State Agency Rules Open For Comment
The following rules have been proposed by State of Illinois agencies and are open for public comment. To read more about the rules or to submit comments regarding their impact on your business or industry, visit www.ildceo.net/regalert
and click on "submit comments"
The Capital Development Board proposed amendments which will impact construction, renovation, and architectural businesses and businesses seeking building permits. To learn more about these potential changes,
The Illinois Gaming Board proposed amendments which will impact businesses that are interested parties in disputes concerning the validity or interpretations of agreements that control the location and operation of video gaming terminals, but are currently prohibited from filing petitions with the Gaming Board or intervening in pending cases where these issues are considered. To learn more about these potential changes, click here.
The Department of Financial and Professional Regulation proposed amendments which will impact licensed professionals who currently have a continuing education requirement and other persons applying for or renewing professional licenses with the Department of Financial and Professional Regulation. To learn more about these potential changes, click here.
The Department of Natural Resources proposed amendments which will impact oil and gas drilling companies and holders of oil and gas permits. To learn more about these potential changes, click here.
The Department of Public Health proposed amendments that will impact food service, healthcare and child care facilities, and businesses that install or maintain plumbing fixtures or water systems. To learn more about these potential changes, click here.
The Department of Healthcare and Family Services proposed rules that impact medical transportation providers, hospitals and long-term care facilities. To learn more about these potential changes, click here.
The Secretary of State proposed amendments that will impact businesses that provide vehicle license and title services. To learn more about these potential changes, click here.
The Department of Agriculture proposed a new rule that will impact businesses seeking licenses to cultivate or process industrial hemp. To learn more about these potential changes, click here.
National Labor Relations Board Extends Time for Submitting Comments on Proposed Joint-Employer Rulemaking
The National Labor Relations Board is
extending the time
for submitting comments regarding its proposed rulemaking to address its joint-employer standard for an additional 30 days.
The submission window is currently open and interested parties may now file comments on or before Monday, January 14, 2019
. Comments replying to the comments submitted during the initial comment period must be received by the Board on or before
January 22, 2019
Public comments are invited on all aspects of the proposed rule and should be submitted either electronically to www.regulations.gov, or by mail or hand-delivery to Roxanne Rothschild, Acting Executive Secretary, National Labor Relations Board, 1015 Half Street S.E., Washington, D.C. 20570-0001.
Click here to read the request for comments in the Federal Register. Click here to read the original announcement regarding the Notice of Proposed Rule-Making.
For further information on any of the above rules, contact Katy Khayyat at Katy.Khayyat@Illinois.gov, or call (217) 558-0190.
New Laws For Businesses in 2019
On January 1 hundreds of new laws became effective. Below are some which may be of interest to employers:
Public Act 100-1094 (SB2999) - Employer Reimbursements for Employee Expenses Summary: Amends the Wage Payment and Collection Act. Mandates employers reimburse employees for necessary expenditures or losses incurred by the employee within the employee's scope of employment and directly related to services performed for the employer. Mandates an employee submit expenses for reimbursement within 30 days or within parameters of employer reimbursement policy. Provides an employee is not entitled to reimbursement under the Act if the employer has a reimbursement policy.
Public Act 100-1140 (HB4743) - Equal Pay Summary: Amends the Equal Pay Act of 2003. Provides that no employer may discriminate between employees by paying wages to an African-American employee at a rate less than the rate at which the employer pays wages to another employee who is not African-American for the same or substantially similar work on a job that requires equal skill, effort, and responsibility and is performed under similar working conditions.
Public Act 100-0944 (SB3240) - Increased Civil Penalties for Carnival and Amusement Enterprise Operators for Failure to Conduct Criminal Background Checks on Employees Summary: Amends the Amusement Ride and Attraction Safety Act. Increases the civil penalty for carnival or amusement enterprise operators that employee workers convicted of any offenses set forth in Article II and Article 9 of the Criminal Code of 1961 or the Criminal Code of 2012, is a registered sex offender, or the employer fails to conduct a criminal background check on the employee. First offense civil penalty raised to $5,000 from $1,000, second offense civil penalty raised to $10,000 from $5,000, and subsequent offense shall result in the revocation of the operators permit.
Public Act 100-0762 (HB4953) - Sexual Harassment Training. Provides that p
rofessions that have continuing education requirements must provide at least one hour of sexual harassment prevention training to be included for license renewals occurring on or after January 1, 2020.
Public Act 100-1003 (HB1595) Paid Breaks for Nursing Mothers. Provides that employers must provide paid breaks to nursing parents who need to express milk at work.
IRS Issues Guidance on Changes to Excess Business and Net Operating Losses
Excess business losses
The TCJA modified existing tax law on
excess business losses
by limiting losses from all types of business for non-corporate taxpayers.
An excess business loss is the amount by which the total deductions from all trades or businesses exceed a taxpayer's total gross income and gains from those trades or businesses, plus $250,000, or $500,000 for a joint return.
Excess business losses that are disallowed are treated as a net operating loss carryover to the following taxable year.
See Form 461 and instructions, available soon, for details.
Net Operating Losses
TCJA also modified net operating loss (NOL) rules. Most taxpayers no longer have the option to carryback a NOL. For most taxpayers, NOLs arising in tax years ending after 2017 can only be carried forward. Exceptions apply to certain farming losses and NOLs of insurance companies other than a life insurance company.
For losses arising in taxable years beginning after Dec. 31, 2017, the new law limits the NOL deduction to 80% of taxable income.
Additional updates can be found on the Tax Reform Provisions that Affect Businesses page of IRS.gov.
Options to Pay Balance Due Tax
It's always best for taxpayers, including businesses and self-employed individuals, to file and pay on time. However, if the tax due can't be paid at the time of filing, taxpayers should still file and pay as much as possible to avoid penalties and interest and keep any balance due to a minimum.
- A short-term payment plan to pay within 11-120 days.
- A long-term payment plan, also called an installment agreement, to pay the balance due in monthly installment payments.
Businesses owing $25,000 or less from the current and prior calendar year, and who can pay what they owe in 24 monthly payments or less, qualify to use the online application.
Tax Reform Changes Qualified Moving Expense Reimbursements
- They're on active duty.
- They move per a military order and incident to a permanent change of station.
- The moving expenses would qualify as a deduction if they didn't get reimbursement.
Employers may exclude any 2018 reimbursements or payments on behalf of employees for a move that took place before Jan. 1, 2018, and would have been deductible had they been paid before that date.
Tax Reform Affects Employee Achievement Awards
The Tax Cuts and Jobs Act prohibits certain property as an employee achievement award.
IRS Reminds Employers, Business Owners of January 31 Filing Deadline for Wage Statements, Independent Contractor Forms
The law allows employers to deduct the cost of certain awards and exclude them from employees' income. But this doesn't apply if the award is cash, gift cards and other non-tangible personal property including:
- Tickets to theater or sporting events
- Stocks, bonds, and securities
- Other similar items
For more information visit IRS.gov.
The Internal Revenue Service reminded employers and other businesses that Jan. 31 remains the filing deadline for wage statements and independent contractor forms.
The Protecting Americans from Tax Hikes (PATH) Act of 2015 started a requirement for employers to file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31. Certain Forms 1099-MISC, Miscellaneous Income, filed with the IRS to report non-employee compensation to independent contractors are also due at this time. Such payments are reported in box 7 of this form.
The IRS can more efficiently verify income that individuals report on their tax returns because of the Jan. 31 deadline; this helps prevent fraud. File these forms correctly and timely to avoid penalties.
is the quickest, most accurate and convenient way to file these forms.
Pointers to help filers prepare
Employers should verify employees' information. This includes names, addresses, and Social Security or individual taxpayer identification numbers. They should also ensure their company's account information is current and active with the Social Security Administration before January. If paper Forms W-2 are needed, they should be ordered early.
Automatic extensions of time to file Forms W-2 are not available. The IRS will only grant extensions for very specific reasons. Details can be found on the instructions for
, Application for Time to File Information Returns.
IRS Issues Standard Mileage Rates for 2019
The Internal Revenue Service today issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018,
- 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018, and
- 14 cents per mile driven in service of charitable organizations.
The business mileage rate increased 3.5 cents for business travel driven and 2 cents for medical and certain moving expense from the rates for 2018. The charitable rate is set by statute and remains unchanged.
It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously. These and other limitations are described in section 4.05 of
Rev. Proc. 2010-51
, posted today on IRS.gov, contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
Nominate a Business for a National Small Business Week Award
SBA is accepting nominations for National Small Business Week Awards until January 9th. National Small Business Week is May 5-11, 2019. Check out the award categories, download nomination forms and read guidelines at:
All nominations must be mailed or hand delivered to the SBA Illinois District Office, ATTN: Jessica Mayle, 500 W. Madison Street, Suite 1150, Chicago, IL 60661.
SBA Offers Loans to Central Illinois Tornado Victims
Residents and businesses affected by the Dec. 1 severe storms and tornadoes will be eligible to apply for low-interest disaster loans from the U.S. Small Business Administration, the agency has announced.
Gov. Bruce Rauner requested an SBA disaster declaration covering Christian, Macon, Montgomery, Sangamon and Shelby counties.
"The SBA is strongly committed to providing the people of Illinois with the most effective and customer-focused response possible to assist businesses of all sizes, homeowners and renters with federal disaster loans," SBA Administrator Linda McMahon said. "Getting businesses and communities up and running after a disaster is our highest priority at SBA."
Homeowners may apply for loans up to $200,000 to repair or replace damaged or destroyed residences. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property.
Businesses or nonprofit groups are eligible for loans of up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets.
Interest rates are as low as 3.74 percent for businesses, 2.75 percent for nonprofit organizations, and 2 percent for homeowners and renters with terms up to 30 years. Loan amount and terms are set by the SBA and are based on each applicant's financial condition.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA's secure website at DisasterLoan.sba.gov.
Businesses and individuals may obtain information and loan applications by calling the SBA's Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing), or email firstname.lastname@example.org.
Loan applications also can be downloaded at www.sba.gov. Completed applications should mailed be to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Texas, 76155.
The filing deadline to return applications for physical property damage is Feb. 19. The deadline to return economic injury applications is Sept. 23.
Get Local SBA Updates
SBA now offers customized local emails for small business owners. To receive information about SBA-related training and events in your area, take a moment to input your zip code at www.sba.gov/updates.
Procurement Technical Assistance (PTAC) News
Need Help With Your Sources Sought Response?
Did you know that your PTAC counselor can be a valuable resource in helping you respond to sources sought notices? If you are planning to respond to a sources sought notice, a simple phone call to your PTAC counselor can provide you with some tips to help ensure that your response is compliant and complete. If time permits, you may also consider having the PTAC counselor review your response before submitting it to the government. Whether you are responding to a sources sought notice or a Request for Proposal (RFP), you should schedule an appointment with your PTAC counselor as soon as you know you will be submitting a response. Don't wait until the last minute to get on your counselor's schedule. Proper planning and scheduling will allow enough time for your PTAC counselor to review your response and for you to make any last-minute edits before submitting it to the government ON TIME.
Businesses are Invited To Participate in South America Trade Mission
International Trade Center at SIUE Invites Businesses to Participate in South America Trade Mission
The trade mission is open to southern Illinois businesses from all industries and sectors with an interest in:
- Exploring export opportunities for their products and services
- Finding or expanding distribution channels
- Getting first-hand market information
- Experiencing the business environment in Peru, Chile and Colombia
"After a successful mission to South America in 2009, we are looking forward to continuing to strengthen southwest Illinois' ties to these Latin American markets," said ITC at SIUE Director Silvia Torres Bowman. "This is an important event for our region. I will be joining the delegation and assisting participants in making positive and long-term connections with these South American partners, generating more opportunities for southern Illinois goods and services, as well as foreign direct investment to our region."
The ITC at SIUE will develop a full itinerary for each participating company with opportunities to conduct private, one-on-one meetings with key partners and buyers in one, two or all three countries. Services offered include matchmaking, export counseling, and travel and logistical support.
"This trade mission will provide participants all of the information and resources they need to advance their companies to a higher level through exporting," Torres Bowman said. "Prospects will have been carefully targeted and pre-screened, based on their interest in participants' specific products or services. Consequently, the quality of the meetings during the mission are incredibly productive in the long-term, as compared to trade show participation.
Participants will save valuable time and cost, while maximizing their results."
A limited number of companies will be accepted on a first-come, first-served basis. Participation fees vary per country. Recruitment ends Friday, Jan. 4.
Torres Bowman urges interested businesses to indicate their interest now, so organizations have time to prepare and support them in mission planning. She also notes that the mission could qualify for Illinois State Trade Export Promotion (ISTEP) financial funding offered to small and medium-sized exporters. Businesses can be awarded up to $7,500 in travel cost reimbursements.
For information on how your company can participate, contact Torres Bowman at
or call the
at SIUE at 618-650-2452.
Southwest Illinois Trade and Investment Council
(SWITIC) has been in existence since 2015. The nonprofit organization educates, equips and connects area businesses with the expertise and contacts to begin and expand exporting their products.
International Trade Center
serves entrepreneurs and small businesses in southern Illinois by providing individualized, no-cost export consultation, identification of foreign buyers, agents and/or distributors through trade leads, international market analysis and more.
The ITC is funded through a cooperative agreement with the U.S. Small Business Administration, the Illinois Department of Commerce and Economic Opportunity, and
Southern Illinois University Edwardsville
as a service to the region's entrepreneurial and business community. It has a longtime partnership with the Illinois Office of Trade and Investment (OTI), which maintains a full-time staff of both foreign and domestic-based international trade and marketing experts. OTI also manages 6 foreign trade offices located in Belgium, Japan, Mexico, Canada, China and Israel.
As a key member of the Illinois SBDC Network, the International Trade Center delivers these important services to its clients while supporting the goals and objectives of both the
SIUE School of Business
and the University at large.
Spotlight on Success
Increased clientele and the popularity of handmade gifts have led a pair of entrepreneurs to expand their quilting business.
Located in Columbia, Warm N Cozy Quilting is owned by mother-daughter pair, Debbie Chitty and Danielle Cyvas. Their recently expanded shop located on 816 S. Main St. #2 now allows them to offer more fabrics, classes, additional services like sew days, and an area for their Quilts of Valor group to create quilts for veterans.
SBDC Director Jo Ann Di Maggio May initially provided Chitty with business plan assistance and continues to offer resources for financing and referrals.
"The SBDC and I are ecstatic to see Warm N Cozy grow and flourish," says Di Maggio May. "The ladies work so hard and always have their customers at the heart of every decision they make. I wish them even more success moving forward and am always here to assist and offer advice as needed."
"Jo Ann has always been our cheerleader," Chitty said. "She has kept in contact with us and is always there for emotional support whenever we need help."
Chitty's grandmother, Carol, started a tradition when she made a quilt for each grandchild when they got married. When Carol passed away, Chitty took it upon herself to learn how to quilt and keep her grandmother's tradition alive.
The first step in Chitty's quilting journey was purchasing the book "Quilt in a Day," by Eleanor Burns. She was determined give her daughter, Danielle, a quilt as a wedding gift, just as Grandma Carol would have.
Chitty had ignited a passion she never knew existed: a love for quilting.
She turned her hobby into a small family-owned business with the support of her business partner and daughter, who has over 20 years of experience in retail management. Cyvas' expertise and passion for quilting fit right in with her mother's values.
Chitty's daughter, Sarah Neuman, works at the shop part-time, providing help with information technology, marketing and social media. Cyvas' mother-in-law, Trish Cyvas, works part-time and plays an integral role in helping customers as well as keeping the store stocked with pre-cut fabrics.
Chitty also knows that they would not be able to run as smoothly and efficiently without the help of full-time employee, Julie Yeager. She sends monthly newsletters, organizes classes and more.
Warm N Cozy Quilting can be contacted at 618-719-2565. For more information, visit https://www.warmncozyquilting.com/. You can also find Warm N Cozy Quilting on Facebook, Instagram, and Twitter.
Illinois Small Business Development Centers are located throughout the state and provide information, confidential business guidance, training and other resources and services for start-up and existing small businesses.
Whether your company employs two people or 102, you need a strong network behind you to succeed. And that's where the Illinois Small Business Development Center comes in. SBDC partners with well-respected business development organizations and educational institutions to assist you in maximizing your potential to grow and attract investors. SBDC connects you to the experts, tools and opportunities that translate into endless possibilities!
The Illinois SBDC program is located within the Office of Entrepreneurship, Innovation and Technology at the Illinois Department of Commerce & Economic Opportunity. For more information please click here.
This newsletter is provided in partnership with the Illinois
Small Business Development Center Network.