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Illinois Mandatory Saving Plans

6/24/2019

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Any business that has been in business for more than 2 years with 25 or more employees in Illinois will need to facilitate the Illinois Secure Choice program for its employees. Illinois is in the process of considering appropriate enforcement actions should such actions be needed to enforce the mandate. 

Unless –

An employer-sponsored retirement plan includes a plan qualified under Internal Revenue Code sections 401(a) (including a 401(k) plan), qualified annuity plan under section 403(a), tax-sheltered annuity plan under section 403(b), Simplified Employee Pension plan under section 408(k), a SIMPLE IRA plan under section 408(p) or governmental deferred compensation plan under section 457(b). It does not include payroll deduction IRAs.
 
Employers with fewer than 25 employees are exempt and do not need to participate in the Program.
“Employee” means any individual who is 18 years of age or older, is employed by an Employer, and who has Wages that are allocable to Illinois during a calendar year under the provisions of Section 304(a) (2)(B) of the Illinois Income Tax Act. An Employee includes both part-time and full-time employees.
“Employer” means a person or entity engaged in a business, industry, profession, trade, or other enterprise in Illinois, whether for profit or not for profit, that (i) has at no time during the previous calendar year employed fewer than 25 employees in Illinois, (ii) has been in business at least 2 y
  • An employer employing 100 to 499 employees: 7/1/2019
  • An employer employing 25 to 99 employees: 11/1/2019
 
Automatic enrollment means that following notification, employers will enroll eligible employees in Illinois Secure Choice unless employees have elected to opt out of the program. It is a Roth IRA and The default savings rate is 5% of gross pay
 
There are no employer fees, and employers are not required to contribute to the program.
 
There is an ongoing fee which is paid as a percent of your assets under management. This fee for each investment option is approximately 0.75% of assets per year ($0.75 for every $100 saved), and it pays for the administration of the program as well as the operating expenses charged by the underlying investment funds in which the program’s portfolios are invested. The fee is computed daily and netted from the assets in an investment option. Investment returns are credited to saver accounts ‘net of’ this cost.

The standard account option for savers will be a Roth IRA. The income limits for Roth IRA savers are set by the federal government. For 2019, the limits are $137,000 for a single tax filer and $203,000 for married taxpayers filing jointly. Beginning in 2019, Illinois Secure Choice will offer a traditional IRA account as an electable choice.

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GOA Golf Outing! Come Visit GLM at Hole 7

6/17/2019

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Human Resources Consulting for Small Businesses

6/10/2019

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What is a "Typical Situation" people are in when they realize they need help?
 
  • They are growing and are unsure if they are legally complaint.
  • Employees appear to be unhappy or have high turnover of staff and don't know what to do.
  • They feel they have been "winging it" for too long and want to formalize processes.

What is something someone might say that would lead me to think of you?
 
  • “If I could do this without employees I would.”
  • “I feel like I've lost control of what people are doing - one person wants one thing and the other something else. I don't know what to do.”
  • “My employees need someone to talk to that isn't me. Why do people come to me with their issues.”

What (Specifically) do they do?

Uncomplicate the people side of business. Help business owners success through and with their employees.

How do they do it?

Sitting down with the business owners to understand their needs and concerns. Create an action plan in order to achieve goals. Provide on-site support as needed so we are the go-to person for the employees and the owner. 

Matching Ideas with Resources 
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Doing a ‘Paycheck Checkup’

6/3/2019

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IRS: Doing a ‘Paycheck Checkup’ is a good idea for workers with multiple jobs
WASHINGTON — The Internal Revenue Service urges taxpayers who work multiple jobs or who may be adding summer employment to complete a Paycheck Checkup. Doing so will help them check if they are having the right amount of tax withheld from their paychecks.
Checking and adjusting tax withholding as early as possible in 2019 is the best way to head off a tax-time surprise next year.
The Tax Cuts and Jobs Act (TCJA) made changes to the tax law. Among other things, the new law increased the standard deduction, eliminated personal exemptions, increased the child tax credit, limited or discontinued certain deductions and changed the tax rates and brackets. As a result, many taxpayers ended up receiving refunds that were larger or smaller than expected, while others unexpectedly owed additional tax when they filed their 2018 tax returns.
Two-income families and people with multiple jobs may be more vulnerable to being under-withheld or over-withheld following these major law changes. For 2019, a Paycheck Checkup is especially important for taxpayers who adjusted their withholding in 2018, specifcally in the middle or later parts of the year. Doing a Paycheck Checkup can help determine the correct amount of tax for each of their employers to withhold.
The IRS urges everyone to do a Paycheck Checkup as early in the year as possible so that if an adjustment is needed, there is more time for withholding to happen evenly during the rest of the year. Waiting means there are fewer pay periods to withhold the necessary federal tax.
The easiest way to do a Paycheck Checkup is to use the Withholding Calculator on IRS.gov. The Withholding Calculator can help taxpayers estimate their income, credits, adjustments and deductions more accurately and check if they have the right amount of tax withheld for their financial situation. When using the calculator, it’s helpful to have a completed 2018 tax return and a recent pay stub available.
Based on the Withholding Calculator’s recommendations, the taxpayer can then fill out and submit a new Form W-4 to their employer. In many instances, this means claiming fewer withholding allowances or having an extra flat-dollar amount withheld from their pay.
Self-employment
Some workers are considered self-employed and are responsible for paying taxes directly to the IRS. Often, this includes people involved in the sharing economy. One way to pay taxes directly to the IRS is by making estimated tax payments during the year.
TCJA changed the way tax is calculated for most taxpayers, including those with substantial income not subject to withholding. As a result, many taxpayers may need to raise or lower the amount of tax they pay each quarter through the estimated tax system.
The revised estimated tax package, Form 1040-ES, on IRS.gov is designed to help taxpayers figure these payments correctly. The package includes a quick rundown of key tax changes, income tax rate schedules for 2019 and a useful worksheet for figuring the right amount to pay.
Other situations
Anyone who had a life change, such as getting married or divorced, buying a home or having a baby should also consider a Paycheck Checkup.

Pay electroniclly anytime
Taxpayers can pay their 2019 estimated tax payments electronically anytime before the final due date for the tax year. Most taxpayers make estimated tax payments in equal amounts by the four established due dates. The three remaining due dates for tax year 2019 estimated taxes are June 17, Sept. 16, and the final payment is due Jan. 15, 2020. Direct Pay and EFTPS are both free payments options, and taxpayers can schedule their payments in advance as well as receive email notifications about the payment. Visit
IRS.gov/payments
to schedule electronic payments online, by phone or the IRS2go mobile app.
More information:
  • Publication 505, Tax Withholding and Estimated Tax
  • FS-2019-4: Tax Withholding: How to Get it Right
  • Estimated Taxes
  • IRS PayAsYouGo
  • Self-Employment Tax, Social Security and Medicare Taxes
  • Self-Employed Individuals Tax Center
  • FS-2019-6: Basics of estimated taxes for individuals

And of course, You can contact GLM when you have questions.
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    GLM's Blog

    In true blog fashion, the last parts are at the top of the page. Scroll all the way down and work your way back up to read them in order. 

    Tom Gosche

    Tom is the Business Development Manager for GLM. If you are interested in learning more about GLM's services, contact him:

    630-675-8971
    tomg@goglm.com
    View my profile on LinkedIn

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GLM, Inc.
 
300 N. Martingale Rd., Suite 750
Schaumburg, IL 60173-2097
 
Phone: (847) 884-1781
Fax: (847) 884-1830
E-mail: info@glmfinancial.com
Website: www.goglm.com 

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