Section 2725.115  Claim For Adjustments (Credits) And Refunds

a)         Claims for Adjustments (Credits) or Refunds must be made on the agency form, "Employer's Claim for Adjustment/Refund," and filed at the address listed on the form.  Such a claim must be filed within three (3) years after the date on which the employing unit paid the contributions, interest or penalties which are the basis of the employing unit's claim.

b)         A sufficient Claim for Adjustment (Credit) or Refund must meet the requirements set forth in 56 Ill. Adm. Code 2760.150 and shall set forth the reason for the refund:

1)         The employer overpaid due to a mathematical error.  For example, the employer misplaced a decimal point in computing his contributions due;

2)         The employer paid at an incorrect rate.  For example, the assigned rate was 2.0% and the employer paid at 3.7%.  This frequently occurs the first year an employer received a rate based on its experience;

3)         The employer reported wages paid to workers to Illinois that should have been reported to a different state.  In such a case, the employer must supply the Agency with a list of workers' names and Social Security account numbers on the form titled "Employer's Correction Report of Wages Previously Reported" if he has not already done so on form UC-40C "Employer's Correction Report For The Quarter" (see 56 Ill. Adm. Code 2760.145(a)).  If any benefits have been paid to these workers by Illinois, the refund amount shall be adjusted downward to reflect any benefits paid due to the employer's error;

4)         The employer reported payments that are excluded from the definition of "wages" by the Act.  For example, a sole proprietor reported compensation paid to his parents.  In such cases, the employer must supply the agency with a list of the workers' names and Social Security account numbers on an  "Employer's Correction Report For Wages Previously Reported" if he has not already done so on an "Employer's Correction Report For The Quarter" (see 56 Ill. Adm. Code 2760.145(a)).  If any benefits have been paid to these workers, the refund amount shall be adjusted downward to reflect any benefits paid due to the employer's error;

5)         The employer incorrectly reported total payments as wages subject to the payment of contributions;

            EXAMPLE:  The employer made an error in computing the excess wages.  In such case, the employer must file an "Employer's Correction Report Of Wages Previously Reported" to correct his error if he has already not done so on an "Employer's Correction Report For the Quarter" (see 56 Ill. Adm. Code 2760.145(a)).

6)         The employer overpaid due to a rate revision;

            EXAMPLE:  The employer's rate is revised downward after he has already paid the contributions for the quarter, thus creating a credit balance for which he can request a refund or adjustment.

7)         The employing unit is not an employer subject to the Act, but has paid contributions;

8)         Any other circumstances which would show that the employer overpaid his contributions;

9)         The employing unit has paid interest and/or penalties which were determined not due.

c)         If the Claim for Adjustment (Credit) or Refund is sufficient, the Agency shall investigate the allegation in the claim by examining Agency records and documents supplied by the employer and then issue a written order.

d)         A claim which does not specify the factual basis for the relief sought or does not contain the information required by subsection (b) shall be ruled insufficient.  The ruling shall be final and conclusive unless the employer files, within 20 days of the date of mailing of such ruling in accordance with Section 2203 of the Act, a written objection or revised Claim, specifically responding to the reasons the original Claim was ruled insufficient.  The written objection or revised Claim shall be reviewed and an order allowing in whole or in part or denying in whole or in part, issued.  An employer disagreeing with such order may appeal to a Director's Representative under Subpart C.

(Source:  Amended at 16 Ill. Reg. 2122, effective January 27, 1992)