jim Mueller, CEO, Mueller QAAS Mueller QAAS, is an objective employee benefits consulting company. Previously, Jim was President of Frank F. Haack & Associates and Zywave, the largest insurance agency in Wisconsin and an international technology company servicing insurance brokers.
SEATING LIMITED... REGISTER EARLY! COST....$32.00
2015 will see the implementation of new and unavoidable ACA healthcare regulations, procedures and issues for you to deal with. Join the IBAW on October 17, 2014 and get informed on what’s ahead in this employee benefits strategy meeting with innovative ideas you can easily implement at your organization. Key takeaways from this meeting: New & unique ways to offer benefits, cost savings, and a clearer understanding of the employer’s role in the health care market. Opportunities within defined contribution, public and private exchanges and transparency issues.Strategies to give you a competitive edge when dealing with new mandates & ways to control costs.
Includes high level networking and plated breakfast! Attire: Business professional.
Send your HR Team!
Registration now open! Click here.
LOCATION
THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE
7:00 AM
REGISTRATION & NETWORKING
7:30 AM
BREAKFAST & PROGRAM
9:00 AM
PROGRAM ENDS
Meeting Sponsor:
Washington, D.C.- The Recap Steve Kohlmann, IBAW Executive Director Ask people what they don’t like about their country and you are likely to get the response: Washington, D.C. Congress, the Senate and the President all have approval ratings in the gutter and the American public has a general feeling of helplessness in changing how the government represents them. Washington takes our tax dollars and wastes it and doesn’t listen to us, the people they are sent to represent. It reminds me of the old weather joke: Everyone complains about the weather but nobody does anything about it. This past month I traveled to Washington, D.C. to attend Milwaukee Night in Washington. An event put on by our friends at the Milwaukee Metropolitan Chamber of Commerce. It was a chance to mingle with elected representatives and give them feedback on what I have been hearing from you - our membership. Workforce issues, excessive taxes and regulation issues, concerns about healthcare and the general direction of where you feel the country is going. I also had the opportunity to sit in a briefing with Congressman Paul Ryan as part of my schedule (see story in this magazine issue). Do meetings like this really make a difference? Call me naive but I think they do. If you’re an elected official and someone flies across the country to come to your office and lets you know what’s keeping them up at night that does make an impression. As one of my Washington friends told me: “You have to be here to make a difference.” Like I said, call me naive. I was also fortunate enough to meet with longtime IBAW friend and supporter, Karen Kerrigan of the Small Business Entrepreneurship Council and in our hour long meeting discussed what has been happening in Washington and also discussed how our two organizations can work together to help each other. Regardless of where you go or who you meet security is tight - crazy tight. Even tighter than what it was last year when I went. And the sad part is you get used to the routine of going through security checks before going into any public building. Wallet, cell phone and keys easily are put in the left hand and take off your belt with the right hand. By the end of the third day I was able to get my wallet out together with my keys and cell phone and with my right hand rip off my belt in one quick motion - similar to Indiana Jones wielding his whip. Yet despite the tight security to get into some of these buildings a guy last week still manages to hop the White House fence, run up the lawn and make his way through a unlocked front door of the White House. Crazy. On the day we were on the Hill, Secretary of State, John Kerry was testifying on the ISIS situation. Security was over the top with plenty of law enforcement with their weapons at the ready - and ready for anything. We asked one officer if it was OK to proceed through this area and while he said it was OK most of the people decided it was best to walk around the area and stay clear. You can’t go to Washington without realizing bureaucracy is going full steam ahead there and, left unchecked, government will do it’s best to keep it complex. Massive buildings house thousands upon thousands of workers who move paper throughout the day and then pour out into the streets starting at 3:00 pm. It’s really incredible to witness this. If you have never been to Washington, I would encourage you to go. Washington is a unique place to visit. History, politics, traffic, crazy parking and it’s all filled with people walking quickly while tapping or talking on their cell phones like they have somewhere to go. Housing prices - no matter how small - are crazy expensive. An 1100 sq. ft. row house across from our hotel was for sale $850,000. No garage, street parking - if you could find it. But not everyone can leave their business behind and head out to Washington. That’s why organizations like the IBAW are a vital tool for you to use when communicating with your elected officials. Most business owners don’t have the time to track down representatives and let them know what’s keeping them up at night. Let me know what is on your mind and I’ll communicate it. .
September Meeting Wrap Up Our September meeting covered the present condition of the Wisconsin workforce and where the workforce trends are heading in the future. Our guests were Jonathan Barry, Department of Workforce Development and Scott Jansen, Employment & Training Division Administrator who gave a very detailed presentation on the efforts the state is taking to close the gap with employers and potential employees.
To see the full presentation from the IBAW website, click here.
Aging baby boomers retiring along with the shifting trends of work place market is impacting the job situation. This chart depicts Wisconsin’s labor supply up to the year 2022.
To see the full presentation from the IBAW website, click here.
Where are the future jobs? What industries will be most impacted by the trends of the future? This chart gives us a glimpse of the sectors with the most growth potential for the near future.
To see the full presentation from the IBAW website, click here.
IBAW Joins SBE Council to Promote Small Business The Independent Business Association of Wisconsin (IBAW) has subscribed to the The Small Business & Entrepreneurship Council (SBE Council) in Washington, D.C. as a member. SBE Council is an influential voice and advocate for entrepreneurs and small business owners focusing on securing policies, resources, and educational initiatives that encourage entrepreneurship and small business growth. SBE’s strength and effectiveness are powered by SBE Council members and supporters such as the IBAW and its members. IBAW & SBE Council have worked together in the past on policy issues and this gives IBAW members a direct source for regular updates on what’s happening in Washington, D.C. Having someone in Washington on a daily basis and has inside knowledge of the issues will be a huge benefit for IBAW members. Regular updates will appear for members in the IBAW magazine, email updates and social media feeds.
IBAW Executive Director, Steve Kohlmann meeting with SBE Council Executive Director Karen Kerrigan in Washington, D.C. during Milwaukee Day in Washington last month.
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D E P O IBAW Wisconsin Business Climate Vastly Improved With Walker - Steve Kohlmann, IBAW Executive Director In the 2010 State of Wisconsin Governor’s race, then Candidate Scott Walker established a lofty goal for the State to create 250,000 private sector jobs within his first term. The number was big, it was bold, and more than anything, the statement put private sector businesses on notice that the State was going to do better. Some are critical of the Governor for “only” creating 102,800 private sector jobs so far. Would those same people be critical if Green Bay Packer coach Mike McCarthy promised to deliver two Super Bowl titles in as many years and only delivered one? To be sure, with 102,800 jobs created over the past three and a half years job growth in the State has been tepid, however the turnaround in the State’s overall business climate has been nothing short of remarkable. During the same campaign, Candidate Walker often stated “Government doesn’t create jobs, people do.” Much like a start-up business that is in the beginning stages of executing the correct strategy, economic development in the State of Wisconsin is breaking loose and “people” are once again creating jobs. The Independent Business Association of Wisconsin (IBAW) believes that the State of Wisconsin is headed in the right direction and the foundation that has been established to improve the business climate in the State is starting to bear fruit. Why has there been such a disconnect between private sector job creation when measured against the vastly improved business climate of the State? Despite the abundant amount of opinions as to the singular answer to this dilemma, this is a very difficult question to answer without considering multiple dynamics. Lacking a robust technology cluster that produces scalable start-up businesses, or the oil and gas resources of a State like Texas, a State like Wisconsin needs to compete on the merits of its’ business climate in order to entice employer’s to invest in their enterprises. One only needs to look at the performance of Indiana over the past decade to understand how a State can compete with its’ overall business climate as being the top deliverable to a company. By this metric, the Walker administration has performed far better than anyone operating a private enterprise could have ever expected. The following is a brief listing of high level accomplishments from the Walker administration:
• • • • • • • • • • • • • •
Qualified Production tax credit which will effectively eliminate State Income Tax for Manufacturing and Agriculture companies by 2016. Three Property tax cuts totaling $1.6 billion dollars. Personal Income tax reductions totaling $750 million dollars. Investments of $100 million in dedicated Workforce development and training programs. The “Better Bottom Line” program helping hire more people with disabilities for Wisconsin companies. Development of the Wisconsin Workforce Partnership Grant. A balanced State budget, sustainability of a fully funded pension, and improved bond rating. Across the board State agency reform. Regulatory and permitting reform within the WDNR. Significant tort reform benefiting manufacturers and healthcare providers. Elimination of punitive and compensatory damages against employers. A public/private transformation of the Department of Commerce into the Wisconsin Economic Development Corporation. Proactive Mining Legislation to promote development of mining resources that could produce an annual benefit to Wisconsin of $1.2 billion dollars. $25 million dollar Venture Capital Bill.
The reforms are starting to produce results. With the 102,800 jobs added during the Governor’s first term, Wisconsin’s unemployment rate has fallen from 7.7% to 5.7%, which is below the national unemployment rate of 6.2%. A recent Manpower Group survey also noted Wisconsin as being one of the States to watch for the best prospects of private sector job growth over the next year. Local businesses and national media outlets are paying attention: • A Recent WMC (Largest Chamber of Commerce in the State of WI) survey indicated 96% of employers within the organization think the state is headed in the right direction. Only 10% of the participants in this annual survey thought the same prior to Governor Walker taking office. • 71% of participants in the WMC survey expect to see growth in their companies over the next 6 months. • In CEO Magazine, the State of Wisconsin has moved to the 14th Best State to Do Business in 2014 from 42nd in 2010. • CNBC’s Best Places to Do Business has Wisconsin ranked #17 in 2014 from 29th in 2010. • Site Selection Magazine ranked Wisconsin the 13th best place to do business. Previously Wisconsin did not make the cut for the top 25. • Wisconsin was just named Number 1 in the Midwest in year over year personal income growth (Q1 2014 over Q1 2013) with a 3.33% increase.
With recent big wins of the 1,100 employee Amazon fulfillment centers, the commitment from Uline to add an additional 1,000 jobs and multiple manufacturers throughout the State that are either putting additions on their plant or constructing new facilities, the hard fought legislative victories of the past three and one half years are starting to translate into private sector investments. Rather than focusing on an arbitrary number of 250,000 jobs, a more fitting judgment of the Governor’s record moving forward should be considered against his promise in his 2014 State of the State address “We want to ensure everyone who wants a job can find a job.” IBAW believes that with the continued implementation of the Governor’s strategic vision, the residents of the State of Wisconsin, especially residents who are down on their luck and searching for a job, will be able to benefit from a much more substantive metric of economic success as stated in the Governor’s 2014 State of the State address. ###
SALES: Best Practices ROUNDTABLE
Monday, October 13th 7:30 AM - 9:00 AM.
This month we'll discuss the sales process how to use it correctly for maximum effect. We’ll also discuss challenges and hurdles you face and how to overcome them with input from members of the group. This is open to anyone in a business development role at an IBAW member company who would like to share their real world challenges and most successful strategies for growing business. This Roundtable is meant to serve as a confidential means to learn from your peers in other industries and to help others learn from your experience – good and bad. Location: Cost: Free - A benefit of IBAW membership. CTaccess Conference Room (Registration is required) 740 Pilgrim Parkway, Suite L3 Elm Grove Registration is open! Click here. Coffee provided by CTaccess, bagels provided by IBAW.
To Get Competitive, U.S. Has Much Work Ahead on Taxes and Regulations Ray Keating, Chief Economist, SBE Council, Washington D.C. When starting up, investing in and running a business, assorted costs, risks and uncertainties threaten to undermine the enterprise. Among those costs are governmental policies gone awry, including taxes and regulations. Two new studies drive home the huge challenge that entrepreneurs, businesses and investors face in the U.S. when it comes to both tax and regulatory costs. U.S. Near the Bottom on Tax Competitiveness: The Tax Foundation has just published the “International Tax Competitiveness Index,” authored by Kyle Pomerleau and Andrew Lundeen. The authors examine the tax systems of the 34 OECD nations, and assess and rank them according to the degree that they “promote competitiveness through low tax burdens on business investment and neutrality through a well- structured tax code.” Forty variables are evaluated with five broad tax categories, i.e., corporate, consumption, property, individual and international tax rules.”
Incredibly and unfortunately, the U.S. placed a miserable 32nd out the 34 nations. Only Portugal and France were worse. The ills of the U.S. were summed up as follows: “There are three main drivers behind the U.S.’s low score. First, it has the highest corporate income tax rate in the OECD at 39.1 percent. Second, it is one of the only countries in the OECD that does not have a territorial tax system, which would exempt foreign profits earned by domestic corporations from domestic taxation. Finally, the United States loses points for having a relatively high, progressive individual income tax (combined top rate of 46.3 percent) that taxes both dividends and capital gains, albeit at a reduced rate.” In fact for the U.S., the only positive among the five major categories was a rank of four in consumption taxes. From there it got ugly. Again, among 34 OECD nations, the U.S. ranked 33rd in corporate taxes, 31st in property taxes, 26th in individual taxes, and 34th – that is, dead last – in international tax rules. That’s a grim tax scenario that clearly raises the costs of risk taking – that is, the entrepreneurship and investment that drives economic growth – and severely diminishes the competitiveness of U.S. goods and services internationally, and the ability of the U.S. to attract labor and capital from around the globe. Growth of Regulation a Drag on Small Business: As for regulations, the National Association of Manufacturers released a new study titled “The Cost of Federal Regulation to the U.S. Economy, Manufacturing and Small Business,” authored by W. Mark Crain and Nicole V. Crain. According to the authors, the purpose of the study is to quantify “the costs of regulatory compliance on firms, particularly manufacturers in the United States, and to extend some of the previous efforts to measure the aggregate regulatory costs,” and “to provide an estimate of the total cost of federal regulations analogous to the taxes raised to finance the federal budget.” Crain and Crain report that “U.S. federal government regulations cost an estimated $2.028 trillion in 2012 (in 2014 dollars), an amount equal to 12 percent of GDP.” That’s a staggering level. Unsurprisingly, regulatory burdens fall more heavily on small businesses. The per employee per year costs of federal regulations averaged $9,991 for all firms. For firms with 100 or more employees, per employee per year costs were $9,083; for businesses with 50-99 employees $10,664; and for firms with less than 50 workers $11,724. So, the per employee costs for small businesses were 29 percent higher than the costs for larger business. In terms of types of regulations, the per employee per year costs of environmental regulations were 252 percent higher for small firms versus the larger businesses. Similarly, the disparity in costs are large regarding tax compliance regulations, with the per employee per year costs for small firms running 119 percent higher than the largest firms.
The costs and cost disparities are much higher for manufacturers. The per employee per year costs of federal regulations on manufacturers averaged $19,564. For manufacturers with 100 or more employees, per employee per year costs were $13,750; for manufacturers with 50-99 employees $18,243; and for manufacturers with less than 50 workers $34,671. So, the costs for small manufacturers were 152 percent higher than for the largest category of manufacturers. The disparity was even larger for environmental regulations, with per employee per year costs for small manufacturers running 226 percent higher than for the largest manufacturers. Combine these two studies, and one gets a clear picture of just how burdensome taxes and regulations are on U.S. entrepreneurs and businesses, and therefore on U.S. workers and consumers. The U.S. continues to suffer through tough economic times that started in late 2007. If we wish to return to robust, sustainable economic growth, then U.S. policymakers need to move away from the higher tax and regulatory burdens that have been imposed (and threatened in recent years), and implement a serious undertaking of broad tax relief and deregulation. Along with sound monetary policy, reining in government spending, and expanding global trade, this is the only clear path to America’s economic rebirth. _______ Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. Keating’s new book published by SBE Council is titled Unleashing Small Business Through IP: Protecting Intellectual Property, Driving Entrepreneurship and available from Amazon.com here.
H.R. 2 and H.R. 4 are “Bold measures that will encourage entrepreneurship and help small business owners and their workforce build strong enterprises.” Washington, D.C. – Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan issued the following statement regarding passage of the American Energy Solutions for Lower Costs and More American Jobs Act (H.R. 2), and Jobs for America Act (H.R. 4) by the U.S. House of Representatives: “The U.S. economy and entrepreneurship need a positive policy jolt. Legislation passed by the U.S. House today would fuel small business confidence and create the environment needed to ignite the strong growth that our economy is capable of producing. Unfortunately, our economy is being choked by harmful and inconsistent policies. Substantive tax and regulatory certainty and relief are desperately needed to reverse declining entrepreneurship and weak business confidence. Policies also need to leverage America’s energy renaissance, and encourage more of this valuable activity that has been a major source of economic growth and quality job creation. H.R. 2 and H.R. 4 are bold measures that will encourage entrepreneurship and help small business owners and their workforce build strong enterprises. We urge the Obama Administration to take the same bold approach toward helping our economy. President Obama can start by supporting House efforts to support American businesses.”
IBAW IN WASHINGTON, D.C. IBAW Executive Director Steve Kohlmann attended Milwaukee Day in Washington, D.C. and had the opportunity to attend a short briefing with Congressman Paul Ryan. Below were some of the concerns of the audience and a summary of Congressman Ryan’s thoughts as I recall them. - Steve Kohlmann
Immigration issues: Will they be addressed after the election: Congressman Ryan doubts anything will happen after the election. It’s possible the President would use the executive order during his lame duck but since this is such a volatile topic that would create a rift and create a backlash with the House and the Senate. The issue is a roller coaster but at the moment the issue is out of the political spotlight.
What would the Beltway look like next year with a Republican Senate? It’s the feeling of Congressman Ryan there will be items sent to the President’s desk which wouldn’t appear under the Democrats thus forcing the President to make a decision on those bills such as the Keystone Pipeline through the appropriations process. Congressman Ryan is also concerned about the regulations coming out Washington that are killing jobs and would like to address that. He would also like to get a budget in front of the President to get a two year agreement to avoid another government shutdown. At present, 381 bills have passed the House and are stuck in the Senate going nowhere. Having a Republican controlled Senate would release the log jam of these bills and send them to the President’s desk where he would have to make some type of decision on them.
Workforce issues: What’s are the solutions to closing that gap? Congressman Ryan’s view is there’s no silver bullet for this topic but the solution seems to be multi faceted and on many levels, however, the right kind of welfare reform - back to a better life for example - is a major factor. Ryan would like to take on prison reform, feeling that people in prison are slipping further behind, and reform our system so while they are incarcerated, those individuals get the skills to get back into the system once they are released. Also, Congress recently passed a Job Training Bill. Previously there were 49 different job training programs in 9 different government agencies and this bill consolidated all of them. These programs are now performance based skills training programs, meaning you can get a benefit and go to MATC or Herzing or wherever one wants to go to get those skills. Congressman Ryan believes this is a better streamline skills training program for the post secondary or those in need of a
GED program. He also indicated where we have to go is an overall attitude change and that happens with welfare reform, supporting more community based programs, which directly help the community. Running Rebels is a non profit, mentor program for young people so that you can employ them and Ryan highly recommends looking into what they are doing.
What is happening with boarder security? The general feeling is “We don’t have it like we need it”. The Senate did pass a bill but it’s two or three thousand pages and there’s so many other items in this bill. What Congressman Ryan would do in the House is take these issues one at a time, so that they know what they are voting for and the public knows as well. In Ryan’s opinion, the Administration is dropping the ball and dragging their feet on securing the border. He fundamentally believes in a guest worker law taking the pressure off the border, separating the immigrant worker who is coming to do a job from a person coming to do harm. The present system is a broken immigration system that doesn’t work. It doesn’t work for immigrant workers, it doesn’t work for securing the border. According to Congressman Ryan, he has never seen an issue that was such a hot button issue and there’s frustration the Administration isn’t using the laws now that are in place to secure the border. The United States doesn’t have a visa tracking system to keep tabs on who’s coming and who’s going, which Congressman Ryan believes in this day and age really needs to take place.
What about funding for transportation for road, bridges and things we really need to move goods? The highway gas tax is a losing system as cars become more fuel efficient. It’s not a solid reliable source because fuel efficiency is on the rise. Ryan believes in finding a better user based system and there’s nothing close to a consensus of what that is. Ultimately, a better private / public partnership that give the states flexibility on dealing with these issues is preferred by Ryan. If a state wants to do toll roads, they can do toll roads. Let the state figure out what it needs and how best to execute it. Cleaning up the trust fund is key since there’s a lot of money stuck in bureaucracy and we can make more progress for the state.
Congressman Ryan gives a briefing to MMAC and IBAW members during Milwaukee Day in Washington D.C. The meeting took place in the House Budget Committee Hearing room in the Rayburn office building.
Removing the Mystery from the Employer’s Unemployment Contribution John Lauber, Lauber CFOs
Wisconsin’s Unemployment Insurance (Tax) is a complicated and often confusing system. In this Tip we will address the funding side of the program, how the amount an employer pays is calculated. We will leave the benefit eligibility side for another issue. What is the unemployment insurance program? The unemployment insurance program provides weekly benefits to eligible unemployed workers. These benefits provide economic stability to the workers and their families during temporary periods of unemployment and help lessen the effect of unemployment on the local economy. The program is financed solely through employer contributions (taxes). What is the relationship between Wisconsin's Unemployment Insurance Law and the Federal Unemployment Tax Act (FUTA)? Unemployment insurance is a federal-state program jointly financed through federal and state employer payroll taxes. The federal unemployment tax is used, in part, to finance the administrative expenses of each state's unemployment insurance program and certain federal costs related to extended benefits. Employer payroll taxes collected under the Wisconsin Unemployment Insurance Law and all other state unemployment insurance laws are used only to pay benefits to unemployed workers. When is the tax paid? Quarterly an employer is required to file form UCT – 101 which includes the calculation of the amount of unemployment tax due. The form and payment is due by the end of the month following the end of a calendar quarter. The State encourages filing on line and fill in the blank forms are available. How is the Quarterly Tax (contribution) Calculated? A state statutory combined rate (adjusted for an individual company’s experience in drawing on their fund balance) is multiplied times a company’s eligible payroll. Each of these factors will be discussed below. What are the State Statutory Rates? •
•
• •
The Wisconsin Unemployment Statute contains 4 different rate tables labeled A – D. Each year, depending on the dollar amount in Wisconsin’s Unemployment Fund balance, a determination is made as to which table will be used for the following year. If the balance is low, as happens in an economic downturn, when benefit payments increase, the table with higher percentages is used. Conversely, as the fund balance grows, a table with lower rates is used. The rate table identifies a Basic Rate and a Solvency Rate. Together these make up the combined rate. A separate schedule exists in the table for small firms and large firms. Small firms are identified as having annual eligible payrolls of under $500,000. The Basic Rate – this portion of each tax payment is credited to an individual company’s account balance. The account balance is discussed in more detail below in the section on Adjusting for Experience. The Solvency Rate – this portion of each tax payment is credited to a shared risk account called the balancing account. It is the condition of this account that determines which rate schedule, A – D, will be used in the next year.
What is Eligible Payroll? Historically eligible payrolls were the first $10,500 of wages paid to an employee in a calendar year. In 2008, the Wisconsin Senate passed a bill that increased the payroll limits to $12,000 for 2009 – 2010, $13,000 for 2011 – 2012 and $14,000 for 2013 and thereafter.
How is the Statutory Rate Adjusted for Experience? •
The State maintains an account balance (contributions minus benefits paid) for each individual company. An annual calculation is made by the state of the ratio of a company’s fund balance compared to their prior eligible payrolls. The resulting percentage determines where a company falls in the rate table. If a small business’s fund balance is 15% or more of eligible payroll, they pay the lowest rate (currently 0.27%). A small business with a ratio of negative 6% or less pays the highest rate (currently 9.8%)
•
As a result of the experience adjustment, a significant difference in Unemployment Taxes can exist between a company with good experience (limited benefits paid) and bad. For example two companies, each with 15 employees making over the limit of $12,000 per year. One with the best rate and the other at the bottom. $12,000 X 15ee X 0.27% = $648 annual tax $12,000 X 15ee X 9.8% = $23,520 annual tax
•
The State has established two rates for new employers. One for construction businesses and one for all other. These rates stay in effect for 3 years, allowing time for the company to establish their own experience.
Some business owners question whether it is better to lay off employees and pay the higher tax in the future needed to replenish their reserve account or keep the employees on the payroll. The straight financial answer appears to favor lay-offs especially for higher paid employees. • • • •
With some exceptions, the weekly Unemployment Benefit an employee receives is roughly 50% of what their pay averaged over the prior year up to the current maximum of $363 per week. Employees with annual pay in excess of approximately $36,000 would therefore receive less than the 50% because they would hit the ceiling. Normally benefits and payroll tax cost also stop with a lay-off. Historically the benefit period is 26 weeks although Congress has extended this period in times of broad spread economic distress.
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October 17, Chicago, IL The Strategic Sourcing Forum is the second Leadership Series event for 2014, that will focus squarely on the challenges facing SME importers from China. As we enter a new era where double-digit price reductions stemming from labor arbitrage are harder to find, SME’s must now aim at becoming more effective and efficient at managing Chinese suppliers if they are to avoid margin compression. Click here for more information.
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Introducing the Amaz-ing Kreskin...
He’s cute, but can he read your potential customer’s minds? Probably not. In the ever-changing digital world, its more and more important to not only reach, but to connect with your potential customers.
• • • • •
Marketing strategy Website design Email marketing Creative services Direct mail
Call us... We’ll help you start the conversation. 3575 N 124th Street, Brookfield 262 373-4000 . cultivate-communications.com
3 Things You NEED on Your Website Right Now Robert Wendt, President, Cultivate Communications How many potential customers arrive at your website only to leave immediately, disinterested and unimpressed? If you had to stop to think about that question at all, we’ve got some bad news: you lack confidence in your website. The good news is there’s a roadmap you can follow to drive more prospects to engage with your business online, moving them closer to the sale.
Informative Content Today’s informed consumer is looking for information. They want to learn as much about your products and services as possible before they make contact with interest to buy. It’s time to show your stuff. This doesn’t mean you should load up your website with just any old content. Instead, brainstorm specific topics that will interest your customer base and keep them poking around your website. Provide information about your products and services, but do not oversell. Your objective: Be helpful, not pushy. Your goal: Increase prospect engagement and build trust to earn yourself a customer.
Call-to-Action Buttons (CTAs) One way to measure prospect and customer website engagement is to create call-toaction buttons, then strategically sprinkle these little pieces of candy all over your website. We’re not talkin’ a simple “Click Here!” button. (Seriously, don’t use “Click Here!” It’s a turn off.) Instead, use verbs (action words) to get site visitors’ attention. A great CTA is irresistible—it simply must be clicked. Now. Keep it short and simple, and offer an awesome incentive so they know their click will pay off. And guess what? Clickable call to action buttons are trackable. You can count those clicks to determine what’s working on your website (converting prospects to customers)…and what’s not. Your objective: Get ‘em clickin’; keep ‘em engaged. Your goal: Measure CTA click data to increase your conversion rate and get more customers.
Targeted, Shareable or Downloadable Goodies But what are you offering when they click your oh-so-alluring CTAs? Helpful and informative shareable or downloadable freebies! Each time your prospective customer downloads a free eBook, whitepaper, case study, or infographic—and they truly find the information useful—you’re building trust in your company and in your brand. Plus, by offering these helpful and informative materials, you have a real chance to showcase your expertise and rise above your competitors. No matter the demographics of your target market, when a person decides to engage with a business and spend money on products or services, they want to be confident they’re getting real value out of the exchange. Each piece of free, authoritative, helpful content is one more big opportunity to build trust and generate qualified leads. Your objective: Offer up great content and build prospect trust. Your goal: Convert qualified leads to awesome customers who love your business. BEFORE YOU BEGIN: Remember, it’s essential to create a marketing strategy first, rather than winging it and adding all these components in piece by piece. Strategy is a prerequisite to any successful marketing plan. Robert Wendt is President of Cultivate Communications. He can be reached by email here.
IBAW Legislative Priorities Online
State Legislative Priorities 2014 State Legislative Priorities
- Workforce Development / Technical College Benchmarks - Pro Growth Tax Reform - Address the Structural Deficit of WI DOT - Predictable Sand Mining Regulation
1- Workforce Development / Technical College Benchmarks 2 - Pro Growth Tax Reform 3 - Address the Structural Deficit of WI DOT 4 - Predictable Sand Mining Regulation
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National Legislative Priorities - Delay of the Affordable Care Act - Support the Existing Level of the Federal Minimum Wage
2014 National Legislative Priorities
- National Energy Policy Capitalizing on our Strengths - Increase Access VISAS for Immigrants with Advanced Degrees & Start Ups
1- Delay of the Aordable Care Act 2 - Support the Existing Level of the Federal Minimum Wage 3 - National Energy Policy Capitalizing on our Strengths 4 - Pro Growth Tax Reform
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5 - Increase Access VISAS for Immigrants with Advanced Degrees & Start Ups
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