    Merry Christmas From IADA
The IADA Officers, Directors and Staff would like to wish you and your family a wonderful holiday season. We enjoy every opportunity to work with our members in an effort to support your businesses.  We value your membership and participation and look forward to a happy and prosperous 2024. As always, if there is ever anything we can assist with, do not hesitate to call us at (800) 252-8944 and please visit our www.IllinoisDealers.com site often. The IADA Offices will be closed for the Christmas Holiday on December 25th and 26th. 

    2023 Year-End Checklist For Dealers
As another tax year comes to a close, it is time to consider your tax planning opportunities and year-end tasks.
Year-End Planning, Keeping the Accounting Records Open at the End of December, Year-End Tax Reporting, Review Procedures for the Use of Demonstrators to Ensure You Comply With the Current IRS Regulations.  Click here for a convenient checklist provided by our friends at Woodward & Associates

    Legal Reminder: Statewide Minimum Wage Increases To $14/Hour On January 1, 2024
The statewide minimum wage will increase from $13.00 per hour to $14.00 per hour on January 1, 2024. On January 1, 2025, the State minimum wage will increase to $15.00 per hour. 
The current minimum wage in Cook County, outside of Chicago, is $13.70 per hour (except in municipalities that have opted out of the Cook County Minimum wage) and the minimum wage in Chicago is $15.80 per hour.
Illinois employers are advised to review their pay plans to make sure that they meet minimum wage obligations.

    Ford Appeals Motor Vehicle Review Board’s Model e Decision
Earlier this month, Ford Motor Company filed a complaint seeking administrative review of the Illinois Motor Vehicle Review Board decision in the Model e protest, which is the process for appealing a State Board’s administrative decision.  On November 16th, the Board ruled overwhelmingly in favor of the Ford dealers who challenged the Ford Model e modifications to the Ford dealer agreement.  The Board held that Model e requirements for dealers to route all EV advertising, sales, and service appointments through Ford’s website; to offer non-negotiable pricing on EVs and trade-in valuations; and to purchase and install expensive EV chargers for public use, including during non-business hours, violated multiple provisions of the Illinois Motor Vehicle Franchise Act.  Ford’s attempts to alter the dealer agreement through the Model e changes would have usurped important dealership functions and turned dealers into delivery agents.  
IADA, through our Legal Defense Fund, strongly supported the protesting Ford dealers in one of the first challenges to the Model e modifications.  Other manufacturers have been watching the Illinois Model e protest closely, so the Illinois Ford dealer victory is an important defense of the franchise model for all dealers.  As the Model e case proceeds, IADA will continue fighting for dealers by supporting the dealers’ defense to Ford’s appeal.  
Your support of CVR and other IADA programs has put IADA in a position to support dealers in the Ford Model e protest and in a host of other ways.  We urge you to continue supporting your State Association by participating in our IADA programs.

    Don't Leave Money On The Table - Check Out Ethos Group
Ethos Group partners with dealers to promote an ethical, customer-focused approach to the sale, financing, and servicing of automobiles.  You may think you’re doing it all right, but give them a chance to introduce themselves and you may learn there’s a lot more you could be earning. 
For more information, contact Lance Graves - lgraves@ethosgroup.com or call him at (402) 960-0538. 
Check out this week's Ethos “Two Minute Tune-Up” feature - Wonderment.  We hope you enjoy the short messages.

    Maximum Doc Fee Increases To $358.03 For 2024
The documentary fee, or doc fee, will increase from $347.26 to $358.03 on January 1, 2024. This is an approximate 3.1% increase in the 12-month Consumer Price Index for All Urban Consumers issued by the U.S. Department of Labor.   
The change in the base doc fee will require updates to the notice that must accompany or be included on the retail installment contract as required under Section 11.1 of the Motor Vehicle Retail Installment Sales Act. The required disclosure is as follows:
"DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED TO CLOSING A SALE. THE BASE DOCUMENTARY FEE BEGINNING JANUARY 1, 2020, WAS $300. THE MAXIMUM AMOUNT THAT MAY BE CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF $300, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
Please note that the doc fee is subject to Retailers' Occupation Tax as part of the gross proceeds from the vehicle sale. 
 IADA is always honored to work on your behalf, representing a united dealer industry effort.  Please remember, 1-2 doc fees per year cover your full IADA membership.

    Locally Imposed Sales Tax Changes Effective January 1st
Beginning January 1, 2024, the rates of certain locally imposed sales taxes that are administered by the Illinois Department of Revenue will change. Please refer to the attached bulletin from the Illinois Department of Revenue to see if you are affected. Please note that these sales tax rate changes apply only to general merchandise and do not apply to vehicles. The Department of Revenue bulletin outlining the sales tax increases can be found here:  Sales Tax Rate Change Summary, Effective January 1, 2024 (illinois.gov).

    Reminder: Illinois Paid Leave For All Workers Act Takes Effect January 1st
The Illinois Paid Leave For All Workers Act (Act) takes effect January 1, 2024 and will require most Illinois employers to provide at least 40 hours of paid leave to full-time employees (and a pro-rated lesser amount to part-time employees).  Employers who offer at least 40 hours per year of paid vacation, personal, or sick leave per year will not be required to offer additional leave.  However, as described below, employees may have additional rights concerning how they can use leave under the Act and employers will have certain record-keeping obligations under the Act.
An employee using paid leave under the Act must be reimbursed at the employee’s regular rate of pay.  For commission employees, pay under the Act shall be no less than minimum wage.  The Act does not apply to employees subject to a collective bargaining agreement if the paid leave requirements are explicitly and unambiguously waived in the collective bargaining agreement. 
Beginning 90 days after commencement of employment (or March 30, 2024, whichever is later) employees may use accrued leave for any purpose, although employers may permit the leave to be used earlier.  For leave under the Act, employers cannot require the employee to provide a reason for taking leave nor documentation or proof in support of the leave.  Employers can require up to 7 calendar days’ notice if the use of the leave is foreseeable, provided that the notice requirement is part of a written policy.  If the employee’s reason for using leave under the Act is not foreseeable, the Act permits an employer to require notice as soon as practicable after the employee becomes aware of the need for leave. (read more).  The Department of Labor has put together an FAQ document, which is available here: Paid Leave for All Workers Act FAQ (illinois.gov).

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