Section 2760.1  Posting and Maintaining Notices

a)         Every employer subject to the provisions of the Unemployment Insurance Act [820 ILCS 405] (Act), including every employing unit that has elected, with the approval of the Director, to become an employer subject to the Act, shall post and maintain any printed notices that are furnished by the Director for that purpose.

b)         The printed notices shall be posted in conspicuous places in all the establishments of the employer and shall be easily accessible for examination by the worker.  The Director will, upon request, supply a sufficient number of duplicate notices to assure that the notices are accessible to all workers.

(Source:  Amended at 43 Ill. Reg. 6470, effective May 14, 2019)

Section 2760.5  Identification of Workers Covered by the Act

a)         Each employer shall ascertain the federal Social Security account number of each worker employed by him or her in employment subject to the Act.

b)         The employer shall report the worker's Social Security account number when making any report required by the Director with respect to the worker.

c)         If an employer has in his or her employ a worker engaged in employment who does not have a Social Security account number, that employer shall request the worker to show him or her a receipt issued by an office of the Social Security Administration acknowledging that the worker has filed an application for an account number.  The receipt shall be retained by the worker.  In making any report required by the Director with respect to such a worker, the employer shall report the date of issue of the receipt, its termination date, the address of the issuing office, and the name and address of the worker exactly as shown in the receipt.

d)         If a worker fails to report to the employer his or her Social Security account number or fails to show the employer the receipt issued by an office of the Social Security Administration acknowledging that he or she has filed an application for an account number, the employer shall inform the worker that regulations of the Internal Revenue Service (IRS) (26 CFR 31.6011(b)-2), under the Federal Insurance Contributions Act (26 USC 3101-3126), provide that:

1)         Each worker shall report to every employer for whom he or she is engaged in employment, his or her federal Social Security account number and his name exactly as shown on the account number card issued by the Social Security Administration;

2)         Each worker who has not secured an account number shall file an application for a federal Social Security account number on IRS (Application For A Social Security Account Number) Form SS-5;

A)        The application shall be filed on or before the seventh day after the date on which the worker first performs employment for wages, except that the application shall be filed on or before the date the worker leaves the employ of his or her employer if that date precedes the seventh day.

B)        Copies of Form SS-5 can be secured at any district office of the Social Security Administration or from any district director;

3)         If, within 14 days after the date on which the worker first performs employment for wages for the employer, or on the day on which he or she leaves the employ of the employer, whichever is earlier, the worker does not have a federal Social Security account number, and has not shown the employer a receipt issued to the worker by an office of the Social Security Administration acknowledging that he or she has filed an application for an account number, the worker shall furnish the employer an application of Form SS-5, completely filled in and signed by the worker.

A)        If a copy of Form SS-5 is not available, the worker shall furnish the employer a written statement, signed by the worker, including the date of the statement, the worker's full name, present address, date and place of birth, father's full name, mother's full name before marriage, worker's sex and race, and a statement as to whether the worker previously filed an application on Form SS-5 and, if so, the date and place of the filing.

B)        Furnishing the employer with an executed Form SS-5, or statement in lieu thereof, does not relieve the worker of his or her obligation to make an application on Form SS-5, as required by subsection (d)(2).

e)         The employer shall inform the worker, in instances in which the information is pertinent, that in accordance with IRS regulation 26 CFR 31.6011(b)-2:

1)         Any worker who has lost his or her federal Social Security account number card may secure a duplicate card by applying online through the Social Security Administration's website or at any district office of the Social Security Administration;

2)         Any worker may have his or her account number changed at any time by applying to a field office of the Social Security Administration and showing good reason for a change;

3)         Any worker whose name is changed by marriage or otherwise, or who has stated incorrect information on Form SS-5, should report that change or correction to a field office of the Social Security Administration;

4)         Any worker with more than one federal Social Security account number shall report all numbers to the field office of the Social Security Administration nearest the worker's place of employment and to a local employment office.

f)         If the worker fails to comply with the requirements enumerated under subsection (d), the employer shall execute a Form SS-5 or a statement, signed by the employer, setting forth as fully and as clearly as practicable the worker's full name, his or her present or last known address, date and place of birth, father's full name, mother's full name before marriage, the worker's sex and race, and a statement as to whether an application for an account number was previously filed by the worker and, if so, the date and place of the filing.  This statement or executed Form SS-5, signed by the employer, shall be attached to any report required by the Director with respect to the worker.

(Source:  Amended at 43 Ill. Reg. 6470, effective May 14, 2019)

Section 2760.10  Filing By Mail

a)         Unless otherwise provided, whenever it is required under any provisions of the Act or Rule promulgated thereunder, for any form, report, notice or other document to be received by the Department, the Director, or the Board of Review within prescribed time limits, such requirement is complied with if such form, report, notice or other document is received through the United States mail and the postmark thereon bears a date within the prescribed time limits, provided that said form, report, notice or other document is addressed in accordance with the instructions provided thereon.

b)         This Section shall not waive any provision of the Act or Rule promulgated thereunder which requires an individual to file claims or report to an Agency office in person.

Section 2760.100  Reports and the Report for Household Employers

a)         Subject to the provisions of Sections 2760.105 through 2760.150, each employing unit shall make such reports as are prescribed, on forms issued by and required to be returned to the Director.  Each employing unit shall complete the forms in accordance with the instructions accompanying the report forms, and return the completed forms to the address specified on the form.  Failure to complete a report form in accordance with instructions shall be treated as a failure to complete the form.

b)         For purposes of this Part, the Report for Household Employers  refers to the report filed pursuant to Section 1400.2 of the Act [820 ILCS 405/1400.2].

(Source:  Amended at 37 Ill. Reg. 7451, effective May 14, 2013)

Section 2760.105  Reports of Employing Units as to Their Status

a)         Any employing unit that commences business in any manner whatsoever, whether by purchase of a business already being operated, by starting a new business, or otherwise, shall, within 30 days after the commencement, file a signed form REG-UI-1 (Report To Determine Liability Under the Illinois Unemployment Insurance Act), or a document that includes the same information.

b)         In addition to complying with the requirements of subsection (a), when applicable:

1)         any employing unit that succeeds to substantially all of the assets of an organization, trade or business, or of a severable portion of those assets, shall file a signed form UI-1 S&P (Report To Determine Succession) or a document that includes the same information. A report of such a sale or transfer by the successor to a severable portion of the predecessor's organization, trade or business shall not constitute a joint application for the predecessor's experience rating record, unless the report also includes the additional requirements set forth in Section 1507(B)(2) through (3) of the Unemployment Insurance Act [820 ILCS 405] (Act).

2)         any employing unit to which trade or business, or a portion of trade or business, is transferred to it by an individual or entity and at the time of the transfer there is any substantial common ownership, management or control of the transferor and transferee shall file form UI-1 S&P (Report to Determine Succession) or a document that includes the same information. A transfer of trade or business includes but is not limited to the transfer of some or all of the transferor's workforce.

c)         The reports required under subsections (a) and (b) should be filed online using MyTax Illinois (mytax.illinois.gov) or by mail to: Central Registration Division, Illinois Department of Revenue, PO Box 19030, Mail Code 3-222, Springfield IL 62794-9030.  Copies of forms REG-UI-1 and UI-1 S&P are available at that address and at ides.illinois.gov.

(Source:  Amended at 43 Ill. Reg. 1566, effective January 15, 2019)

Section 2760.110  Employing Unit Terminating Business

a)         Any employing unit that terminates business (including dissolution of a partnership), for any reason whatsoever, or transfers or sells substantially all of the assets of the organization, trade or business or a severable portion of those assets to another or changes the trade name of such business shall, within 10 days after such termination, transfer or change of name, give notice in writing of that fact to the Director.

1)         If an employer dies, written notice of the employer's death shall be given to the Director by the executor or administrator or other legal representative of the employer's estate within 90 days after the date of death.

2)         In the case of bankruptcy or receivership proceedings for the relief of a debtor who is an employing unit, the trustees in bankruptcy, receiver or person designated by order of the court as in control of the assets of the debtor shall give written notice to the Director of such proceedings within 90 days after the commencement of such proceedings.

b)         The notice required under this Section may be submitted online using MyTax Illinois (mytax.illinois.gov) or by mail to the Illinois Department of Employment Security, in care of the Revenue Division, at the address stated in 56 Ill. Adm. Code 2712.10. Forms for such notice shall be sent out by the Revenue Division upon request or are available on the Department's website (www.ides.illinois.gov).

c)         Notwithstanding the requirements of subsections (a) and (b), an employing unit shall cease to be an employer as of the last day of a calendar quarter in which it ceases to pay wages for services in employment and ceases to have any individual performing services for it if, based on all available evidence, the Director determines that, as of the last day of that quarter, the employing unit has permanently ceased to pay wages for services in employment and permanently ceased to have any individual performing services for it.  A termination of coverage under this subsection (c) shall be rescinded as of the date that the employing unit begins, later in the same calendar year or in the succeeding calendar year, to have any individual performing services for it on any part of any day.  Any Determination and Assessment issued against the employing unit shall be null and void to the extent it pertains to any quarter during which the employing unit paid no wages for services in employment and had no one performing services for it, as long as that quarter is subsequent to the quarter as of the end of which the employing unit's coverage was terminated pursuant to this subsection (c) and prior to the date, if any, as of which the termination was rescinded or as of which the employing unit otherwise again became an employer.

1)         EXAMPLE:  Employer A (a sole proprietor) employed B (A's only employee) as a word processor. B left A's employ in September 2003 and A did not hire anyone else thereafter.  A filed a contribution and wage report for the third quarter of 2004, but did not file a contribution and wage report for the fourth quarter of that year.  A did not file a notice requesting termination of coverage or otherwise inform the Department that A had ceased to pay wages and no longer had any individual performing services for A.  In March 2004, the Department issued a Determination and Assessment against A based upon estimated wages for the fourth quarter of 2003.  A failed to file a timely protest and petition for hearing to the Determination and Assessment.  In June 2004, A presented evidence to the Department that, since September 2003, A had no one performing services for A and had not paid any wages.  With no evidence to suggest otherwise, the Department treated the Determination and Assessment as null and void.

2)         EXAMPLE:  Employer C (a sole proprietor) employed D (C's only employee) as a word processor. In September 2003, C decided that D would continue the word processing work, but as an "independent contractor".  C did not report D's wages to the Department, nor pay contributions on those wages, with respect to periods after the third quarter of 2003 and did not file a notice requesting termination of coverage.  In March 2004, the Department issued a Determination and Assessment against C based upon estimated wages for the fourth quarter of 2003.  C failed to file a timely protest and petition for hearing to the Determination and Assessment, but in June 2004, wrote the Director explaining that D was now working as an "independent contractor".  As D was still performing services for C during the fourth quarter, the Director lacked the authority to terminate C's coverage.  By not timely protesting the Determination and Assessment, C allowed it to become final and waived  C's opportunity to reach the merits of whether D was an independent contractor during the fourth quarter.

(Source:  Amended at 49 Ill. Reg. 11147, effective August 20, 2025)

Section 2760.115  Records With Respect to Employment

a)         Each employing unit shall preserve existing records with respect to employment, and shall establish, maintain and preserve those records, indicating the data set forth in subsection (c).

b)         These records shall be preserved for five years after they have been made. However, if a determination and assessment of contributions, interest and penalties is made, or an action for the collection of contributions, interest or penalties is brought, records pertaining to the period or periods covered by such determination and assessment or action shall be preserved until the determination and assessment or action has become final, or has been cancelled or withdrawn. [820 ILCS 405/1801]

c)         The records set forth in subsection (a) shall show:

1)         For each pay period:

A)        The beginning and ending dates for that period;

B)        The total amount of wages for employment paid in the pay period.

2)         For each worker:

A)        His or her name and Social Security account number, and address;

B)        The dates on which he or she performed any service in employment;

C)        The place of his or her employment.

i)          For the purpose of this record, the place of employment of a worker shall be recorded as the city or county in which he or she performs work unless a worker performs his or her work in more than one city or county;

ii)         In such event, the place of employment shall be recorded as the city or county in Illinois in which the worker has his or her base of operations; or, if he or she has no base of operations in Illinois, as the city or county in Illinois from which his or her services are directed or controlled; or if the place from which his or her services are directed or controlled is also outside Illinois, as the city or county within Illinois in which he or she has his or her residence.

D)        His or her wages for each pay period, and the date those wages were paid, showing separately:

i)          Money wages;

ii)         Reasonable cash value of remuneration paid by the employing unit in any medium other than cash as determined in accordance with the provisions of 56 Ill. Adm. Code 2730.100;

iii)        Amount of gratuities (tips) received in the course of employment from persons other than the employing unit as determined in accordance with the provisions of 56 Ill. Adm. Code 2730.105;

iv)        Special payments for employment.  Records under this subsection (c)(2)(D)(iv) include the amount of any special payments, such as bonuses, gifts, etc., paid during the pay period but that relate to employment in a prior period. Payments are regarded as special payments if:  the amount thereof was not determinable; or, the person or persons to whom paid was not ascertainable at the end of the pay period or periods during which the services were performed.  The date must be shown separately as to:  money payments; other remunerations; the nature of the payments; and, if the special payments were made for services performed during some period, the period during which the services were performed.

E)        His or her wage rate and scheduled or customary working hours according to the following classifications:

i)          Salaried workers, including the salary rate and the pay period covered by the rate;

ii)         Fixed daily wage workers, including the daily rate of pay, the actual number of days worked, and the full number of scheduled or customary working days per week in the employment in which he or she is engaged;

iii)        Fixed hourly workers, including his or her hourly rate, the actual number of hours worked, and the full number of scheduled or customary working hours, if any, per week in the employment in which he or she is engaged;

iv)        Piece rate workers, including the actual number of hours worked during each week, and the full number of scheduled or customary working hours, if any, per week in the employment in which he or she is engaged.

F)         The date on which he or she was hired, rehired, or went to work after temporary layoff, and the date he or she was separated from employment.

d)         For purposes of compliance with the record retention requirements of Section 1800 of the Act, magnetic tape shall be considered another process, in addition to hard copy or other electronic record maintenance systems, for accurately producing an original record on a durable medium. However, regardless of the medium an employing unit uses to store its payroll records, that employing unit must be capable of producing a copy of its records in a format that can be read by the human eye.

(Source:  Amended at 43 Ill. Reg. 6470, effective May 14, 2019)

Section 2760.120  Employer's Contribution and Wage Report and Report for Household Employers

a)         The Department shall make available on its website (ides.illinois.gov), an Employer's Contribution and Wage Report form for filing quarterly unemployment insurance contribution reports and a Report for Household Employers form for employers that file annually pursuant to Section 1400.2.  Except for employers subject to Section 2760.141, and except for other employers that file unemployment insurance contribution and wage reports using the Department's online tax system, MyTax Illinois (mytax.illinois.gov), each employer subject to the Act, including employers electing to make payments in lieu of paying contributions under Section 302, 1404 or 1405 of the Act, must file unemployment insurance contribution and wage reports using the contribution and wage report provided on the Department's website or otherwise provide all of the information required by the form as provided in Section 2760.125(a)(5), and shall provide all of the information required on the Employer's Contribution and Wage Report form or Report for Household Employers form. If the employer fails to sign and complete the form provided on the Department's website or otherwise provide all of the information required by the form, the report may be considered an incomplete submission and be returned to the employer for resubmission.

1)         In the event that an employer files a petition for bankruptcy under the Bankruptcy Code (USC Title 11), the employer shall file two Employer's Contribution and Wage Reports or two Reports for Household Employers, as applicable, for the quarter in which the petition is filed. An employer subject to the mandatory electronic reporting requirement of Section 2760.141 shall file two contribution reports for the quarter in which the petition is filed and two reports pursuant to Section 2760.125(a)(1) for the third month of the quarter in which the petition is filed.  One report shall address the period beginning on the first day of the quarter to, and including, the day prior to the date of the filing of the petition. The other report shall address the period beginning on the date of the filing of the petition through the last day of the calendar quarter.

EXAMPLE 1:  Corporation A, which is not subject to the mandatory electronic reporting requirement of Section 2760.141, files a petition for bankruptcy on August 15, 2013. Corporation A is required to file two Employer's Contribution and Wage Reports for the third quarter of 2013, both due October 31, 2013.  One will cover the period through August 14, 2013, and Corporation A will calculate contributions due for that period.  The other report will cover the period of August 15, 2013 through September 30, 2013 and will reflect the contributions due for that period.

EXAMPLE 2:  Employer A, which is a household annual filer, files a petition for bankruptcy on August 15, 2013.  Employer A is required to file two reports for Household Employers, both due April 15, 2014.  One will cover the period through August 14, 2013, and Employer A will calculate contributions due for that period.  The other report will cover the period of August 15, 2013 through December 31, 2013 and will reflect the contributions due for that period.

2)         If an employer transfers substantially all of its employing enterprises to another employing unit but continues to be a liable employer, the employer shall file two Employer's Contribution and Wage Reports for the calendar quarter in which the transfer occurs.  An employer subject to the mandatory electronic reporting requirement of Section 2760.141 shall file two contribution reports for the quarter  in which the transfer occurs and two reports pursuant to Section 2760.125(a)(1) for the third month of the quarter in which the transfer occurs.  One report shall address the period beginning on the first day of the quarter to, and including, the date of transfer.  The other report shall address the period beginning on the first day after the date of transfer through the last day of the calendar quarter.

EXAMPLE:  On August 15, 1994, Corporation A, which owns a retail establishment named the XYZ Store and is not subject to the mandatory electronic reporting requirement of Section 2760.141, sells the entire business except the name "XYZ Store" to Corporation B.  The officers of Corporation A continue to perform services and are paid wages after the transfer.  Corporation A is required to file two Employer's Contribution and Wage Reports for the third quarter of 1994, both due October 31, 1994.  One will cover the period through August 15, 1994, and Corporation A will calculate contributions due for that period.  The other report will cover the period of August 16, 1994 through September 30, 1994, and will reflect the contributions due for that period.

3)         If the employer files only one report for a quarter for which two reports are required under subsection (a)(1) or (a)(2) and provides the total and taxable wages for the entire quarter in the report, or files only one report for a year for which two reports are required and provides the total and taxable wages for the entire year in the report, the report will be deemed to be insufficient as provided in Section 1402 of the Act.  The employer must file, within 30 days after the mailing of a notice to it of insufficiency, the two reports required in either subsection (a)(1) or (a)(2), as applicable, or the penalties provided in Section 1402 of the Act shall apply.

4)         Except as otherwise provided in this subsection (a)(4), with respect to an employer not subject to the mandatory electronic reporting requirement of Section 2760.141, the penalties provided for in Section 1402 of the Act regarding each report required under subsection (a)(1) or (a)(2) of this Section shall be calculated on the basis of the total wages paid and contributions due for the period to which that report applies.  Regardless of whether the employer fails to timely file one or both of the reports, the total penalty for that failure shall not exceed $5,000, and the minimum penalty for the failure shall be $50.  The minimum penalty for willful failure to pay any contribution, or part of any contribution, with intent to defraud the Director, shall be $400, regardless of whether the employer fails to make the payment for both or only one of the periods.

EXAMPLE:  An employer not subject to the mandatory electronic reporting requirement of Section 2760.141 timely files a report representing the part of the quarter prior to the date of filing of the petition for bankruptcy.  He or she is late in filing the report for the part of the quarter including the date the petition is filed.  The penalty will be calculated only on the amount of wages paid as reflected in the report for the period including the date the petition for bankruptcy is filed.

b)         In addition to the employer providing its name, address, account number and Federal Employer Identification Number on the Employer's Contribution and Wage Report or Report for Household Employers, the employer must provide the total wages paid during the quarter, the taxable wages paid during the quarter and the number of employees during the pay period that includes the 12^th day of each month of that quarter.  For purposes of this subsection (b), when an employer is required to file two reports pursuant to subsection (a)(1) or (a)(2), "quarter" shall mean the period required to be addressed by the report.

(Source:  Amended at 43 Ill. Reg. 1566, effective January 15, 2019)

Section 2760.125  Employer's Wage Report

a)         Filing Wage Reports

1)         Except as provided in subsection (a)(4), an employer subject to the mandatory electronic reporting requirement of Section 2760.141 shall, for each of the first two months of each calendar quarter, report, in addition to the employer's name, account number and Federal Employer Identification Number (FEIN), the name and Social Security number of each covered worker, the total wages paid to each covered worker (except as provided in Section 2760.130), and the total wages paid to all covered workers combined. Except as provided in subsection (a)(4), an employer subject to the mandatory electronic reporting requirement of Section 2760.141 shall, for the third month of each calendar quarter, submit a report (or reports if so required under Section 2760.120(a)(1) or (2)) containing the same information for the entire calendar quarter as is required pursuant to subsection (a)(2). The report required under this subsection (a)(1) for each month shall be filed on or before the last day of the calendar month next following the close of the month.

EXAMPLE: Employer A is subject to the mandatory electronic reporting requirement of Section 2760.141 for the period July 1, 2016 through June 30, 2017. Therefore, for each of January and February of 2017, Employer A is required to report its name, account number and FEIN; the name, Social Security number and total wages for the month of each covered worker (except as provided in Section 2760.130); and the total wages for the month of all covered workers combined. 

A)        For the purpose of calculating the monthly wages to determine any penalty for the third month of each quarter, the wages reported for the first and second months of the quarter shall be deducted from the quarterly wages reported by the employer for the third month of the quarter.

i)          EXAMPLE:  Employer A reports $5,000 in wages for January and $4,000 in wages for February. On the report for March, Employer A then reports $17,000 in wages for the entire first quarter. The Department will calculate March wages as follows: $17,000 - ($5,000 + $4,000) = $8,000.

ii)         EXAMPLE:  Employer A timely reports wages of $7,000 for July 2013 and $8,000 for August 2013. On November 3, 2013, Employer A files its wage report for September of 2013, reporting a total of $15,000 in wages paid for the quarter. Employer A will be assessed a minimum penalty of $50 for September 2013 because it filed its report for the month late, even though it apparently paid no wages for the month of September.

B)        If the employer fails to file its monthly wage reports for the first two months of a quarter, for the purpose of determining the penalty to be assessed, the Department shall use the Employer's quarterly reported wages and divide by three.

EXAMPLE:  Employer X fails to report monthly wages for April and May of 2013, but Employer X reports quarterly wages of $6,000 for the second quarter of 2013. The Department shall estimate monthly wages of $2,000 for April and $2,000 for May.

2)         Except as provided in subsection (a)(3) or (a)(4), every employer subject to the Unemployment Insurance Act, and not subject to the electronic reporting requirement of Section 2760.141, including employers electing to make payments in lieu of paying contributions under Section 302, 1404 or 1405 of the Act , shall file a report, or reports if so required under Section 2760.120(a)(1) or (2), each calendar quarter, listing the name and Social Security number of each covered worker and, except as provided in Section 2760.130, the total wages paid to each worker.  Except as provided in Section 2760.141, the report shall be made on the form designated Employer's Contribution and Wage Report, which is available on the Department's website (ides.illinois.gov).  The report due under this subsection (a)(2) shall be filed on or before the last day of the calendar month next following the close of the calendar quarter.

3)         Except as provided in subsection (a)(4), an employing unit that becomes an employer, including employers electing to make payments in lieu of paying contributions under Sections 302, 1404 and 1405 of the Act, shall file the form designated by the Director as Employer's Contribution and Wage Report (listing the information required by subsection (a)(2)) for the quarter in which it becomes an employer and each subsequent quarter ending prior to the mailing of the notice described in subsection (a)(3)(A).  The reports due under this subsection (a)(3) shall be filed on or before whichever of the following dates is later:

A)        The 30^th day following the date upon which the Director mails the employing unit a notice that includes information on how the employing unit can file a wage report required by this Section, Section 2760.120 or Section 2760.145 using MyTax Illinois (mytax.illinois.gov), or how to access blank copies of the forms for employing units that are not subject to Section 2760.141 and would like to file on paper; or

EXAMPLE 1: An employing unit files a REG-UI-1 on April 13, 2018, showing that it became an employer in the first quarter of 2018. The Director mails the notice described in this subsection (a)(3)(A) on April 20, 2018. The employer has until May 20, 2018 to file its contribution and wage report for the first quarter of 2018. The deadline for filing the wage report for the second quarter of 2018, and all subsequent reports, is governed by subsection (a)(2). 

EXAMPLE 2: An employing unit files a REG-UI-1 on August 14, 2018, showing that it became an employer in the first quarter of 2018. The Director mails the notice described in this subsection (a)(3)(A) on August 21, 2018. The employer has until September 20, 2018 to file its contribution and wage report for the first and second quarters of 2018. The deadline for filing the wage report for the third quarter of 2018, and all subsequent reports, is governed by subsection (a)(2).

B)        The last day of the calendar month next following the calendar quarter in which the employing unit becomes an employer.  When a notice described in subsection (a)(3)(A) has been mailed to the employer and a due date for the report for a quarter is initially established pursuant to this subsection (a)(3)(B), the due date shall not change as the result of mailing another notice subsequent to the initially established due date.

EXAMPLE 1: An employing unit files a REG-UI-1 on February 15, 2018, showing that it became an employer in the first quarter of 2018. The Director mails the notice described in subsection (a)(3)(A) on February 20, 2018. The employer has until April 30, 2018 to file its contribution and wage report for the first quarter of 2018. The deadline for filing all subsequent reports is governed by subsection (a)(2).

EXAMPLE 2: An employing unit files a REG-UI-1 on April 13, 2018, showing that it became an employer in the second quarter of 2018. The Director mails the notice described in subsection (a)(3)(A) on April 19, 2018. The employer has until July 31, 2018 to file its contribution and wage report for the second quarter of 2018 (the last day of the calendar month next following the calendar quarter in which the employing unit became an employer). The employer files its contribution and wage report for the second quarter of 2018 on August 1, 2018, making it late and, therefore, subject to a penalty. Included in the employer's filing for the second quarter is a contribution and wage report for the first quarter of 2018. Based on this report, the liability date of the employer is moved to January 1, 2018. Since the liability date of the employer was moved to an earlier quarter, the Director mails an additional notice described in subsection (a)(3)(A) to the employer on August 8, 2018. Pursuant to subsection (a)(3)(A), the employer has until September 7, 2018 to file its contribution and wage report for the first quarter of 2018. Since the employer already filed its report for the first quarter, the first quarter report will not be considered late. However, the July 31, 2018 due date initially established for the second quarter report will not change as result of the mailing of the second notice.

4)         For employers who have elected to file annually pursuant to Section 1400.2 of the Act, with respect to the first quarter for which the employing unit has made the election and each quarter thereafter for which the election remains in effect, it shall file the form designated as the Report for Household Employers listing the information required by subsection (a)(2).  The report due under this subsection (a)(4) shall be filed on or before whichever of the following dates is later:

A)        The 30^th day following the date upon which the Director mails the employer a notice that includes information on how to access the form designated as the Report for Household Employers; or

B)        April 15 of the calendar year immediately following the close of the quarter to which the report applies.

5)         The information with respect to each worker required by subsection (a)(2) may be submitted on a form other than that designated by the Director as the Employer's Contribution and Wage Report, or the Report for Household Employers, provided that the Director has approved the use of the substitute form.

6)         Upon written request filed with the Director prior to the due date of the report, the Director shall, for any reasonable cause shown, grant in writing an extension of a maximum of 15 days for the filing of any report required on a monthly basis under subsection (a)(1) and 30 days for the filing of any report required under subsection (a)(2), (a)(3) or (a)(4).  A reasonable cause is when an employer cannot meet a due date through no fault of its own or because of circumstances beyond its control.

A)        The request shall make a full explanation of the reasons for the request and shall state the date to which the extension is desired.

B)        If an employer that has been granted an extension of time pursuant to this subsection (a)(6) fails to file the report on or before the extended due date, the penalty referred to in subsection (b) shall accrue from the original due date as if no extension had been granted.

b)         Any employer, including an employer electing to make payments in lieu of paying contributions under Section 302, 1404 or 1405 of the Act, which, during any calendar quarter (or any calendar month, in the case of an employer subject to the mandatory electronic reporting requirement of Section 2760.141), has paid wages to any of its workers and that fails to file reports of those wages on or before the dates they are due under the provisions of this Section, shall pay penalties as set forth in Section 1402 of the Act and 56 Ill. Adm. Code 2765.

c)         An extension in the period of time for filing a wage report does not extend the deadline for making payment of any required contributions.

(Source:  Amended at 43 Ill. Reg. 1566, effective January 15, 2019)

Section 2760.128  Wage Report Filing for Employers that Employ Household Workers and Elect to Report Their Wages on an Annual Basis

a)    This Section only applies to an employer who solely employs household workers with respect to whom the employer files federal unemployment taxes using Schedule H (Form 1040) or could file federal unemployment taxes using Schedule H (Form 1040) if the worker or workers were providing services in employment for purposes of the federal unemployment tax. For purposes of this Section, "household worker" has the meaning ascribed to it for purposes of Schedule H (Form 1040) and includes, but is not limited to, babysitters, cleaning people, housekeepers, nannies and maids.

1)         EXAMPLE:  Joe Smith employs individuals to provide maid services in the private homes of his customers.  For purposes of Schedule H (Form 1040), an employee is considered a household worker only if his or her services are provided in the employer's private home. This Section does not apply to Joe Smith since he is not eligible to use Schedule H because the services of his employees are not performed in his home.

2)         EXAMPLE:  Jane Smith is the sole proprietor of a trucking company that employs numerous drivers and office personnel.  She also employs a nanny to care for her child in her home.  This Section does not apply to Ms Smith because, while the nanny is a household worker for purposes of Schedule H (Form 1040), performing her services in Ms Smith's private home, Ms Smith does not solely employ household workers. 

3)         EXAMPLE:  George Smith employs a housekeeper who is considered self-employed for purposes of the federal unemployment tax, and whose wages, therefore, are not subject to the federal tax.  However, the services are employment under Illinois' Unemployment Insurance Act [820 ILCS 405].  Since Mr. Smith could have used Schedule H (Form 1040) to file federal unemployment taxes with regard to the housekeeper's services had she not been considered self-employed for purposes of the federal tax, this Section will apply regarding her services.

b)         Notwithstanding any other provisions of this Part to the contrary, if an employer to whom this Section applies notifies the Director, in writing, that he or she wishes to pay his or her quarterly contributions and submit the quarterly wage and contribution reports on an annual basis, then the due date for filing the reports shall be April 15 of the calendar year immediately following the quarters to which the reports apply. A notice pursuant to this subsection shall apply to all quarters for which a Determination and Assessment of contributions, penalties or interest due has not become final.  An employer's failure to provide the notice before the reports and payments become due may result in the Department's issuance of statements of account, indicating the employer is delinquent in the filing of wage reports or the payment of contributions, or both, as well as the issuance of a Determination and Assessment of delinquent contributions, plus penalties and interest. If the employer does not protest a Determination and Assessment on a timely basis, pursuant to Section 2200 of the Act, the delinquency indicated in the Notice of Determination and Assessment will become a legally final debt of the employer's.

(Source:  Added at 33 Ill. Reg. 9652, effective July 1, 2009)

Section 2760.130  Reporting "Excess" Wages

Pursuant to Section 2760.125, the employer shall enter on the wage reporting portion of its Employer's Contribution and Wage Report or Report for Household Employers, or on its monthly report of wages in the case of an employer subject to Section 2760.125(a)(1), the amount of wages (whether or not subject to the payment of contributions) paid during the calendar quarter, or month as the case may be, to each listed worker.  However, in the case of an employer subject to Section 2760.125(a)(1), with regard to either of the first 2 months of the calendar quarter, if the wages paid by the employer during the month to any worker are in excess of $15,000, the employer may report only $15,000 for the worker with respect to that month.  If the wages paid by the employer during a calendar quarter to any worker are in excess of $45,000, the employer may report only $45,000 for the worker with respect to that calendar quarter; provided, that the employer shall enter on its Report or Return a sum total of all excess wages and shall identify such sum as "Excess Wages Not Allocated".

(Source:  Amended at 37 Ill. Reg. 7451, effective May 14, 2013)

Section 2760.135  Remittance of Contributions Due and Use of Payment Voucher

a)         The Department shall make available, through its online tax system, MyTax Illinois (mytax.illinois.gov) and on its website (ides.illinois.gov), a Payment Voucher that is to be returned with any payment, except a payment that is made through electronic funds transfer.  Except for payments made through electronic funds transfer, every employer must enclose a Payment Voucher with any payment or otherwise provide all of the information the Payment Voucher would provide, regardless of the amount due. For any payment that is not made through electronic funds transfer, failure of the employer to enclose a Payment Voucher with its payment, or otherwise provide all of the information the Payment Voucher would provide, may result in a return of that payment to the employer for resubmission.

1)         The Payment Voucher and check must be sent to the address indicated on the form.

2)         A separate check, made payable to the Department of Employment Security, must accompany each Payment Voucher, and the Employer's Illinois Account Number should be written on the face of the check.

b)         Failure of the employer to submit a check to the address indicated on the form may result in a return of that check to the employer for resubmission.  If the resubmitted check is received at the proper address after the due date provided in Section 1400 of the Act, interest shall accrue as provided in Section 1401 of the Act.  The Director shall not grant waiver for any interest so accrued.

c)         Notwithstanding any other provisions to the contrary, an employer may remit payments other than by check in accordance with instructions provided on the Department's website.

(Source:  Amended at 43 Ill. Reg. 1566, effective January 15, 2019)

Section 2760.140  Use of Electronic Data Processing Media for Quarterly Reporting Prior to 2013

a)         Except as provided in subsections (g) and (h), the reports required by Sections 2760.120 and 2760.125 for a quarter beginning prior to calendar year 2013 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/she finds that:

1)         All of the data required by the Director for quarterly reporting are also provided by the employer 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 2011, the employer has no more than 225 individuals in its employ at any one time.  However, during the year, 30 of these individuals leave the employ of the employer and are replaced by 30 other individuals. Though the employer's labor force never exceeds 225 individuals at any one time, the employer had 255 individuals in its employ during 2011 and, therefore, is subject to subsection (a) for 2012.

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:  On October 20, 2012, an employer subject to the reporting requirements of subsection (a) mails a paper version of the report due for the third quarter of 2012 instead of filing it as required by subsection (a).  On November1, 2012, if that employer has not yet complied with subsection (a), it is delinquent in the filing of its report for the third quarter of 2012, the penalty set forth in Section 1402 of the Act shall be imposed, and any payment it ultimately submits for the third quarter of 2012 shall be reallocated in accordance with 56 Ill. Adm. Code 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 December 1, 2012 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)         When 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 approval of the Director.  The Director shall approve the use of an electronic data processing medium for reporting if it meets the requirements of subsection (a) and if the employer agrees to file both reports by the use of that 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 subsection (a).  The employer is, however, subject to the requirements of subsection (f).

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 or her knowledge and belief and that no part of the contribution reported was or is to be deducted from the worker's wages.  This subsection (f) does not apply if the method of electronic submission being used includes the certification described in this subsection (f) as part of the report.

g)         When 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), as in effect on January 1, 2012, for the employer with respect to documents covering a calendar year, the Director shall waive the reporting requirements of this Section for the employer with respect to reports covering the subsequent calendar year.

EXAMPLE:  In February 2012, the Commissioner of the Internal Revenue Service notifies an employer that the requirements of Treasury Regulation 301.6011-2 (26 CFR 301.6011-2) have been waived with respect to Form W-2 data covering calendar year 2011, meaning that the employer will not be required to submit the data electronically in 2012.  If the employer demonstrates the waiver to the Director, the Director will waive the requirements of subsection (a) with respect to reports covering 2012.

h)         When 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 any period through the second quarter of the current calendar year, file its quarterly reports by mailing paper versions of the reports in compliance with Sections 2760.120 and 2760.125.

EXAMPLE:  The employer had, in total, 240 individuals in its employ during calendar year 2010.  In calendar year 2011, the employer had, in total, 260 individuals in its employ.  The employer will not be required to report electronically for any period through the second quarter of calendar year 2012 but will be required to report electronically for at least the third and fourth quarters of that year.

(Source:  Amended at 43 Ill. Reg. 1566, effective January 15, 2019)

Section 2760.141  Use of Electronic Data Processing Media for Monthly or Quarterly Reporting

a)         Electronic Data Processing

Except as otherwise provided in subsection (b) or subsection (g), an employer shall file the reports required by Sections 2760.120 and 2760.125 by the use of an electronic data processing medium that meets the approval of the Director (see subsection (c)) in accordance with the following schedule:

1)         for the period of February 1, 2013 through June 30, 2015, if the employer had 250 or more individuals in its employ (though not necessarily at the same time) during calendar years 2011 and 2012;

2)         for the period of July 1, 2013 through June 30, 2015, if the employer had 100 or more individuals in its employ (though not necessarily at the same time) during calendar year 2012 but fewer than 250 during calendar year 2011;

3)         for the period of January 1, 2014 through June 30, 2015, if the employer had 50 or more, but fewer than 100, individuals in its employ (though not necessarily at the same time) during calendar year 2012;

4)         for the period of July 1, 2014 through June 30, 2015, if the employer had 25 or more, but fewer than 50, individuals in its employ (though not necessarily at the same time) during calendar year 2012; and

5)         after June 30, 2015, for any one-year period of July 1 of a calendar year through June 30 of the immediately succeeding calendar year, if the employer had 25 or more individuals in its employ (though not necessarily at the same time) during the last calendar year completed immediately prior to the July 1 on which the period commenced.

b)         Notwithstanding any other provision to the contrary, subsection (a) shall not apply for the period of January 1, 2014 through June 30, 2015 with respect to any employer that did not have at least 25 individuals in its employ (whether or not at the same time) during calendar year 2013.

c)         The Director shall approve the use of electronic data processing media for reporting if he or she finds that:

1)         all of the data required by the Director for monthly or quarterly reporting, as the case may be, are also provided by the employer 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.

d)         In addition to any other requirements of this Section regarding electronic filing:

1)         reports submitted pursuant to this Section for any quarter ending after December 31, 2012 shall be submitted only through a file transfer protocol or through manual entry or a file import or upload onto an online system used by the Department; and

2)         reports submitted pursuant to this Section for any month after December 31, 2012 shall be submitted only through a file upload onto an online system used by the Department.

EXAMPLE:  During 2012, the employer has no more than 90 individuals in its employ at any one time.  However, during the year, 11 of these individuals leave the employ of the employer and are replaced by 11 other individuals.  Though the employer's labor force never exceeds 90 individuals at any one time, the employer had 101 individuals in its employ during 2012 for purposes of subsection (a).

EXAMPLE:  During 2014, the employer has no more than 20 individuals in its employ at any one time.  However, during the year, 7 of these individuals leave the employ of the employer and are replaced by 7 other individuals.  Though the employer's labor force never exceeds 20 individuals at any one time, the employer had 27 individuals in its employ during 2014 and, therefore, is subject to subsection (a) for the one-year period of July 1, 2015 through June 30, 2016.

e)         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:  On August 20, 2015, an employer subject to the reporting requirements of subsection (a) for July 2015 attempts to mail a paper version of the report due for that month instead of filing it as required by subsection (a).  The Department, however, does not accept paper versions of reports covering the first 2 months of a calendar quarter.  On September 1, 2015, if that employer has not yet complied with subsection (a), it is delinquent in the filing of its July 2015 report, the penalty set forth in Section 1402 of the Act shall be imposed, and any payment it ultimately submits for the third quarter of 2015 shall be reallocated in accordance with 56 Ill. Adm. Code 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 October 1, 2015, 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.

f)         When 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 if it meets the requirements of subsection (c) and if the employer agrees to file both reports by the use of the electronic data processing medium.

g)         The Director shall waive the reporting requirements of this Section with respect to reports covering any month commencing in the subsequent calendar year when the employer demonstrates that the Commissioner of the Internal Revenue Service:

1)         has waived the electronic reporting requirements of Treasury Regulation 301.6011-2 (26 CFR 301.6011-2), as in effect on January 1, 2014, for the employer with respect to documents covering a calendar year; or

2)         would have waived those requirements for the employer had they otherwise been applicable.

EXAMPLE:  In February 2015, the Commissioner of the Internal Revenue Service notifies an employer that the requirements of Treasury Regulation 301.6011-2 have been waived with respect to Form W-2 data covering calendar year 2014, meaning that the employer will not be required to submit the data electronically in 2015.  If the employer demonstrates the waiver to the Director, the Director will waive the requirements of subsection (a) with respect to reports covering any month commencing during calendar year 2015.  However, unless the employer also demonstrates to the Director that the Commissioner has waived those requirements with respect to documents covering calendar year 2015, the Director will not waive the reporting requirements of this Section with respect to any month commencing during calendar year 2016.

EXAMPLE:  The electronic reporting requirements of Treasury Regulation 301.6011-2 do not apply to the employer because the employer had fewer than 250 individuals in its employ in the prior year.  If the employer believes, however, that it would otherwise qualify for a waiver of the Regulation's requirements, the employer may apply for a waiver from the Director, who will grant the waiver if the Director determines that the conditions for granting a waiver under this Part have been met.

(Source:  Added at 39 Ill. Reg. 10755, effective July 27, 2015)

Section 2760.145  Correcting the Employer's Contribution and Wage Report or Report for Household Employers

a)         Should an employer make an error in the reporting of total or taxable wages paid during a quarter or in the calculation of its contributions due, it shall correct that error by preparation of the form "Employer's Correction Report For The Quarter Ending       ."  This same form shall be used to correct errors in reporting wages of individual workers. This form requires the same information as the original Report in addition to the corrected information and an explanation of the change.

b)         When an employer incorrectly reports the name or Social Security Number of a worker on the wage report portion of the Employer's Contribution and Wage Report or Report for Household Employers, or, in the case of an employer subject to the mandatory electronic reporting requirement of Section 2760.141, on the report for the third month of the quarter, a correction shall be made by the use of form "Social Security Number And Name Change Notice" . This form requires the original information reported  and the corrected information.

c)         An employer may make the corrections described in subsections (a) and (b) by mailing a signed "Employer's Correction Report For The Quarter Ending ___" or "Social Security Number Correction And Name Change Notice", as applicable, to the address provided on the forms, which are available on the Department's website (ides.illinois.gov). An employer may also amend an Employer's Contribution and Wage Report or Report for Household Employers as described in subsections (a) and (b) online using MyTax Illinois by submitting a signed form "Amend Quarterly Wage Report". In the case of an employer subject to the mandatory electronic reporting requirement of Section 2760.141, an employer may make corrections to the reports required for the first two months of a calendar quarter through the MyTax Illinois website by submitting a signed form "Employer's Correction Report for the Month Ending ___" on or before the last day of the second calendar month following the close of the month for which the report is due. Corrections to a monthly wage report may not be made by mail.

(Source:  Amended at 43 Ill. Reg. 1566, effective January 15, 2019)

Section 2760.150  Consequences of an Error in the Preparation of the Employer's Contribution and Wage Report or Report for Household Employers and Procedures for the Waiver or Elimination of Certain Penalties

a)         If an error in the preparation of the Employer's Contribution and Wage Report or Report for Household Employers results in an underreporting of contributions due, the employer shall be liable for any penalty and the delinquent contributions plus interest, calculated in accordance with Section 1401 of the Act, from the date that the original report was due.

b)         Except as provided in subsection (c), if an error in the preparation of the Employer's Contribution and Wage Report or Report for Household Employers resulted in an overpayment of contributions, the employer may file a claim for an adjustment or refund.  The claim must be signed and filed within the period provided in Section 2201 of the Act.  The request shall be filed on the form entitled "Employer's Claim for Adjustment/Refund" as provided in 56 Ill. Adm. Code 2725.115.

c)         Except as otherwise provided in subsection (d), in the event that the employer is mailed a Statement of Account that indicates the employer's account has a credit balance and the employer wishes to obtain a cash refund, the employer may file for the refund within the period provided in Section 2201 of the Act, on the form, Employer Request for Refund − Statement of Account.  The form may be obtained and shall be completed in the same manner as provided in subsection (b).

d)         Except as otherwise provided in this subsection, in the event that the employer has overpaid a penalty as the result of Section 2760.141 or 56 Ill. Adm. Code 2765.62, the Department shall apply the credit as an adjustment against other liabilities of the employer under the Act.  The Department shall grant a refund of any credit resulting from Section 2760.141 or 56 Ill. Adm. Code 2765.62 if the credit has not been used as an adjustment by January 31, 2016.

(Source:  Amended at 43 Ill. Reg. 1566, effective January 15, 2019)