Public Act 094-0723
 		





HB2133 Enrolled
LRB094 03096 WGH 33097 b






    AN ACT concerning employment.

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 

 
    Section 5. The Unemployment Insurance Act is amended  by 
changing Sections 1400 and 1402 and  by adding Section 1400.2 as 
follows:
 



    (820 ILCS 405/1400)  (from Ch. 48, par. 550)



    Sec. 1400. Payment of contributions. On and after July 1, 
1937,
contributions shall accrue and become payable by each 
employer for each
calendar year in which he is subject to this 
Act, with respect to wages
payable for employment occurring 
during the six months' period beginning
July 1, 1937, and the 
calendar years 1938, 1939, and 1940. For the year
1941 and for 
each calendar year thereafter, contributions shall accrue
and 
become payable by each employer upon the wages paid with 
respect to
employment after December 31, 1940. Except as 
otherwise provided in Section 1400.2, such
Such contributions 
shall become due
and shall be paid quarterly on or before the 
last day of the month next
following the calendar quarter for 
which such contributions have
accrued; except that any employer 
who is delinquent in filing a
contribution report or in paying 
his contributions for any calendar
quarter may, at the 
discretion of the Director, be required to report
and to pay 
contributions on a calendar month basis. Such contributions

shall not be deducted, in whole or in part, from the wages of

individuals in such employer's employ. If the Director shall 
find that
the collection of any contributions will be 
jeopardized by delay, he may
declare the same to be immediately 
due and payable.

    In the payment of any contributions, interest, or 
penalties, a
fractional part of a cent shall be disregarded 
unless it amounts to
one-half cent or more, in which case it 
shall be increased to one cent.

    The Director may by regulation provide that if, at any 
time, a total
amount of less
than $2 is payable with respect to 
a quarter, including any
contributions, payments in lieu of 
contributions, interest or
penalties, such amount may be 
disregarded.  Any amounts
disregarded under this paragraph are 
deemed to have been paid for all
other purposes of this Act.  
Nothing in this paragraph is intended to
relieve any employer 
from filing any reports required by this Act or by
any rules or 
regulations adopted by the Director pursuant to this Act.

    Except with respect to the provisions concerning amounts 
that may be
disregarded pursuant to regulation, this Section 
does not apply to any
nonprofit organization or any 
governmental
entity referred to in subsection B of Section 1405 
for any
period with respect to which it does not incur 
liability for the payment
of contributions by reason of having 
elected to make payments in lieu of
contributions, or to any 
political subdivision or municipal corporation
for any period 
with respect to which it is not subject to payments in
lieu of 
contributions under the provisions of paragraph 1 of Section

302C by reason of having elected to make payments in lieu of

contributions under paragraph 2 of that Section, or to the 
State of
Illinois or any of its instrumentalities.

(Source: P.A. 90-554, eff. 12-12-97.)

 
    (820 ILCS 405/1400.2  new)
    Sec. 1400.2. Annual reporting and paying;    household 
workers.   This Section applies to an employer who solely employs 
one or more household workers with respect to whom the employer 
files federal unemployment taxes as part of his or her federal 
income tax return, or could file federal unemployment taxes as 
part of his or her federal income tax return if the worker or 
workers were providing services in employment for purposes of 
the federal unemployment tax. For purposes of this Section, 
"household worker" has the meaning ascribed to it for purposes 
of Section 3510 of the federal Internal Revenue

Code. If an 
employer to whom this Section applies notifies the Director, in 
writing, that he or she wishes to pay his or her contributions 
for each quarter and submit his or her wage and contribution 
reports for each quarter on an annual basis, then the due date 
for filing the reports and paying the contributions shall be 
April 15 of the calendar year immediately following the close 
of the quarters to which the reports and contributions apply, 
except that the Director may, by rule, establish a different 
due date for good cause.
 



    (820 ILCS 405/1402)  (from Ch. 48, par. 552)



    Sec. 1402. Penalties. A. If any employer fails, within the 
time prescribed in this Act as
amended and in effect on October 
5, 1980, and the regulations of the
Director, to file a report 
of wages paid to each of his workers, or to file
a sufficient 
report of such wages after having been notified by the
Director 
to do so, for any period which begins prior to January 1, 1982, 
he
shall pay to the Director as a penalty a sum determined in 
accordance with
the provisions of this Act as amended and in 
effect on October 5, 1980.

    B.  Except as otherwise provided in this Section, any 
employer who
fails to file a report of wages paid to each of 
his
workers for any period which begins on or after January 1, 
1982, within the
time prescribed by the provisions of this Act 
and the regulations of the
Director, or, if the Director 
pursuant to such regulations extends the time
for filing the 
report, fails to file it within the extended time, shall, in

addition to any sum otherwise payable by him under the 
provisions of this
Act, pay to the Director as a penalty a sum 
equal to the lesser of (1) $5
for each $10,000 or fraction 
thereof of the total wages for insured work
paid by him during 
the period or (2) $2,500, for each month
or part thereof of 
such failure to file the report. With respect to an employer 
who has elected to file reports of wages on an annual basis 
pursuant to Section 1400.2, in assessing penalties for the 
failure to submit all reports by the due date established 
pursuant to that Section, the 30-day period immediately 
following the due date shall be considered as one month.

    If the Director deems an employer's report of wages paid to 
each of his
workers for any period which begins on or after 
January 1, 1982,
insufficient, he shall notify the employer to 
file a sufficient report. If
the employer fails to file such 
sufficient report within 30 days after the
mailing of the 
notice to him, he shall, in addition to any sum otherwise

payable by him under the provisions of this Act, pay to the 
Director as a
penalty a sum determined in accordance with the 
provisions of the first
paragraph of this subsection, for each 
month or part thereof of such
failure to file such sufficient 
report after the date of the notice.

    For wages paid in calendar years prior to 1988, the penalty 
or
penalties which accrue under the two foregoing paragraphs

with respect to a report for any period shall not be less than 
$100, and
shall not exceed the lesser of
(1) $10 for each 
$10,000 or fraction thereof
of the total wages for insured work 
paid during the period or (2) $5,000.
 For wages paid in 
calendar years after 1987, the penalty or penalties which

accrue under the 2 foregoing paragraphs with respect to a 
report for any
period shall not be less than $50, and shall not 
exceed the lesser of (1)
$10 for each $10,000 or fraction of 
the total wages for insured work
paid during the period or (2) 
$5,000.
With respect to an employer who has elected to file 
reports of wages on an annual basis pursuant to Section 1400.2, 
for purposes of calculating the minimum penalty prescribed by 
this Section for failure to file the reports on a timely basis, 
a calendar year shall constitute a single period. For reports 
of wages paid after 1986, the Director shall not,
however, 
impose a penalty pursuant to either of the two foregoing

paragraphs on any employer who can prove within 30 working days 
after the
mailing of a notice of his failure to file such a 
report, that (1) the
failure to file the report is his first 
such failure during the previous 20
consecutive calendar 
quarters, and (2) the amount of the total
contributions due for 
the calendar quarter of such report is less than $500.

    Any employer who wilfully fails to pay any contribution or 
part
thereof, based upon wages paid prior to 1987,
when 
required by the provisions of this Act and the regulations of 
the
Director, with intent to defraud the Director, shall in 
addition to such
contribution or part thereof pay to the 
Director a penalty equal to 50 percent
of the amount of such 
contribution or part thereof, as the case may
be, provided that 
the penalty shall not be less than $200.

    Any employer who willfully fails to pay any contribution or 
part
thereof, based upon wages paid in 1987 and in each 
calendar year
thereafter, when required by the
provisions of 
this Act and the regulations of the Director, with intent to

defraud the Director, shall in addition to such contribution or 
part
thereof pay to the Director a penalty equal to 60% of the 
amount of such
contribution or part thereof, as the case may 
be, provided that the penalty
shall not be less than $400.

    However, all or part of any penalty may be waived by the 
Director for
good cause shown.

(Source: P.A. 85-956.)


 
    Section 99. Effective date. This Act takes effect January 
1, 2006.