July News To Know
Dear Clients & Friends,
Summer is here, and we hope you and your family are able to make the most of the season. This month, we have gathered some important updates to ensure tax and other financial issues do not cast a cloud over your summer! For example, if you’re traveling overseas, remember you can claim back local value added taxes (VAT). See our article on What You Need to Know About VAT.
We’re also excited to announce that the Daily Herald has named CJBS as one of the best companies to work for in Illinois for 2022. We all get great satisfaction from providing you with the best service possible, including our monthly newsletters. This month, we share:
- Mileage Rate Increases for 2022
- New IL Sales Tax Updates
- New Forms Allowed to Amend/Correct Electronic Returns
- Current Tax Deadlines
- Minimum Wage Increases
Next month, in our August newsletter, we will share tax planning strategies to help you proactively plan for the end of 2022, including suggestions to maximize deductions and credits and minimize your tax burden. In the meantime, we are here to help. Please reach out to your trusted CJBS team member with any questions you may have.
Mileage Rate Increases for 2022
Effective on July 1, 2022 and owing to the increase in gas prices, the IRS has increased the optional standard mileage rate for the final 6 months of 2022. The rate for business travel has increased to 62.5 cents per mile. Additionally, “the new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, both up 4 cents from the rate effective at the start of 2022.” Learn more here.
New Forms Added to Correct or Amend Electronic Returns
Recently, the IRS expanded their list of forms that are allowed to be amended or corrected electronically, including:
- Form 1040-NR — U.S. Nonresident Alien Income Tax Return
- Forms 1040-SS — U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)
- Forms 1040-PR — Self-Employment Tax Return – Puerto Rico
The hope is that this will help to ease the IRS’ inventory of backlogged returns, as well as prove more convenient for those individuals who will now be allowed to amend or correct their returns electronically. Learn more here.
Upcoming Tax Deadlines
2nd Quarter payroll reports are due on August 1, 2022. This year, since July 31st falls on a Sunday, the Quarterly Federal Tax Form 941 for the second quarter ending June 30, 2022 is due on August 1st.
Chicago Minimum Wage Increase
Chicago’s minimum wage is adjusted (increased) every year on July 1st using a tiered model based on the number of employees. This year, the adjustment is as follows:
- $15.40/hour — 21 or more employees (including all domestic workers, regardless of the number employed)
- $14.50/hour — 4 to 20 employees (including all domestic workers, regardless of the number employed)
- $9.24/hour for tipped employees — 21 or more employees*
- $8.70/hour for tipped employees — 4 to 20 employees*
*Employers must make up the difference between any tips received and the applicable minimum wage for non-tipped workers.
Additionally, “employers that maintain a business facility within the City of Chicago or are required to obtain a business license to operate in the City are required to pay their employees at least the Chicago minimum wage… Any employee that works two hours or more in the City within a two-week period must also receive at least the Chicago minimum wage.” Learn more here.
New IL Sales Tax Updates
We recently highlighted two new IL State Sales Tax changes, including:
- Grocery Tax Suspension (July 1, 2022 – June 30, 2023)
- IL State Sales Tax Holiday (Aug. 5 – 14, 2022)
Please reach out to your trusted CJBS team member with any questions you may have.
Stay safe & healthy,
The CJBS Team