On July 1, 2019, the minimum wage will increase in several locations throughout the country. While the federal minimum wage has remained $7.25 per hour since July 2009, many states, cities and counties have adopted their own minimum wage laws which provide for a higher rate. In areas where minimum wage laws overlap, employees are entitled to receive the highest applicable rate.
And here’s the info specific to Chicago — remember that there is an exemption for employees working at a business with three or fewer employees (not counting the employer’s parents, spouse, children or other members of the employer’s immediate family): https://www.chicago.gov/city/en/depts/mayor/supp_info/minimum-wage.html
From the perspective of small businesses, I recognize that this is an unaffordable hike for many. Supposedly the impact on employers has been minimal, but I know that certain clients of mine are struggling to compete in this environment, while they themselves earn far below minimum wage as business-owners. I also know of organizations that are unable to incorporate their LLCs or partnerships because they would not be able to afford compliance with these and other labor laws — and yet as independent contractors they would have even fewer protections.
It also causes problems for small employers that rely on workers for overtime hours — as outlined here, the wage increase is about 9%, and federal law mandates that employees receive overtime in an amount that is 1.5 times the employee’s regular rate. This means that the overtime rate for a minimum wage employee in Chicago will increase from $18.00 to $19.50 an hour.
I’m not sure what the solution might be to reconcile these two issues — but regardless, make sure you’ve got those hourly rates updated in employee contracts and payroll systems by July 1st!
It’s near-impossible for me to choose a favorite client, as well as a pointless exercise — I have so many wonderful folks in my life! Plus, I am lucky enough that the line between clients, friends, business associates and vendors (the people and places where I choose to spend my hard-earned money) are constantly and magically blurred.
But if I had to make a list, there’s no question in my mind that Shirley Kienitz, who runs both the Bruiser clothing line and local retail shop Wolfbait & B-Girls, is in the running for Number One. She’s an inspiration, she’s organized and responsible, she’s community-minded, and she practices what she preaches. And she’s very respectful of the role that accounting and business consulting plays in running a successful small business. Plus, she’s even more energetic and relentlessly awesome than I am!
So of course it was a joy to see her interviewed for Six Degrees of Inspiration by Credstyle Films. Take a watch and be inspired.
Great heads-up today from our wonderful alderman, Scott Waugespack:
Tax Prep Chicago is the City’s free income tax assistance program. Through the end of the 2019 tax season, Tax Prep Chicago provided free tax assistance to nearly 18,000 for low-income Chicagoans, putting more than $25 million back into communities across the city.
However, residents need assistance on taxes and financial services year-round. That is why Tax Prep Chicago’s partner, Ladder Up, offers free tax help and financial advice throughout the summer at the Harold Washington Library.
Families earning up to $55,000 and individuals earning up to $30,000 are eligible to take advantage of the free assistance. Services include:
Tax preparation for current and prior years
Federal and State amendments
Tax Clinic intake screenings
Customized credit reports
Access to prepaid debit cards and savings accounts
Referrals to Project Money, a financial coaching program
Each month the City of Chicago offers twice-weekly (Wed & Fri) FREE business education workshops presented by experts in private practice as well as representatives from various city departments. There are quite a few good ones this month — see the list below — and they’re all offered at City Hall (right downtown and near public transit). To register for any of them, email BACPoutreach@cityofchicago.org or call 312.744.2086.
Everything You Need To Know About Business Insurance
Wed, July 3, 3:00 PM – 4:30 PM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805 Presented by Sandra Cavato Insurance Agency In this session, attendees will learn the coverages needed for their business. We’ll discuss the right questions to ask your insurance professional and how to protect yourself and your business against lawsuits.
NO WORKSHOP DUE TO HOLIDAY
2019-07-05
City Inspections – Ask Questions, Get Answers Wed, July 10, 3:00 PM – 4:30 PM City Hall, 121 N. LaSalle St. – 8th Floor, Room 805 Presented by the City of Chicago To operate a successful business in Chicago you need to know what it takes to maintain compliance. Officials from several City departments will provide insight on how to operate safely, stay compliant, help prepare for inspections and highlight the do’s and don’ts of operating a business.
A Simple Recipe for Social Media Success
Fri, July 12, 9:30 AM – 11:00 AM
City Hall, 121 N. LaSalle St. – 11th Floor, Room 1103 Presented by Stephanie Walters, MBA, Blue Top Marketing As a small business, social media is overwhelming and often feels like you’re just spinning your wheels. You have to figure out where to be, how to be engaging, and how to get results—all with a limited amount of time and resources. That’s why in this session we’ll provide a recipe for social media that saves time and gets results to grow your business. You’ll learn how to choose the right social networks for your business, the 15-minute social media plan and getting started in the pay-to-play world of social media.
Get Capital for Your Small Business with Kiva and Accion
Wed, July 17, 3:00 PM – 4:30 PM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805 Presented by David Johnson, Accion & Ryan Holland, Kiva Hear from Kiva, a nonprofit that provides 0% interest loans of up to $10,000 to small business owners and entrepreneurs, and from Accion, a small business lender with loan ranges of up to $100,000 for small and existing businesses.
Recognizing and Protecting Your Company’s Trademarks, Patents, Trade Secrets, and Copyrights
Fri, July 19, 9:30 AM – 11:00 AM
City Hall, 121 N. La Salle Street – 11th Floor, Room 1103 Presented by Patrick J. Smith, Partner, registered patent attorney at Greer, Burns & Crain, Ltd. Learn the basic differences between copyrights, trademarks, patents, and trade secrets and the assets they protect. Knowing the differences will help you to take the right steps and make the right decisions to protect your company’s intellectual property assets.
How To Use Facebook Live And Other Streams To Build Your Business
Wed, July 24, 3:00 PM – 4:30 PM
City Hall, 121 N. LaSalle St – 8th Floor, Room 805 Presented by Jackson DeLisle, Social Jack Video has proven to be the best method to increase engagement, over 10x more response than regular text and images! Now we have Instagram, YouTube, Facebook LIVE Streaming and others, even LinkedIn is getting in on the action, and Jackson will share his team’s best video and streaming techniques and case studies. Social Jack™ has produced and worked with over 2,000 videos and streams as it relates to Social Media. He will share how they use multiple stream options to test and feed video content for quick use, test and conversion. Then once those streams are over, it’s time to turn those videos into a campaign. You will leave with an easy to follow overview of their process so that you can implement and enjoy the rewards of live streaming and video conversion. In this session, you’ll leave with tips to kick up your live stream attendance, how to setup and use Facebook LIVE, steps to optimize your YouTube Channel, easy to follow production steps , hacks to quickly convert your video to a campaign, how to leverage team’s members and influencers and a simple checklist to put this into practice.
The Business of Entrepreneurship
Fri, July 26, 9:30 AM – 11:00 AM
City Hall, 121 N. LaSalle St. – 11th Floor, Room 1103 Presented by Vincent Williams , Director of Business & Entrepreneurship – YWCA Metropolitan Chicago Starting a business is not easy. It takes commitment, dedication, support and follow thought. Join us in the workshop to learn our top tips for startup success.
Also, in case you weren’t aware, BACP offers a Business Start-Up Certificate Program, designed to give business owners the essential elements in starting and growing a business. Attend nine workshops at BACP and learn the essentials of business planning, financing, marketing, legal issues, technology and more. Complete the program workshops within six months and earn your certificate, as well as get free advice on your business plan. You can register for the Business Start-Up Certificate Program at any BACP workshop. Learn about the full set of BACP offerings here.
I’m personally heartbroken that Nina Olson, the National Taxpayer Advocate for the past 18 years, is retiring at the end of July. She and her staff have done an incredible job advocating on behalf of taxpayers, and doing everything they can to help cut government red tape and shift the focus of Congress and the IRS, bringing attention to the real-world situations their laws, policies and procedures can cause.
In her recently-released 37th and final report to Congress, she reiterated key IRS challenges in the areas of:
– Taxpayer Service
– Appropriate Use of Self-Service Applications
– Treatment of Financially Vulnerable Taxpayers
She also shared a 2019 Filing Season Review and outlined TAS Priority Issues for FY 2020, including the creation and online availability of a roadmap of tax controversies, and limitations on the ability of Amish taxpayers to receive full child tax credit benefits.
Nina left us with these parting words: “even as the system works for most taxpayers most of the time, it doesn’t work for millions of others. Taxpayer service is woefully inadequate. . . IRS audit notices are often unclear, leading some taxpayers to ‘agree’ to assessments by default – even when they don’t owe the tax. And the IRS doesn’t screen for ability to pay before it takes collection actions, thereby causing or worsening financial hardships for financially vulnerable taxpayers. Advocating for taxpayers affected by problems like these, both individually and collectively, has been and will continue to be the work of TAS.”
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Your local advocate’s number is in your local directory and at https://taxpayeradvocate.irs.gov/contact-us. You can also call TAS toll-free at 877-777-4778. TAS can help if you need assistance in resolving an IRS problem, if your problem is causing financial difficulty, or if you believe an IRS system or procedure isn’t working as it should. The service is free. For more information about TAS and your rights under the Taxpayer Bill of Rights, go to https://taxpayeradvocate.irs.gov. You can get updates on tax topics at facebook.com/YourVoiceAtIRS, Twitter.com/YourVoiceatIRS, and YouTube.com/TASNTA.
I’ll be giving a presentation this Wednesday, June 26th at 5:30 pm at Ampersand Cowork in Logan Square (Chicago) for their series Drink & Think: Entrepreneurship @ Ampersand! The topic is, “Thinking About Starting a Small Business – Side Business – Freelance Gig? Here’s What You Need To Know First.”
From the SBA (June 16, 2019) — In case you missed the 2019 National Small Business Week Virtual Conference, you are still in luck. The seven webinars are available to watch on demand. The topics include SBA funding programs, driving growth with customer obsession, online marketing and ads, mastering your cash flow, government contracting and disaster preparedness.
To be honest, I’ve read and re-read this article about four times — and I’m still not sure I entirely understand how property tax assessment works. Here are the highlights, for those of you who want to know more. Click the link at the bottom for access to the chart showing assessment levels by class. And for anyone who really “gets” the process, please feel free to share with us in the comments section.
The Illinois Department of Revenue announces the final 2018 equalization factor of 2.9109 for Cook County. The department is required by law to calculate the factor, also called the multiplier, to achieve uniform property assessment throughout the state.
The department determines the final equalization factor for each county by comparing the actual selling price of individual properties, over a three-year period, with the assessed value placed on those properties by the county assessor and adjusted by the board of review. If the median level of assessment for all property in the county varies from the 33 1/3 percent level required by law, an equalization factor is assigned to bring assessments to the legally mandated level.
A Cook County ordinance requires that residential property (homes, condominiums, apartment buildings of six units or less) be assessed at 10 percent of market value; all other residential property (apartments with more than six units), 10 percent; vacant lots, 10 percent; property owned by not-for-profit corporations, 25 percent; commercial property, 25 percent; industrial property, 25 percent; and commercial or industrial property being developed in economically deprived areas, usually 10 percent.
After second-quarter taxes are over and I’m caught up on extended tax returns, I plan to reach out to clients who got surprised with a 2018 tax bill and do a “Paycheck Checkup” with them, to make sure the same thing doesn’t happen for 2019. I’ve had a couple clients already meet to go over their tax returns to figure out “what happened?” The results have most commonly stemmed from the limitation on state/local/property tax deductions to the elimination of the unreimbursed employee expense deduction. However, in some cases it was simply that the new TCJA tax law is too complex to use a regular W-4 to calculate withholding.
So, if you haven’t done a Paycheck Checkup, consider now a good time for it, before it gets too deep into the calendar year to make up the difference via paycheck withholdings.
My colleague Jean Bittner-Brandt had this to say recently, and it’s making me wish I’d been able to attend the meeting with her!
Was at an IAAI meeting last week and the speaker spoke about the latest tax act for Illinois. As part of the act, the state is going to implement a tax amnesty program for debts from 07/01/2012 to 06/30/2018. The tax amnesty period will be from October 1, 2019 to November 15, 2019.
I’ve written my state representative to ask for clarity on the proposed tax brackets, which don’t seem right to me — instead of doubling the income brackets for MFJ like in the federal tax code, they are the same as for Single folks up until $750,000. Hoping this is a typo.
In any case, big changes coming to Illinois taxation!
