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90_HB3242
820 ILCS 405/1500 from Ch. 48, par. 570
820 ILCS 405/1506.3 from Ch. 48, par. 576.3
Amends the Unemployment Insurance Act. In provisions
requiring employers to make contributions on wages,
eliminates a requirement that the amount paid shall be the
average contribution rate for the employer's major
classification in the Standard Industrial Code if that amount
is greater than the amount that would otherwise be payable.
Effective January 1, 1999.
LRB9007918WHcw
LRB9007918WHcw
1 AN ACT to amend the Unemployment Insurance Act by
2 changing Sections 1500 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 1500 and 1506.3 as follows:
7 (820 ILCS 405/1500) (from Ch. 48, par. 570)
8 Sec. 1500. Rate of contribution. A. For the six months'
9 period beginning July 1, 1937, and for each of the calendar
10 years 1938 to 1959, inclusive, each employer shall pay
11 contributions on wages at the percentages specified in or
12 determined in accordance with the provisions of this Act as
13 amended and in effect on July 11, 1957.
14 B. For the calendar years 1960 through 1983, each
15 employer shall pay contributions equal to 2.7 percent with
16 respect to wages for insured work paid during each such
17 calendar year, except that the contribution rate of each
18 employer who has incurred liability for the payment of
19 contributions within each of the three calendar years
20 immediately preceding the calendar year for which a rate is
21 being determined, shall be determined as provided in Sections
22 1501 to 1507, inclusive.
23 For the calendar year 1984 through 1998 and each calendar
24 year thereafter, each employer shall pay contributions at a
25 percentage rate equal to the greatest of 2.7%, or 2.7%
26 multiplied by the current adjusted State experience factor,
27 as determined for each calendar year by the Director in
28 accordance with the provisions of Sections 1504 and 1505, or
29 the average contribution rate for his major classification in
30 the Standard Industrial Code, with respect to wages for
31 insured work paid during such year. The Director of
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1 Employment Security shall determine for calendar year 1984
2 through 1998, and each calendar year thereafter by a method
3 pursuant to adopted rules each individual employer's
4 industrial code and the average contribution rate for each
5 major classification in the Standard Industrial Code. For
6 the calendar year 1999 and each calendar year thereafter,
7 each employer shall pay contributions at a percentage rate
8 equal to the greater of 2.7% or 2.7% multiplied by the
9 current adjusted State experience factor, as determined for
10 each calendar year by the Director in accordance with the
11 provisions of Section 1504 and 1505, with respect to wages
12 for insured work paid during each year. Notwithstanding the
13 preceding provisions of this paragraph, the contribution rate
14 for calendar years 1984, 1985 and 1986 of each employer who
15 has incurred liability for the payment of contributions
16 within each of the two calendar years immediately preceding
17 the calendar year for which a rate is being determined, and
18 the contribution rate for calendar year 1987 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 determined as
23 provided in Sections 1501 to 1507, inclusive. Provided,
24 however, that the contribution rate for calendar years 1989
25 and 1990 of each employer who has had experience with the
26 risk of unemployment for at least 13 consecutive months
27 ending June 30 of the preceding calendar year shall be a rate
28 determined in accordance with this Section or a rate
29 determined as if it had been calculated in accordance with
30 Sections 1501 through 1507, inclusive, whichever is greater,
31 except that for purposes of calculating the benefit wage
32 ratio as provided in Section 1503, such benefit wage ratio
33 shall be a percentage equal to the total of benefit wages for
34 the 12 consecutive calendar month period ending on the above
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1 preceding June 30, divided by the total wages for insured
2 work subject to the payment of contributions under Sections
3 234, 235 and 245 for the same period and provided, further,
4 however, that the contribution rate for calendar year 1991
5 and for each calendar year thereafter of each employer who
6 has had experience with the risk of unemployment for at least
7 13 consecutive months ending June 30 of the preceding
8 calendar year shall be a rate determined in accordance with
9 this Section or a rate determined as if it had been
10 calculated in accordance with Sections 1501 through 1507,
11 inclusive, whichever is greater, except that for purposes of
12 calculating the benefit ratio as provided in Section 1503.1,
13 such benefit ratio shall be a percentage equal to the total
14 of benefit charges for the 12 consecutive calendar month
15 period ending on the above preceding June 30, multiplied by
16 the benefit conversion factor applicable to such year,
17 divided by the total wages for insured work subject to the
18 payment of contributions under Sections 234, 235 and 245 for
19 the same period.
20 C. Except as expressly provided in this Act, the
21 provisions of Sections 1500 to 1510, inclusive, do not apply
22 to any nonprofit organization for any period with respect to
23 which it does not incur liability for the payment of
24 contributions by reason of having elected to make payments in
25 lieu of contributions, or to any political subdivision or
26 municipal corporation for any period with respect to which it
27 is not subject to payments in lieu of contributions under the
28 provisions of paragraph 1 of Section 302C by reason of having
29 elected to make payments in lieu of contributions under
30 paragraph 2 of that Section or to any governmental entity
31 referred to in clause (B) of Section 211.1. Wages paid to an
32 individual which are subject to contributions under Section
33 1405 A, or on the basis of which benefits are paid to him
34 which are subject to payment in lieu of contributions under
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1 Sections 1403, 1404, or 1405 B, or under paragraph 2 of
2 Section 302C, shall not become benefit wages or benefit
3 charges under the provisions of Sections 1501 or 1501.1,
4 respectively, except for purposes of determining a rate of
5 contribution for 1984 and each calendar year thereafter for
6 any governmental entity referred to in clause (B) of Section
7 211.1 which does not elect to make payments in lieu of
8 contributions.
9 D. If an employer's business is closed solely because of
10 the entrance of one or more of the owners, partners,
11 officers, or the majority stockholder into the armed forces
12 of the United States, or of any of its allies, or of the
13 United Nations, and, if the business is resumed within two
14 years after the discharge or release of such person or
15 persons from active duty in the armed forces, the employer
16 will be deemed to have incurred liability for the payment of
17 contributions continuously throughout such period. Such an
18 employer, for the purposes of Section 1506.1, will be deemed
19 to have paid contributions upon wages for insured work during
20 the applicable period specified in Section 1503 on or before
21 the date designated therein, provided that no wages became
22 benefit wages during the applicable period specified in
23 Section 1503.
24 (Source: P.A. 85-956.)
25 (820 ILCS 405/1506.3) (from Ch. 48, par. 576.3)
26 Sec. 1506.3. Fund building rates - Temporary
27 Administrative Funding.
28 A. Notwithstanding any other provision of this Act, the
29 following fund building rates shall be in effect for the
30 following calendar years:
31 For each employer whose contribution rate for 1988, 1989,
32 1990, the first, third, and fourth quarters of 1991, 1992,
33 1993, 1994, 1995, and 1997 and any calendar year thereafter
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1 would, in the absence of this Section, be 0.2% or higher, a
2 contribution rate which is the sum of such rate and 0.4%;
3 For each employer whose contribution rate for the second
4 quarter of 1991 would, in the absence of this Section, be
5 0.2% or higher, a contribution rate which is the sum of such
6 rate and 0.3%;
7 For each employer whose contribution rate for 1996 would,
8 in the absence of this Section, be 0.1% or higher, a
9 contribution rate which is the sum of such rate and 0.4%;
10 Notwithstanding the preceding paragraphs of this Section
11 or any other provision of this Act, except for the provisions
12 contained in Section 1500 pertaining to rates applicable to
13 employers classified under the Standard Industrial Code for
14 calendar years 1984 through 1998, no employer whose total
15 wages for insured work paid by him during any calendar
16 quarter in 1988 and any calendar year thereafter are less
17 than $50,000 shall pay contributions at a rate with respect
18 to such quarter which exceeds the following: with respect to
19 calendar year 1988, 5%; with respect to 1989 and any calendar
20 year thereafter, 5.4%.
21 Notwithstanding the preceding paragraph of this Section,
22 or any other provision of this Act, no employer's
23 contribution rate with respect to calendar years 1993 through
24 1995 shall exceed 5.4% if the employer ceased operations at
25 an Illinois manufacturing facility in 1991 and remained
26 closed at that facility during all of 1992, and the employer
27 in 1993 commits to invest at least $5,000,000 for the purpose
28 of resuming operations at that facility, and the employer
29 rehires during 1993 at least 250 of the individuals employed
30 by it at that facility during the one year period prior to
31 the cessation of its operations, provided that, within 30
32 days after the effective date of this amendatory Act of 1993,
33 the employer makes application to the Department to have the
34 provisions of this paragraph apply to it. The immediately
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1 preceding sentence shall be null and void with respect to an
2 employer which by December 31, 1993 has not satisfied the
3 rehiring requirement specified by this paragraph or which by
4 December 31, 1994 has not made the investment specified by
5 this paragraph.
6 B. Notwithstanding any other provision of this Act, for
7 the second quarter of 1991, the contribution rate of each
8 employer as determined in accordance with Sections 1500,
9 1506.1, and subsection A of this Section shall be equal to
10 the sum of such rate and 0.1%; provided that this subsection
11 shall not apply to any employer whose rate computed under
12 Section 1506.1 for such quarter is between 5.1% and 5.3%,
13 inclusive, and who qualifies for the 5.4% rate ceiling
14 imposed by the last paragraph of subsection A for such
15 quarter. All payments made pursuant to this subsection shall
16 be deposited in the Employment Security Administrative Fund
17 established under Section 2103.1 and used for the
18 administration of this Act.
19 C. Payments received by the Director which are
20 insufficient to pay the total contributions due under the Act
21 shall be first applied to satisfy the amount due pursuant to
22 subsection B.
23 D. All provisions of this Act applicable to the
24 collection or refund of any contribution due under this Act
25 shall be applicable to the collection or refund of amounts
26 due pursuant to subsection B.
27 (Source: P.A. 88-518; 89-446, eff. 2-8-96.)
28 Section 99. Effective date. This Act takes effect
29 January 1, 1999.