SABC Fall Newsletter 2020
Thank you to William Blair for being the prime sponsor of this newsletter!
William Blair is the premier global boutique with expertise in investment banking, investment management, and private wealth management. We provide advisory services, strategies, and solutions to meet our clients’ evolving needs. As an independent and employee-owned firm, together with our strategic partners, we operate in more than 20 offices worldwide.*  The Lacher Group with William Blair’s Private Wealth Management, provides customized wealth management built on investment expertise and an unwavering focus on their clients’ evolving needs.

*Includes strategic partnerships with Allier Capital, BDA Partners, and Poalim Capital Markets.

Summary of the Proposed Illinois “Fair Tax”

Illinois Governor, J.B. Pritzker (D), is seeking to remove a key provision in the state constitution that prohibits a graduated-rate income tax. In 2019, Pritzker signed two separate pieces of legislation to change from a flat-rate tax to a graduated-rate
income tax: a constitutional amendment to repeal the state’s flat tax requirement
and a new law to set the tax rates.

On November 3, 2020, voters will see a referendum question in the general election that would remove the state’s flat-rate tax requirement. For Pritzker’s tax reform to go into effect, the amendment requires approval by 60% of those who vote on the issue or a majority of the total votes cast. If voters approve the initiative, the amendment will be ratified and new tax rates would take effect on January 1, 2021.

What is the proposed change?
Currently, Illinois has a constitutionally mandated flat-rate tax that taxes all personal income at the same rate of 4.95%. Under a graduated-rate income tax, different levels of wages would be taxed at different rates. However, a recapture provision would mean that those married filing jointly making $1,000,000 and over (or $750,000 and over for single filers) would have their entire income taxed at a flat 7.99% rate instead of at graduated rates. It is important to note that the amendment does not allow the taxation of retirement income. The following table shows the proposed rates and brackets, which applies to both single and joint filers

Do other states have a graduated-rate income tax? 1
Yes. 32 other states and Washington, D.C. have a progressive income tax, ranging from 0%
on the lowest earners in South Carolina to as high as 13.3% on incomes over $1,000,000 in
California. Currently, there are nine states that impose a flat tax.

How this could affect our clients? 2
1. This will directly affect high earning households in Illinois who make more than
$250,000. The current flat rate is 4.95%. Any earner above $250,000 will have an
increased rate under the graduated-rate income tax. Moreover, the $10,000 cap on the
state and local tax deduction has reduced the amount that high earners are able to
offset on their state and local tax liability.
2. This could affect small businesses in Illinois:
• Under the proposal, corporate income would be taxed at 10.49%, the third-highest
rate in the nation, while pass-through business income would be taxed at a top rate of
9.49%, the fourth highest rate nationwide.
• The base corporate rate would increase from 7 to 7.99% (10.49% counting the
personal property replacement tax).
3. A graduated-rate income tax would make future rate increases much easier.
4. A graduated-rate income tax could create a scenario where two earners owe more tax filing jointly than they would if they filed separately–known as a marriage penalty.



For more Information please contact the Lacher Group with William Blair’s Private Wealth Management

A Message From The President
I hope our Fall Newsletter finds you all well.  Thankfully, we here in Chicago have had a rather pleasant Indian summer to enjoy despite the unusual circumstances we have found ourselves in the past few months. Unfortunately, as the Covid-19 pandemic continues unabated, I regretfully announce that the SABC will not be hosting its annual Christmas event at The Peninsula Hotel this December. While this may not come as a surprise to anyone, it is nonetheless saddening that we will not be celebrating the beginning of the Christmas season together as we have done in the past for many years. The board of directors is currently considering a possible online event in December in lieu of the event but no decision has been made at this time.

While 2020 has certainly provided everyone challenges, I am proud of the board of directors and our Executive Vice President, Sutha Heck, for all their hard work to have continuing engagement with our members via virtual events. You can be rest assured that we remain focused on providing value to our members to the best of our ability! As always, we would love to hear any feedback from you, our members, as to possible event suggestions or topics you would like the SABC to address in the future.
I wish you all wonderful Fall and continued good health!
Very truly yours, Thomas Soseman

Welcome New SABC Corporate Member!

We welcome CARGOHANSA, and its Co-Founder, Arnes Cehaic, and its Co-Founder, Aldin Cavcic as a new corporate member. Throughout their careers working in the international logistics industry, Cargohansa Founders Aldin Cavcic & Arnes Cehaic, noticed small and mid-sized companies were not being properly supported. With larger international shipping organizations focusing on the bigger and more established companies, smaller firms struggled to navigate the nuances and rapid changes involved in shipping their products globally and expanding into new markets. The two formed Cargohansa to serve these growing companies, not only to ensure they had access to world-class logistics services, but more importantly, to advise them on how to efficiently and effectively use them to optimize success and growth. Our team leverages our knowledge and networks to move your cargo worldwide, taking pride in our ability to advise you on the best shipping options for you, whether that’s speed or cost savings. 
More information

BIG KAISER was a proud sponsor of the 2020 Miles for Manufacturing (M4M) 5K event
First held during IMTS 2014, the M4M program has raised more than $95,000 for schools and programs that benefit students interested in manufacturing, including STEM schools, FIRST Robotics Teams and community-based organizations that champion under-served, under-represented students. Like many things in 2020, this year’s 5K looked different. Instead of the traditional event in Chicago, M4M took place October 12-16 in neighborhoods across the country. Participants were encouraged to walk, run, hike or cycle the 3.1 miles or more together with friends, family or colleagues and share the experience on social media. 

The spread of the pandemic is having serious economic implications. Numerous sectors of the economy are suffering damage and the long-term economic and business consequences remain unknown. Among the many consequences of COVID-19, entities may face financial reporting implications and challenges. Impacts such as business and production disruptions, supply-chain interruptions, negative impacts on customers, volatility in the equity and debt markets, reduced revenue and cash flows, and other economic consequences may occur. This article provides succinct reminders to companies about some accounting considerations under accounting standards generally accepted in the United States of America (“US GAAP”) that have increased importance and risk in the current environment. It addresses topics like  asset impairments, including impairment tests, inventory existence and valuation considerations, dept modifications or going concern considerations. The article will also outline the financial reporting options for treatment of a PPP loan as well as the respective forgiveness.  Access the article here:
COVID-19 UPDATES:  Be always up to date on tax impacts of COVID-19 and related new legislation and relief for tax payers! Please visit or follow us on LinkedIn to find useful articles and information, updated daily.
As an integrated professional services firm, Rödl & Partner is active at 109 wholly owned locations in 49 countries. Rödl & Partner USA has specifically tailored our accounting, auditing, tax and business consulting services to the unique needs of your foreign owned business in the United States of America. For more than 40 years our core practice has been serving the accounting and tax needs of primarily German speaking and other foreign owned “Mittelstand” companies operating in the U.S.

Rödl & Partner USA opened eighth U.S. office location in Detroit Metro area on October 1, 2020

The new office, in highly sought-after Southfield Town Center, will meet needs of German business community in the area. Rödl Langford de Kock LLP (“Rödl & Partner USA”), member of Rödl & Partner International, a leading global professional ser-vices firm, providing integrated audit, legal*, tax and business consulting solutions from its 111 wholly owned subsidiaries in 50 countries, opened its eighth office location on October 1, 2020. The firm’s U.S.-headquarter is in Atlanta, GA, with other offices in Birmingham, AL, Charlotte, NC, Chicago, IL, Greenville, SC, Hou-ston, TX and Manhattan, NY.

This expansion aligns with the growth of Rödl & Partner USA, who has been serving the accounting and tax needs of primarily German speaking and other foreign owned companies operating in the U.S. for more than 40 years. The new office will provide enhanced opportunities to better meet the needs of the significant German business community in the Greater Detroit area and bordering states. According to the Detroit Regional Chamber, Michigan is home to more than 350 German com-panies, who combined employ around 78,000 people.

Pierre Kriel, CPA, who has been a partner in the Chicago office since 2015 will be the partner in charge of the Detroit office. Pierre brings over 15 years of experience in public accounting, serving subsidiaries of foreign-owned companies in the U.S. The office will consist of a highly skilled German and English-speaking Assurance, Tax & BPO team.

After an impressive recovery, Metro Detroit now has one of the largest metropoli-tan economies in the U.S., with seventeen Fortune 500 companies. Rödl & Partner USA is looking forward to support the thriving international community and con-tribute to the re-writing of Detroit’s success story. While Detroit is known for its automotive industry, it is also home to many companies pursuing emerging tech-nologies such as biotechnology, nanotechnology, information technology, and hy-drogen fuel cell development.

About Rödl & Partner
Rödl & Partner is the leading German multi-disciplinary service firm with a world-wide presence, providing audit, accounting, tax, legal* and business advisory ser-vices. Founded in 1977 and headquartered in Nuremberg, Germany, they deploy a „single point of contact “to serve their clients. Locally certified professionals (many licensed in more than one jurisdiction, e.g., both in Germany and in the U.S.) are supporting clients in 111 offices in 50 countries.
*Rödl & Partner USA does not provide legal services.

Pierre Kriel, Partner
+1 947 217 3501,
Rödl Langford de Kock LLP
Certified Public Accountants, Wirtschaftsprüfer, Steuerberater
2000 Town Center
Suite 1360
Southfield, MI 48075

A year of uncertainty can’t diminish all Herrmann Ultrasonics has to celebrate
30 years in the ultrasonic making

As anniversary celebrations go Herrmann Ultrasonics could not ask for a better way to ring in 30 years of ultrasonic welding in the US. The company was recently named by the Daily Herald as one of the best small companies in IL to work. Herrmannhas grown from a small start-up to an industry leader with a strong global presence in ultrasonic engineering, continuing to stretch their wings.

“We wanted to break new ground, to continue to inspire customers through our technology and employees. The Herrmann Culture is an integral part of our daily work. We want all our employees to enjoy job security, and the comradery of working together on something we are all passionate about. Stronger cooperation based on values improves the quality of life for everyone” stated newly appointed President, Uwe Peregi.

Vast ultrasonic expertise and operational knowledge were amassed by Uwe Peregi in his past fourteen years as Vice President and General Manager of Herrmann Ultrasonics. In the new role as President, Peregi will oversee the strategic vision, culture, continued growth, and market expansion. He will play a key role in developing and delivering Herrmann’s vision, and continued expansion to support the company’s clients.

To continue growth in ultrasonic technology, it was necessary to expand the US headquarters, an added bonus Herrmann also remodeled their existing space. The newly designed office space has transitioned to an open office floorplan offering better communication and team collaboration. Increased customer support and application testing will take place in division specific engineering and application labs, as well as an all-new buy-off center. Additionally, more machines have been added to the manufacturing floor for increased production of ultrasonic tooling.
Peripherals, by definition, are on the outskirts. But at LNS, that outer boundary is where we put all of our focus. Because there’s a secret: when CNC machine tool peripherals are so good that you don’t have to worry about them, you can turn your attention to the morale-boosting, business-growing stuff that you do best – making chips and making money.

That’s why we do what we do, and no one does it better. With five product categories and industry-best expertise, the passion and vision we have for CNC machine tool peripherals is unbeatable. So the next time you choose machine tool peripherals, you only have to remember a few letters: LNS.

Bar Feed Systems
Chip Management Systems
Coolant Management Systems
Air Filtration Systems
Work Holding Systems

Design, selection and procurement of furnishings for a secluded Michigan retreat. Spaces were organized for a casual lifestyle of indoor and outdoor entertaining. When relocating corporate offices to Chicago or considering appropriate accommodations for executives, Furnishings + Accessories, together with our specialty consultants can provide architectural and interior design services for discerning commercial and residential clients. 
EROWA Technology, based in Arlington Heights, IL., is a full service supplier of palletization and automation systems for the North American manufacturing market. Our goal is to provide complete turnkey solutions for precision parts handling through most any group of manufacturing processes (from one type of machine to the next). We are capable of providing a simple manual palletization system or a fully integrated, custom designed workholding and automation system to meet the current needs and expectations of our customers.

In the market segments of precision mechanics, tool- and mold-making, as well as chip-cutting production, we offer concepts and products that provide customers with considerable optimization possibilities throughout the whole range of machining processes. Primarily, we achieve this through comprehensive knowledge of the application of our products, through individual and customized consultation, and through the use of our Flexible Manufacturing Concept (FMC), which cover the following four areas:

- Standardization (tooling system, tooling technology)
- Organization (setting-up, presetting and measuring technologies)
- Automation (loading/unloading technologies)
- Integration (process sequence, process control and planning technologies)

EROWA Technology, Inc.
2535 S. Clearbrook Dr.
Arlington Heights, IL 60005