99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3082

 

Introduced , by Rep. Michael Unes

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/1400.2
820 ILCS 405/1402  from Ch. 48, par. 552
820 ILCS 405/1404  from Ch. 48, par. 554
820 ILCS 405/1405  from Ch. 48, par. 555

    Amends the Unemployment Insurance Act. Deletes provisions requiring employers to file, on a monthly basis, reports regarding employee wages.


LRB099 05987 JLS 26039 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3082LRB099 05987 JLS 26039 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 Sections 1400.2, 1402, 1404, and 1405 as follows:
 
6    (820 ILCS 405/1400.2)
7    Sec. 1400.2. Annual reporting and paying; household
8workers. This Section applies to an employer who solely employs
9one or more household workers with respect to whom the employer
10files federal unemployment taxes as part of his or her federal
11income tax return, or could file federal unemployment taxes as
12part of his or her federal income tax return if the worker or
13workers were providing services in employment for purposes of
14the federal unemployment tax. For purposes of this Section,
15"household worker" has the meaning ascribed to it for purposes
16of Section 3510 of the federal Internal Revenue Code. If an
17employer to whom this Section applies notifies the Director, in
18writing, that he or she wishes to pay his or her contributions
19for each quarter and submit his or her wage reports for each
20month or quarter, as the case may be, on an annual basis, then
21the due date for filing the reports and paying the
22contributions shall be April 15 of the calendar year
23immediately following the close of the months or quarters to

 

 

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1which the reports and quarters to which the contributions
2apply, except that the Director may, by rule, establish a
3different due date for good cause.
4(Source: P.A. 97-689, eff. 6-14-12.)
 
5    (820 ILCS 405/1402)  (from Ch. 48, par. 552)
6    Sec. 1402. Penalties.
7    A. If any employer fails, within the time prescribed in
8this Act as amended and in effect on October 5, 1980, and the
9regulations of the Director, to file a report of wages paid to
10each of his workers, or to file a sufficient report of such
11wages after having been notified by the Director to do so, for
12any period which begins prior to January 1, 1982, he shall pay
13to the Department as a penalty a sum determined in accordance
14with the provisions of this Act as amended and in effect on
15October 5, 1980.
16    B. Except as otherwise provided in this Section, any
17employer who fails to file a report of wages paid to each of
18his workers for any period which begins on or after January 1,
191982, within the time prescribed by the provisions of this Act
20and the regulations of the Director, or, if the Director
21pursuant to such regulations extends the time for filing the
22report, fails to file it within the extended time, shall, in
23addition to any sum otherwise payable by him under the
24provisions of this Act, pay to the Department as a penalty a
25sum equal to the lesser of (1) $5 for each $10,000 or fraction

 

 

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1thereof of the total wages for insured work paid by him during
2the period or (2) $2,500, for each month or part thereof of
3such failure to file the report. With respect to an employer
4who has elected to file reports of wages on an annual basis
5pursuant to Section 1400.2, in assessing penalties for the
6failure to submit all reports by the due date established
7pursuant to that Section, the 30-day period immediately
8following the due date shall be considered as one month.
9    If the Director deems an employer's report of wages paid to
10each of his workers for any period which begins on or after
11January 1, 1982, insufficient, he shall notify the employer to
12file a sufficient report. If the employer fails to file such
13sufficient report within 30 days after the mailing of the
14notice to him, he shall, in addition to any sum otherwise
15payable by him under the provisions of this Act, pay to the
16Department as a penalty a sum determined in accordance with the
17provisions of the first paragraph of this subsection, for each
18month or part thereof of such failure to file such sufficient
19report after the date of the notice.
20    For wages paid in calendar years prior to 1988, the penalty
21or penalties which accrue under the two foregoing paragraphs
22with respect to a report for any period shall not be less than
23$100, and shall not exceed the lesser of (1) $10 for each
24$10,000 or fraction thereof of the total wages for insured work
25paid during the period or (2) $5,000. For wages paid in
26calendar years after 1987, the penalty or penalties which

 

 

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1accrue under the 2 foregoing paragraphs with respect to a
2report for any period shall not be less than $50, and shall not
3exceed the lesser of (1) $10 for each $10,000 or fraction of
4the total wages for insured work paid during the period or (2)
5$5,000. With respect to an employer who has elected to file
6reports of wages on an annual basis pursuant to Section 1400.2,
7for purposes of calculating the minimum penalty prescribed by
8this Section for failure to file the reports on a timely basis,
9a calendar year shall constitute a single period. For reports
10of wages paid after 1986, the Director shall not, however,
11impose a penalty pursuant to either of the two foregoing
12paragraphs on any employer who can prove within 30 working days
13after the mailing of a notice of his failure to file such a
14report, that (1) the failure to file the report is his first
15such failure during the previous 20 consecutive calendar
16quarters, and (2) the amount of the total contributions due for
17the calendar quarter of such report (or, in the case of an
18employer who is required to file the reports on a monthly
19basis, the amount of the total contributions due for the
20calendar quarter that includes the month of such report) is
21less than $500.
22    For any month which begins on or after January 1, 2013, a
23report of the wages paid to each of an employer's workers shall
24be due on or before the last day of the month next following
25the calendar month in which the wages were paid if the employer
26is required to report such wages electronically pursuant to the

 

 

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1regulations of the Director; otherwise a report of the wages
2paid to each of the employer's workers shall be due on or
3before the last day of the month next following the calendar
4quarter in which the wages were paid.
5    Any employer who willfully fails to pay any contribution or
6part thereof, based upon wages paid prior to 1987, when
7required by the provisions of this Act and the regulations of
8the Director, with intent to defraud the Director, shall in
9addition to such contribution or part thereof pay to the
10Department a penalty equal to 50 percent of the amount of such
11contribution or part thereof, as the case may be, provided that
12the penalty shall not be less than $200.
13    Any employer who willfully fails to pay any contribution or
14part thereof, based upon wages paid in 1987 and in each
15calendar year thereafter, when required by the provisions of
16this Act and the regulations of the Director, with intent to
17defraud the Director, shall in addition to such contribution or
18part thereof pay to the Department a penalty equal to 60% of
19the amount of such contribution or part thereof, as the case
20may be, provided that the penalty shall not be less than $400.
21    However, all or part of any penalty may be waived by the
22Director for good cause shown.
23    C. With regard to an employer required to report monthly
24pursuant to this Section, in addition to each employee's name,
25social security number, and wages for insured work paid during
26the period, the Director may, by rule, require a report to

 

 

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1provide the following information concerning each employee:
2the employee's occupation, hours worked during the period,
3hourly wage, if applicable, and work location if the employer
4has more than one physical location. Notwithstanding any other
5provision of any other law to the contrary, information
6obtained pursuant to this subsection shall not be disclosed to
7any other public official or agency of this State or any other
8state to the extent it relates to a specifically identified
9individual or entity or to the extent that the identity of a
10specific individual or entity may be discerned from such
11information. The additional data elements required to be
12reported pursuant to the rule authorized by this subsection may
13be reported in the same electronic format as in the system
14maintained by the employer or employer's agent and need not be
15reformatted.
16(Source: P.A. 97-689, eff. 6-14-12; 97-791, eff. 1-1-13;
1798-463, eff. 8-16-13; 98-1133, eff. 12-23-14.)
 
18    (820 ILCS 405/1404)  (from Ch. 48, par. 554)
19    Sec. 1404. Payments in lieu of contributions by nonprofit
20organizations.
21    A. For the year 1972 and for each calendar year thereafter,
22contributions shall accrue and become payable, pursuant to
23Section 1400, by each nonprofit organization (defined in
24Section 211.2) upon the wages paid by it with respect to
25employment after 1971, unless the nonprofit organization

 

 

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1elects, in accordance with the provisions of this Section, to
2pay, in lieu of contributions, an amount equal to the amount of
3regular benefits and one-half the amount of extended benefits
4(defined in Section 409) paid to individuals, for any weeks
5which begin on or after the effective date of the election, on
6the basis of wages for insured work paid to them by such
7nonprofit organization during the effective period of such
8election. Notwithstanding the preceding provisions of this
9subsection and the provisions of subsection D, with respect to
10benefit years beginning prior to July 1, 1989, any adjustment
11after September 30, 1989 to the base period wages paid to the
12individual by any employer shall not affect the ratio for
13determining the payments in lieu of contributions of a
14nonprofit organization which has elected to make payments in
15lieu of contributions. Provided, however, that with respect to
16benefit years beginning on or after July 1, 1989, the nonprofit
17organization shall be required to make payments equal to 100%
18of regular benefits, including dependents' allowances, and 50%
19of extended benefits, including dependents' allowances, paid
20to an individual with respect to benefit years beginning during
21the effective period of the election, but only if the nonprofit
22organization: (a) is the last employer as provided in Section
231502.1 and (b) paid to the individual receiving benefits, wages
24for insured work during his base period. If the nonprofit
25organization described in this paragraph meets the
26requirements of (a) but not (b), with respect to benefit years

 

 

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1beginning on or after July 1, 1989, it shall be required to
2make payments in an amount equal to 50% of regular benefits,
3including dependents' allowances, and 25% of extended
4benefits, including dependents' allowances, paid to an
5individual with respect to benefit years beginning during the
6effective period of the election.
7        1. Any employing unit which becomes a nonprofit
8    organization on January 1, 1972, may elect to make payments
9    in lieu of contributions for not less than one calendar
10    year beginning with January 1, 1972, provided that it files
11    its written election with the Director not later than
12    January 31, 1972.
13        2. Any employing unit which becomes a nonprofit
14    organization after January 1, 1972, may elect to make
15    payments in lieu of contributions for a period of not less
16    than one calendar year beginning as of the first day with
17    respect to which it would, in the absence of its election,
18    incur liability for the payment of contributions, provided
19    that it files its written election with the Director not
20    later than 30 days immediately following the end of the
21    calendar quarter in which it becomes a nonprofit
22    organization.
23        3. A nonprofit organization which has incurred
24    liability for the payment of contributions for at least 2
25    calendar years and is not delinquent in such payment and in
26    the payment of any interest or penalties which may have

 

 

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1    accrued, may elect to make payments in lieu of
2    contributions beginning January 1 of any calendar year,
3    provided that it files its written election with the
4    Director prior to such January 1, and provided, further,
5    that such election shall be for a period of not less than 2
6    calendar years.
7        4. An election to make payments in lieu of
8    contributions shall not terminate any liability incurred
9    by an employer for the payment of contributions, interest
10    or penalties with respect to any calendar quarter (or
11    month, as the case may be) which ends prior to the
12    effective period of the election.
13        5. A nonprofit organization which has elected,
14    pursuant to paragraph 1, 2, or 3, to make payments in lieu
15    of contributions may terminate the effective period of the
16    election as of January 1 of any calendar year subsequent to
17    the required minimum period of the election only if, prior
18    to such January 1, it files with the Director a written
19    notice to that effect. Upon such termination, the
20    organization shall become liable for the payment of
21    contributions upon wages for insured work paid by it on and
22    after such January 1 and, notwithstanding such
23    termination, it shall continue to be liable for payments in
24    lieu of contributions with respect to benefits paid to
25    individuals on and after such January 1, with respect to
26    benefit years beginning prior to July 1, 1989, on the basis

 

 

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1    of wages for insured work paid to them by the nonprofit
2    organization prior to such January 1, and, with respect to
3    benefit years beginning after June 30, 1989, if such
4    employer was the last employer as provided in Section
5    1502.1 during a benefit year beginning prior to such
6    January 1.
7        6. Written elections to make payments in lieu of
8    contributions and written notices of termination of
9    election shall be filed in such form and shall contain such
10    information as the Director may prescribe. Upon the filing
11    of such election or notice, the Director shall either order
12    it approved, or, if it appears to the Director that the
13    nonprofit organization has not filed such election or
14    notice within the time prescribed, he shall order it
15    disapproved. The Director shall serve notice of his order
16    upon the nonprofit organization. The Director's order
17    shall be final and conclusive upon the nonprofit
18    organization unless, within 15 days after the date of
19    mailing of notice thereof, the nonprofit organization
20    files with the Director an application for its review,
21    setting forth its reasons in support thereof. Upon receipt
22    of an application for review within the time prescribed,
23    the Director shall order it allowed, or shall order that it
24    be denied, and shall serve notice upon the nonprofit
25    organization of his order. All of the provisions of Section
26    1509, applicable to orders denying applications for review

 

 

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1    of determinations of employers' rates of contribution and
2    not inconsistent with the provisions of this subsection,
3    shall be applicable to an order denying an application for
4    review filed pursuant to this subsection.
5    B. As soon as practicable following the close of each
6calendar quarter, the Director shall mail to each nonprofit
7organization which has elected to make payments in lieu of
8contributions a Statement of the amount due from it for the
9regular and one-half the extended benefits paid (or the amounts
10otherwise provided for in subsection A) during the calendar
11quarter, together with the names of its workers or former
12workers and the amounts of benefits paid to each of them during
13the calendar quarter, with respect to benefit years beginning
14prior to July 1, 1989, on the basis of wages for insured work
15paid to them by the nonprofit organization; or, with respect to
16benefit years beginning after June 30, 1989, if such nonprofit
17organization was the last employer as provided in Section
181502.1 with respect to a benefit year beginning during the
19effective period of the election. The amount due shall be
20payable, and the nonprofit organization shall make payment of
21such amount not later than 30 days after the date of mailing of
22the Statement. The Statement shall be final and conclusive upon
23the nonprofit organization unless, within 20 days after the
24date of mailing of the Statement, the nonprofit organization
25files with the Director an application for revision thereof.
26Such application shall specify wherein the nonprofit

 

 

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1organization believes the Statement to be incorrect, and shall
2set forth its reasons for such belief. All of the provisions of
3Section 1508, applicable to applications for revision of
4Statements of Benefit Wages and Statements of Benefit Charges
5and not inconsistent with the provisions of this subsection,
6shall be applicable to an application for revision of a
7Statement filed pursuant to this subsection.
8        1. Payments in lieu of contributions made by any
9    nonprofit organization shall not be deducted or
10    deductible, in whole or in part, from the remuneration of
11    individuals in the employ of the organization, nor shall
12    any nonprofit organization require or accept any waiver of
13    any right under this Act by an individual in its employ.
14    The making of any such deduction or the requirement or
15    acceptance of any such waiver is a Class A misdemeanor. Any
16    agreement by an individual in the employ of any person or
17    concern to pay all or any portion of a payment in lieu of
18    contributions, required under this Act from a nonprofit
19    organization, is void.
20        2. A nonprofit organization which fails to make any
21    payment in lieu of contributions when due under the
22    provisions of this subsection shall pay interest thereon at
23    the rates specified in Section 1401. A nonprofit
24    organization which has elected to make payments in lieu of
25    contributions shall be subject to the penalty provisions of
26    Section 1402. In the making of any payment in lieu of

 

 

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1    contributions or in the payment of any interest or
2    penalties, a fractional part of a cent shall be disregarded
3    unless it amounts to one-half cent or more, in which case
4    it shall be increased to one cent.
5        3. All of the remedies available to the Director under
6    the provisions of this Act or of any other law to enforce
7    the payment of contributions, interest, or penalties under
8    this Act, including the making of determinations and
9    assessments pursuant to Section 2200, are applicable to the
10    enforcement of payments in lieu of contributions and of
11    interest and penalties, due under the provisions of this
12    Section. For the purposes of this paragraph, the term
13    "contribution" or "contributions" which appears in any
14    such provision means "payment in lieu of contributions" or
15    "payments in lieu of contributions." The term
16    "contribution" which appears in Section 2800 also means
17    "payment in lieu of contributions."
18        4. All of the provisions of Sections 2201 and 2201.1,
19    applicable to adjustment or refund of contributions,
20    interest and penalties erroneously paid and not
21    inconsistent with the provisions of this Section, shall be
22    applicable to payments in lieu of contributions
23    erroneously made or interest or penalties erroneously paid
24    by a nonprofit organization.
25        5. Payment in lieu of contributions shall be due with
26    respect to any sum erroneously paid as benefits to an

 

 

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1    individual unless such sum has been recouped pursuant to
2    Section 900 or has otherwise been recovered. If such
3    payment in lieu of contributions has been made, the amount
4    thereof shall be adjusted or refunded in accordance with
5    the provisions of paragraph 4 and Section 2201 if
6    recoupment or other recovery has been made.
7        6. A nonprofit organization which has elected to make
8    payments in lieu of contributions and thereafter ceases to
9    be an employer shall continue to be liable for payments in
10    lieu of contributions with respect to benefits paid to
11    individuals on and after the date it has ceased to be an
12    employer, with respect to benefit years beginning prior to
13    July 1, 1989, on the basis of wages for insured work paid
14    to them by it prior to the date it ceased to be an
15    employer, and, with respect to benefit years beginning
16    after June 30, 1989, if such employer was the last employer
17    as provided in Section 1502.1 prior to the date that it
18    ceased to be an employer.
19        7. With respect to benefit years beginning prior to
20    July 1, 1989, wages paid to an individual during his base
21    period, by a nonprofit organization which elects to make
22    payments in lieu of contributions, for less than full time
23    work, performed during the same weeks in the base period
24    during which the individual had other insured work, shall
25    not be subject to payments in lieu of contributions (upon
26    such employer's request pursuant to the regulation of the

 

 

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1    Director) so long as the employer continued after the end
2    of the base period, and continues during the applicable
3    benefit year, to furnish such less than full time work to
4    the individual on the same basis and in substantially the
5    same amount as during the base period. If the individual is
6    paid benefits with respect to a week (in the applicable
7    benefit year) after the employer has ceased to furnish the
8    work hereinabove described, the nonprofit organization
9    shall be liable for payments in lieu of contributions with
10    respect to the benefits paid to the individual after the
11    date on which the nonprofit organization ceases to furnish
12    the work.
13    C. With respect to benefit years beginning prior to July 1,
141989, whenever benefits have been paid to an individual on the
15basis of wages for insured work paid to him by a nonprofit
16organization, and the organization incurred liability for the
17payment of contributions on some of the wages because only a
18part of the individual's base period was within the effective
19period of the organization's written election to make payments
20in lieu of contributions, the organization shall pay an amount
21in lieu of contributions which bears the same ratio to the
22total benefits paid to the individual as the total wages for
23insured work paid to him during the base period by the
24organization upon which it did not incur liability for the
25payment of contributions (for the aforesaid reason) bear to the
26total wages for insured work paid to the individual during the

 

 

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1base period by the organization.
2    D. With respect to benefit years beginning prior to July 1,
31989, whenever benefits have been paid to an individual on the
4basis of wages for insured work paid to him by a nonprofit
5organization which has elected to make payments in lieu of
6contributions, and by one or more other employers, the
7nonprofit organization shall pay an amount in lieu of
8contributions which bears the same ratio to the total benefits
9paid to the individual as the wages for insured work paid to
10the individual during his base period by the nonprofit
11organization bear to the total wages for insured work paid to
12the individual during the base period by all of the employers.
13If the nonprofit organization incurred liability for the
14payment of contributions on some of the wages for insured work
15paid to the individual, it shall be treated, with respect to
16such wages, as one of the other employers for the purposes of
17this paragraph.
18    E. Two or more nonprofit organizations which have elected
19to make payments in lieu of contributions may file a joint
20application with the Director for the establishment of a group
21account, effective January 1 of any calendar year, for the
22purpose of sharing the cost of benefits paid on the basis of
23the wages for insured work paid by such nonprofit
24organizations, provided that such joint application is filed
25with the Director prior to such January 1. The application
26shall identify and authorize a group representative to act as

 

 

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1the group's agent for the purposes of this paragraph, and shall
2be filed in such form and shall contain such information as the
3Director may prescribe. Upon his approval of a joint
4application, the Director shall, by order, establish a group
5account for the applicants and shall serve notice upon the
6group's representative of such order. Such account shall remain
7in effect for not less than 2 calendar years and thereafter
8until terminated by the Director for good cause or, as of the
9close of any calendar quarter, upon application by the group.
10Upon establishment of the account, the group shall be liable to
11the Director for payments in lieu of contributions in an amount
12equal to the total amount for which, in the absence of the
13group account, liability would have been incurred by all of its
14members; provided, with respect to benefit years beginning
15prior to July 1, 1989, that the liability of any member to the
16Director with respect to any payment in lieu of contributions,
17interest or penalties not paid by the group when due with
18respect to any calendar quarter shall be in an amount which
19bears the same ratio to the total benefits paid during such
20quarter on the basis of the wages for insured work paid by all
21members of the group as the total wages for insured work paid
22by such member during such quarter bear to the total wages for
23insured work paid during the quarter by all members of the
24group, and, with respect to benefit years beginning on or after
25July 1, 1989, that the liability of any member to the Director
26with respect to any payment in lieu of contributions, interest

 

 

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1or penalties not paid by the group when due with respect to any
2calendar quarter shall be in an amount which bears the same
3ratio to the total benefits paid during such quarter to
4individuals with respect to whom any member of the group was
5the last employer as provided in Section 1502.1 as the total
6wages for insured work paid by such member during such quarter
7bear to the total wages for insured work paid during the
8quarter by all members of the group. With respect to calendar
9months and quarters beginning on or after January 1, 2013, the
10liability of any member to the Director with respect to any
11penalties that are assessed for failure to file a timely and
12sufficient report of wages and which are not paid by the group
13when due with respect to the calendar month or quarter, as the
14case may be, shall be in an amount which bears the same ratio
15to the total penalties due with respect to such month or
16quarter as the total wages for insured work paid by such member
17during such month or quarter bear to the total wages for
18insured work paid during the month or quarter by all members of
19the group. All of the provisions of this Section applicable to
20nonprofit organizations which have elected to make payments in
21lieu of contributions, and not inconsistent with the provisions
22of this paragraph, shall apply to a group account and, upon its
23termination, to each former member thereof. The Director shall
24by regulation prescribe the conditions for establishment,
25maintenance and termination of group accounts, and for addition
26of new members to and withdrawal of active members from such

 

 

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1accounts.
2    F. Whenever service of notice is required by this Section,
3such notice may be given and be complete by depositing it with
4the United States Mail, addressed to the nonprofit organization
5(or, in the case of a group account, to its representative) at
6its last known address. If such organization is represented by
7counsel in proceedings before the Director, service of notice
8may be made upon the nonprofit organization by mailing the
9notice to such counsel.
10(Source: P.A. 97-689, eff. 6-14-12.)
 
11    (820 ILCS 405/1405)  (from Ch. 48, par. 555)
12    Sec. 1405. Financing Benefits for Employees of Local
13Governments.
14    A. 1. For the year 1978 and for each calendar year
15thereafter, contributions shall accrue and become payable,
16pursuant to Section 1400, by each governmental entity (other
17than the State of Illinois and its wholly owned
18instrumentalities) referred to in clause (B) of Section 211.1,
19upon the wages paid by such entity with respect to employment
20after 1977, unless the entity elects to make payments in lieu
21of contributions pursuant to the provisions of subsection B.
22Notwithstanding the provisions of Sections 1500 to 1510,
23inclusive, a governmental entity which has not made such
24election shall, for liability for contributions incurred prior
25to January 1, 1984, pay contributions equal to 1 percent with

 

 

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1respect to wages for insured work paid during each such
2calendar year or portion of such year as may be applicable. As
3used in this subsection, the word "wages", defined in Section
4234, is subject to all of the provisions of Section 235.
5    2. An Indian tribe for which service is exempted from the
6federal unemployment tax under Section 3306(c)(7) of the
7Federal Unemployment Tax Act may elect to make payments in lieu
8of contributions in the same manner and subject to the same
9conditions as provided in this Section with regard to
10governmental entities, except as otherwise provided in
11paragraphs 7, 8, and 9 of subsection B.
12    B. Any governmental entity subject to subsection A may
13elect to make payments in lieu of contributions, in amounts
14equal to the amounts of regular and extended benefits paid to
15individuals, for any weeks which begin on or after the
16effective date of the election, on the basis of wages for
17insured work paid to them by the entity during the effective
18period of such election. Notwithstanding the preceding
19provisions of this subsection and the provisions of subsection
20D of Section 1404, with respect to benefit years beginning
21prior to July 1, 1989, any adjustment after September 30, 1989
22to the base period wages paid to the individual by any employer
23shall not affect the ratio for determining payments in lieu of
24contributions of a governmental entity which has elected to
25make payments in lieu of contributions. Provided, however, that
26with respect to benefit years beginning on or after July 1,

 

 

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11989, the governmental entity shall be required to make
2payments equal to 100% of regular benefits, including
3dependents' allowances, and 100% of extended benefits,
4including dependents' allowances, paid to an individual with
5respect to benefit years beginning during the effective period
6of the election, but only if the governmental entity: (a) is
7the last employer as provided in Section 1502.1 and (b) paid to
8the individual receiving benefits, wages for insured work
9during his base period. If the governmental entity described in
10this paragraph meets the requirements of (a) but not (b), with
11respect to benefit years beginning on or after July 1, 1989, it
12shall be required to make payments in an amount equal to 50% of
13regular benefits, including dependents' allowances, and 50% of
14extended benefits, including dependents' allowances, paid to
15an individual with respect to benefit years beginning during
16the effective period of the election.
17    1. Any such governmental entity which becomes an employer
18on January 1, 1978 pursuant to Section 205 may elect to make
19payments in lieu of contributions for not less than one
20calendar year beginning with January 1, 1978, provided that it
21files its written election with the Director not later than
22January 31, 1978.
23    2. A governmental entity newly created after January 1,
241978, may elect to make payments in lieu of contributions for a
25period of not less than one calendar year beginning as of the
26first day with respect to which it would, in the absence of its

 

 

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1election, incur liability for the payment of contributions,
2provided that it files its written election with the Director
3not later than 30 days immediately following the end of the
4calendar quarter in which it has been created.
5    3. A governmental entity which has incurred liability for
6the payment of contributions for at least 2 calendar years, and
7is not delinquent in such payment and in the payment of any
8interest or penalties which may have accrued, may elect to make
9payments in lieu of contributions beginning January 1 of any
10calendar year, provided that it files its written election with
11the Director prior to such January 1, and provided, further,
12that such election shall be for a period of not less than 2
13calendar years.
14    4. An election to make payments in lieu of contributions
15shall not terminate any liability incurred by a governmental
16entity for the payment of contributions, interest or penalties
17with respect to any calendar quarter (or month, as the case may
18be) which ends prior to the effective period of the election.
19    5. The termination by a governmental entity of the
20effective period of its election to make payments in lieu of
21contributions, and the filing of and subsequent action upon
22written notices of termination of election, shall be governed
23by the provisions of paragraphs 5 and 6 of Section 1404A,
24pertaining to nonprofit organizations.
25    6. With respect to benefit years beginning prior to July 1,
261989, wages paid to an individual during his base period by a

 

 

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1governmental entity which elects to make payments in lieu of
2contributions for less than full time work, performed during
3the same weeks in the base period during which the individual
4had other insured work, shall not be subject to payments in
5lieu of contribution (upon such employer's request pursuant to
6the regulation of the Director) so long as the employer
7continued after the end of the base period, and continues
8during the applicable benefit year, to furnish such less than
9full time work to the individual on the same basis and in
10substantially the same amount as during the base period. If the
11individual is paid benefits with respect to a week (in the
12applicable benefit year) after the employer has ceased to
13furnish the work hereinabove described, the governmental
14entity shall be liable for payments in lieu of contributions
15with respect to the benefits paid to the individual after the
16date on which the governmental entity ceases to furnish the
17work.
18    7. An Indian tribe may elect to make payments in lieu of
19contributions for calendar year 2003, provided that it files
20its written election with the Director not later than January
2131, 2003, and provided further that it is not delinquent in the
22payment of any contributions, interest, or penalties.
23    8. Failure of an Indian tribe to make a payment in lieu of
24contributions, or a payment of interest or penalties due under
25this Act, within 90 days after the Department serves notice of
26the finality of a determination and assessment shall cause the

 

 

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1Indian tribe to lose the option of making payments in lieu of
2contributions, effective as of the calendar year immediately
3following the date on which the Department serves the notice.
4Notice of the loss of the option to make payments in lieu of
5contributions may be protested in the same manner as a
6determination and assessment under Section 2200 of this Act.
7    9. An Indian tribe that, pursuant to paragraph 8, loses the
8option of making payments in lieu of contributions may again
9elect to make payments in lieu of contributions for a calendar
10year if: (a) the Indian tribe has incurred liability for the
11payment of contributions for at least one calendar year since
12losing the option pursuant to paragraph 8, (b) the Indian tribe
13is not delinquent in the payment of any liabilities under the
14Act, including interest or penalties, and (c) the Indian tribe
15files its written election with the Director not later than
16January 31 of the year with respect to which it is making the
17election.
18    C. As soon as practicable following the close of each
19calendar quarter, the Director shall mail to each governmental
20entity which has elected to make payments in lieu of
21contributions a Statement of the amount due from it for all the
22regular and extended benefits paid during the calendar quarter,
23together with the names of its workers or former workers and
24the amounts of benefits paid to each of them during the
25calendar quarter with respect to benefit years beginning prior
26to July 1, 1989, on the basis of wages for insured work paid to

 

 

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1them by the governmental entity; or, with respect to benefit
2years beginning after June 30, 1989, if such governmental
3entity was the last employer as provided in Section 1502.1 with
4respect to a benefit year beginning during the effective period
5of the election. All of the provisions of subsection B of
6Section 1404 pertaining to nonprofit organizations, not
7inconsistent with the preceding sentence, shall be applicable
8to payments in lieu of contributions by a governmental entity.
9    D. The provisions of subsections C through F, inclusive, of
10Section 1404, pertaining to nonprofit organizations, shall be
11applicable to each governmental entity which has elected to
12make payments in lieu of contributions.
13    E. 1. If an Indian tribe fails to pay any liability under
14this Act (including assessments of interest or penalty) within
1590 days after the Department issues a notice of the finality of
16a determination and assessment, the Director shall immediately
17notify the United States Internal Revenue Service and the
18United States Department of Labor.
19    2. Notices of payment and reporting delinquencies to Indian
20tribes shall include information that failure to make full
21payment within the prescribed time frame:
22        a. will cause the Indian tribe to lose the exemption
23    provided by Section 3306(c)(7) of the Federal Unemployment
24    Tax Act with respect to the federal unemployment tax;
25        b. will cause the Indian tribe to lose the option to
26    make payments in lieu of contributions.

 

 

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1(Source: P.A. 97-689, eff. 6-14-12.)