Nearly 200 New Laws for Illinois in 2023
I want to thank LaVelle Law for a very comprehensive email about this! They are a business Law firm in Schaumburg. www.lavellelaw.com/

They’ve prepared a summary of some of the new Illinois laws that may impact your life.

See a complete list here:
 https://www.illinoissenatedemocrats.com/images/PDFS/2022/bills-taking-effect-2023.pdf​

STUDENT CONFIDENTIAL REPORTING ACT (SB 03936/PA 102-752) Legislation requiring state agencies, such as schools and the Illinois State Police, to establish a hotline for receiving reports and other information regarding the potential harm or self-harm of students or school employees.
 
CROWN ACT (SB 03616/PA 93-1078) Legislation amends the definition of “race” under the Illinois Human Rights Act to include traits historically associated with race, including, but not limited to, hair texture and protective hairstyles. The goal of this law is to prevent hair discrimination in the workplace.
 
LIFTING UP ILLINOIS WORKING FAMILIES ACT (SB 0001/PA 101-0001) Legislation amends the Illinois Minimum Wage Law to raise the minimum wage in the State of Illinois to $15 by 2025. In 2023, the minimum wage in Illinois will increase from $12 to $13 an hour.
 
FAMILY BEREAVEMENT LEAVE ACT (SB 03120/PA 102-1050) Legislation amends the Illinois Family Bereavement Leave Act to provide up to two weeks, or 10 working days, of unpaid leave for women who have a miscarriage or other diagnosis or event that impacts pregnancy or fertility, including failed adoptions or surrogacy agreements and unsuccessful reproductive procedures. The amendment also expands the definition of “family member” under the Act to include spouses, domestic partners, siblings, grandparents, and stepparents.
 
ILLINOIS VEHICLE CODE
(SB 03216) Amends the Illinois Vehicle Code to include licensed physical therapists on the list of persons who can “verify that a person is a person with disabilities.”
 
(SB 03609) Lowers vehicle registration fees for cars and small trucks if they were manufactured in Illinois.
 
SCHOOL CODE EXPANSION
(HB 05193/PA 86-1475) Legislation amends the Illinois School Code to require “safe gun storage” to be included on the list of required topics in the state’s safety education curriculum for all grades.
 
(HB 05488/PA 102-0981) Legislation amends the Illinois School Code to allow every student enrolled in a public middle or high school at least one excused school day absence per year to engage in a “civic event.” A “civic event” is an event “sponsored by a non-profit…or government entity that is open to the public.”
 
ILLINOIS STATE EMPLOYEES GROUP INSURANCE ACT
(HB 04271/PA 102-0731) Requires state-regulated private insurance to cover medically necessary breast reduction surgery.
 
(HB 05254/PA 102-0804) Requires health insurance plans to cover medically necessary hormone therapy treatments for women who have induced menopause by undergoing a hysterectomy.
 
(HB 05318/PA 102-1073) Requires health insurance to cover annual prostate cancer screenings upon a physician’s recommendation.
 
(HB 05334/PA 102-0979) Requires health insurance to cover costs for genetic testing for the BRCA1 and BRCA2 genes to detect risks for breast and ovarian cancer upon a physician’s recommendation.
 
JOB TRAINING ASSISTANCE AND SUPPORT SERVICES PILOT PROGRAM ACT (HB 05225/PA 102-0803) Legislation created a five-year pilot program that offers assistance and support services, such as childcare or transportation subsidies, to eligible individuals to allow them to complete an apprenticeship or internship.
 
THE COMPREHENSIVE HEALTH EDUCATION PROGRAM (SB 04028) Legislation requires Illinois schools to provide information on where and how students can access mental health care services.
 
ILLINOIS CAREER/TECH PATHWAY (HB 03296) Legislation requires school boards to establish a career and technical education pathway program for grades 6 through 12.
 
ILLINOIS DUAL CREDIT COURSES (HB 05506) Legislation allows partnership agreements between Community College districts and High School districts to allow high school students to take a dual credit course for high school credit and collect demographic data.
 
RED LIGHT CAMERA/SPEED CAMERA CHANGES FOR STOLEN VEHICLES (HB 03772) Modifies existing vehicle laws by providing that people whose cars have been stolen will no longer be liable for violations, fees, fines, or penalties when caught on red light and speed cameras.
 
ILLINOIS HEALTH AND WELLNESS OF STATE RESIDENTS (SB 02535) Legislation requires that before a pharmacist dispenses an opioid, they must inform the patient that opioids are addictive and offer to give them an opioid antagonist.
 
WORKER’S RIGHTS AMENDMENT TO THE ILLINOIS BILL OF RIGHTS (SJRCA0011) Amendment to the Bill of Rights of the Illinois Constitution that makes the “right to organize and to bargain collectively through representatives of their own choosing for the purposes of negotiating wages, hours and working conditions” a fundamental right for Illinois workers.
 
LATEX GLOVE BAN ACT (HB 0209/PA 102-1095) Legislation bans latex gloves in the handling and preparation of food. The Act will also ban the use of latex gloves by medical personnel starting Jan. 1, 2024.
 
ILLINOIS POWER OF ATTORNEY ACT (HB 05047/PA 102-0794) Legislation amends the Illinois Power of Attorney Act to permit agents in a health care setting to present electronic copies of documents that delegate power of attorney and requires the health care provider to accept the digital document.
 
MOTOR FUEL TAX (PA 101-0032) Effective January 1, 2023, the State Motor Fuel Tax will increase to $0.423 per gallon of gasoline. Additionally, the tax will resume its annual increase on July 1, 2023.
 
GROCERY TAX (PA 102-700) Effective January 1, 2023, the 1% tax on groceries will be reinstated after it was suspended from July 1, 2022, through June 30, 2023.
 
BANKING DEVELOPMENT DISTRICT ACT (HB 05194/PA 102-802) Establishes an incentive program to induce banks and credit unions to open branches in areas with underbanked populations.
 
HUMAN RIGHTS ACT (HB 02775/PA 102-896) Legislation amends the Illinois Human Rights Act by making it a civil rights violation for anyone in real estate transactions to discriminate based on source of income. Financial institutions are exempt if they are considering source of income in transactions in compliance with state or federal law.
 
CONDOMINIUM PROPERTY ACT (HB 05246/PA 102-976) Legislation amends the Condominium Property Act by narrowing the timeframe for section 22.1 disclosures for prospective purchasers from 30 days to 10 days. The amendment also limits the fee for gathering such information to $375, with an additional $100 charge permitted for rush service completed within 72 hours.
 
REAL ESTATE VALUATION TASK FORCE ACT (HB 04410/PA 102-934) Legislation creates the Real Estate Valuation Task Force to identify and resolve the causes of racial disparities in appraisals.
 
PROPERTY TAX CODE (SB 03069/PA 102-1000) Legislation amends the Property Tax Code to provide that a homeowner or condominium association may file an appeal or intervene in an appeal on behalf of its members to the Property Tax Appeal Board. 

​​Here is an outline of a business plan you can use. If you have some trouble, you can ask Tom Gosche, Business Strategist from GLM! tomg@goglm.com and/or 630-675-8971

1. Executive Summary

2. Current Situation

3. Vision

• Mission Statement
• Goals (long range)
• Objectives (short/medium range)

4. Management

5. Product / Service Description

6. Market Analysis

• Customers
• Competition
• Opportunities
• Risks

7. Marketing Strategy

• Personnel
• Facilities / Equipment
• Pricing & Profitability
• Advertising & Promotion
• Public Relations
• Selling Tactics
• Distribution Channels
• Business Relationships

8. Production / Manufacturing Strategy

• Personnel
• Facilities / Equipment
• Intellectual Property
• Regulation / Compliance
• Supply Chain
• Business Relationships

9. Administrative Strategy

• Personnel
• Facilities / Equipment
• Management Information
• Worker Administration & Benefits
• Regulation / Compliance
• Business/Professional Relationships

​10. Financial Information 

• Pro Forma Balance Sheets (for 5 years into the future)
• Pro Forma Income Statement (for 5 years into the future)
• Detailed Budget (for next 12 to 24 months into the future)
• Cash Flow Projection (for next 12 to 24 months into the future)
• Break Even Analysis (show growth steps, if applicable)
• Summary of Existing Resources (people and money)
• Potential Sources of Funding

She loves working with business owners on securing their assets with a plan so they can survive disruptions and thrive in the aftermath. The business will develop a business continuity plan via learning how to do tailored risk assessment and business impact analysis. Erika and her company, EaaS will then work that plan through trainings and exercise creation and facilitation to determine the plan's viability. EaaS leaves businesses better able to resume operations quickly when risk management fails.

Recordkeeping is an important part of running a small business. In fact, keeping good records helps business owners make sure their business stays successful.
Here are some things small business owners should remember about recordkeeping:

• Good records will help business owners:
  • Monitor the progress of their business
  • Prepare financial statements
  • Identify income sources
  • Keep track of expenses
  • Prepare tax returns and support items reported on tax returns
• Small business owners may choose any recordkeeping system that fits their business. They should choose one that clearly shows income and expenses. Except in a few cases, the law does not require special kinds of records.
• How long an owner should keep a document depends on several factors. These factors include the action, expense and event recorded in the document. The IRS generally suggests taxpayers keep records for three years.
• A good recordkeeping system includes a summary of all business transactions. Businesses usually record these transactions in books called journals and ledgers, which business owners can buy at an office supply store, or keep them electronically. All requirements that apply to hard copy books and records also apply to electronic business records.
• The responsibility to validate information on tax returns is known as the burden of proof. Small business owners must be able to prove expenses to deduct them.
• Business owners should keep all records of employment taxes for at least four years.
• Businesses that keep paper records should keep them in a secure location, preferably under lock and key, such as a desk drawer or a safe. 
• Businesses that keep records electronically on a computer should always have an electronic back-up, in case the hard drive crashes.

The Daily Herald had an article in Sunday’s Newspaper about the importance of an Accountant or CPA in advising your business. You can imagine that we at GLM agree with this this. Having an outside look at your business and finances is very important to the growth and stability of your business.

About the Author:
Denice Gierach is an attorney, CPA, Northwestern University business master's graduate, and has owned several businesses including in real estate and manufacturing. She is the lead attorney at Gierach Law Firm in the Chicago area. With more than 30 years of experience, she has been a respected and sought-after resource for businesses looking to grow, sell, solve problems, and succeed long term.
Her insights across business areas gives a fuller lens to business issues and solutions, and helps businesses grow and succeed with less time spent on legal issues and other time-consuming problems
 
Here is a link to the Article:
​ https://www.dailyherald.com/business/20221204/the-importance-of-involving-your-cpa-in-your-business
​

The end of the calendar year is an important time for businesses of all sizes. It's when businesses need to start organizing the year's financial information for tax season. Though the filing deadline may be months away, your company should be thinking about ways to make that period as easy as possible.
What should small business owners be doing right now to prepare for tax season.

Automate your tax prep
In today's world, there are countless programs, apps and services available to help make tax time less of a burden. Using QuickBooks in your business to track your sales, expenses and other financial information helps to make the tax preparation process more streamlined. The way taxes should be dealt with is to automate the process. The earlier you proceed towards automation, the less time needed to work in tax season, which means more time remaining to focus on your business.

​Review your business expenses
As every business owner knows, tax season means taking stock of the company's income, expenses and deductions. To get ahead of this task, business owners should do this throughout the year, thus ensuring a smooth ride when it comes time to file taxes.
The biggest part of preparing for taxes is what should already have been done which is keeping track of all business expenses throughout the year. If everything has been entered into your accounting system in a timely fashion, then the hardest part is done. If not, you need to set aside some time to gather and enter everything correctly."
Implementing a good filing system, is key to making sure you can easily locate and organize all your business expenses. Again, accounting software like QuickBooks Online is affordable option for small businesses looking to sync and track bank account activity, expenses and invoices.

Learn which tax law changes will affect you
Tax laws are constantly changing, and it's wise to stay alert and up-to-date on changes that could affect your business. Business owners need to recognize that new reporting requirements, I'll need to make sure you're meeting those requirements.
If you're unsure of what any tax law updates could mean for your business, be sure to consult your accountant.

Best practices for tax time
Understand your deductions and requirements. Consult with a tax preparer before the end of the year will help them clean things up, take better advantage of available deductions, and hopefully costs. For example, many owners may not be aware that the tax code only allows a 50 percent deduction for meals and entertainment. However, there is an allowed deduction of 100 percent for specific meals, like holiday parties, or when an employer provides a meal for employees at work, for the employer's convenience. Knowing how to track these items during the year will ensure the best possible deduction.

Think about how future plans will affect next year's numbers. Are you going to be selling your business next year? Speak with your accountant about the reporting method you use — cash basis or accrual basis. The method will impact your P&L [profits and losses]. When a buyer is looking at your business, less profit can influence whether they will buy.

Save up for tax-day liability costs. With no cash to cover the tax liability, the consequence is usually additional fines and penalties that would not have been accrued with proper planning and focus. Our recommendation is to create a separate bank account. As money comes in, set it aside into that account ... and when Tax Day comes, you have the cash on hand to cover your liability.

​Know when to outsource. Many small businesses are successful due to their do-it-yourself approach to solving problems. Taxes are sometimes best left to the professionals. By hiring a professional, you ensure that they're done correctly, and free yourself up to continuing managing your primary business needs.

One of the largest issues facing manufacturing companies today is not being able to find or retain a labor force.

Denice Gierach, Gierach Law wrote a great article in the Daily Herald on Sunday October 2, 2022.
https://www.dailyherald.com/business/20221002/attracting-and-keeping-a-strong-labor-force-in-manufacturing

​Locally, the Rotary Club of Schaumburg Hoffman Estates continues to help businesses and students in the area into the Applied Sciences. Rotary has provided Tool Kits for High School Graduates heading to  an Autos program at the next level. You can help by sponsoring the Club. See the Brochure below.

Also, The Northwest Educational Council for Student Success (NECSS) partners provide students in Chicago's northwestern suburb with opportunities to acquire the knowledge and skills to be successful in their careers. You can learn more about this at: ​www.necsspartnership.com/

​New entrepreneurs can start out on the right foot by making sure they understand the tax responsibilities of running a business. The process can seem daunting, but IRS.gov has resources to help new business owners.

Here are a few things new entrepreneurs need to do when starting their business.

Choose a business structure
The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are:

• Sole proprietorship: An unincorporated business owned by an individual. There's no distinction between the taxpayer and their business.
• Partnership: An unincorporated business with ownership shared between two or more people.
• Corporation: Also known as a C corporation. It's a separate entity owned by shareholders.
• S Corporation: A corporation that elects to pass corporate income, losses, deductions and credits through to the shareholders.
• Limited Liability Company: A business structure allowed by state statute.

Choose a tax year
A tax year is an annual accounting period for keeping records and reporting income and expenses. A new business owner must choose either:

• Calendar year: 12 consecutive months beginning January 1 and ending December 31.
• Fiscal year: 12 consecutive months ending on the last day of any month except December.

Apply for an employer identification number
An EIN is also called a federal tax identification number. It's used to identify a business. Most businesses need one of these numbers. It's important for a business with an EIN to keep the business mailing address, location and responsible party up to date. IRS regulations require EIN holders to report changes in the responsible party within 60 days. They do this by completing Form 8822-B, Change of Address or Responsible Party and mailing it to the address on the form.

Have all employees complete these forms

• Form I-9, Employment Eligibility Verification U.S. Citizenship and Immigration Services
• Form W-4 Employee's Withholding Allowance Certificate

Pay business taxes
The form of business determines what taxes must be paid and how to pay them.

Visit state's website
Prospective business owners should visit their state's website for info about state requirements.

GLM has been working with business owners for many years. One of the biggest concerns most business have is: "Should I make them an employee or just in independent contractor?" This information is direct from the IRS:

A business might pay an independent contractor and an employee for the same or similar work, but there are key legal differences between the two. It is critical for business owners to correctly determine whether the people providing services are employees or independent contractors.
Here’s some information to help business owners avoid problems that can result from misclassifying workers.

An employee is generally considered anyone who performs services, if the business can control what will be done and how it will be done. What matters is that the business has the right to control the details of how the worker's services are performed. Independent contractors are normally people in an independent trade, business or profession in which they offer their services to the public.

Independent contractor vs. employee
Whether a worker is an independent contractor, or an employee depends on the relationship between the worker and the business. Generally, there are three categories to consider.

• Behavioral control − Does the company control or have the right to control what the worker does and how the worker does the job?
• Financial control − Does the business direct or control the financial and business aspects of the worker's job. Are the business aspects of the worker's job controlled by the payer? Things like how the worker is paid, are expenses reimbursed, who provides tools/supplies, etc.
• Relationship of the parties − Are there written contracts or employee type benefits such as pension plan, insurance, vacation pay? Will the relationship continue and is the work performed a key aspect of the business?

Misclassified worker
Misclassifying workers as independent contractors adversely affects employees because the employer's share of taxes is not paid, and the employee's share is not withheld. If a business misclassified an employee, the business can be held liable for employment taxes for that worker. Generally, an employer must withhold and pay income taxes, Social Security and Medicare taxes, as well as unemployment taxes. Workers who believe they have been improperly classified as independent contractors generally must receive a determination of worker status from the IRS. Then they can use Form 8919, Uncollected Social Security and Medicare Tax on Wages to figure and report their share of uncollected social security and Medicare taxes due on their compensation.

Voluntary Classification Settlement Program
The Voluntary Classification Settlement Program is an optional program that provides businesses with an opportunity to reclassify their workers as employees for future employment tax purposes. This program offers partial relief from federal employment taxes for eligible businesses who agree to prospectively treat their workers as employees. Businesses must meet certain eligibility requirements and apply by filing Form 8952, Application for Voluntary Classification Settlement Program, and enter into a closing agreement with the IRS

Who is self-employed?
Generally, someone is self-employed if any of the following apply to them.

• They carry on a trade or business as a sole proprietor or an independent contractor.
• They are a member of a partnership that carries on a trade or business.
• They are otherwise in business for themselves, including a part-time business.

Self-employed individuals, including those who earn money from gig economy work, are generally required to file an tax return and make estimated quarterly tax payments. They also generally must pay self-employment tax which is social security and Medicare tax as well as income tax. These taxpayers may qualify for the home office deduction if they use part of a home for business