As of January 1, 2025, several legislative changes in Illinois have introduced new accounting and financial reporting requirements for businesses in the Chicagoland area. To ensure compliance and maintain accurate financial records, consider the following key updates:

1. Destination-Based Retailers' Occupation Tax (ROT)
Illinois has shifted to a destination-based ROT system, affecting how sales taxes are collected and remitted:

• Previous System: Retailers collected tax based on the location of the seller.
• New System: Taxes are now based on the location where the purchaser takes possession of the goods.
  
  

Action Steps: Update your accounting systems to calculate sales tax based on the customer's location. Ensure that your invoicing and point-of-sale systems reflect the correct tax rates for each jurisdiction.

2. Vendor's Discount Cap and Interchange Fee Prohibition
Changes affecting cash flow and transaction processing include:

• Vendor's Discount Cap: The discount for timely filing sales and use tax returns is now capped at $1,000 per month.
• Interchange Fee Prohibition: Effective July 1, 2025, interchange fees on the tax and gratuity portions of credit card transactions are prohibited, provided merchants inform banks of these amounts.

Action Steps: Adjust your financial projections to account for the capped vendor's discount. Coordinate with your payment processors to comply with the new interchange fee regulations, ensuring your systems can communicate tax and gratuity details appropriately.

3. Pay Transparency Requirements
The Illinois Equal Pay Act mandates that employers with 15 or more employees include pay scales and benefits in all job postings.

Action Steps: Review and update your job posting templates to incorporate salary and benefits information. Ensure that your payroll systems are aligned with the advertised compensation to maintain consistency and compliance.

4. Personnel Record Disclosure Obligations
Amendments to the Personnel Record Review Act require employers to provide employees access to various employment-related documents upon request, including benefits-related records, employment contracts, handbooks, and policies affecting employment qualifications.

Action Steps: Implement a process to handle personnel record requests efficiently. Maintain organized and up-to-date records to facilitate timely compliance.

5. Minimum Wage Increase
The state minimum wage has increased to $15 per hour as of January 1, 2025.

Action Steps: Update your payroll systems to reflect the new wage rates. Review your budgeting and financial planning to accommodate the increased labor costs.

Staying informed about these legislative changes is crucial for maintaining compliance and ensuring accurate financial reporting. Regularly consult with accounting professionals to adapt your practices to the evolving regulatory landscape.

Read more: www.dailyherald.com/20250222/business/new-year-new-laws-affecting-businesses-in-2025/

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. 

Direct Link to Chicago.Gov: 
https://www.chicago.gov/city/en/depts/bacp/supp_info/minimumwageinformation.html

Summary
As of July 1, 2022 the minimum wage in Chicago is $15.40 per hour for employers with 21 or more workers, and $14.50 per hour for employers with 4 to 20 workers. Tipped workers (workers who receive tips as part of their wage, like restaurant servers) have a minimum wage of $8.70 for employers with 4 to 20 workers, and $9.24 for employers with 21 or more workers. If a tipped worker’s wages plus tips do not equal at least the full minimum wage, the employer must make up the difference.

As of July 1, 2022, the Minimum Wage to be paid under City contracts or concessionaire agreements pursuant to the Order is $16.00 per hour. When applying an allowance for gratuities to the wage of City concessionaire employees in positions that customarily receive gratuities, the resulting rate is $8.20 per hour.

Every July 1, Chicago’s minimum wage increases per the Minimum Wage Ordinance. The Chicago minimum wage is tiered for large businesses with 21 or more employees, and small businesses with 4-20 employees. The minimum wage for larger employees increases annually according to the Consumer Price Index or 2.5%, whichever is lower, since reaching $15 per hour in 2021. The minimum wage for small businesses continues to increase towards $15 per hour by 2023.

​Complaint
File a Complaint by calling 311, using CHI 311, or by filling out a Complaint Form.

Typical Situation: Our client is growing and are unsure if they are legally complaint with employees. They feel they have been "winging it" in the area of HR, for too long and want to formalize processes. Or simply, they have many questions about employee issues and need answers we cannot provide (Legally and we just don’t know)
 
When you hear a business owner say:
 

• “I need to fire this person, but I don’t want to get sued”
• “There are so many laws changing, and I don’t know if our policies and practices are compliant.”
• “We’re having a hard time finding and retaining qualified candidates.”
• “We don’t need a full-time HR professional, but we need occasional help with employee relations issues.”

 
HR Source Provides

• HR Hotline: With unlimited access to the HR Hotline, members can talk to HR experts and employment law attorneys any time they have a question or concern.
• Benchmarking Surveys: Keep your organization competitive with the market’s most robust and timely data on wages, salaries, polices, benefits and executive compensation.
• Newsletter Updates: HR Source’s weekly newsletter keeps employers current on HR compliance issues and best practices.
• Training and Education: HR Source offers training programs focused on HR best practices, employment law compliance, leadership development and more.

 
How they Work
HR Source is a not-for-profit employers' association serving more than 1,200 companies and organizations. They provide human resources and legal support, publish compensation and benefits surveys, conduct HR and supervisory training, and more.
 
Matching Ideas with Resources:

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 

Typical Situation: Our client has had increase premiums over the last few years. Maybe thinking about either dropping shopping for new, more affordable health insurance. The new laws and the Affordable Care Act may be miss-understood.
 
When you hear a business owner say:
·         “These Health Insurance Premiums are so high.”
·         “I am spending too much time dealing with HR situations.”
·         “What labor laws or regulations apply to me as an employer in today’s environment?”
 
PEO Provider will work with them help them with Cost Containment, HR Administrative Relief and risk management. They will help access their HR costs and provide a cost comparison to consolidate to one vendor. Our client will realize the economies of scale of joining a large organization and the ability to offer fortune 500 benefits.
 
How they Work The consultant will show group policy for health benefits (Since they are part of a group of over 350,000 lives, they can provide cost containment year after year. They can also look at a group policy for worker’s comp (possible reduced pricing and liability management). They will also help with HR since every client has their own dedicated HR Client Service Team.
 
Matching Ideas with Resources:

​Other successful business owners have told us that one or more of the following are their biggest business concerns. Recently, the GOA (Great O'Hare Association) conducted a survey through it's Business Advocacy Committee asking the same question: Rank Legislative Issues in Order of Highest Concern for You.

GLM askes their clients the following question to learn more about what the business owner is thinking.

Which concern(s) do you have about your business?

• Rising labor costs (Employee)
• Health Insurance
• Workers Comp
• Government Regulations
• Declining Sales (Strategy)
• Taxes (Financial)
• Fighting Fires (Process)
• Tight Cash Flow (Financial)
• Errors, Mistakes, Quality (Process)
• Productivity & Attitude (Employees)
• Equipment Capacity (Equipment)
• Customer Demands (Strategy)
• Not having anyone to talk with (Owner Partner Issues)
• Other:                                                                            

The GOA Survey showed that Taxes is the largest concern (over 45% or those survey choose it) for business owners and GLM clients agree.                                                                                                       

Other successful business owners tell us they have a good relationship with their accounting firm. They indicate this has occurred through a unique process that allows them to spend more time working on other key elements of their job.  They say the result is increased results without increasing the number of hours they work.

Perhaps you may want to see some of the same results in your business. If you do, please contact us.

If you are also looking to stay in the loop on local, state and federal business regulations and taxes, you may want to get involved in the Local Business Association and Elk Grove Chamber of Commerce, the GOA. Learn more at www.theGOA.com 

On July 1st 2017 all business in Cook County (except those in cities listed below) must increase their minimum wage to $10.00 an hour.  The minimum wage will go up $1.00 an hour each consecutive year (on July 1st) to reach $13.00 an hour by 2020.  Thereafter it will be increased with inflation but not to exceed 2.5% per year.  Businesses in the city of Chicago must increase their minimum wage to $11.00 an hour on July 1st (currently their minimum is $10.50/hr) and will also go up $1.00 an hour each consecutive year, reaching $13.00 an hour by 2019.  Thereafter the minimum increases with inflation and is capped at 2.5%.
 
Also Cook County businesses (including Chicago but excluding those cities listed below) must begin offering paid time off (sick time) to all employees working more than 80 hours in any 120 day period, accrued at the rate of 1 hour for every 40 hours worked.  Employees begin accruing sick time starting with their first day of employment, or July 1st 2017.  Companies can stipulate a waiting period of up to 180 days for new employees to begin using their earned time off.  ½ of any unused sick time must be carried over from one year to the next (up to 20 hours).  Employers can’t set unreasonably burdensome notification or use policies.  Sick time can be used for one’s self or family member (including extended family members) for any illness or issues related to being the victim of domestic violence or sexual offense.  Accrued but unused sick time does NOT need to be paid out upon separation of employment.  Existing PTO policies must meet all of the new requirements or be modified to match where deficient.  Notice of the sick time policies must be given in employees paychecks 2 weeks prior to taking effect on July 1st, at the time of employment for new employees, and must be posted in a conspicuous place at each facility.
 
Cities that have opted out of the Cook County minimum wage increases and sick time requirements so far:
Municipalities That Have Opted Out (as of 6/2/17)

• Alsip
• Arlington Heights
• Barrington
• Bartlett
• Bedford Park
• Bellwood
• Bridgeview
• Buffalo Grove
• Burbank
• Burr Ridge
• East Hazel Crest
• Elk Grove Village
• Elgin
• Elmwood Park
• Evergreen Park
• Harwood Heights
• Hickory Hills
• Hoffman Estates
• Justice
• Lynwood
• Melrose Park
• Morton Grove
• Mount Prospect
• Niles
• Norridge
• Oak Forest
• Oak Lawn
• Palatine
• Palos Heights
• Palos Park
• River Forest
• River Grove
• Rolling Meadows
• Rosemont
• Schaumburg
• South Barrington
• Streamwood
• Tinley Park
• Western Springs
• Wheeling

Municipalities Still Considering Opting Out (as of 6/2/17)​

• Berkeley
• Berwyn
• Cicero
• Des Plaines
• Forest Park
• Hillside
• North Riverside
• Northbrook
• Orland Park
• Palos Hills
• Park Ridge
• Prospect Heights
• Westchester
• Worth

Note that unincorporated townships that don’t have home rule can’t opt out.  So be aware of where the client is, not just the mailing address.
 
As we get nearer to 7/1/17 I expect this list of opt outs to increase and I will do my best to keep us up to date on those that have officially opted out. 

​Feel free to stop by and see me if you want more details or have questions.​

Ruth Kronvold
​[email protected]
GLM, Inc.
200 W Higgins Rd Ste 326
Schaumburg, IL  60195
P 847-884-1781 x33
www.glmfinancial.com
​