[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
90_HB0311
820 ILCS 405/1506.1 from Ch. 48, par. 576.1
820 ILCS 405/1506.3 from Ch. 48, par. 576.3
Amends the Unemployment Insurance Act in relation to
contributions required from employers for the purpose of
paying benefits. Deletes language providing that an
employer's minimum contribution rate for 1996 is 0.1% and for
other years is the greater of 0.2% or the product obtained by
multiplying 0.2% by the adjusted state experience factor.
Inserts language providing that an employer's minimum
contribution rate for calendar year 1996 and for calendar
years after 1997 is the greater of 0.1% or the product
obtained by multiplying 0.1% by the adjusted state experience
factor. Provides that an employer's minimum contribution
rate for 1997 is the greater of 0.2% or the product obtained
by multiplying 0.2% by the adjusted state experience factor.
Also changes provisions concerning fund building rates.
Effective immediately.
LRB9002127WHmg
LRB9002127WHmg
1 AN ACT to amend the Unemployment Insurance Act by
2 changing Sections 1506.1 and 1506.3.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Unemployment Insurance Act is amended by
6 changing Sections 1506.1 and 1506.3 as follows:
7 (820 ILCS 405/1506.1) (from Ch. 48, par. 576.1)
8 Sec. 1506.1. Determination of Employer's Contribution
9 Rate.
10 A. The contribution rate for any calendar year prior to
11 1982 of each employer who has incurred liability for the
12 payment of contributions within each of the three calendar
13 years immediately preceding the calendar year for which a
14 rate is being determined shall be determined in accordance
15 with the provisions of this Act as amended and in effect on
16 October 5, 1980.
17 B. The contribution rate for calendar years 1982 and
18 1983 of each employer who has incurred liability for the
19 payment of contributions within each of the three calendar
20 years immediately preceding the calendar year for which a
21 rate is being determined shall be the product obtained by
22 multiplying the employer's benefit wage ratio for that
23 calendar year by the adjusted state experience factor for the
24 same year, provided that:
25 1. No employer's contribution rate shall be lower
26 than two-tenths of 1 percent or higher than 5.3%; and
27 2. Intermediate contribution rates between such
28 minimum and maximum rates shall be at one-tenth of 1
29 percent intervals.
30 3. If the product obtained as provided in this
31 subsection is not an exact multiple of one-tenth of 1
-2- LRB9002127WHmg
1 percent, it shall be increased or reduced, as the case
2 may be, to the nearer multiple of one-tenth of 1 percent.
3 If such product is equally near to two multiples of
4 one-tenth of 1 percent, it shall be increased to the
5 higher multiple of one-tenth of 1 percent. If such
6 product is less than two-tenths of one percent, it shall
7 be increased to two-tenths of 1 percent, and if greater
8 than 5.3%, it shall be reduced to 5.3%.
9 The contribution rate of each employer for whom wages
10 became benefit wages during the applicable period specified
11 in Section 1503, but who paid no contributions upon wages for
12 insured work during such period on or before the date
13 designated in Section 1503, shall be 5.3%.
14 The contribution rate of each employer for whom no wages
15 became benefit wages during the applicable period specified
16 in Section 1503, and who paid no contributions upon wages for
17 insured work during such period on or before the date
18 specified in Section 1503, shall be 2.7 percent.
19 Notwithstanding the other provisions of this Section, no
20 employer's contribution rate with respect to calendar years
21 1982 and 1983 shall exceed 2.7 percent of the wages for
22 insured work paid by him during any calendar quarter, if such
23 wages paid during such calendar quarter total less than
24 $50,000.
25 C. The contribution rate for calendar years 1984, 1985
26 and 1986 of each employer who has incurred liability for the
27 payment of contributions within each of the two calendar
28 years immediately preceding the calendar year for which a
29 rate is being determined shall be the product obtained by
30 multiplying the employer's benefit wage ratio for that
31 calendar year by the adjusted state experience factor for the
32 same year, provided that:
33 1. An employer's minimum contribution rate shall be
34 the greater of: .2%; or, the product obtained by
-3- LRB9002127WHmg
1 multiplying .2% by the adjusted state experience factor
2 for the applicable calendar year.
3 2. An employer's maximum contribution rate shall be
4 the greater of 5.5% or the product of 5.5% and the
5 adjusted State experience factor for the applicable
6 calendar year except that such maximum contribution rate
7 shall not be higher than 6.3% for calendar year 1984, nor
8 be higher than 6.6% or lower than 6.4% for calendar year
9 1985, nor be higher than 6.7% or lower than 6.5% for
10 calendar year 1986.
11 3. If any product obtained in this subsection is
12 not an exact multiple of one-tenth of one percent, it
13 shall be increased or reduced, as the case may be to the
14 nearer multiple of one-tenth of one percent. If such
15 product is equally near to two multiples of one-tenth of
16 one percent, it shall be increased to the higher multiple
17 of one-tenth of one percent.
18 4. Intermediate rates between such minimum and
19 maximum rates shall be at one-tenth of one percent
20 intervals.
21 The contribution rate of each employer for whom wages
22 became benefit wages during the applicable period specified
23 in Section 1503, but who paid no contributions upon wages for
24 insured work during such period on or before the date
25 designated in Section 1503, shall be the maximum contribution
26 rate as determined by paragraph 2 of this subsection. The
27 contribution rate for each employer for whom no wages became
28 benefit wages during the applicable period on or before the
29 date specified in Section 1503, and who paid no contributions
30 upon wages for insured work during such period on or before
31 the date specified in Section 1503, shall be the greater of
32 2.7% or 2.7% times the then current adjusted state experience
33 factor as determined by the Director in accordance with the
34 provisions of Sections 1504 and 1505.
-4- LRB9002127WHmg
1 Notwithstanding, the other provisions of this Section, no
2 employer's contribution rate with respect to the calendar
3 year 1984 shall exceed 2.7 percent times the then current
4 adjusted state experience factor as determined by the
5 Director in accordance with the provisions of Sections 1504
6 and 1505 of the wages for insured work paid by him during any
7 calendar quarter, if such wages paid during such calendar
8 quarter total less than $50,000.
9 D. The contribution rate for calendar years 1987, 1988,
10 1989 and 1990 of each employer who has incurred liability for
11 the payment of contributions within each of the three
12 calendar years immediately preceding the calendar year for
13 which a rate is being determined shall be the product
14 obtained by multiplying the employer's benefit wage ratio for
15 that calendar year by the adjusted state experience factor
16 for the same year, provided, that:
17 1. An employer's minimum contribution rate shall be
18 the greater of .2% or the product obtained by multiplying
19 .2% by the adjusted State experience factor for the
20 applicable calendar year.
21 2. An employer's maximum contribution rate shall be
22 the greater of 5.5% or the product of 5.5% and the
23 adjusted State experience factor for the calendar year
24 1987 except that such maximum contribution rate shall not
25 be higher than 6.7% or lower than 6.5% and an employer's
26 maximum contribution rate for 1988, 1989 and 1990 shall
27 be the greater of 6.4% or the product of 6.4% and the
28 adjusted State experience factor for the applicable
29 calendar year.
30 3. If any product obtained in this subsection is
31 not an exact multiple of one-tenth of one percent, it
32 shall be increased or reduced, as the case may be to the
33 nearer multiple of one-tenth of 1 percent. If such
34 product is equally near to two multiples of one-tenth of
-5- LRB9002127WHmg
1 1 percent, it shall be increased to the higher multiple
2 of one-tenth of 1 percent.
3 4. Intermediate rates between such minimum and
4 maximum rates shall be at one-tenth of 1 percent
5 intervals.
6 The contribution rate of each employer for whom wages
7 became benefit wages during the applicable period specified
8 in Section 1503, but who did not report wages for insured
9 work during such period, shall be the maximum contribution
10 rate as determined by paragraph 2 of this subsection. The
11 contribution rate for each employer for whom no wages became
12 benefit wages during the applicable period specified in
13 Section 1503, and who did not report wages for insured work
14 during such period, shall be the greater of 2.7% or 2.7%
15 times the then current adjusted State experience factor as
16 determined by the Director in accordance with the provisions
17 of Sections 1504 and 1505.
18 E. The contribution rate for calendar year 1991 and each
19 calendar year thereafter of each employer who has incurred
20 liability for the payment of contributions within each of the
21 three calendar years immediately preceding the calendar year
22 for which a rate is being determined shall be the product
23 obtained by multiplying the employer's benefit ratio defined
24 by Section 1503.1 for that calendar year by the adjusted
25 state experience factor for the same year, provided that:
26 1. Except as otherwise provided in this paragraph,
27 An employer's minimum contribution rate for calendar
28 years prior to 1996 and for calendar year 1997 shall be
29 the greater of 0.2% or the product obtained by
30 multiplying 0.2% by the adjusted state experience factor
31 for the applicable calendar year. An employer's minimum
32 contribution rate for calendar year 1996 and any calendar
33 year after 1997 shall be the greater of 0.1% or the
34 product obtained by multiplying 0.1% by the adjusted
-6- LRB9002127WHmg
1 state experience factor for the applicable calendar year.
2 An employer's minimum contribution rate shall be 0.1% for
3 calendar year 1996.
4 2. An employer's maximum contribution rate shall be
5 the greater of 6.4% or the product of 6.4% and the
6 adjusted state experience factor for the applicable
7 calendar year.
8 3. If any product obtained in this subsection is
9 not an exact multiple of one-tenth of one percent, it
10 shall be increased or reduced, as the case may be to the
11 nearer multiple of one-tenth of one percent. If such
12 product is equally near to two multiples of one-tenth of
13 one percent, it shall be increased to the higher multiple
14 of one-tenth of one percent.
15 4. Intermediate rates between such minimum and
16 maximum rates shall be at one-tenth of one percent
17 intervals.
18 The contribution rate of each employer for whom wages
19 became benefit wages during the applicable period specified
20 in Section 1503 or for whom benefit payments became benefit
21 charges during the applicable period specified in Section
22 1503.1, but who did not report wages for insured work during
23 such period, shall be the maximum contribution rate as
24 determined by paragraph 2 of this subsection. The
25 contribution rate for each employer for whom no wages became
26 benefit wages during the applicable period specified in
27 Section 1503 or for whom no benefit payments became benefit
28 charges during the applicable period specified in Section
29 1503.1, and who did not report wages for insured work during
30 such period, shall be the greater of 2.7% or 2.7% times the
31 then current adjusted state experience factor as determined
32 by the Director in accordance with the provisions of Sections
33 1504 and 1505.
34 F. Notwithstanding the other provisions of this Section,
-7- LRB9002127WHmg
1 and pursuant to Section 271 of the Tax Equity and Fiscal
2 Responsibility Act of 1982, as amended, no employer's
3 contribution rate with respect to calendar years 1985, 1986,
4 1987 and 1988 shall, for any calendar quarter during which
5 the wages paid by that employer are less than $50,000, exceed
6 the following: with respect to calendar year 1985, 3.7%; with
7 respect to calendar year 1986, 4.1%; with respect to calendar
8 year 1987, 4.5%; and with respect to calendar year 1988,
9 5.0%.
10 G. Notwithstanding the other provisions of this Section,
11 no employer's contribution rate with respect to calendar year
12 1989 and each calendar year thereafter shall exceed 5.4% of
13 the wages for insured work paid by him during any calendar
14 quarter, if such wages paid during such calendar quarter
15 total less than $50,000.
16 (Source: P.A. 89-446, eff. 2-8-96.)
17 (820 ILCS 405/1506.3) (from Ch. 48, par. 576.3)
18 Sec. 1506.3. Fund building rates - Temporary
19 Administrative Funding.
20 A. Notwithstanding any other provision of this Act, the
21 following fund building rates shall be in effect for the
22 following calendar years:
23 For each employer whose contribution rate for 1988, 1989,
24 1990, the first, third, and fourth quarters of 1991, 1992
25 through, 1993, 1994, 1995, and 1997 and any calendar year
26 thereafter would, in the absence of this Section, be 0.2% or
27 higher, or whose contribution rate for 1996 and any calendar
28 year after 1997 would, in the absence of this Section, be
29 0.1% or higher, a contribution rate which is the sum of such
30 rate and 0.4%;
31 For each employer whose contribution rate for the second
32 quarter of 1991 would, in the absence of this Section, be
33 0.2% or higher, a contribution rate which is the sum of such
-8- LRB9002127WHmg
1 rate and 0.3%;
2 For each employer whose contribution rate for 1996 would,
3 in the absence of this Section, be 0.1% or higher, a
4 contribution rate which is the sum of such rate and 0.4%;
5 Notwithstanding the preceding paragraphs of this Section
6 or any other provision of this Act, except for the provisions
7 contained in Section 1500 pertaining to rates applicable to
8 employers classified under the Standard Industrial Code, no
9 employer whose total wages for insured work paid by him
10 during any calendar quarter in 1988 and any calendar year
11 thereafter are less than $50,000 shall pay contributions at a
12 rate with respect to such quarter which exceeds the
13 following: with respect to calendar year 1988, 5%; with
14 respect to 1989 and any calendar year thereafter, 5.4%.
15 Notwithstanding the preceding paragraph of this Section,
16 or any other provision of this Act, no employer's
17 contribution rate with respect to calendar years 1993 through
18 1995 shall exceed 5.4% if the employer ceased operations at
19 an Illinois manufacturing facility in 1991 and remained
20 closed at that facility during all of 1992, and the employer
21 in 1993 commits to invest at least $5,000,000 for the purpose
22 of resuming operations at that facility, and the employer
23 rehires during 1993 at least 250 of the individuals employed
24 by it at that facility during the one year period prior to
25 the cessation of its operations, provided that, within 30
26 days after the effective date of this amendatory Act of 1993,
27 the employer makes application to the Department to have the
28 provisions of this paragraph apply to it. The immediately
29 preceding sentence shall be null and void with respect to an
30 employer which by December 31, 1993 has not satisfied the
31 rehiring requirement specified by this paragraph or which by
32 December 31, 1994 has not made the investment specified by
33 this paragraph.
34 B. Notwithstanding any other provision of this Act, for
-9- LRB9002127WHmg
1 the second quarter of 1991, the contribution rate of each
2 employer as determined in accordance with Sections 1500,
3 1506.1, and subsection A of this Section shall be equal to
4 the sum of such rate and 0.1%; provided that this subsection
5 shall not apply to any employer whose rate computed under
6 Section 1506.1 for such quarter is between 5.1% and 5.3%,
7 inclusive, and who qualifies for the 5.4% rate ceiling
8 imposed by the last paragraph of subsection A for such
9 quarter. All payments made pursuant to this subsection shall
10 be deposited in the Employment Security Administrative Fund
11 established under Section 2103.1 and used for the
12 administration of this Act.
13 C. Payments received by the Director which are
14 insufficient to pay the total contributions due under the Act
15 shall be first applied to satisfy the amount due pursuant to
16 subsection B.
17 D. All provisions of this Act applicable to the
18 collection or refund of any contribution due under this Act
19 shall be applicable to the collection or refund of amounts
20 due pursuant to subsection B.
21 (Source: P.A. 88-518; 89-446, eff. 2-8-96.)
22 Section 99. Effective date. This Act takes effect upon
23 becoming law.