HB2705 98TH GENERAL ASSEMBLY

LRB098 04117 JLS 34140 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2705

Introduced 2/21/2013, by Rep. La Shawn K. Ford

SYNOPSIS AS INTRODUCED:

820 ILCS 405/1400

from Ch. 48, par. 550

Amends the Unemployment Insurance Act. Provides that beginning in 2016, employer contributions shall be paid in quarterly installments.

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Unemployment Insurance Act is amended by changing Section 1400 as follows:

(820 ILCS 405/1400) (from Ch. 48, par. 550)

Sec. 1400. Payment of contributions. On and after July 1, 1937, contributions shall accrue and become payable by each employer for each calendar year in which he is subject to this Act, with respect to wages payable for employment occurring during the six months' period beginning July 1, 1937, and the calendar years 1938, 1939, and 1940. For the year 1941 and for each calendar year thereafter, contributions shall accrue and become payable by each employer upon the wages paid with respect to employment after December 31, 1940. Except as otherwise provided in Section 1400.2, such contributions shall become due and shall be paid quarterly on or before the last day of the month next following the calendar quarter for which such contributions have accrued; except that any employer who is delinquent in filing a contribution report or in paying his contributions for any calendar quarter may, at the discretion of the Director, be required to report and to pay contributions on a calendar month basis. Such contributions shall not be deducted, in whole or in part, from the wages of individuals in such employer's employ. If the Director shall find that the collection of any contributions will be jeopardized by delay, he may declare the same to be immediately due and payable.

In the payment of any contributions, interest, or penalties, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

The Director may by regulation provide that if, at any time, a total amount of less than $2 is payable with respect to a quarter, including any contributions, payments in lieu of contributions, interest or penalties, such amount may be disregarded. Any amounts disregarded under this paragraph are deemed to have been paid for all other purposes of this Act. Nothing in this paragraph is intended to relieve any employer from filing any reports required by this Act or by any rules or regulations adopted by the Director pursuant to this Act.

Except with respect to the provisions concerning amounts that may be disregarded pursuant to regulation, this Section does not apply to any nonprofit organization or any governmental entity referred to in subsection B of Section 1405 for any period with respect to which it does not incur liability for the payment of contributions by reason of having elected to make payments in lieu of contributions, or to any political subdivision or municipal corporation for any period with respect to which it is not subject to payments in lieu of contributions under the provisions of paragraph 1 of Section 302C by reason of having elected to make payments in lieu of contributions under paragraph 2 of that Section, or to the State of Illinois or any of its instrumentalities.

In calendar year 2016 and in each calendar year thereafter, payment of contributions with respect to wages, as defined in Section 235, shall be made in quarterly installments. The payment due for the first quarter of the year shall be 25% of the liability incurred during that quarter. The payment due for the second quarter shall be determined by adding 25% of the liability incurred during the first quarter plus 33.33% of the liability incurred during the second quarter. The payment due for the third quarter shall be determined by adding 25% of the liability incurred during the first quarter plus 33.33% of the liability incurred during the second quarter plus 50% of the liability incurred during the third quarter. The payment due for the fourth quarter shall be the balance of the liability incurred during the calendar year. The changes made by this amendatory Act of the 98th General Assembly shall not reduce an employer's liability for contributions under this Act.

(Source: P.A. 94-723, eff. 1-19-06.)