Dear Neighbor, I am pleased to report the House and Senate finally passed legislation to repay the federal loan to the state unemployment insurance trust fund and replenish the fund to pre-covid levels. This legislation ends the $50,000 per day interest payments on the federal loan and returns the trust fund to a level that prevents further automatic increases in unemployment payroll taxes. A major log jam was finally broken. Both the GOP majority and DFL minority in the Senate, the governor and the GOP minority in the House agreed months ago to pay back the loan and repair the depleted trust fund. However, the DFL majority in the House until just days ago, blocked action on this issue. As a result of the delay, the first automatic increase in the unemployment payroll taxes has already been paid by many Minnesota businesses. The legislation requires recalculation and a credit or refund of excess unemployment taxes paid into the trust fund. The Department of Employment and Economic Development (DEED) is responsible for recalculation and refunding/crediting excess payments already made by Minnesota businesses. It is undetermined how long it will take DEED to issue guidance on exactly how their recalculation and refund program will work. The bill also provides a cash payment to individuals that were considered frontline workers. They must have worked 120 or more hours during the period between, March 15, 2020 and June 30, 2021. The Commissioner of Labor and Industry will implement the payment program and certify eligibility. Individuals must apply for the payment during a 45-day application window. The application widow will be announced once the program has been developed. An income cap is included for workers whose employment required direct contact with COVID-19 patient, $350,000 for joint taxpayers and $175,000 for individuals. For all others, $185,000 for joint taxpayers and $85,000 for single filers. The actual amount of the payment will be determined by the number of applications received during the 45-day period and is capped at $1,500 per individual. Action was long overdue in both areas. The unemployment piece and frontline worker payments were unnecessarily complicated by unwarranted delays. We made progress in both areas, despite the outcome not being a perfect solution and unpopular with some. Perfect should not stand in the way of reasonable. Sincerely, Dale |