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90_SB0854
820 ILCS 405/301 from Ch. 48, par. 381
820 ILCS 405/500 from Ch. 48, par. 420
820 ILCS 405/1300 from Ch. 48, par. 540
820 ILCS 405/1400 from Ch. 48, par. 550
820 ILCS 405/1507 from Ch. 48, par. 577
820 ILCS 405/2201 from Ch. 48, par. 681
820 ILCS 405/2201.1 from Ch. 48, par. 681.1
Amends the Unemployment Insurance Act. Provides that the
Director of Employment Security can make a determination on
his or her own initiative that an employing unit has ceased
to be an employer. Makes changes in the manner in which an
unemployed individual reports to the Department of Employment
Security where the individual has sought work. Deletes
language in provisions regarding determining an employer's
contribution rates that requires an employer to report when
the employer succeeds to substantially all of the employing
enterprises of another employing unit or face a penalty.
Makes changes in provisions pertaining to the authority of
the Department to disregard amounts payable by employers and
credit balances owing to employers when the amounts are less
than $2. Makes other changes. Effective immediately.
LRB9002363SMdv
LRB9002363SMdv
1 AN ACT regarding unemployment insurance.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Unemployment Insurance Act is amended by
5 changing Sections 301, 500, 1300, 1400, 1507, 2201, and
6 2201.1 as follows:
7 (820 ILCS 405/301) (from Ch. 48, par. 381)
8 Sec. 301. Termination of coverage.
9 A. An employing unit shall cease to be an employer as of
10 the first day of January of any calendar year, only if it
11 files with the Director, prior to the 1st day of February of
12 such year, a written application for termination of coverage,
13 and the Director finds that the employment experience of such
14 employer within the preceding calendar year was not
15 sufficient to render an employing unit an employer under the
16 provisions of subsections A or B of Section 205. For the
17 purposes of this Section, the two or more employing units
18 mentioned in subsections C, D, E, or F of Section 205 shall
19 be treated as a single employing unit.
20 B. Notwithstanding the provisions of Section 205 and
21 subsection A of this Section, an employing unit shall cease
22 to be an employer as of the last day of a calendar quarter in
23 which it ceases to pay wages for services in employment and
24 ceases to have any individual performing services for it,
25 provided that either it files with the Director, within 5
26 days after the date on which wage reports are due for the
27 calendar quarter, a written application for termination of
28 coverage and the Director approves the application, or the
29 Director has determined on his or her own initiative,
30 pursuant to standards established under duly promulgated
31 rules, that the employing unit has permanently ceased to pay
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1 wages for services in employment and permanently ceased to
2 have any individual performing services for it. If an
3 employing unit's coverage is terminated under this subsection
4 B, the termination of coverage shall be rescinded as of the
5 date that the employing unit begins, later in the same
6 calendar year or in the succeeding calendar year, to have any
7 individual perform services for it on any part of any day.
8 (Source: P.A. 87-1178.)
9 (820 ILCS 405/500) (from Ch. 48, par. 420)
10 Sec. 500. Eligibility for benefits. An unemployed
11 individual shall be eligible to receive benefits with respect
12 to any week only if the Director finds that:
13 A. He has registered for work at and thereafter has
14 continued to report at an employment office in accordance
15 with such regulations as the Director may prescribe, except
16 that the Director may, by regulation, waive or alter either
17 or both of the requirements of this subsection as to
18 individuals attached to regular jobs, and as to such other
19 types of cases or situations with respect to which he finds
20 that compliance with such requirements would be oppressive or
21 inconsistent with the purposes of this Act, provided that no
22 such regulation shall conflict with Section 400 of this Act.
23 B. He has made a claim for benefits with respect to such
24 week in accordance with such regulations as the Director may
25 prescribe.
26 C. He is able to work, and is available for work;
27 provided that during the period in question he was actively
28 seeking work and he has certified such. Whenever requested
29 to do so by the Director, the individual shall, in the manner
30 the Director prescribes by regulation, inform the Department
31 of on a form provided by the Department listing the places at
32 which he has sought work during the period in question.;
33 however, Nothing in this subsection shall limit the
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1 Director's approval of alternate methods of demonstrating an
2 active search for work based on regular reporting to a trade
3 union office.
4 1. If an otherwise eligible individual is unable to
5 work or is unavailable for work on any normal workday of
6 the week, he shall be eligible to receive benefits with
7 respect to such week reduced by one-fifth of his weekly
8 benefit amount for each day of such inability to work or
9 unavailability for work. For the purposes of this
10 paragraph, an individual who reports on a day subsequent
11 to his designated report day shall be deemed unavailable
12 for work on his report day if his failure to report on
13 that day is without good cause, and on each intervening
14 day, if any, on which his failure to report is without
15 good cause. As used in the preceding sentence, "report
16 day" means the day which has been designated for the
17 individual to report to file his claim for benefits with
18 respect to any week. This paragraph shall not be
19 construed so as to effect any change in the status of
20 part-time workers as defined in Section 407.
21 2. An individual shall be considered to be
22 unavailable for work on days listed as whole holidays in
23 "An Act to revise the law in relation to promissory
24 notes, bonds, due bills and other instruments in
25 writing," approved March 18, 1874, as amended; on days
26 which are holidays in his religion or faith, and on days
27 which are holidays according to the custom of his trade
28 or occupation, if his failure to work on such day is a
29 result of the holiday. In determining the claimant's
30 eligibility for benefits and the amount to be paid him,
31 with respect to the week in which such holiday occurs, he
32 shall have attributed to him as additional earnings for
33 that week an amount equal to one-fifth of his weekly
34 benefit amount for each normal work day on which he does
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1 not work because of a holiday of the type above
2 enumerated.
3 3. An individual shall be deemed unavailable for
4 work if, after his separation from his most recent
5 employing unit, he has removed himself to and remains in
6 a locality where opportunities for work are substantially
7 less favorable than those in the locality he has left.
8 4. An individual shall be deemed unavailable for
9 work with respect to any week which occurs in a period
10 when his principal occupation is that of a student in
11 attendance at, or on vacation from, a public or private
12 school.
13 5. Notwithstanding any other provisions of this
14 Act, an individual shall not be deemed unavailable for
15 work or to have failed actively to seek work, nor shall
16 he be ineligible for benefits by reason of the
17 application of the provisions of Section 603, with
18 respect to any week, because he is enrolled in and is in
19 regular attendance at a training course approved for him
20 by the Director:
21 (a) but only if, with respect to that week,
22 the individual presents to the claims adjudicator
23 referred to in Section 702 a statement executed by a
24 responsible person connected with the training
25 course, certifying that the individual was in
26 full-time attendance at such course during the week.
27 The Director may approve such course for an
28 individual only if he finds that (1) reasonable work
29 opportunities for which the individual is fitted by
30 training and experience do not exist in his
31 locality; (2) the training course relates to an
32 occupation or skill for which there are, or are
33 expected to be in the immediate future, reasonable
34 work opportunities in his locality; (3) the training
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1 course is offered by a competent and reliable
2 agency, educational institution, or employing unit;
3 (4) the individual has the required qualifications
4 and aptitudes to complete the course successfully;
5 and (5) the individual is not receiving and is not
6 eligible (other than because he has claimed benefits
7 under this Act) for subsistence payments or similar
8 assistance under any public or private retraining
9 program: Provided, that the Director shall not
10 disapprove such course solely by reason of clause
11 (5) if the subsistence payment or similar assistance
12 is subject to reduction by an amount equal to any
13 benefits payable to the individual under this Act in
14 the absence of the clause. In the event that an
15 individual's weekly unemployment compensation
16 benefit is less than his certified training
17 allowance, that person shall be eligible to receive
18 his entire unemployment compensation benefits, plus
19 such supplemental training allowances that would
20 make an applicant's total weekly benefit identical
21 to the original certified training allowance.
22 (b) The Director shall have the authority to
23 grant approval pursuant to subparagraph (a) above
24 prior to an individual's formal admission into a
25 training course. Requests for approval shall not be
26 made more than 30 days prior to the actual starting
27 date of such course. Requests shall be made at the
28 appropriate unemployment office. Notwithstanding any
29 other provision to the contrary, the Director shall
30 approve a course for an individual if the course is
31 provided to the individual under Title III of the
32 federal Job Training Partnership Act.
33 (c) The Director shall for purposes of
34 paragraph C have the authority to issue a blanket
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1 approval of training programs implemented pursuant
2 to the Comprehensive Employment and Training Act and
3 the Job Training Partnership Act if both the
4 training program and the criteria for an
5 individual's participation in such training meet the
6 requirements of this paragraph C.
7 (d) Notwithstanding the requirements of
8 subparagraph (a), the Director shall have the
9 authority to issue blanket approval of training
10 programs implemented under the terms of a collective
11 bargaining agreement.
12 6. Notwithstanding any other provisions of this
13 Act, an individual shall not be deemed unavailable for
14 work or to have failed actively to seek work, nor shall
15 he be ineligible for benefits, by reason of the
16 application of the provisions of Section 603 with respect
17 to any week because he is in training approved under
18 Section 236 (a)(1) of the federal Trade Act of 1974, nor
19 shall an individual be ineligible for benefits under the
20 provisions of Section 601 by reason of leaving work
21 voluntarily to enter such training if the work left is
22 not of a substantially equal or higher skill level than
23 the individual's past adversely affected employment as
24 defined under the federal Trade Act of 1974 and the wages
25 for such work are less than 80% of his average weekly
26 wage as determined under the federal Trade Act of 1974.
27 D. If his benefit year begins prior to July 6, 1975 or
28 subsequent to January 2, 1982, he has been unemployed for a
29 waiting period of 1 week during such benefit year. If his
30 benefit year begins on or after July 6, l975, but prior to
31 January 3, 1982, and his unemployment continues for more than
32 three weeks during such benefit year, he shall be eligible
33 for benefits with respect to each week of such unemployment,
34 including the first week thereof. An individual shall be
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1 deemed to be unemployed within the meaning of this subsection
2 while receiving public assistance as remuneration for
3 services performed on work projects financed from funds made
4 available to governmental agencies for such purpose. No week
5 shall be counted as a week of unemployment for the purposes
6 of this subsection:
7 1. Unless it occurs within the benefit year which
8 includes the week with respect to which he claims payment
9 of benefits, provided that, for benefit years beginning
10 prior to January 3, 1982, this requirement shall not
11 interrupt the payment of benefits for consecutive weeks
12 of unemployment; and provided further that the week
13 immediately preceding a benefit year, if part of one
14 uninterrupted period of unemployment which continues into
15 such benefit year, shall be deemed (for the purpose of
16 this subsection only and with respect to benefit years
17 beginning prior to January 3, 1982, only) to be within
18 such benefit year, as well as within the preceding
19 benefit year, if the unemployed individual would, except
20 for the provisions of the first paragraph and paragraph 1
21 of this subsection and of Section 605, be eligible for
22 and entitled to benefits for such week.
23 2. If benefits have been paid with respect thereto.
24 3. Unless the individual was eligible for benefits
25 with respect thereto except for the requirements of this
26 subsection and of Section 605.
27 E. With respect to any benefit year beginning prior to
28 January 3, 1982, he has been paid during his base period
29 wages for insured work not less than the amount specified in
30 Section 500E of this Act as amended and in effect on October
31 5, 1980. With respect to any benefit year beginning on or
32 after January 3, 1982, he has been paid during his base
33 period wages for insured work equal to not less than $1,600,
34 provided that he has been paid wages for insured work equal
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1 to at least $440 during that part of his base period which
2 does not include the calendar quarter in which the wages paid
3 to him were highest.
4 F. During that week he has participated in reemployment
5 services to which he has been referred, including but not
6 limited to job search assistance services, pursuant to a
7 profiling system established by the Director by rule in
8 conformity with Section 303(j)(1) of the federal Social
9 Security Act, unless the Director determines that:
10 1. the individual has completed such services; or
11 2. there is justifiable cause for the claimant's
12 failure to participate in such services.
13 This subsection F is added by this amendatory Act of 1995
14 to clarify authority already provided under subsections A and
15 C in connection with the unemployment insurance claimant
16 profiling system required under subsections (a)(10) and
17 (j)(1) of Section 303 of the federal Social Security Act as a
18 condition of federal funding for the administration of the
19 Unemployment Insurance Act.
20 (Source: P.A. 88-655, eff. 9-16-94; 89-21, eff. 6-6-95.)
21 (820 ILCS 405/1300) (from Ch. 48, par. 540)
22 (This Section may contain text from a Public Act with a
23 delayed effective date)
24 Sec. 1300. Waiver or transfer of benefit rights -
25 Partial exemption.
26 (A) Except as otherwise provided herein any agreement by
27 an individual to waive, release or commute his rights under
28 this Act shall be void.
29 (B) Benefits due under this Act shall not be assigned,
30 pledged, encumbered, released or commuted and shall be exempt
31 from all claims of creditors and from levy, execution and
32 attachment or other remedy for recovery or collection of a
33 debt. However, nothing in this Section shall prohibit a
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1 specified or agreed upon deduction from benefits by an
2 individual, or a court or administrative order for
3 withholding of income, for payment of past due child support
4 from being enforced and collected by the Department of Public
5 Aid on behalf of persons receiving a grant of financial aid
6 under Article IV of The Illinois Public Aid Code, persons for
7 whom an application has been made and approved for support
8 services under Section 10-1 of such Code, or persons
9 similarly situated and receiving like support services in
10 other states. It is provided that:
11 (1) The aforementioned deduction of benefits and
12 order for withholding of income apply only if appropriate
13 arrangements have been made for reimbursement to the
14 Director by the Department of Public Aid for any
15 administrative costs incurred by the Director under this
16 Section.
17 (2) The Director shall deduct and withhold from
18 benefits payable under this Act, or under any arrangement
19 for the payment of benefits entered into by the Director
20 pursuant to the powers granted under Section 2700 of this
21 Act, the amount specified or agreed upon. In the case of
22 a court or administrative order for withholding of
23 income, the Director shall withhold the amount of the
24 order.
25 (3) Any amount deducted and withheld by the
26 Director shall be paid to the Department of Public Aid on
27 behalf of the individual.
28 (4) Any amount deducted and withheld under
29 subsection (3) shall for all purposes be treated as if it
30 were paid to the individual as benefits and paid by such
31 individual to the Department of Public Aid in
32 satisfaction of the individual's child support
33 obligations.
34 (5) For the purpose of this Section, child support
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1 is defined as those obligations which are being enforced
2 pursuant to a plan described in Title IV, Part D, Section
3 454 of the Social Security Act and approved by the
4 Secretary of Health and Human Services.
5 (6) The deduction of benefits and order for
6 withholding of income for child support shall be governed
7 by Titles III and IV of the Social Security Act and all
8 regulations duly promulgated thereunder.
9 (C) Nothing in this Section prohibits an individual from
10 voluntarily electing to have federal income tax deducted and
11 withheld from his or her unemployment insurance benefit
12 payments.
13 (1) The Director shall, at the time that an
14 individual files his or her claim for benefits that
15 establishes his or her benefit year, inform the
16 individual that:
17 (a) unemployment insurance is subject to
18 federal, State, and local income taxes;
19 (b) requirements exist pertaining to estimated
20 tax payments;
21 (c) the individual may elect to have federal
22 income tax deducted and withheld from his or her
23 payments of unemployment insurance in the amount
24 specified in the federal Internal Revenue Code; and
25 (d) the individual is permitted to change a
26 previously elected withholding status no more than
27 once each calendar year.
28 (2) Amounts deducted and withheld from unemployment
29 insurance shall remain in the unemployment fund until
30 transferred to the federal taxing authority as a payment
31 of income tax.
32 (3) The Director shall follow all procedures
33 specified by the United States Department of Labor and
34 the federal Internal Revenue Service pertaining to the
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1 deducting and withholding of income tax.
2 (4) Amounts shall be deducted and withheld in
3 accordance with the priorities established in rules
4 promulgated by the Director.
5 (D) Nothing in this Section prohibits an individual from
6 voluntarily electing to have State of Illinois income tax
7 deducted and withheld from his or her unemployment insurance
8 benefit payments if such deduction and withholding is
9 provided for pursuant to rules promulgated by the Director.
10 (1) If pursuant to rules promulgated by the
11 Director, an individual may voluntarily elect to have
12 State of Illinois income tax deducted and withheld from
13 his or her unemployment insurance benefit payments, the
14 Director shall, at the time that an individual files his
15 or her claim for benefits that establishes his or her
16 benefit year, in addition to providing the notice
17 required under subsection C, inform the individual that:
18 (a) the individual may elect to have State of
19 Illinois income tax deducted and withheld from his
20 or her payments of unemployment insurance in the
21 amount specified pursuant to rules promulgated by
22 the Director; and
23 (b) the individual is permitted to change a
24 previously elected withholding status no more than
25 once each calendar year.
26 (2) Amounts deducted and withheld from unemployment
27 insurance shall remain in the unemployment fund until
28 transferred to the Department of Revenue as a payment of
29 State of Illinois income tax.
30 (3) Amounts shall be deducted and withheld in
31 accordance with the priorities established in rules
32 promulgated by the Director.
33 (Source: P.A. 89-446, eff. 1-1-97.)
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1 (820 ILCS 405/1400) (from Ch. 48, par. 550)
2 Sec. 1400. Payment of contributions. On and after July
3 1, 1937, contributions shall accrue and become payable by
4 each employer for each calendar year in which he is subject
5 to this Act, with respect to wages payable for employment
6 occurring during the six months' period beginning July 1,
7 1937, and the calendar years 1938, 1939, and 1940. For the
8 year 1941 and for each calendar year thereafter,
9 contributions shall accrue and become payable by each
10 employer upon the wages paid with respect to employment after
11 December 31, 1940. Such contributions shall become due and
12 shall be paid quarterly on or before the last day of the
13 month next following the calendar quarter for which such
14 contributions have accrued; except that any employer who is
15 delinquent in filing a contribution report or in paying his
16 contributions for any calendar quarter may, at the discretion
17 of the Director, be required to report and to pay
18 contributions on a calendar month basis. Such contributions
19 shall not be deducted, in whole or in part, from the wages of
20 individuals in such employer's employ. If the Director shall
21 find that the collection of any contributions will be
22 jeopardized by delay, he may declare the same to be
23 immediately due and payable.
24 In the payment of any contributions, interest, or
25 penalties, a fractional part of a cent shall be disregarded
26 unless it amounts to one-half cent or more, in which case it
27 shall be increased to one cent.
28 The Director may by regulation provide that if, at any
29 time, a total amount of less than $2 $1.00 is payable with
30 respect to a quarter, including any contributions, payments
31 in lieu of contributions, as a quarterly contribution, or as
32 interest or penalties, such amount may be disregarded. Any
33 amounts contributions disregarded under this paragraph are
34 deemed to have been paid for all other purposes of this Act.
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1 Nothing in this paragraph is intended to relieve any employer
2 from filing any reports required by this Act or by any rules
3 or regulations adopted by the Director pursuant to this Act.
4 Except with respect to the provisions concerning amounts
5 that may be disregarded pursuant to regulation, this Section
6 does not apply to any nonprofit organization or any
7 governmental entity referred to in subsection B of Section
8 1405 for any period with respect to which it does not incur
9 liability for the payment of contributions by reason of
10 having elected to make payments in lieu of contributions, or
11 to any political subdivision or municipal corporation for any
12 period with respect to which it is not subject to payments in
13 lieu of contributions under the provisions of paragraph 1 of
14 Section 302C by reason of having elected to make payments in
15 lieu of contributions under paragraph 2 of that Section, or
16 to the State of Illinois or any of its instrumentalities.
17 (Source: P.A. 80-2dSS-1.)
18 (820 ILCS 405/1507) (from Ch. 48, par. 577)
19 Sec. 1507. Contribution rates of successor and
20 predecessor employing units. A. Whenever any employing unit
21 succeeds to substantially all of the employing enterprises of
22 another employing unit, then in determining contribution
23 rates for any calendar year, the experience rating record of
24 the predecessor prior to the succession shall be transferred
25 to the successor and thereafter it shall not be treated as
26 the experience rating record of the predecessor, except as
27 provided in subsection B. Notwithstanding the provisions of
28 subsection B, whenever any employing unit succeeds to
29 substantially all of the employing enterprises of another
30 employing unit, within 120 days of such transfer, the
31 successor employing unit shall file such reports of this
32 succession as may be required by the Director. The failure of
33 an employing unit to file such reports shall result in the
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1 denial of the transfer of the predecessor's experience rating
2 record to the successor except where such transfer would
3 result in a higher revised rate for the successor in which
4 case the experience rating record of the predecessor shall be
5 transferred to the successor as of the date of the transfer
6 without regard to the filing of such reports. For the
7 purposes of this Section, such experience rating record shall
8 consist of all years during which liability for the payment
9 of contributions was incurred by the predecessor prior to the
10 succession, all benefit wages based upon wages paid by the
11 predecessor prior to the succession, all benefit charges
12 based on benefits paid by the predecessor prior to the
13 succession, and all wages for insured work paid by the
14 predecessor prior to the succession.
15 B. The provisions of this subsection shall be applicable
16 only to the determination of contribution rates for the
17 calendar year 1956 and for each calendar year thereafter.
18 Whenever any employing unit has succeeded to substantially
19 all of the employing enterprises of another employing unit,
20 but the predecessor employing unit has retained a distinct
21 severable portion of its employing enterprises or whenever
22 any employing unit has succeeded to a distinct severable
23 portion which is less than substantially all of the employing
24 enterprises of another employing unit, the successor
25 employing unit shall acquire the experience rating record
26 attributable to the portion to which it has succeeded, and
27 the predecessor employing unit shall retain the experience
28 rating record attributable to the portion which it has
29 retained, if--
30 1. The employing unit which desires to acquire or retain
31 such a distinct severable portion of such experience rating
32 record has filed such reports giving notice of the transfer
33 as may be required by the Director within 120 days of such
34 transfer; and
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1 2. It files a written application for such experience
2 rating record which is joined in by the employing unit which
3 is then entitled to such experience rating record; and
4 3. The joint application contains such information as
5 the Director shall by regulation prescribe which will show
6 that such experience rating record is identifiable and
7 segregable and, therefore, capable of being transferred; and
8 4. The joint application is filed prior to whichever of
9 the following dates is the latest: (a) July 1, 1956; (b) one
10 year after the date of the succession; or (c) the date that
11 the rate determination of the employing unit which has
12 applied for such experience rating record has become final
13 for the calendar year immediately following the calendar year
14 in which the succession occurs. The filing of a timely joint
15 application shall not affect any rate determination which has
16 become final, as provided by Section 1509.
17 If all of the foregoing requirements are met, then the
18 Director shall transfer such experience rating record to the
19 employing unit which has applied therefor, and it shall not
20 be treated as the experience rating record of the employing
21 unit which has joined in the application.
22 Whenever any employing unit is reorganized into two or
23 more employing units, and any of such employing units are
24 owned or controlled by the same interests which owned or
25 controlled the predecessor prior to the reorganization, and
26 the provisions of this subsection become applicable thereto,
27 then such affiliated employing units during the period of
28 their affiliation shall be treated as a single employing unit
29 for the purpose of determining their rates of contributions.
30 C. For the calendar year in which a succession occurs
31 which results in the total or partial transfer of a
32 predecessor's experience rating record, the contribution
33 rates of the parties thereto shall be determined in the
34 following manner:
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1 1. If any of such parties had a contribution rate
2 applicable to it for that calendar year, it shall continue
3 with such contribution rate.
4 2. If any successor had no contribution rate applicable
5 to it for that calendar year, and only one predecessor is
6 involved, then the contribution rate of the successor shall
7 be the same as that of its predecessor.
8 3. If any successor had no contribution rate applicable
9 to it for that calendar year, and two or more predecessors
10 are involved, then the contribution rate of the successor
11 shall be computed, on the combined experience rating records
12 of the predecessors or on the appropriate part of such
13 records if any partial transfer is involved, as provided in
14 Sections 1500 to 1507, inclusive.
15 4. Notwithstanding the provisions of paragraphs 2 and 3
16 of this subsection, if any succession occurs prior to the
17 calendar year 1956 and the successor acquires part of the
18 experience rating record of the predecessor as provided in
19 subsection B of this Section, then the contribution rate of
20 that successor for the calendar year in which such succession
21 occurs shall be 2.7 percent.
22 (Source: P.A. 85-956.)
23 (820 ILCS 405/2201) (from Ch. 48, par. 681)
24 Sec. 2201. Refund or adjustment of contributions. Not
25 later than 3 years after the date upon which any
26 contributions, interest or penalties thereon were paid, an
27 employing unit which has paid such contributions, interest or
28 penalties thereon erroneously, may file a claim with the
29 Director for an adjustment thereof in connection with
30 subsequent contribution payments, or for a refund thereof
31 where such adjustment cannot be made; provided, however, that
32 no refund or adjustment shall be made of any contribution,
33 the amount of which has been determined and assessed by the
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1 Director, if such contribution was paid after the
2 determination and assessment of the Director became final,
3 and provided, further, that any such adjustment or refund,
4 involving contributions with respect to wages on the basis of
5 which benefits have been paid, shall be reduced by the amount
6 of benefits so paid. Upon receipt of a claim the Director
7 shall make his determination, either allowing such claim in
8 whole or in part, or ordering that it be denied, and serve
9 notice upon the claimant of such determination. Such
10 determination of the Director shall be final at the
11 expiration of 20 days from the date of service of such notice
12 unless the claimant shall have filed with the Director a
13 written protest and a petition for hearing, specifying his
14 objections thereto. Upon receipt of such petition within the
15 20 days allowed, the Director shall fix the time and place
16 for a hearing and shall notify the claimant thereof. At any
17 hearing held as herein provided, the determination of the
18 Director shall be prima facie correct and the burden shall be
19 upon the protesting employing unit to prove that it is
20 incorrect. All of the provisions of this Act applicable to
21 hearings conducted pursuant to Section 2200 shall be
22 applicable to hearings conducted pursuant to this Section.
23 Upon the conclusion of such hearing, a decision shall be made
24 by the Director and notice thereof given to the claimant. If
25 the Director shall decide that the claim be allowed in whole
26 or in part, or if such allowance be ordered by the Court
27 pursuant to Section 2205 and the judgment of said Court has
28 become final, the Director shall, if practicable, make
29 adjustment without interest in connection with subsequent
30 contribution payments by the claimant, and if adjustments
31 thereof cannot practicably be made in connection with such
32 subsequent contribution payments, then the Director shall
33 refund to the claimant the amount so allowed, without
34 interest except as otherwise provided in Section 2201.1 from
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1 moneys in the benefit account established by this Act.
2 Nothing herein contained shall prohibit the Director from
3 making adjustment or refund upon his own initiative, within
4 the time allowed for filing claim therefor, provided that the
5 Director shall make no refund or adjustment of any
6 contribution, the amount of which he has previously
7 determined and assessed, if such contribution was paid after
8 the determination and assessment became final.
9 If this State should not be certified for any year by the
10 Secretary of Labor of the United States of America, or other
11 appropriate Federal agency, under Section 3304 of the Federal
12 Internal Revenue Code of 1954, the Director shall refund
13 without interest to any instrumentality of the United States
14 subject to this Act by virtue of permission granted in an Act
15 of Congress, the amount of contributions paid by such
16 instrumentality with respect to such year.
17 The Director may by regulation provide that, if there is
18 a total credit balance of less than $2 in an employer's
19 account with respect to contributions, interest, and
20 penalties, the amount may be disregarded by the Director;
21 once disregarded, the amount shall not be considered a credit
22 balance in the account and shall not be subject to either an
23 adjustment or a refund.
24 (Source: P.A. 84-1336.)
25 (820 ILCS 405/2201.1) (from Ch. 48, par. 681.1)
26 Sec. 2201.1. Interest on Overpaid Contributions,
27 Penalties and Interest. The Director shall quarterly furnish
28 each employer with a statement of credit balances in the
29 employer's account where the balances with respect to all
30 contributions, interest and penalties combined equal or
31 exceed $2. Under regulations prescribed by the Director and
32 subject to the limitations of Section 2201, the employer may
33 file a request for an adjustment or refund of the amount
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1 erroneously paid. Interest shall be paid on refunds of
2 erroneously paid contributions, penalties and interest
3 imposed by this Act, except that if any refund is mailed by
4 the Director within 90 days after the date of the refund
5 claim, no interest shall be due or paid. The interest shall
6 begin to accrue as of the date of the refund claim and shall
7 be paid at the rate of 1.5% per month computed at the rate of
8 12/365 of 1.5% for each day or fraction thereof. Interest
9 paid pursuant to this Section shall be paid from monies in
10 the special administrative account established by Sections
11 2100 and 2101. This Section shall apply only to refunds of
12 contributions, penalties and interest which were paid as the
13 result of wages paid after January 1, 1988.
14 (Source: P.A. 85-956.)
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.