Section 2760.140  Use Of Electronic Data Processing Media For Quarterly Reporting

a)         Except as provided in subsections (g) and (h) of this Section, effective with the reports due for the first quarter of 1994, the reports required by Sections 2760.120 and 2760.125 must be filed by the use of an electronic data processing medium that meets the approval of the Director.  The Director shall approve the use of electronic data processing media for reporting if he finds that:

1)         All of the data required on the forms provided by the Director for quarterly reporting are also provided by the employer in the same format on the electronic data processing medium; and

2)         The employer's electronically data processed reports are compatible and readable by the electronic data processing equipment used by the Director without the need for any programming adjustment by the Director.

b)         Subsection (a) shall only apply to an employer for a calendar year if the employer had 250 or more individuals in its employ (though not necessarily at the same time) during the prior calendar year.

            Example:  During 1993, the employer has no more than 225 individuals in its employ at any one time.  However, during the year, 25 of these individuals leave the employ of the employer and are replaced by 25 other individuals. Though the employer's labor force never exceeds 225 individuals at any one time, the employer had 250 individuals in its employ during 1993 and, therefore, is subject to subsection (a) for 1994.

c)         Except as otherwise provided for in this subsection (c), the failure of an employer that is subject to subsection (a) to report in the manner required by that subsection shall subject the employer to the penalties set forth in Section 1402 of the Act. 

Example:  An employer subject to the reporting requirements of subsection (a) beginning in 2004 files a report only in compliance with Sections 2760.120 and 2760.125 for the fourth quarter of that year on January 20, 2005, and also remits the contributions then due for that quarter.  On February 1, 2005, if that employer has not yet complied with subsection (a), it is delinquent in the filing of its fourth quarter of 2004 report, the penalty set forth in Section 1402 of the Act shall be imposed, and its payment shall be reallocated in accordance with Section 2765.45 to reflect the payment of the penalty and a delinquency in contributions due.  If the requirements of subsection (a) have still not been complied with before March 1, 2005 and the maximum penalty has not yet been imposed, the penalty will be increased on that date and the employer's payment again reallocated to reflect payment of the increased penalty and an additional delinquency.

d)         Where not required by subsection (a), the reports required by Sections 2760.120 and 2760.125 may be made by the use of an electronic data processing medium that meets the prior written approval of the Director.  The Director shall approve the use of an electronic data processing medium for reporting if it meets the requirements of subsections (a)(1) and (a)(2) of this Section and if the  employer agrees to file both reports by the use of an electronic data processing medium.

e)         Any employer that was authorized by the Director, before December 27, 1993, to submit both of its quarterly reports on an electronic data processing medium may continue to do so without further approval by the Director, on the condition that the medium continues to meet the requirements of subsections (a)(1) and (a)(2) of this Section.  The employer is, however, subject to the requirements of subsection (f) of this Section.

f)          The first report submitted electronically pursuant to this Section for any calendar year must be accompanied by a certification, on a form provided for this purpose by the Director, signed by the owner, partner or authorized officer or official, that the information submitted is true and correct to the best of his knowledge and belief and that no part of the contribution reported was or is to be deducted from the worker's wages.

g)         Where the employer demonstrates that the Commissioner of the Internal Revenue Service has waived the electronic reporting requirements of Treasury Regulation 301.6011-2 (26 CFR 301.6011-2), or its successor, for the employer with respect to documents covering a calendar year, the Director shall waive the reporting requirements of this Section for that employer with respect to reports covering the subsequent calendar year.

Example:  In December 2004, the Commissioner of the Internal Revenue Service notifies an employer that the requirements of Treasury Regulation 301.6011-2 (26 CFR 301.6011-2), or its successor, have been waived with respect to Form W-2 data covering calendar year 2004, meaning that the employer will not be required to submit the data electronically in 2005.  If the employer demonstrates the waiver to the Director, the Director will waive the requirements of subsection (a) with respect to reports covering 2005.

h)         Where an employer was not subject to the mandatory electronic reporting requirements of this Section for any quarter of the prior calendar year but is subject to those requirements for the current calendar year, the employer may, for the first and second quarters of the current calendar year, file its quarterly reports in compliance with Sections 2760.120 and 2760.125.

            Example:  The employer had, in total, 240 individuals in its employ during calendar year 1993.  In calendar year 1994, the employer had, in total, 260 individuals in its employ.  The employer will not be required to report electronically for the first or second quarter of calendar year 1995 but will be required to report electronically for at least the third and fourth quarters of that year.

(Source:  Amended at 29 Ill. Reg. 1917, effective January 24, 2005)