Full Text of HB0814 100th General Assembly
HB0814 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB0814 Introduced , by Rep. Jay Hoffman 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 |
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Amends the Unemployment Insurance Act. Deletes provisions requiring employers to file, on a monthly basis, reports regarding employee wages. Makes corresponding changes.
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| | A BILL FOR |
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| 1 | | AN ACT concerning employment.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Unemployment Insurance Act is amended by | 5 | | changing Sections 1400.2, 1402, 1404, and 1405 as follows: | 6 | | (820 ILCS 405/1400.2) | 7 | | Sec. 1400.2. Annual reporting and paying; household | 8 | | workers. This Section applies to an employer who solely employs | 9 | | one or more household workers with respect to whom the employer | 10 | | files federal unemployment taxes as part of his or her federal | 11 | | income tax return, or could file federal unemployment taxes as | 12 | | part of his or her federal income tax return if the worker or | 13 | | workers were providing services in employment for purposes of | 14 | | the federal unemployment tax. For purposes of this Section, | 15 | | "household worker" has the meaning ascribed to it for purposes | 16 | | of Section 3510 of the federal Internal Revenue
Code. If an | 17 | | employer to whom this Section applies notifies the Director, in | 18 | | writing, that he or she wishes to pay his or her contributions | 19 | | for each quarter and submit his or her wage reports for each | 20 | | month or quarter , as the case may be, on an annual basis, then | 21 | | the due date for filing the reports and paying the | 22 | | contributions shall be April 15 of the calendar year | 23 | | immediately following the close of the months or quarters to |
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| 1 | | which the reports and quarters to which the contributions | 2 | | apply, except that the Director may, by rule, establish a | 3 | | different 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 | 8 | | this Act as
amended and in effect on October 5, 1980, and the | 9 | | regulations of the
Director, to file a report of wages paid to | 10 | | each of his workers, or to file
a sufficient report of such | 11 | | wages after having been notified by the
Director to do so, for | 12 | | any period which begins prior to January 1, 1982, he
shall pay | 13 | | to the Department as a penalty a sum determined in accordance | 14 | | with
the provisions of this Act as amended and in effect on | 15 | | October 5, 1980.
| 16 | | B. Except as otherwise provided in this Section, any | 17 | | employer who
fails to file a report of wages paid to each of | 18 | | his
workers for any period which begins on or after January 1, | 19 | | 1982, within the
time prescribed by the provisions of this Act | 20 | | and the regulations of the
Director, or, if the Director | 21 | | pursuant to such regulations extends the time
for filing the | 22 | | report, fails to file it within the extended time, shall, in
| 23 | | addition to any sum otherwise payable by him under the | 24 | | provisions of this
Act, pay to the Department as a penalty a | 25 | | sum equal to the lesser of (1) $5
for each $10,000 or fraction |
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| 1 | | thereof of the total wages for insured work
paid by him during | 2 | | the period or (2) $2,500, for each month
or part thereof of | 3 | | such failure to file the report. With respect to an employer | 4 | | who has elected to file reports of wages on an annual basis | 5 | | pursuant to Section 1400.2, in assessing penalties for the | 6 | | failure to submit all reports by the due date established | 7 | | pursuant to that Section, the 30-day period immediately | 8 | | following the due date shall be considered as one month.
| 9 | | If the Director deems an employer's report of wages paid to | 10 | | each of his
workers for any period which begins on or after | 11 | | January 1, 1982,
insufficient, he shall notify the employer to | 12 | | file a sufficient report. If
the employer fails to file such | 13 | | sufficient report within 30 days after the
mailing of the | 14 | | notice to him, he shall, in addition to any sum otherwise
| 15 | | payable by him under the provisions of this Act, pay to the | 16 | | Department as a
penalty a sum determined in accordance with the | 17 | | provisions of the first
paragraph of this subsection, for each | 18 | | month or part thereof of such
failure to file such sufficient | 19 | | report after the date of the notice.
| 20 | | For wages paid in calendar years prior to 1988, the penalty | 21 | | or
penalties which accrue under the two foregoing paragraphs
| 22 | | with 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 | 25 | | paid during the period or (2) $5,000.
For wages paid in | 26 | | calendar years after 1987, the penalty or penalties which
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| 1 | | accrue under the 2 foregoing paragraphs with respect to a | 2 | | report for any
period shall not be less than $50, and shall not | 3 | | exceed the lesser of (1)
$10 for each $10,000 or fraction of | 4 | | the total wages for insured work
paid during the period or (2) | 5 | | $5,000.
With respect to an employer who has elected to file | 6 | | reports of wages on an annual basis pursuant to Section 1400.2, | 7 | | for purposes of calculating the minimum penalty prescribed by | 8 | | this Section for failure to file the reports on a timely basis, | 9 | | a calendar year shall constitute a single period. For reports | 10 | | of wages paid after 1986, the Director shall not,
however, | 11 | | impose a penalty pursuant to either of the two foregoing
| 12 | | paragraphs on any employer who can prove within 30 working days | 13 | | after the
mailing of a notice of his failure to file such a | 14 | | report, that (1) the
failure to file the report is his first | 15 | | such failure during the previous 20
consecutive calendar | 16 | | quarters, and (2) the amount of the total
contributions due for | 17 | | the calendar quarter of such report (or, in the case of an | 18 | | employer who is required to file the reports on a monthly | 19 | | basis, the amount of the total contributions due for the | 20 | | calendar quarter that includes the month of such report) is | 21 | | less than $500.
| 22 | | For any month which begins on or after January 1, 2013, a | 23 | | report of the wages paid to each of an employer's workers shall | 24 | | be due on or before the last day of the month next following | 25 | | the calendar month in which the wages were paid if the employer | 26 | | is required to report such wages electronically pursuant to the |
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| 1 | | regulations of the Director; otherwise a report of the wages | 2 | | paid to each of the employer's workers shall be due on or | 3 | | before the last day of the month next following the calendar | 4 | | quarter in which the wages were paid. | 5 | | Any employer who willfully fails to pay any contribution or | 6 | | part
thereof, based upon wages paid prior to 1987,
when | 7 | | required by the provisions of this Act and the regulations of | 8 | | the
Director, with intent to defraud the Director, shall in | 9 | | addition to such
contribution or part thereof pay to the | 10 | | Department a penalty equal to 50 percent
of the amount of such | 11 | | contribution or part thereof, as the case may
be, provided that | 12 | | the penalty shall not be less than $200.
| 13 | | Any employer who willfully fails to pay any contribution or | 14 | | part
thereof, based upon wages paid in 1987 and in each | 15 | | calendar year
thereafter, when required by the
provisions of | 16 | | this Act and the regulations of the Director, with intent to
| 17 | | defraud the Director, shall in addition to such contribution or | 18 | | part
thereof pay to the Department a penalty equal to 60% of | 19 | | the amount of such
contribution or part thereof, as the case | 20 | | may be, provided that the penalty
shall not be less than $400.
| 21 | | However, all or part of any penalty may be waived by the | 22 | | Director for
good cause shown.
| 23 | | C. (Blank). With regard to an employer required to report | 24 | | monthly pursuant to this Section, in addition to each | 25 | | employee's name, social security number, and wages for insured | 26 | | work paid during the period, the Director may, by rule, require |
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| 1 | | a report to provide the following information concerning each | 2 | | employee: the employee's occupation, hours worked during the | 3 | | period, hourly wage, if applicable, and work location if the | 4 | | employer has more than one physical location. Notwithstanding | 5 | | any other provision of any other law to the contrary, | 6 | | information obtained pursuant to this subsection shall not be | 7 | | disclosed to any other public official or agency of this State | 8 | | or any other state to the extent it relates to a specifically | 9 | | identified individual or entity or to the extent that the | 10 | | identity of a specific individual or entity may be discerned | 11 | | from such information. The additional data elements required to | 12 | | be reported pursuant to the rule authorized by this subsection | 13 | | may be reported in the same electronic format as in the system | 14 | | maintained by the employer or employer's agent and need not be | 15 | | reformatted. | 16 | | (Source: P.A. 97-689, eff. 6-14-12; 97-791, eff. 1-1-13; | 17 | | 98-463, 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
| 20 | | organizations. | 21 | | A. For the year 1972 and for each calendar year thereafter,
| 22 | | contributions shall accrue and become payable, pursuant to | 23 | | Section 1400,
by each nonprofit organization (defined in | 24 | | Section 211.2) upon the wages
paid by it with respect to | 25 | | employment after 1971, unless the nonprofit
organization |
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| 1 | | elects, in accordance with the provisions of this Section,
to | 2 | | pay, in lieu of contributions, an amount equal to the amount of
| 3 | | regular benefits and one-half the amount of extended benefits | 4 | | (defined
in Section 409) paid to individuals, for any weeks | 5 | | which begin on or
after the effective date of the election, on | 6 | | the basis of wages for
insured work paid to them by such | 7 | | nonprofit organization during the
effective period of such | 8 | | election. Notwithstanding
the preceding provisions of this | 9 | | subsection and the
provisions of subsection D, with respect to | 10 | | benefit
years beginning prior to July 1, 1989, any adjustment
| 11 | | after September 30, 1989 to the base period wages paid
to the | 12 | | individual by any employer shall not affect the
ratio for | 13 | | determining the payments in lieu of contributions
of a | 14 | | nonprofit organization which has elected to make
payments in | 15 | | lieu of contributions. Provided, however,
that with respect to | 16 | | benefit years beginning on or after
July 1, 1989, the nonprofit | 17 | | organization shall be required
to make payments equal to 100% | 18 | | of regular benefits,
including dependents' allowances, and 50% | 19 | | of extended
benefits, including dependents' allowances, paid | 20 | | to
an individual with respect to benefit years beginning
during | 21 | | the effective period of the election, but only
if the nonprofit | 22 | | organization: (a) is the last employer
as provided in Section | 23 | | 1502.1 and (b) paid to the individual
receiving benefits, wages | 24 | | for insured work during his
base period. If the nonprofit | 25 | | organization described
in this paragraph meets the | 26 | | requirements of (a) but
not (b), with respect to benefit years |
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| 1 | | beginning on or
after July 1, 1989, it shall be required to | 2 | | make payments
in an amount equal to 50% of regular benefits, | 3 | | including
dependents' allowances, and 25% of extended | 4 | | benefits,
including dependents' allowances, paid to an | 5 | | individual
with respect to benefit years beginning during the | 6 | | effective
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 | 6 | | calendar
quarter, the Director shall mail to each nonprofit | 7 | | organization which
has elected to make payments in lieu of | 8 | | contributions a Statement of the
amount due from it for the | 9 | | regular and one-half the extended benefits
paid (or the amounts | 10 | | otherwise provided for in subsection A) during the
calendar | 11 | | quarter, together with the names of its workers
or former | 12 | | workers and the amounts of benefits paid to each of them
during | 13 | | the calendar quarter, with respect to benefit years beginning
| 14 | | prior to July 1, 1989, on the basis of wages for insured work | 15 | | paid
to them by the nonprofit organization; or, with respect to | 16 | | benefit years
beginning after June 30, 1989, if such nonprofit | 17 | | organization was the last
employer as provided in Section | 18 | | 1502.1 with respect to a benefit year
beginning during the | 19 | | effective period of the election. The amount
due shall be | 20 | | payable, and
the nonprofit organization shall make payment of | 21 | | such amount not later
than 30 days after the date of mailing of | 22 | | the Statement. The Statement
shall be final and conclusive upon | 23 | | the nonprofit organization unless,
within 20 days after the | 24 | | date of mailing of the Statement, the nonprofit
organization | 25 | | files with the Director an application for revision
thereof. | 26 | | Such application shall specify wherein the nonprofit
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| 1 | | organization believes the Statement to be incorrect, and shall | 2 | | set forth
its reasons for such belief. All of the provisions of | 3 | | Section 1508,
applicable to applications for revision of | 4 | | Statements of Benefit Wages
and Statements of Benefit Charges | 5 | | and not inconsistent with the
provisions of this subsection, | 6 | | shall be applicable to an application for
revision of a | 7 | | Statement 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, | 14 | | 1989,
whenever benefits have been paid to an individual on the | 15 | | basis of
wages for insured work paid to him by a nonprofit | 16 | | organization, and the
organization incurred liability for the | 17 | | payment of contributions on some
of the wages because only a | 18 | | part of the individual's base period was
within the effective | 19 | | period of the organization's written election to
make payments | 20 | | in lieu of contributions, the organization shall pay an
amount | 21 | | in lieu of contributions which bears the same ratio to the | 22 | | total
benefits paid to the individual as the total wages for | 23 | | insured work paid
to him during the base period by the | 24 | | organization upon which it did not
incur liability for the | 25 | | payment of contributions (for the aforesaid
reason) bear to the | 26 | | total wages for insured work paid to the individual
during the |
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| 1 | | base period by the organization.
| 2 | | D. With respect to benefit years beginning prior to July 1, | 3 | | 1989,
whenever benefits have been paid to an individual on the | 4 | | basis of
wages for insured work paid to him by a nonprofit | 5 | | organization which has
elected to make payments in lieu of | 6 | | contributions, and by one or more
other employers, the | 7 | | nonprofit organization shall pay an amount in lieu
of | 8 | | contributions which bears the same ratio to the total benefits | 9 | | paid
to the individual as the wages for insured work paid to | 10 | | the individual
during his base period by the nonprofit | 11 | | organization bear to the total
wages for insured work paid to | 12 | | the individual during the base period by
all of the employers. | 13 | | If the nonprofit organization incurred liability
for the | 14 | | payment of contributions on some of the wages for insured work
| 15 | | paid to the individual, it shall be treated, with respect to | 16 | | such wages,
as one of the other employers for the purposes of | 17 | | this paragraph.
| 18 | | E. Two or more nonprofit organizations which have elected | 19 | | to make
payments in lieu of contributions may file a joint | 20 | | application with the
Director for the establishment of a group | 21 | | account, effective January 1
of any calendar year, for the | 22 | | purpose of sharing the cost of benefits
paid on the basis of | 23 | | the wages for insured work paid by such nonprofit
| 24 | | organizations, provided that such joint application is filed | 25 | | with the
Director prior to such January 1. The application | 26 | | shall identify and
authorize a group representative to act as |
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| 1 | | the group's agent for the
purposes of this paragraph, and shall | 2 | | be filed in such form and shall
contain such information as the | 3 | | Director may prescribe. Upon his
approval of a joint | 4 | | application, the Director shall, by order, establish
a group | 5 | | account for the applicants and shall serve notice upon the
| 6 | | group's representative of such order. Such account shall remain | 7 | | in
effect for not less than 2 calendar years and thereafter | 8 | | until
terminated by the Director for good cause or, as of the | 9 | | close of any
calendar quarter, upon application by the group. | 10 | | Upon establishment of
the account, the group shall be liable to | 11 | | the Director for payments in
lieu of contributions in an amount | 12 | | equal to the total amount for which,
in the absence of the | 13 | | group account, liability would have been incurred
by all of its | 14 | | members; provided, with respect to benefit years beginning
| 15 | | prior to July 1, 1989, that the liability of any member to the
| 16 | | Director with respect to any payment in lieu of contributions, | 17 | | interest
or penalties not paid by the group when due with | 18 | | respect to any calendar
quarter shall be in an amount which | 19 | | bears the same ratio to the total
benefits paid during such | 20 | | quarter on the basis of the wages for insured
work paid by all | 21 | | members of the group as the total wages for insured
work paid | 22 | | by such member during such quarter bear to the total wages for
| 23 | | insured work paid during the quarter by all members of the | 24 | | group, and,
with respect to benefit years beginning on or after | 25 | | July 1, 1989, that the
liability of any member to the Director | 26 | | with respect to any payment in lieu
of contributions, interest |
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| 1 | | or penalties not paid by the group when due with
respect to any | 2 | | calendar quarter shall be in an amount which bears the same
| 3 | | ratio to the total benefits paid during such quarter to | 4 | | individuals with
respect to whom any member of the group was | 5 | | the last employer as provided
in Section 1502.1 as the total | 6 | | wages for insured work paid by such member
during such quarter | 7 | | bear to the total wages for insured work paid during
the | 8 | | quarter by all members of the group.
With respect to calendar | 9 | | months and quarters beginning on or after January 1, 2013, the | 10 | | liability of any member to the Director with respect to any | 11 | | penalties that are assessed for failure to file a timely and | 12 | | sufficient report of wages and which are not paid by the group | 13 | | when due with respect to the calendar month or quarter , as the | 14 | | case may be, shall be in an amount which bears the same ratio | 15 | | to the total penalties due with respect to such month or | 16 | | quarter as the total wages for insured work paid by such member | 17 | | during such month or quarter bear to the total wages for | 18 | | insured work paid during the month or quarter by all members of | 19 | | the group. All of the provisions of this Section applicable to | 20 | | nonprofit organizations
which have elected to make payments in | 21 | | lieu of contributions, and not
inconsistent with the provisions | 22 | | of this paragraph, shall apply to a
group account and, upon its | 23 | | termination, to each former member thereof.
The Director shall | 24 | | by regulation prescribe the conditions for
establishment, | 25 | | maintenance and termination of group accounts, and for
addition | 26 | | of new members to and withdrawal of active members from such |
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| 1 | | accounts.
| 2 | | F. Whenever service of notice is required by this Section, | 3 | | such
notice may be given and be complete by depositing it with | 4 | | the United
States Mail, addressed to the nonprofit organization | 5 | | (or, in the case of
a group account, to its representative) at | 6 | | its last known address. If
such organization is represented by | 7 | | counsel in proceedings before the
Director, service of notice | 8 | | may be made upon the nonprofit organization
by mailing the | 9 | | notice 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 | 13 | | Governments.
| 14 | | A. 1. For the year 1978 and for each calendar year | 15 | | thereafter,
contributions shall accrue and become payable, | 16 | | pursuant to Section 1400,
by each governmental entity (other | 17 | | than the State of Illinois and its
wholly owned | 18 | | instrumentalities) referred to in clause (B) of Section
211.1, | 19 | | upon the wages paid by such entity with respect to employment
| 20 | | after 1977, unless the entity elects to make payments in lieu | 21 | | of
contributions pursuant to the provisions of subsection B.
| 22 | | Notwithstanding the provisions of Sections 1500 to 1510, | 23 | | inclusive, a
governmental entity which has not made such | 24 | | election shall, for liability
for contributions incurred prior | 25 | | to January 1, 1984, pay
contributions equal to 1 percent with |
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| 1 | | respect to wages for insured work
paid during each such | 2 | | calendar year or portion of such year as may be
applicable. As | 3 | | used in this subsection, the
word "wages", defined in Section | 4 | | 234, is subject to all of the
provisions of Section 235.
| 5 | | 2. An Indian tribe for which service is exempted from the | 6 | | federal
unemployment tax under Section 3306(c)(7) of the | 7 | | Federal Unemployment Tax Act
may elect to make payments in lieu | 8 | | of contributions in the same manner and
subject to the same | 9 | | conditions as provided in this Section with regard to
| 10 | | governmental entities, except as otherwise provided in | 11 | | paragraphs 7, 8, and 9
of
subsection B.
| 12 | | B. Any governmental entity subject to subsection A may | 13 | | elect to make
payments in lieu of contributions, in amounts | 14 | | equal to the amounts of
regular and extended benefits paid to | 15 | | individuals, for any weeks which
begin on or after the | 16 | | effective date of the election, on the basis of
wages for | 17 | | insured work paid to them by the entity during the effective
| 18 | | period of such election.
Notwithstanding the preceding | 19 | | provisions of this subsection
and the provisions of subsection | 20 | | D of Section 1404, with respect to
benefit years beginning | 21 | | prior to July 1, 1989, any adjustment
after September 30, 1989 | 22 | | to the base period wages paid
to the individual by any employer | 23 | | shall not affect the
ratio for determining payments in lieu of | 24 | | contributions
of a governmental entity which has elected to | 25 | | make payments
in lieu of contributions. Provided, however, that | 26 | | with
respect to benefit years beginning on or after July
1, |
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| 1 | | 1989, the governmental entity shall be required to
make | 2 | | payments equal to 100% of regular benefits, including
| 3 | | dependents' allowances, and 100% of extended benefits,
| 4 | | including dependents' allowances, paid to an individual
with | 5 | | respect to benefit years beginning during the effective
period | 6 | | of the election, but only if the governmental
entity: (a) is | 7 | | the last employer as provided in Section
1502.1 and (b) paid to | 8 | | the individual receiving benefits,
wages for insured work | 9 | | during his base period. If the
governmental entity described in | 10 | | this paragraph meets
the requirements of (a) but not (b), with | 11 | | respect to
benefit years beginning on or after July 1, 1989, it
| 12 | | shall be required to make payments in an amount equal
to 50% of | 13 | | regular benefits, including dependents' allowances,
and 50% of | 14 | | extended benefits, including dependents'
allowances, paid to | 15 | | an individual with respect to benefit
years beginning during | 16 | | the effective period of the election.
| 17 | | 1. Any such governmental entity which becomes an employer | 18 | | on January
1, 1978 pursuant to Section 205 may elect to make | 19 | | payments in lieu of
contributions for not less than one | 20 | | calendar year beginning with January
1, 1978, provided that it | 21 | | files its written election with the Director
not later than | 22 | | January 31, 1978.
| 23 | | 2. A governmental entity newly created after January 1, | 24 | | 1978, may
elect to make payments in lieu of contributions for a | 25 | | period of not less
than one calendar year beginning as of the | 26 | | first day with respect to
which it would, in the absence of its |
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| 1 | | election, incur liability for the
payment of contributions, | 2 | | provided that it files its written election
with the Director | 3 | | not later than 30 days immediately following the end
of the | 4 | | calendar quarter in which it has been created.
| 5 | | 3. A governmental entity which has incurred liability for | 6 | | the
payment of contributions for at least 2 calendar years, and | 7 | | is not
delinquent in such payment and in the payment of any | 8 | | interest or
penalties which may have accrued, may elect to make | 9 | | payments in lieu of
contributions beginning January 1 of any | 10 | | calendar year, provided that it
files its written election with | 11 | | the Director prior to such January 1,
and provided, further, | 12 | | that such election shall be for a period of not
less than 2 | 13 | | calendar years.
| 14 | | 4. An election to make payments in lieu of contributions | 15 | | shall not
terminate any liability incurred by a governmental | 16 | | entity for the
payment of contributions, interest or penalties | 17 | | with respect to any
calendar quarter (or month, as the case may | 18 | | be) which ends prior to the effective period of the
election.
| 19 | | 5. The termination by a governmental entity of the | 20 | | effective period
of its election to make payments in lieu of | 21 | | contributions, and the
filing of and subsequent action upon | 22 | | written notices of termination of
election, shall be governed | 23 | | by the provisions of paragraphs 5 and 6 of
Section 1404A, | 24 | | pertaining to nonprofit organizations.
| 25 | | 6. With respect to benefit years beginning prior to July 1, | 26 | | 1989,
wages paid to an individual during his base period by a |
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| 1 | | governmental
entity which elects to make payments in lieu of | 2 | | contributions for less than
full time work, performed during | 3 | | the same weeks in the base period during
which the individual | 4 | | had other insured work, shall not be subject to
payments in | 5 | | lieu of contribution (upon such employer's request pursuant to
| 6 | | the regulation of the Director) so long as the employer | 7 | | continued after the
end of the base period, and continues | 8 | | during the applicable benefit year,
to furnish such less than | 9 | | full time work to the individual on the same
basis and in | 10 | | substantially the same amount as during the base period. If the
| 11 | | individual is paid benefits with respect to a week (in the | 12 | | applicable
benefit year) after the employer has ceased to | 13 | | furnish the work hereinabove
described, the governmental | 14 | | entity shall be liable for payments in lieu
of contributions | 15 | | with respect to the benefits paid to the individual after
the | 16 | | date on which the governmental entity ceases to furnish the | 17 | | work.
| 18 | | 7. An Indian tribe may elect to make payments in lieu of | 19 | | contributions for
calendar year 2003, provided that it files | 20 | | its written election with the
Director not later than January | 21 | | 31, 2003, and provided further that it is not
delinquent in the | 22 | | payment of any contributions, interest, or penalties.
| 23 | | 8. Failure of an Indian tribe to make a payment in lieu of | 24 | | contributions, or
a payment of interest or penalties due under | 25 | | this Act, within 90 days after the
Department serves notice of | 26 | | the finality of a determination and assessment
shall cause the |
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| 1 | | Indian tribe to lose the option of making payments in lieu of
| 2 | | contributions, effective as of the calendar year immediately | 3 | | following the date
on which the Department serves the notice. | 4 | | Notice of the loss of the option to
make payments in lieu of | 5 | | contributions may be protested in the same manner as a
| 6 | | determination and assessment under Section 2200 of this Act.
| 7 | | 9. An Indian tribe that, pursuant to paragraph 8, loses the | 8 | | option of
making payments in lieu of contributions may again | 9 | | elect to make payments in
lieu of contributions for a calendar | 10 | | year if: (a) the Indian tribe has incurred
liability for the | 11 | | payment of contributions for at least one calendar year since
| 12 | | losing the option pursuant to paragraph 8, (b) the Indian tribe | 13 | | is not
delinquent in the payment of any liabilities under the | 14 | | Act, including interest
or penalties, and (c) the Indian tribe | 15 | | files its written election with the
Director not later than | 16 | | January 31 of the year with respect to which it is
making the | 17 | | election.
| 18 | | C. As soon as practicable following the close of each | 19 | | calendar
quarter, the Director shall mail to each governmental | 20 | | entity which has
elected to make payments in lieu of | 21 | | contributions a Statement of the
amount due from it for all the | 22 | | regular and extended benefits paid during
the calendar quarter, | 23 | | together with the names of its workers or former
workers and | 24 | | the amounts of benefits paid to each of them during the
| 25 | | calendar quarter with respect to benefit years beginning prior | 26 | | to July 1,
1989, on the basis of wages for insured work paid to |
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| 1 | | them by
the governmental entity; or, with respect to benefit | 2 | | years beginning
after June 30, 1989, if such governmental | 3 | | entity was the last employer as
provided in Section 1502.1 with | 4 | | respect to a benefit year beginning during
the effective period | 5 | | of the election. All of the provisions of subsection
B of | 6 | | Section 1404 pertaining to nonprofit organizations, not | 7 | | inconsistent
with the preceding sentence, shall be applicable | 8 | | to payments in lieu of
contributions by a governmental entity.
| 9 | | D. The provisions of subsections C through F, inclusive, of | 10 | | Section
1404, pertaining to nonprofit organizations, shall be | 11 | | applicable to each
governmental entity which has elected to | 12 | | make payments in lieu of
contributions.
| 13 | | E. 1. If an Indian tribe fails to pay any liability under | 14 | | this Act
(including assessments of interest or penalty) within | 15 | | 90 days after the
Department issues a notice of the finality of | 16 | | a determination and assessment,
the Director shall immediately | 17 | | notify the United States Internal Revenue
Service
and the | 18 | | United States Department of Labor.
| 19 | | 2. Notices of payment and reporting delinquencies to Indian | 20 | | tribes shall
include information that failure to make full | 21 | | payment 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.)
|
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