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.

Effective Date: 1/19/2006