Tag Archives: Illinois

Illinois Unemployment Claimants Concerned With Change In IDES Policy

I received a call and email today from a concerned Illinois citizen, trying to bring awareness to what seems like a serious error on the part of the Illinois Department of Employment Security (IDES). I have contacted our State Representative’s office and they are looking into it. I will post an update here when I have one; in the meantime, here is the information I received — just in case you are struggling with the same issue, you can know you’re not alone, and folks are indeed trying to get it addressed.
Note: I have not yet vetted this information… it was provided to me via an individual who is not a client.

Summary: The state of Illinois shut down on March 20th, and the CARES Act, including the Federal Pandemic Employment Compensation (FPUC) passed on March 27th. Even before it passed, the official message from the State of Illinois was that there was no different way to apply for the federal aid aside from applying normally for state unemployment. IDES posted on their FPUC FAQ that individuals otherwise eligible for unemployment during the weeks of the program would be eligible for and receive the increased assistance. They also wrote that the additional $600 per week would be active in benefit payments for unemployment certifications (not applications or claims) completed starting April 6th. Then, on April 15th, they retroactively decreed through a PDF that anyone who had any claim for benefits pending or active before March 29th would be denied the FPUC.

The IDES is not applying the $600 FPUC increase for mandatory COVID-19 economic shutdown to people receiving regular unemployment benefits (in violation of the federal implementation guidelines and the CARES Act).

IDES put out this fact sheet where they claim, “Pursuant to the federal legislation, this $600 will not be retroactively applied to unemployment claims that arose prior to March 29, 2020
https://www2.illinois.gov/ides/News%20%20Announcements%20Doc%20Library/Federal-Stimulus-FAQ-April2020.pdf

While the $600 payments cannot be retroactively applied to before the CARES act took effect, it is incorrect to not apply the $600 to later weeks for those with existing claims started prior to March 29th. There is no requirement in CARES FPUC that individuals may not already receive unemployment benefits or forfeit eligibility. In fact, the opposite is true, and the $600 is an increase to existing benefits.

The IDES COVID FAQ also states the correct interpretation in their FPUC FAQ:
Who is eligible to receive FPUC?
FPUC is payable to individuals who are otherwise eligible for unemployment benefitsfor weeks of unemployment beginning March 29, 2020 and ending July 31, 2020
https://www2.illinois.gov/ides/Pages/COVID-FPUC-FAQ.aspx#h2

IDES provides no alternative method to apply for or receive federal assistance beyond applying for normal state unemployment benefits. After certifying for benefits through 4/18, [this claimant] still has not received additional payments from FPUC/CARES, even though the IDES website had indicated that FPUC would be included for eligible recipients with their normal benefits starting April 6th:

“The $600 federal increase is now available! Those claimants certifying beginning April 6 will see the additional supplemental income applied to their weekly benefit amount. This increase is available through the week ending July 25, 2020.”
https://www2.illinois.gov/ides/Pages/default.aspx

Due to the fact that [this claimant] has seen no additional $600 materialize, and the IDES changed the wording in their April 15th PDF, it seems they may have mistakenly adjusted the policy to not grant the $600 to recipients in this situation. IDES had not previously stated that claimants had to wait until after March 29 to apply to get FPUC — in fact, they indicated the opposite: that people should apply normally, and once it was enacted and implemented they would start seeing the additional funds.

Those who apply before March 29 are still eligible for benefits for weeks after March 29th, and thus still eligible for FPUC.  The date of March 29th is to start $600 payments, not to cut off eligibility. This seems to be a serious error.

(Federal guidelines for the law are copied below for reference.)

CARES FPUC Guidelines:
C. Operating Instructions.
1. Eligibility for FPUC.
For an individual to receive FPUC, the applicable state must have a signed agreement with the Department. FPUC is payable to individuals who are otherwise entitled under state or federal law to receive regular UC for weeks of unemployment (including Unemployment Compensation for Federal Employees (UCFE)and Unemployment Compensation for Ex-Servicemembers (UCX)). FPUC is also payable to individuals receiving the following unemployment compensation programs: PEUC, PUA, EB, Short-Time Compensation (STC), Trade Readjustment Allowances (TRA), Disaster Unemployment Assistance (DUA), and payments under the Self-Employment Assistance (SEA) program. A number of state laws include provisions extending the potential duration of benefits during periods of high unemployment for individuals in approved training who exhaust benefits, or for a variety of other reasons. Although some state laws call these programs “extended benefits,” the Department uses the term “additional benefits” (AB) to avoid confusion with the Federal-State EB program. FPUC is not payable to individuals receiving AB payments.
2. FPUC Eligibility and Relation to Other Types of Benefit Payments.
Individuals receive FPUC payments concurrently with payments under those programs identified above. Refer to UIPL 14-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 –Summary of Key Unemployment Insurance (UI) Provisions and Guidance Regarding Temporary Emergency State Staffing Flexibility, issued April 2, 2020, for additional information on how FPUC interacts with other programs authorized under the CARES Act.States that are unable to immediately pay benefits the week following the execution of the agreement with the Department to operate the program must provide retroactive payments to individuals eligible for FPUC for the weeks they would have been entitled.

https://wdr.doleta.gov/directives/attach/UIPL/UIPL_15-20_Attachment_1.pdf

Here is the full UIPL 14-20 —
https://wdr.doleta.gov/directives/attach/UIPL/UIPL_14-20.pdf


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Student Loan Relief for Illinoisans

New financial relief for student loan borrowers who were not covered under the federal CARES Act was announced by Governor JB Pritzker:

“Under this new initiative, Illinoisans with commercially-owned Federal Family Education Program Loans or privately held student loans who are struggling to make their payments due to the COVID-19 pandemic will be eligible for expanded relief. Borrowers in need of assistance must immediately contact their student loan servicer to identify the options that are appropriate to their circumstances. Relief options include:

– Providing a minimum of 90 days of forbearance
– Waiving late payment fees
– Ensuring that no borrower is subject to negative credit reporting
– Ceasing debt collection lawsuits for 90 days
– Working with borrower to enroll them in other borrower assistance programs, such as income-based repayment.”

To find out if you qualify for this relief, please contact the U.S. Department of Education’s Nation Student Loan Data System at NSLDS.ed.gov or 1-800-433-3243 for questions about federal loans. For private loans, please contact your lending company directly.

You can find more information on this program at https://coronavirus.illinois.gov/s/student-loans.


If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

Illinois Hospitality Emergency Grant Program

UPDATE 4/9/2020: Per Crain’s Chicago
More than 12,000 applied for the grants, and 700 were drawn at random from a pool of applications. The winning 450 bars and restaurants each will get an average of $14,000, which can be used for payroll and general corporate purposes. The 250 small hotels get an average of $30,000. Officials said they are looking for other sources of funds to offer more grants in the future.

To help hospitality businesses make ends meet in the midst of the COVID-19 pandemic, the State of Illinois launched the Hospitality Emergency Grant Program. Grant funds are available to support working capital like payroll and rent, as well as job training, retraining, and technology to support shifts in operations, like increased pick-up and delivery. Eligible businesses include:
  • Bars and restaurants with a valid license to serve food or liquor and who generated revenues of less than $1 million in 2019.
  • Hotels with a valid license (hotels, motels other lodging establishments) and who generated revenues of less than $8 million in 2019.
Find application here. Applications are due April 1st by 5PM. Winners will be selected through a lottery.

Source: Hospitality Emergency Grant Program | Accion


If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

City of Chicago March 2020 Business Education Workshops

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, March 4, 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.

Empieza Un Pequeno Negocio
Fri, March 6, 9:30 AM – 11:00 AM
City Hall, 121 N. LaSalle St. – 11th Floor, Room 1103

(WorkshopPresented in Spanish)
Presentado por el Northwest Side CDC(Northwest Side Community Development Corporation)

Venga aprender como abrir un negocio, los pasos quedebe de tener y no tomar. Habláramos sobre creando un plan de negocio, entiendosu mercado, y creando un plan de acción. También se hablara los pasos parasacar su licencia de negociante. 

Small Business Center on the Road Expo
Sat, March 7, 10:00 AM – 2:00 PM
Kennedy King College – Building U, 740 W. 63rd Street
The Small Business Center on the Road Expo brings business resources to the community for new and existing entrepreneurs looking to start or grow their business in the City of Chicago. This expo is free and open to the public. You can find more information or register expo at www.chismallbizexpo.com 

Employee (HR) Handbooks & Workplace Policies
Wed, March 11, 3:00 PM – 4:30 PM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805

Presented by Charles Krugel, a Management-Side Labor, Employment and Human Resource Attorney
Open discussion concerning whether a business needs a handbook, written policies & procedures, and how to implement them.

Buying and Selling a Business: Find, Evaluate and Negotiate
Fri, March 13, 9:30 AM – 11:00 AM
City Hall, 121 N. LaSalle St. – 11th Floor, Room 1103

Presented by LemaKhorshid, Fuksa Khorshid, LLC            

Do you want to buy a business and don’t know where to start? In this step-by-step seminar learn how buying a business can be an alternative to starting up a new business. Also, learn how to effectively analyze new business opportunities and understand a business purchase contract so that you can quickly close the deal.

How to Open a Concession at O’Hare and Midway International Airports
Wed, March 18, 3:00 PM – 4:30 PM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805

Presented by City of ChicagoDepartment of Aviation – Concessions Department

Are you interested in operating a restaurant or shop at O’Hare or Midway International Airport, but don’t know where to begin? Come and learn about the Request for Proposals (RFP) process and how to operate a business at the airport. This workshop will also provide an overview of the Airport Concessions Disadvantaged Business Enterprise (ACDBE) program.

How to Obtain a Mobile Business License
Fri, March 20, 9:30 AM – 11:00 AM
City Hall, 121 N. LaSalle St. – 11th Floor, Room 1103

Presented by City of Chicago Department of BusinessAffairs & Consumer Protection (BACP)

From Food Trucks to Peddlers to Mobile Merchants, not all businesses need a store front from which to operate and Chicago is proud to support many types of mobile businesses. Attend this workshop to learn how to obtain a Mobile Food or Retail License from the BACP, including operational conditions, required inspections and application processes. Licenses covered by this workshop will include Mobile Food Dispenser and Preparer (Food Trucks), Mobile Merchant, Mobile Prepared Food Vendor, Mobile Frozen Desserts Vendor, Produce Merchant, and Peddler.

What Kind of Funding is Right For You/Your Business
Wed, March 25, 3:00 PM – 4:30 PM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805

Presented by the U.S. Small Business Administration

If you need access to capital to achieve your business goals, the SBA offers a variety of funding programs for all kinds of small business ventures. Learn what kind of funding is right for you!

What You Need to Know About Your Business & Taxes
Fri, March 27, 9:30 AM – 11:00 AM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805


Presented by the Internal Revenue Service (IRS) and Ladder Up


This workshop will answer important tax questions for your business including: Are you required to file a tax return? Is your worker an independent contractor or an employee? What will the IRS request during an audit? Are you required to make estimated tax payments? What resources does the IRS have for small business owners?

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

Increase in Chicago Restaurant Tax as of January 1, 2020

City of Chicago Dept of Finance

It recently came to my attention that apparently restaurants in Chicago were not notified by the city of an important change to local taxes they are required to collect.

The Chicago City Council recently doubled the city’s 0.25% restaurant tax, which means that starting January 1, 2020, the city of Chicago’s restaurant tax rate is 0.50%.

Therefore, the total sales tax for restaurants in the city of Chicago is now supposed to be 10.75% instead of 10.50% — this includes state and local sales taxes as well as the city’s 0.50% restaurant tax.

(For restaurants located within the MPEA Food and Beverage Tax zone, the total sales tax will be 11.75% — made up of sales taxes + 0.50% restaurant tax + the 1.00% MPEA food and beverage tax).

Unfortunately, it doesn’t appear that this change was communicated widely to restaurant owners, so many of them did not update their Point of Sale systems to increase the tax charged to customers. This means they probably underpaid their monthly restaurant tax and will owe when they file their annual restaurant tax returns.

I suggest the following steps:

  1. Update your Point of Sale software to reflect the 10.75% tax immediately, so you can begin collecting it from customers.
  2. Calculate the approximate underpayment for January and February (0.25% of sales) and add it to your restaurant tax payment for March.
  3. It will all come out in the wash when you file your annual restaurant tax return in August.

For more information on state and local changes to legislation, rulings and ordinances that affect restaurants, check out this briefing from the Illinois Restaurant Association: News Laws in Effect as of January 1, 2020 – Illinois Restaurant Association

And for information on this and other consumer taxes in Illinois, check out this recent article by The Civic Federation.