City of Chicago October 2019 Business Education Workshops

September 30, 2019 Nancy McClelland Leave a comment

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.

City Inspections – Ask Questions, Get Answers
Wed, October 2, 1:00 PM – 2:30 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.

The Nuts and Bolts of Small Business Funding
Fri, October 4, 9:30 AM – 11:00 AM
City Hall, 121 N. LaSalle St. – Room 1103
Presented by Hannah Fernandez, ROI Business Funding
Access to capital continues to be a pressing challenge among small business owners. In this workshop, you will have a better understanding of the spectrum of funding options that exist for small businesses in the “missing middle” gap, where the capital amount the business owner is looking for is too small for a traditional bank or too big for a microfinance institution or nonprofit lender (typically between $50K-$2MM). You will learn how to identify which funding option(s) is most appropriate for your business and know what it takes to become fundable.

Negotiation Skills Workshop
Wed, October 9, 1:00 PM – 2:30 PM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805
Presented by Awatif Yahya, Founder, Awe Horizons LLC
Think about the last time you bought a car, negotiated your pay, agreed with a customer on a price, or got consensus with your kids on where to dine. How did it go? Were you happy with the outcome? Did you get what you wanted? There is science behind a good negotiation. It is a skill that can be learned and mastered over time. The aim of this workshop is to develop and enhance your negotiation skills, be it in a business environment or a personal setting, to get to a win-win situation. This workshop will address what makes up a good negotiator, cover negotiation myths and mistakes, negotiation satisfies and dig into 5 negotiation tactics. We will close with practicing tips to help you master your negotiations.

Lending Tools for Small Businesses in Growth Mode
Fri, October 11, 7:30 AM – 9:00 AM
City Hall, 121 N. LaSalle Street – 11th Floor, Room 1103
Presented by Jake Stern, SVP & Director of Economic Development at SomerCor
Interested in taking the next step to expand your business? Learn about powerful lending tools that meet the capital needs of existing businesses in growth mode. Topics include SBA 504 loans, Small Business Improve Fund (SBIF) grants and Neighborhood Opportunity Fund (NOF) grants.

Forming Your Business: Choosing a Legal Entity
Wed, October 16, 1:00 PM – 2:30 PM
City Hall, 121 N. LaSalle St – 8th Floor, Room 805
Presented by Agostino Filippone, Partner, Chokshi Filippone Law, LLC
Whether LLC, Corp, or another legal entity, when starting a business, organizing your company the right way can significantly limit risk. Agostino Filippone, a Partner at Chokshi Filippone Law, LLC, will present on entity options, as well as provide information and material to help you navigate around common pitfalls faced by business-owners.

How to Use Networking to Build Your Business
Fri, October 18, 7:30 AM – 9:00 AM
City Hall, 121 N. LaSalle St. – 11th Floor, Room 1103
Presented by Anna Maria Viti-Welch, The Viti Companies
Anna Maria will discuss different ways to network, as well as how to begin networking, where to find the best networking opportunities for your business and how to make the most of your networking efforts.

How to Write a Business Plan – What you need to know!
Wed, October 23, 1:00 PM – 2:30 PM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805
Presented by Donna R. Rockin, Managing Partner at Rockin Enterprises, Inc.
Learn how to create a comprehensive business plan. It’s easier than you think when you understand all the components that get included. You’ll receive a complete list of what to include to demystify the process. Writing a solid business plan is your roadmap to business success.

Identifying Your Optimal Marketing Tactics
Fri, October 25, 7:30 AM – 9:00 AM
City Hall, 121 N. LaSalle St. – 11th Floor, Room 1103
Presented by Rainier de Ocampo, MBA (Adjunct Marketing Professor at UCLA Extension and Cal State University, Los Angeles)
There are many digital channels and marketing tactics to choose from that it can be overwhelming and difficult to know which ones will work best for your business or brand. This session will unpack and help integrate the following marketing tactics: Social media; Email marketing; Digital advertising; PR & media outreach; Blog content; And more!

Fighting Cybercrime and Meeting Your Cyber Security Challenges in 5 Steps
Wed, October 30, 1:00 PM – 2:30 PM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805
Presented by the Better Business Bureau (BBB)
Cyber crime targeting businesses is on- going and continues to be a major concern. Learn how five steps can build awareness and an action plan to deter cyber criminals and help avoid the problems that could destroy a business. This presentation uses the latest information about hackers and data breaches to educate businesses how to protect themselves. Better Business Bureau teamed with National Cyber Security Alliance and National Institute for Science & Technology, along with local cyber security experts to create a scale-able program that any size company can use to create an individualized cyber security program. This workshop is in recognition of National Cyber Security Awareness Month.

To register for a workshop, email BACPoutreach@cityofchicago.org or call 312.744.2086.

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.

And visit their Business Video Library here.

Source: City of Chicago :: Business Education Workshop Calendar

Education, IRS

IRS Finalizes Safe Harbor to Allow Rental Real Estate to Qualify as a Business for QBI

September 30, 2019 Nancy McClelland Leave a comment

From the IRS e-News for Tax Professionals Issue 2019-35, dated September 27, 2019:

The IRS this week issued Revenue Procedure 2019-38, which establishes a safe harbor allowing certain interests in rental real estate, including interests in mixed-use property, to be treated as a trade or business for purposes of the qualified business income deduction under section 199A of the Internal Revenue Code.

The safe harbor is available for individuals who claim the section 199A deduction with respect to a “rental real estate enterprise.” To review the qualification requirements, visit IRS.gov/taxreform.

Note: there is still much argument out there over whether the safe harbor is intended to be seen as a definition of a rental real estate trade or business, or simply a minimum requirement in order to avoid having to prove whether or not an activity qualifies under section 162. Safe harbors sometimes get used in the code more like a definition — and sometimes they are seen as… well, as more of a safe harbor.

Some educators are taking the stance that even if a real estate rental regularly has losses, if they otherwise qualify under section 162 as a trade or business, they must include these losses as 199A regardless of meeting the safe harbor. Of course, this could negatively affect their clients. Other educators are taking the stance that these small rental real estate clients who regularly have losses and have no incentive to qualify under 199A can avoid it precisely because they do not meet the safe harbor (as if the safe harbor were a definition of a trade or business). Only time and the courts will tell whose interpretation will prevail.

Illinois, Tips

Employer Alert: Illinois Amends Equal Pay Act

September 25, 2019 Nancy McClelland Leave a comment

Just wanted to share a quick post regarding an important new Illinois law that goes into effect Sunday, September 29.

This year, Illinois Governor J.B. Pritzker signed into law House Bill 834, which amends the Illinois Equal Pay Act of 2003 to prohibit employers from inquiring about a candidate’s compensation history. Failure to comply to the Illinois Equal Pay Act may result in legal action, audits and significant financial penalties. The law becomes effective on September 29, 2019.

For more information, see the Illinois General Assembly webpage.

The National Law Review provides the following recommended takeaways:

The 2019 IEPA amendments provide for increased penalties and damages for violations of the law, and applicants and employees have five years to bring a claim. With all of this in mind, employers are encouraged to do the following:

Promptly engage with external head hunters and internal talent acquisition teams to ensure that they understand the law and the limitations it will impose on the recruiting process;

Remove any wage and salary history inquiries from job applications;

Review and revise policies and practices relating to recruiting, interviewing and hiring, and ensure that employees who interview candidates are informed of what they cannot ask regarding pay history, and of how they should handle voluntary disclosures of pay history;

Review and revise policies and agreements which limit an employee’s ability to discuss compensation, including as may be found in confidentiality and restrictive covenant agreements; and

Consider whether conducting gender and/or race based pay equity audits with legal counsel is appropriate in order to evaluate (and correct) potential disparities.

UPDATE — The Illinois Department of Labor released this FAQ on September 27th:

Can employers ask for salary history or use salary history when determining whether to offer a job or when determining how much to pay the job applicant?
No. It is unlawful for an employer to request or require a wage or salary history from a job applicant as a condition of being considered for employment or as a condition of employment.
Can employers ask about employment benefits that have been provided in the past to a job applicant during the application process?
No. It is also unlawful for an employer to request or require a job applicant to disclose benefits or other compensation received at any current or former employer as a condition of being considered for employment or as a condition of employment.
Who is covered by the law?
Illinois job applicants. This includes applicants to part-time and full-time positions, temporary or permanent, whether hourly or salary. The law however does not cover independent contractors.
Can employers use recruiters to determine applicants’ salary histories?
No. Recruiters, employment agencies, staffing agency or any other agent of an employer may not screen applicants based on their current or prior wages or salary histories, benefits or other compensation.
Can an employer ask a current or former employer of the job applicant for the applicant’s wage history?
No. It is unlawful for an employer or their agent to ask for a wage or salary history, benefits or other compensation from an applicant’s employer or former employers when conducting verification or reference checks.
What if the employee already works for the company where he or she is applying?
The prohibition does not apply if a job applicant’s salary history is a matter of public record or if the applicant is a current employee applying with the same employer.
Can an employer prohibit employees from discussing their salaries?
No. An employer cannot prohibit its employees from disclosing their own salaries, benefits or other compensation to other individuals.
Can job applicants volunteer salary history information?
Yes. Applicants may voluntarily disclose their prior wage or salary history including benefits or other compensation. The employer shall not consider or rely on the voluntary disclosures as a factor in determining whether to offer a job applicant employment, in making an offer of compensation, or determining future wages, salary or benefits.
Can employers provide a salary range to an applicant or discuss with an applicant their salary and benefits expectations?
Yes. An employer can provide information about the wages, benefits, compensation, or salary offered in relation to a position. The employer can also engage in discussions with an applicant about the applicant’s expectations with respect to wage or salary or benefits.
Who do I contact if I have questions about the new law?
You should call the Illinois Department of Labor at the Equal Pay Hotline 866-372-4365.

Source: Employer Alert: Illinois Amends Equal Pay Act

Education, Site News

The Poetry Of Numbers

September 22, 2019 Nancy McClelland Leave a comment

One of my favorite clients is an artist who runs a neighborhood cafe — coincidentally, also my favorite cafe in Chicago. She recently came into the role of CFO, and we’ve been crunching some numbers together, looking at trends. After a lengthy evening of meeting, training, analysis and instruction (keep in mind she’d already worked an entire shift at the cafe; I’m frequently amazed at my clients’ commitment to what they’ve built) she then went off to do some investigation and problem-solving of her own. After a couple of astute and insightful questions from her the following day, via email, I happened to see the amazing post above on instagram.

I often laugh about how in my line of work, consulting with small business owners, I’m either friends with the client first, or we become friends through working together. Either way, I’m a pretty lucky CPA to have as many friends as clients as I do. An amusing side effect of this is that I see their posts on social media and they see mine — sometimes I’ll be complaining about my hard day at work, and I have to think twice about who will see the post. Sometimes it happens the other way around… for example, the client who posts about hating QuickBooks or procrastinating on a job I need them to get done.

To go back to the initial post — I call it the Poetry of Numbers. How do you know which ones to trust? How can you identify patterns if your mechanisms are faulty? What to trust and what not to trust is a never-ending problem of bad data. As accountants, we try to put systems in place to make sure the numbers are reliable… to do so helps the client create and then read a story about their own business.

But when you see a story that doesn’t make sense, or your gut tells you it can’t be right, or you can’t find a reason for the storybook characters to do what they’re doing, then you have to ask a different set of questions, starting with, “how did this data get here? where did it come from? how was it generated? did systems or procedures change at some point?” Otherwise you’ll become overwhelmed by interpreting data and connecting it with reality.

I love this work of art and accompanying statement. It describes links that suggest order and yet imagery that defies meaning. The dreamlike surrealism, broken images and weird connections all contribute to the sense of being lost inside your own data, inside your systems, your head. It wrestles with trust.

Feeling very grateful to have clients who are able to illustrate — quite literally — the poetry inherent in the work we do.

IRS, Tips

IRS Issuing Employer Mandate Penalty Letters for 2017

September 20, 2019 Nancy McClelland Leave a comment

Many of the news items I share on my blog come from the National Association of Tax Professionals’ regular e-newsletters or monthly magazine. They’re an amazing group of tax experts and I have found their education — especially at the annual National Conference — to be of excellent quality.

And now they are compiling their notices and articles into a blog, to make it easier to share with clients and colleagues. One gem I just came across was a short notice that the IRS has started reaching out to employers who may be responsible for a shared responsibility payment for their employees’ health insurance.

I recently had a client who was doing everything they could to not cross the 50-employee (or rather, full-time-employee-equivalent — FTE) mark, so as not to trigger the requirements of being an Applicable Large Employer (ALE). And it turns out that their benefit policy is such that they already contribute more than necessary to employee health insurance, and their benefits company has already made sure they were complying with the safe harbor rules.

So remember that being classified as an ALE is only an issue if you’re not pulling your weight as an employer, which many of our small business clients already are. If this is the case, don’t short-change your staffing policies out of fear that you might become an Applicable Large Employer… you have nothing to fear.

However — if you’re not sharing the financial burden of health insurance with your employees sufficiently, or are not meeting safe harbors and reporting requirements (which most benefits companies will handle for you), and you do have more than 50 FTEs… you may be getting a notice that needs a quick and thoughtful response.

Source: National Association of Tax Professionals Blog

Cooperatives, Education, Tips

NSAC Webinar 10/24: Co-op Internal Fraud Prevention

September 6, 2019 Nancy McClelland Leave a comment

A common thread I come up against in my work with small businesses and cooperatives is that my clients believe their companies are “too small” to be a victim of employee theft — or that their relationships with staff are “too tight” for anyone to do such a thing. However, and unfortunately, we see fraud committed just as, if not more frequently, at small businesses as we do large ones — often due to a lack of internal controls combined with the need for each employee and owner to wear many hats simultaneously (preventing division of labor and cross-checks that might otherwise exist).

In this upcoming National Society of Accountants for Cooperatives Co-op Learning Network webinar, Steve Dawson of the Dawson Forensic Group will explore first-person explanations of the why and how a fraud was committed, to help us all design appropriate internal controls to prevent these situations.

The majority of internal fraud is perpetrated by “truly decent people”, not evil people… and we all have decent people working at our cooperatives. Based on real interviews with “truly decent people” that have committed fraud, this session provides an eye-opening glimpse into the thought processes that can occur in the mind of the potential perpetrator from the identification of the “need”, to the devising of a “scheme”, to the “perpetration” of fraud. Most internal controls deal with dual authorizations and the like. However, armed with the knowledge of what goes on in the mind of the perpetrator, this session provides information regarding the implementation of specific cost-effective controls that actually speak to the mind of the perpetrator.

The Dancing Accountant

Monthly Archives: September 2019