Prepared and Distributed by The Midwest Hardware Association, Inc.
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Wisconsin Ends Fiscal Year with Record Budget Surpluses
By Misha Lee, MHA Wisconsin Lobbyist
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The Wisconsin Department of Administration (DOA) announced this month that the State of Wisconsin ended its Fiscal Year 2022 (FY22) on June 30, 2022, with a general fund balance of $4.30 billion. On top of that, the state’s statutory Budget Stabilization Fund, otherwise known as the “Rainy Day” Fund, has a $1.73 billion balance. Both of these surpluses set new state records. The announcement comes as the DOA released its Annual Fiscal Report (AFR). The State Controller’s Office publishes the State of Wisconsin Annual Fiscal Report each year pursuant to Sec. 16.40(3) of Wisconsin Statutes. The Annual Fiscal Report is a report of actual financial data for the fiscal year against the state budget. DOA reports that the $4.3 billion general fund balance is a 70 percent increase over the prior year’s ending balance of $2.58 billion. Additionally, DOA indicates that state general fund tax collections in FY22 increased by 5 percent over the prior year and exceeded estimates by over $1.6 billion. Despite unstable economic conditions and increasing inflation nationally, the latest financial data is welcome news for state taxpayers as the Administration and members of the Legislature prepare to embark on another two-year biennial state budget process starting in February.
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Illinois Secure Choice Deadlines Approaching
By Alec Laird, MHA Illinois Lobbyist and Vice President, Government Relations for the Illinois Retail Merchants Association
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As a reminder, the Illinois Secure Choice Act was passed into law in 2019 and requires businesses that have been in operation for two or more years to offer employees an individual retirement plan. Businesses who do not offer a savings plan will be required to enroll in the state’s Secure Choice Savings Program which requires a minimum 3% payroll deduction.
Originally, the mandate only applied to companies with 25 or more employees. Through recent changes in the General Assembly, the mandate now applies to companies with 5 or more employees. The law applies the following phase-in dates to accommodate the change:
- Enrollment Deadline 1: Companies with 16 or more employees must enroll their employees in a savings program by November 1, 2022.
- Enrollment Deadline 2: Companies with 5 or more employees must enroll their employees in a savings program by November 1, 2023.
The mandate DOES NOT apply to companies who enroll their employees in a private employer—sponsored retirement plan. These include but are not limited to the following plans:
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Payroll Diversion Scam: Fraudulent Employee Direct Deposit Information
Article provided by the MHA/RFS Payroll Department
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More and more fraudulent activity scams are impacting stores and Payroll / Human Resources (HR) practitioners regarding payroll diversion that involve fraudulent direct deposit information.
How Does It Happen?
Cyber criminals attempt to commit payroll fraud by sending fake phishing emails or calling HR and Payroll practitioners requesting a change to employee bank account information. The emails are sent with a request for a change of banking details and appear to use the employee’s correct sender name and email signature. Callers/emailers have enough information about the real employee to successfully impersonate them. Once the change is made, the employee’s payroll is diverted to a fraudulent account.
Common email subject lines for this scam include, but not limited to:
- “Payroll”
- “Urgent Payroll Request”
- “Urgent Request!!”
- “Re: (Employee Name)”
How to Protect Your Employees and Your Store
It is critical that you and your employees be proactive and alert when communicating through email. Be sure the email address is that of your employee and not spoofed. By educating your yourself and employees on safe email practices, including how to recognize and report suspicious emails, you can help mitigate the threat of payroll fraud.
- Be cautious of requests for bank account changes that originate via email, especially if the email has a vague or urgent subject line.
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Validate bank account changes directly with your employee before entering them. It is critical that validation occurs through a method other than email (i.e. in person is best, by calling the known contact number, instant message, etc.).
- If you receive a suspicious email, do not click on any links or open any attachments within the message. Do not reply to the email and immediately contact your IT support to report the email.
- If you receive a phone call asking for a bank account change, do not give out any information or process any changes until you validate the caller’s identity through another method (i.e. in person is best, by calling the known contact number, instant message, etc.).
How MHA/RFS is Protecting You
When we receive an email regarding direct deposit changes, we will reach out to the designated payroll person to verify that the information sent is legitimate. We understand that you are busy and this may be an inconvenience; however, it is costly if we do not follow this practice. Even if you put in the email that this is legitimate, we will still reach out.
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2023 contribution limits for 401(k), HSA and HDHP, Health FSA, Dependent Care FSA, QSEHRA, Commuter Transit and Parking, Adoption Assistance, and Earnings Subject to Social Security Payroll Tax have been posted.
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New Owner for 152-year Whitewater Institution – Winchester True Value
from whitewaterbanner.com
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If you'd like to place an ad, please contact Sam Schmidt at
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Here are the most recent Illinois, Minnesota-Dakotas, and Wisconsin hardware store sales trends, gathered from association members using the MHA's monthly accounting services. The figures derived for each region include sales data from the following number of stores:
Illinois - 17 stores
Minn.-Dakotas - 11 stores
Wisconsin - 51 stores
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MHA is the recognized leader in providing accounting to independent hardware stores of all sizes and of all wholesaler affiliations. We provide accurate, timely, complete monthly financial statements and, because we do accounting for hundreds of hardware stores across the country, we offer something that other accounting firms can't.
With MHA monthly accounting service you receive:
- Monthly Profit & Loss Statement, Balance Sheet, and Cash Flow
- Accountant's Interpretation and Analysis Letter
- Complete reconciliation of all bank accounts, outstanding credit card transactions, merchandise payables, and other balance sheet items
- Preparation of sales tax, payroll tax, and other federal, state, and local tax reports
- Nationwide, toll-free telephone access to keep you in touch with the MHA staff
- Outstanding, professional service at reasonable prices
Our trained staff stays up to date on the latest tax developments and works closely with you to prepare and file returns that are accurate, complete, and on time.
Testimonial
“Because they work with other hardware stores around the nation, MHA gives us great insight on what to do when it comes to my accounting and finances. They are the best financial counselors to have for running a hardware store.”
David Tennies, Manager
Tennies Hardware
West Bend, WI
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