SB1355 103RD GENERAL ASSEMBLY

LRB103 05057 SPS 50071 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1355

Introduced 2/6/2023, by Sen. Tom Bennett

SYNOPSIS AS INTRODUCED:

820 ILCS 405/1400

from Ch. 48, par. 550

Amends the Unemployment Insurance Act. Provides that upon payment of an annual administrative fee not exceeding $100, during the first 3 calendar quarters an employer may pay its quarterly contributions due for wages in equal installments. Establishes a schedule for payment of the contributions. Provides for the accrual of interest. Authorizes the adoption of necessary rules. Provides that payment on a quarterly basis is not available for calendar years when there are outstanding bonds under the Illinois Unemployment Insurance Trust Fund Financing Act.

A BILL FOR

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 Section 1400 as follows:

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

Sec. 1400. Payment of contributions.

(a) 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 subsection (b) and Section 1400.2, 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.

The Director may, by regulation, provide that amounts due from an employing unit for contributions, payments in lieu of contributions, penalties, or interest be paid by an electronic funds transfer, including amounts paid on behalf of an employing unit by an entity representing the employing unit. The regulation shall not apply to an employing unit until the Director notifies the employing unit of the regulation. Except as otherwise provided in this Section, where the employing unit, within 30 days of the date of service of the notice sent pursuant to this amendatory Act of the 98th General Assembly, notifies the Director that it declines to pay by electronic funds transfer, the regulation shall not apply to the employing unit. Except as otherwise provided in this Section, where the employing unit, within 30 days of the date of service of a notice sent pursuant to Section 1509 of this Act, notifies the Director that it declines to pay by electronic funds transfer, the regulation shall not apply to the employing unit with respect to any payment due after the date the employing unit so notifies the Director. The Director is authorized to provide by regulation reasonable penalties for employing units that are subject to and fail to comply with such a regulation. Any employing unit that is not subject to the regulation may elect to become subject to the regulation by paying amounts due for contributions, payments in lieu of contributions, penalties, or interest by an electronic funds transfer. Notwithstanding any other provision to the contrary, in the case of an entity representing 5 or more employing units, neither the entity nor the employing units (for as long as they are represented by that entity) shall have the option to decline to pay by electronic funds transfer.

(b) For an annual administrative fee not to exceed $100, an employer subject to the payment of contributions may pay its quarterly contributions due for wages paid during the first 3 quarters of a calendar year in equal installments as follows:

(1) For contributions due for wages paid during the first quarter of that calendar year, one-fourth of the contributions due must be paid on or before April 30 of that calendar year, one-fourth must be paid on or before July 31 of that calendar year, one-fourth must be paid on or before October 31 of that calendar year, and one-fourth must be paid on or before January 31 of the succeeding calendar year.

(2) In addition to the payments specified in paragraph (1) above, for contributions due for wages paid during the second quarter of that calendar year, one-third of the contributions due must be paid on or before July 31 of that calendar year, one-third must be paid on or before October 31 of that calendar year, and one-third must be paid on or before January 31 of the succeeding calendar year.

(3) In addition to the payments specified in paragraphs (1) and (2), for contributions due for wages paid during the third quarter of that calendar year, one-half of the contributions due must be paid on or before October 31 of that calendar year, and one-half must be paid on or before January 31 of the succeeding calendar year.

(4) The annual administrative fee assessed for electing to pay under this subsection for a calendar year shall be due and payable on or before April 30 of that calendar year and shall be deposited into the Special Administrative Account.

Interest shall not accrue on any contribution that becomes due for wages paid during the first 3 quarters of a calendar year if the employer elects to utilize the provisions of this subsection and pays its contributions and administrative fee in accordance with paragraphs (1) through (4). If an employer elects to utilize the provisions of this subsection but fails to pay its contributions when due in accordance with paragraphs (1) through (4), interest shall accrue as of the date that such payment was originally due without regard to this subsection.

The Director may adopt such rules as he or she deems necessary to carry out the provisions of this subsection.

The provisions of this subsection shall not be in effect for a calendar year if, as of January 1 of that calendar year, there are bonds outstanding pursuant to the Illinois Unemployment Insurance Trust Fund Financing Act.

(Source: P.A. 98-107, eff. 7-23-13.)