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:

• 401(a) or 401(k) plan) - Qualified plan (including profit sharing plans and defined benefits plans)
• 403(a) - Qualified annuity plan
• 403(b) - Tax-sheltered annuity
• 408(k) - Simplified Employee Pension (SEP) plan
• 408(p) - SIMPLE IRA plan
• 457(b) - Governmental tax-deferred compensation plan
• Taft-Hartley plan

An exempt plan does not include payroll deduction IRAs.

If an employer chooses to enroll in the state plan, the State will monitor compliance during each enrollment phase, reach out to employers, and provide technical assistance to help them meet deadlines and requirements. Employers who do not comply with the Illinois Secure Choice Savings Program Act may be subject to fines and penalties.

The balance of the Wisconsin Supreme Court has now shifted to a liberal majority for the first time in 15 years following the official swearing-in earlier this month of new Justice Janet Protasiewicz to a full 10-year term. In April, Protasiewicz defeated former conservative Justice Daniel Kelly by a sizable eleven-point margin of victory. Her victory amounted to a political earthquake in the state because of its significance in flipping the court’s ideological balance of power from conservative to liberal and what that could mean for the future.

Only 24 states elect justices to their respective state Supreme Courts. Of those, 14 states hold nonpartisan elections, meaning that the judicial candidates run without a party affiliation, including Wisconsin. Although the race seemed anything, but nonpartisan considering the groups involved and the money spent (approximately a record-breaking $45 million total) to back one side over the other. Wisconsin currently has a Democratic governor (Evers re-elected in 2022) and a Republican-controlled legislature, so many of the most consequential public policy disputes between the two branches are usually going to end up being resolved at the state Supreme Court. Protasiewicz’s victory now gives liberals a 4-3 majority on the bench, which will have a significant impact on a wide number of contentious issues including abortion, legislative redistricting, medical malpractice caps, union collective bargaining, private school vouchers, executive branch powers, and voting rules just to name a few.

Justice Protasiewicz is a former prosecutor and judge from Milwaukee. She has been a vocal advocate for abortion access and voting rights even while campaigning for a seat on the bench. She has also been openly critical of the Republican drawn legislative district maps calling them on numerous occasions, “rigged maps.” The new liberal majority on the Supreme Court is likely to be more sympathetic to challenges to these laws and play a key role in the upcoming redistricting process. In fact, less than 24 hours after Protasiewicz took the oath of office, two lawsuits were subsequently filed that challenge the constitutionality of the current political legislative districts arguing they are gerrymandered maps. Depending on how and when the court rules in these particular cases, it is also highly possible that the court will play a key role in drawing new legislative districts which will create some fury and uncertainty within the Senate and Assembly GOP caucuses as it poses a threat to their majorities in both houses.

The change in the balance of power on the Wisconsin Supreme Court is a significant development for Democrats and progressive groups in the state and secures a liberal majority on the court for at least two years when Justice Ann Walsh Bradley will face re-election in another statewide battle royale of a race. It is also a sign of the changing political landscape in Wisconsin which has become increasingly Democratic in recent years when it comes to statewide races. The new liberal majority on the court is likely to have a significant impact on the state's political landscape for years to come. It will be interesting to see how the court rules on a number of these important issues over the next several years and how its decisions affect the balance of power overall in the state.

In addition to Protasiewicz, the other liberal leaning justices on the Wisconsin Supreme Court are Justices Ann Walsh Bradley, Rebecca Dallet, and Jill Karofsky. The conservative leaning justices are Annette Ziegler, Brian Hagedorn, and Rebecca Bradley. Here is biographical information on each of the seven justices to the state supreme court.

As your trusted Accountants and advisor, we are here to provide you with important information regarding the Employer Retention Credit. This credit has been a subject of discussion lately, and we want to ensure that you have accurate insights into its qualifications and potential pitfalls.

General Qualifications for the Employer Retention Credit:

The Employer Retention Credit was introduced as a part of government relief measures to support businesses during challenging times, such as the recent economic uncertainties caused by the global pandemic. It is designed to provide financial relief to eligible employers who have been adversely impacted. Here are the key qualifications to consider:

1. Business Operations Affected: To be eligible for the credit, your store must have experienced a significant decline in gross receipts. For 2021, this means a decline of 20% or more in gross receipts compared to the same quarter in 2019. For 2022 and beyond, the threshold changes to 10%.
2. Employee Count Threshold: The size of your business is also a determining factor. For 2021, businesses with 500 or fewer full-time employees are generally eligible. However, the definition of "full-time employees" and other nuances can influence this qualification, and it's crucial to consult with your Accountant for accurate calculations.
3. Credit Amount: The credit is equal to a percentage of qualified wages paid to eligible employees during the eligible period. For 2021, this percentage is 70%, and the maximum creditable wage per employee per quarter is $10,000.
4. Full or partial Suspension:  Alternatively, your business could be eligible if your store's operations were fully or partially suspended due to government orders limiting commerce, travel, or group gatherings.

Cautionary Advice:

While the Employer Retention Credit can be a valuable relief measure for eligible businesses, it's important to exercise caution. We advise you to be wary of individuals or consultants who claim you are eligible for the credit without thoroughly assessing your business's specific circumstances. Here's why:

1. Complex Qualifications: The criteria for the credit are not one-size-fits-all. Each business's situation is unique, and determining eligibility requires a comprehensive understanding of your operations, employee count, and financials.
2. IRS Scrutiny: The IRS closely examines claims for the Employer Retention Credit. If you claim the credit without proper documentation or eligibility, you might face penalties, fines, or even legal consequences. In the event, the IRS does examine your return, and find the claim for the Employer Retention Credit to be incorrectly claimed, Corporate and personal returns will need to be amended. The amount of Employer Retention Credit, interest and/or penalties will need to be remitted back to the IRS.
3. Accounting Accuracy: As your Accountant, we have a deep understanding of your financial situation. Relying solely on external consultants for crucial decisions like claiming the credit might lead to inaccuracies in your federal and state forms, potentially causing financial and legal complications.
4. No Payroll Modifications Based on Outside Recommendations: We want to emphasize that we will not modify your federal and/or state payroll forms based solely on external suggestions. Any adjustments to your payroll tax filings will be your responsibility. Copies of the amended forms should be given to your MHA accountant for our files.
5. Amended Corporate and/or Personal Income Tax Returns: Reminder that all returns will need to be amended upon receiving the Employer Retention Credit, which will be reviewed on a case-by-case basis. This can cause you to have unintended income on those amended returns leaving you with a Federal and/or State balance due to pay with the amended returns. 

In conclusion, we want to emphasize that while we are here to guide and advise you, decisions related to tax credits and financial matters should always be approached with careful consideration.



Your financial well-being is our priority, and we are committed to providing you with the best possible guidance. If you have any questions or concerns, please don't hesitate to reach out to your Accountant. We're here to help you navigate these intricate matters and ensure your financial success.

MHA is excited to let you know that we now offer Swipeclock, the leading small business Time & Labor solution.

Automated Time & Labor integrated with payroll makes managing work hours, schedules, and PTO easy and hassle-free. Capture punches in real time and make timecards immediately available for review and approval. We also offer integrated hiring, onboarding and HR management.

What does this mean for you?

You can throw away the paper and spreadsheets and provide employee self-service for timesheets, schedules and vacation time. Our hiring solution allows you to easily track applicants in a centralized system and post to multiple job boards from the platform.

Plus, it’s a reliable way to reduce your labor costs. Overtime alerts, schedule enforcement and missed punch notifications help keep payroll costs in check.

Please see the attached link:

https://partner.swipeclock.com/engage/demo-workforcehub-time-plus/?sales_rep=VktHbEI4ays4ZWNlRmFlamovZDA5Zz09

If you would like to set up a meeting to learn more, please contact me at [email protected]. 

Thank you for being a valued customer and trusting us to handle your payroll. We know you have many choices when it comes to service providers, and we truly appreciate your business.