HB5813 102ND GENERAL ASSEMBLY

LRB102 29044 SPS 40947 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5813

Introduced 11/16/2022, by Rep. Maurice A. West, II

SYNOPSIS AS INTRODUCED:

820 ILCS 405/1502.4
820 ILCS 405/1503.2 new

Amends the Unemployment Insurance Act. Extends payment contribution relief for specified employers from December 31, 2020 to June 30, 2021 with respect to any benefits paid for a week of unemployment that was directly or indirectly attributable to COVID-19. Provides for the calculation of benefit ratios for calendar years 2023 and 2024. Effective January 1, 2023.

A BILL FOR

AN ACT concerning employment.

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

Section 5. The Unemployment Insurance Act is amended by changing Section 1502.4 and by adding Section 1503.2 as follows:

(820 ILCS 405/1502.4)

Sec. 1502.4. Benefit charges; COVID-19.

A. With respect to any benefits paid for a week of unemployment that begins on or after March 15, 2020, and before June 30, 2021 December 31, 2020, and is directly or indirectly attributable to COVID-19, notwithstanding any other provisions to the contrary an employer that is subject to the payment of contributions shall not be chargeable for any benefit charges.

B. With respect to any regular benefits paid for a week of unemployment that begins on or after March 15, 2020, and before June 30, 2021 December 31, 2020, and is directly or indirectly attributable to COVID-19, notwithstanding any other provisions to the contrary except subsection E, a nonprofit organization that is subject to making payments in lieu of contributions shall be chargeable for 50% of the benefits paid.

C. With respect to any benefits paid for a week of unemployment that begins on or after March 15, 2020, and before June 30, 2021 December 31, 2020, and is directly or indirectly attributable to COVID-19, notwithstanding any other provisions to the contrary except subsection E, the State and any local government that is subject to making payments in lieu of contributions shall be chargeable for 50% of the benefits paid, irrespective of whether the State or local government paid the individual who received the benefits wages for insured work during the individual's base period.

D. Subsections A, B, and C shall only apply to the extent that the employer can show that the individual's unemployment for the week was directly or indirectly attributable to COVID-19.

E. No employer shall be chargeable for the week of benefits paid to an individual under the provisions of subsection D-5 of Section 500.

(Source: P.A. 101-633, eff. 6-5-20; 102-671, eff. 11-30-21.)

(820 ILCS 405/1503.2 new)

Sec. 1503.2. Benefit ratio for calendar years 2023 and 2024.

A. For calendar year 2023:

1. For each employer who has incurred liability for the payment of contributions within each of the 3 calendar years immediately preceding calendar year 2023, the benefit ratio shall be a percentage equal to the total of his or her benefit charges for the 12 consecutive calendar month period ending on June 30, 2022, multiplied by the benefit conversion factor, divided by his total wages for insured work subject to the payment of contributions under Sections 234, 235, and 245 of this Act for the same 12 month period, provided, however, that such wages shall not include either those wages estimated by the Director prior to the issuance of a Determination and Assessment or those wages estimated as a result of an audit because of an employer's failure to report wages.

2. For each employer who has incurred liability for the payment of contributions within each of the 4 calendar years immediately preceding calendar year 2023, the benefit ratio shall be a percentage equal to the total of his or her benefit charges for the 24 consecutive calendar month period ending on June 30, 2022, multiplied by the benefit conversion factor, divided by 200% of his or her total wages for insured work subject to the payment of contributions under Sections 234, 235, and 245 of this Act for the 12 consecutive calendar month period ending on June 30, 2022, provided, however, that such wages shall not include either those wages estimated by the Director prior to the issuance of a Determination and Assessment or those wages estimated as a result of an audit because of an employer's failure to report wages.

3. For each employer who has incurred liability for the payment of contributions within each of the 5 calendar years immediately preceding calendar year 2023, the benefit ratio shall be a percentage equal to the total of his or her benefit charges for the 36 consecutive calendar month period ending on June 30, 2022, multiplied by the benefit conversion factor, divided by the sum of 200% of his or her total wages for insured work subject to the payment of contributions under Sections 234, 235, and 245 of this Act for the 12 consecutive calendar month period ending on June 30, 2022 and his or her total wages for insured work subject to the payment of contributions under Sections 234, 235, and 245 of this Act for the 12 consecutive calendar month period ending on June 30, 2020, provided, however, that such wages shall not include either those wages estimated by the Director prior to the issuance of a Determination and Assessment or those wages estimated as a result of an audit because of an employer's failure to report wages.

B. For calendar year 2024:

1. For each employer who has incurred liability for the payment of contributions within each of the 3 calendar years immediately preceding calendar year 2024, the benefit ratio shall be a percentage equal to the total of his or her benefit charges for the 12 consecutive calendar month period ending on June 30, 2023, multiplied by the benefit conversion factor, divided by his total wages for insured work subject to the payment of contributions under Sections 234, 235, and 245 of this Act for the same 12 month period, provided, however, that such wages shall not include either those wages estimated by the Director prior to the issuance of a Determination and Assessment or those wages estimated as a result of an audit because of an employer's failure to report wages.

2. For each employer who has incurred liability for the payment of contributions within each of the 4 calendar years immediately preceding calendar year 2024, the benefit ratio shall be a percentage equal to the total of his or her benefit charges for the 24 consecutive calendar month period ending on June 30, 2023, multiplied by the benefit conversion factor, divided by his or her total wages for insured work subject to the payment of contributions under Sections 234, 235, and 245 of this Act for the same 24 month period, provided, however, that such wages shall not include either those wages estimated by the Director prior to the issuance of a Determination and Assessment or those wages estimated as a result of an audit because of an employer's failure to report wages.

3. For each employer who has incurred liability for the payment of contributions within each of the 5 calendar years immediately preceding calendar year 2024, the benefit ratio shall be a percentage equal to the total of his or her benefit charges for the 36 consecutive calendar month period ending on June 30, 2023, multiplied by the benefit conversion factor, divided by the sum of his or her total wages for insured work subject to the payment of contributions under Sections 234, 235, and 245 of this Act for the 12 consecutive calendar month period ending on June 30, 2023 and 200% of his or her total wages for insured work subject to the payment of contributions under Sections 234, 235, and 245 of this Act for the 12 consecutive calendar month period ending on June 30, 2022 and, provided, however, that such wages shall not include either those wages estimated by the Director prior to the issuance of a Determination and Assessment or those wages estimated as a result of an audit because of an employer's failure to report wages.

Section 99. Effective date. This Act takes effect January 1, 2023.