Governor Pritzker has proposed capping the Retail Discount, also known as the Vendor Collection Allowance, at $1,000 per entity per month. Any entity collecting and remitting sales tax on behalf of state and local governments receives the Discount.

Below is more information for eHelps readers that explain the retail discount.

1. WHAT IS THE RETAIL DISCOUNT? The Retail Discount is the 1.75% of the sales tax retailers are allowed to retain as partial reimbursement for their costs of serving as the administrator of the sales tax code on behalf of the state and local governments. Assume someone buys goods for $100 at the average state and local government sales tax rate of 8.47%. That means they pay sales tax of $8.47 on their $100 purchase. The retailer is allowed to retain 1.75% of that $8.47 or $0.15. This chart shows the example:

Justice Ann Walsh Bradley has announced that she will not seek re-election to the Wisconsin Supreme Court in 2025, marking the end of her tenure as the court's longest-serving active member, which began in 1995. This decision is particularly notable because Justice Walsh Bradley had previously indicated plans to run for a fourth 10-year term in the 2025 spring nonpartisan election. Her departure leaves an open seat on the high court that is expected to result in a highly competitive and costly court race.

Walsh Bradley, known widely as a judicial liberal, has been a significant figure on the court. With the election of Justice Janet Protasiewicz in 2023, which flipped the court to a liberal majority, many anticipated Walsh Bradley might eventually become Chief Justice. The current liberal majority on the court stands at 4-3, and retaining or flipping this philosophical balance will be crucial for both political sides. Conservatives will not have another chance to regain a majority until at least 2028, following the terms of conservative Justices Rebecca Bradley and Annette Ziegler, which end in 2026 and 2027, respectively.

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The recent changes announced by the Department of Labor regarding salary exemptions under the Fair Labor Standards Act are significant and may impact your operations. Effective July 1, 2024, the salary threshold for exempt employees will increase from the current $684 per week minimum, ($35,568 per year) to $844 per week ($43,888 per year), affecting overtime eligibility. This adjustment means that employees earning less than $43,888 annually will be entitled to overtime pay for any hours worked over 40 in a workweek. Employers are still permitted to satisfy up to 10% of the salary level using nondiscretionary bonuses and incentive payments (including commissions) paid annually or more frequently. The new rule also does not change the ​“salary basis” or duties tests required for employees to qualify for exempt status. Furthermore, on January 1, 2025, this threshold will rise again to $1,128 per week ($58,656 per year). Additionally, the rule establishes a mechanism for updating the salary threshold every three years, starting July 1, 2027, to reflect wage growth. This ensures ongoing protection for employees and requires you to stay informed about future adjustments.

These changes aim to expand overtime protections and ensure fair compensation for long hours. As store owners, it is crucial to review your payroll policies and consider how this will affect your staffing and budgeting. Employees who were previously exempt may now qualify for overtime. You may need to either raise their salaries to meet the new threshold or reclassify them as non-exempt employees eligible for overtime pay. It's important for employers to comply with these changes to avoid potential penalties and ensure fair compensation for their managers' work time.

The final rule is almost certain to face legal challenges. In addition to traditional arguments that will likely allege the rulemaking process did not satisfy the mandates of the Administrative Procedure Act, it is likely the rule will be challenged as exceeding the statutory authority of the DOL. Of course, we cannot assume that a challenge to the rule will be successful. Accordingly, you should review existing exempt workers’ salaries and identify whether any increases may need to be made to comply with the rule’s increases. We will also keep an eye on any challenges that are filed and be prepared to adjust and adapt as needed.

MHA payroll clients need to submit wage changes (increases of salary OR changing status to hourly) by June 27 at 10:00 CST. 

If you have any questions on how to proceed with your exempt employees, please reach out to Andrea Varga at 715-254-9625 or Jody Kohl 715-254-9618.

Visa and Mastercard reached a settlement with an estimated value of $30 billion. Under the proposed settlement agreement within the injunctive relief portion of their interchange class action cases, these card brand networks agreed to lower the interchange rates they collect for credit card transaction and must cap those rates for the next five years. This proposed antitrust settlement is one of the largest in U.S. history and should be good news for the small business community.

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Being a card-processing merchant would be difficult without a terminal to conduct your transactions. This is why maintaining proper terminal security is essential to all card-processing merchants. Here are some helpful tips from Elavon to maintain maximum terminal security:



• Where you locate your payment devices matters. They should be stationed in areas that are easy to monitor and control.
• Mount and secure the payment device and cables with cable trays and other securing mechanisms.
• Physically secure and alarm all remote or self-service payment environments to the greatest extent possible. 

Read the full article here.