Section 2765.45  Application Of Payment

a)         Whenever the employer makes a payment, and it is accompanied by a letter, Employer's Contribution Report or a Statement of Account, the money received shall be applied to the quarter or quarters indicated by such employer.

b)         If no designation is made for the application of the remittance, or if the payment received is more than sufficient to cover the quarter to which it applies, the remittance or the excess shall be applied beginning with the oldest or earliest unpaid quarters of the employer, if any.

c)         The application of remittance within a quarter is not subject to designation.  Except for the second quarter of 1991, when payment must first be applied to the Temporary Administrative Funding required by Section 1506.3B of the Act, all remittance shall be applied first to the NSF fee required by Section 2765.44 of this Part, then to the penalties, interest and unemployment contributions, in that order.

Example:  An employer owes $200 in contributions and $50 in interest for the first quarter of 1993.  The employer remits $100 and asks that it be credited to the unpaid contributions due for the first quarter of 1993.  $50 will be credited to the accrued interest for the first quarter of 1993, and $50 will be credited to the unpaid contributions due for the first quarter of 1993.

(Source:  Amended at 18 Ill. Reg. 14952, effective September 27, 1994)