Full Text of HR0077 99th General Assembly
HR0077 99TH GENERAL ASSEMBLY |
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| 1 | | HOUSE RESOLUTION
| 2 | | WHEREAS, The unemployment insurance tax is assessed | 3 | | against employers in order to cover the costs of any benefits | 4 | | drawn out by the former employees of each employer; and
| 5 | | WHEREAS, The unemployment insurance tax rate varies | 6 | | according to each employer; and
| 7 | | WHEREAS, The unemployment insurance tax is assessed | 8 | | against the same base wage of the first $11,000 earned by each | 9 | | employee; and
| 10 | | WHEREAS, For the vast majority of employers, the entire | 11 | | unemployment insurance tax is assessed and paid in the first | 12 | | quarter of the calendar year, as most employees earn more than | 13 | | $11,000 in the first quarter of the year; and
| 14 | | WHEREAS, For example, if a typical unemployment tax is | 15 | | approximately $800 per employee, a 10-employee firm must come | 16 | | up with $8,000 in the first quarter of the year, instead of | 17 | | $2,000 every quarter, to pay the unemployment tax; and | 18 | | WHEREAS, This situation presents a cash crunch for small | 19 | | and mid-market employers who must finance the entire year's | 20 | | unemployment tax in the first quarter of the calendar year; and
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| 1 | | WHEREAS, Larger employers are more likely to have the | 2 | | capital to finance the unemployment insurance tax over the | 3 | | entire year, while small and mid-market businesses without the | 4 | | capital must pay all the tax as it comes due; this situation | 5 | | hits small and mid-market businesses with a cash flow impact | 6 | | proportionately harder than larger employers; and
| 7 | | WHEREAS, Small and mid-market businesses would prefer to | 8 | | spread out the payments for the unemployment insurance tax over | 9 | | the entire year to avoid the cash crunch in the first quarter, | 10 | | while still paying the same total amount; therefore, be it
| 11 | | RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE | 12 | | NINETY-NINTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we | 13 | | state our belief that eliminating the first quarter cash crunch | 14 | | of small and mid-market businesses paying unemployment taxes by | 15 | | allowing for quarterly payments based upon the accrued | 16 | | obligation is a pro-business public policy move; and be it | 17 | | further
| 18 | | RESOLVED, That we call upon the Illinois Department of | 19 | | Employment Security to implement an optional quarterly payment | 20 | | system for taxpayers pursuant to all existing statutory | 21 | | authority as quickly as possible; and be it further
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| 1 | | RESOLVED, That a suitable copy of this resolution be | 2 | | delivered to the Director of Employment Security.
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