99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB1430

 

Introduced , by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/1400  from Ch. 48, par. 550

    Amends the Unemployment Insurance Act. Provides that in the discretion of the Director, employer contributions may be paid in quarterly installments.


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A BILL FOR

 

HB1430LRB099 07631 JLS 27762 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Unemployment Insurance Act is amended by
5changing Section 1400 as follows:
 
6    (820 ILCS 405/1400)  (from Ch. 48, par. 550)
7    Sec. 1400. Payment of contributions. On and after July 1,
81937, contributions shall accrue and become payable by each
9employer for each calendar year in which he is subject to this
10Act, with respect to wages payable for employment occurring
11during the six months' period beginning July 1, 1937, and the
12calendar years 1938, 1939, and 1940. For the year 1941 and for
13each calendar year thereafter, contributions shall accrue and
14become payable by each employer upon the wages paid with
15respect to employment after December 31, 1940. Except as
16otherwise provided in Section 1400.2, such contributions shall
17become due and shall be paid quarterly on or before the last
18day of the month next following the calendar quarter for which
19such contributions have accrued; except that any employer who
20is delinquent in filing a contribution report or in paying his
21contributions for any calendar quarter may, at the discretion
22of the Director, be required to report and to pay contributions
23on a calendar month basis. Such contributions shall not be

 

 

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1deducted, in whole or in part, from the wages of individuals in
2such employer's employ. If the Director shall find that the
3collection of any contributions will be jeopardized by delay,
4he may declare the same to be immediately due and payable.
5    In the payment of any contributions, interest, or
6penalties, a fractional part of a cent shall be disregarded
7unless it amounts to one-half cent or more, in which case it
8shall be increased to one cent.
9    The Director may by regulation provide that if, at any
10time, a total amount of less than $2 is payable with respect to
11a quarter, including any contributions, payments in lieu of
12contributions, interest or penalties, such amount may be
13disregarded. Any amounts disregarded under this paragraph are
14deemed to have been paid for all other purposes of this Act.
15Nothing in this paragraph is intended to relieve any employer
16from filing any reports required by this Act or by any rules or
17regulations adopted by the Director pursuant to this Act.
18    Except with respect to the provisions concerning amounts
19that may be disregarded pursuant to regulation, this Section
20does not apply to any nonprofit organization or any
21governmental entity referred to in subsection B of Section 1405
22for any period with respect to which it does not incur
23liability for the payment of contributions by reason of having
24elected to make payments in lieu of contributions, or to any
25political subdivision or municipal corporation for any period
26with respect to which it is not subject to payments in lieu of

 

 

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1contributions under the provisions of paragraph 1 of Section
2302C by reason of having elected to make payments in lieu of
3contributions under paragraph 2 of that Section, or to the
4State of Illinois or any of its instrumentalities.
5    At the discretion of the Director, payment of contributions
6with respect to wages, as defined in Section 235, may be made
7in quarterly installments. If so, the payment due for the first
8quarter of the year shall be 25% of the liability incurred
9during that quarter. The payment due for the second quarter
10shall be determined by adding 25% of the liability incurred
11during the first quarter plus 33.33% of the liability incurred
12during the second quarter. The payment due for the third
13quarter shall be determined by adding 25% of the liability
14incurred during the first quarter plus 33.33% of the liability
15incurred during the second quarter plus 50% of the liability
16incurred during the third quarter. The payment due for the
17fourth quarter shall be the balance of the liability incurred
18during the calendar year. The changes made by this amendatory
19Act of the 99th General Assembly shall not reduce an employer's
20liability for contributions under this Act.
21    The Director may, by regulation, provide that amounts due
22from an employing unit for contributions, payments in lieu of
23contributions, penalties, or interest be paid by an electronic
24funds transfer, including amounts paid on behalf of an
25employing unit by an entity representing the employing unit.
26The regulation shall not apply to an employing unit until the

 

 

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1Director notifies the employing unit of the regulation. Except
2as otherwise provided in this Section, where the employing
3unit, within 30 days of the date of service of the notice sent
4pursuant to this amendatory Act of the 98th General Assembly,
5notifies the Director that it declines to pay by electronic
6funds transfer, the regulation shall not apply to the employing
7unit. Except as otherwise provided in this Section, where the
8employing unit, within 30 days of the date of service of a
9notice sent pursuant to Section 1509 of this Act, notifies the
10Director that it declines to pay by electronic funds transfer,
11the regulation shall not apply to the employing unit with
12respect to any payment due after the date the employing unit so
13notifies the Director. The Director is authorized to provide by
14regulation reasonable penalties for employing units that are
15subject to and fail to comply with such a regulation. Any
16employing unit that is not subject to the regulation may elect
17to become subject to the regulation by paying amounts due for
18contributions, payments in lieu of contributions, penalties,
19or interest by an electronic funds transfer. Notwithstanding
20any other provision to the contrary, in the case of an entity
21representing 5 or more employing units, neither the entity nor
22the employing units (for as long as they are represented by
23that entity) shall have the option to decline to pay by
24electronic funds transfer.
25(Source: P.A. 98-107, eff. 7-23-13.)