Section 2765.64  Consequences Where An Employee Leasing Company Has Erroneously Reported Wages And Paid Contributions Which Wages Should Have Been Reported And Contributions Paid By Its Client

Where wages should have been reported and contributions paid by a client, but the wages were erroneously reported and the contributions paid by an employee leasing company, the Director shall, upon the joint request of the client and the employee leasing company, on a form available from the Director, transfer such contributions from the account of the employee leasing company to the account of the client, effective as of the dates that the report was submitted and the contributions paid by the employee leasing company, respectively.  As a result, interest shall be due only to the extent that the amount due from the client exceeds the amount paid by the employee leasing company.

Example:  Employee Leasing Company X erroneously reports the wages of certain workers on its Wage Report and pays the contributions due on these wages.  It is determined that such wages should have been reported instead by its client, Company Y.  The Director shall, upon the joint request of Employee Leasing Company X and Company Y, transfer the payment made by Employee Leasing Company X to the credit of Company Y.  The wages reported by the leasing company for Company Y's workers will also be credited to Company Y.  As a result, Company Y will only owe any additional contributions due, if any, to the extent that the amount due from it exceeds the amount paid by the employee leasing firm.  To the extent that the payment by the employee leasing company was untimely or not sufficient to cover the amount due, interest shall accrue. If the amount paid by the employee leasing company exceeds the amount due from Company Y, Company Y may file a request for an adjustment or a refund of the overpayment to the extent and within the time allowed by Section 2201 of the Act.

(Source:  Added at 17 Ill. Reg. 308, effective December 28, 1992)