093_SB1857

 
                                     LRB093 10804 WGH 11240 b

 1        AN ACT concerning unemployment insurance.

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

 4        Section  5.  The Unemployment Insurance Act is amended by
 5    changing Section 235 as follows:

 6        (820 ILCS 405/235) (from Ch. 48, par. 345)
 7        Sec. 235.  The term "wages" does not include:
 8        A.  That  part   of   the   remuneration   which,   after
 9    remuneration  equal  to $6,000 with respect to employment has
10    been paid to an individual by an employer during any calendar
11    year after 1977 and before 1980, is paid to  such  individual
12    by  such employer during such calendar year; and that part of
13    the remuneration which, after remuneration  equal  to  $6,500
14    with  respect to employment has been paid to an individual by
15    an employer during each calendar year 1980 and 1981, is  paid
16    to  such  individual  by  such  employer during that calendar
17    year;  and  that  part  of  the  remuneration  which,   after
18    remuneration  equal  to $7,000 with respect to employment has
19    been paid to an individual by an employer during the calendar
20    year 1982 is paid to such individual by such employer  during
21    that calendar year.
22        With  respect  to the first calendar quarter of 1983, the
23    term "wages" shall include only the remuneration paid  to  an
24    individual by an employer during such quarter with respect to
25    employment  which does not exceed $7,000. With respect to the
26    three calendar quarters, beginning April 1,  1983,  the  term
27    "wages"  shall  include  only  the  remuneration  paid  to an
28    individual by an employer during such period with respect  to
29    employment which when added to the "wages" (as defined in the
30    preceding  sentence) paid to such individual by such employer
31    during the first calendar quarter of 1983,  does  not  exceed
 
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 1    $8,000.
 2        With  respect to the calendar year 1984, the term "wages"
 3    shall include only the remuneration paid to an individual  by
 4    an  employer  during  that  period with respect to employment
 5    which does not exceed $8,000; with respect to calendar  years
 6    1985,  1986 and 1987, the term "wages" shall include only the
 7    remuneration paid to such individual by such employer  during
 8    that  calendar year with respect to employment which does not
 9    exceed $8,500.
10        With respect to the calendar years 1988 through 2002 2003
11    and calendar year 2005 and each calendar year thereafter, the
12    term "wages" shall include only the remuneration paid  to  an
13    individual  by an employer during that period with respect to
14    employment which does not exceed $9,000.
15        With respect to the calendar year  2003  2004,  the  term
16    "wages"  shall  include  only  the  remuneration  paid  to an
17    individual by an employer during that period with respect  to
18    employment which does not exceed $16,000 $10,000.
19        With respect to calendar year 2004 and each calendar year
20    thereafter,   the   term   "wages"  shall  include  only  the
21    remuneration paid to an individual by an employer during that
22    period with respect  to  employment  which  does  not  exceed
23    $16,000,  plus (or minus) the product obtained by multiplying
24    $16,000 by  the  percentage  change  in  the  maximum  weekly
25    benefit  amount, computed in accordance with Section 401B(2),
26    between the benefit period of  calendar  year  2003  and  the
27    benefit  period  that  coincides  with  the calendar year for
28    which the maximum amount includable  as  "wages"  under  this
29    Section  is  being  determined.  For purposes of this Section
30    only, the percentage change in maximum weekly benefit amounts
31    between the 2 benefit periods  shall  be  calculated  without
32    regard  to  the  provisions in Section 401B(2) that establish
33    the statewide average weekly wage at  $600  for  the  benefit
34    period  of  calendar  year  2004 or that freeze or reduce the
 
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 1    statewide average weekly wage under certain  conditions.  The
 2    maximum  amount  includable as "wages" under this Section for
 3    calendar year 2004 and each calendar year thereafter shall be
 4    announced by the Director by rule, before  the  beginning  of
 5    the  calendar  year,  and  shall be rounded, if not already a
 6    multiple of $500, to the nearer  multiple  of  $500,  or,  in
 7    cases  where  the amount is equally near 2 multiples of $500,
 8    to the higher of the 2 multiples.
 9        The remuneration paid to an  individual  by  an  employer
10    with  respect  to employment in another State or States, upon
11    which contributions were required of such employer  under  an
12    unemployment  compensation law of such other State or States,
13    shall be included as a part  of  the  remuneration  equal  to
14    $6,000,  $6,500,  $7,000, $8,000, $8,500, $9,000, or $10,000,
15    as the case may be, herein referred to. For the  purposes  of
16    this  subsection,  any  employing  unit which succeeds to the
17    organization, trade, or business, or to substantially all  of
18    the assets of another employing unit, or to the organization,
19    trade,  or business, or to substantially all of the assets of
20    a distinct severable portion of another employing unit, shall
21    be treated as a single unit  with  its  predecessor  for  the
22    calendar  year  in  which  such  succession  occurs,  and any
23    employing unit which is  owned  or  controlled  by  the  same
24    interests  which  own or control another employing unit shall
25    be treated as a  single  unit  with  the  unit  so  owned  or
26    controlled by such interests for any calendar year throughout
27    which  such  ownership  or  control  exists.  This subsection
28    applies only to Sections 1400, 1405A, and 1500.
29        B.  The amount of any payment (including any amount  paid
30    by an employer for insurance or annuities, or into a fund, to
31    provide  for  any such payment), made to, or on behalf of, an
32    individual or any of his dependents under a  plan  or  system
33    established  by  an  employer which makes provision generally
34    for individuals performing services  for  him  (or  for  such
 
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 1    individuals generally and their dependents) or for a class or
 2    classes  of  such  individuals  (or for a class or classes of
 3    such individuals and their dependents),  on  account  of  (1)
 4    sickness  or  accident  disability  (except those sickness or
 5    accident disability payments which  would  be  includable  as
 6    "wages"  in  Section  3306(b)(2)(A)  of  the Federal Internal
 7    Revenue Code of 1954, in effect  on  January  1,  1985,  such
 8    includable  payments  to  be  attributable  in such manner as
 9    provided by Section 3306(b) of the Federal  Internal  Revenue
10    Code  of  1954, in effect on January 1, 1985), or (2) medical
11    or hospitalization expenses in connection  with  sickness  or
12    accident disability, or (3) death.
13        C.  Any  payment made to, or on behalf of, an employee or
14    his beneficiary which  would  be  excluded  from  "wages"  by
15    subparagraph  (A), (B), (C), (D), (E), (F) or (G), of Section
16    3306(b)(5) of the Federal Internal Revenue Code of  1954,  in
17    effect on January 1, 1985.
18        D.  The  amount  of any payment on account of sickness or
19    accident disability, or medical or  hospitalization  expenses
20    in  connection  with sickness or accident disability, made by
21    an employer to, or on behalf  of,  an  individual  performing
22    services  for him after the expiration of six calendar months
23    following the last calendar month  in  which  the  individual
24    performed services for such employer.
25        E.  Remuneration paid in any medium other than cash by an
26    employing  unit  to an individual for service in agricultural
27    labor as defined in Section 214.
28        F.  The amount of any supplemental  payment  made  by  an
29    employer  to an individual performing services for him, other
30    than remuneration for services performed, under a shared work
31    plan approved by the Director pursuant to Section 407.1.
32    (Source: P.A. 90-554, eff. 12-12-97; 91-342, eff. 7-29-99.)

33        Section 99.  Effective date.  This Act takes effect  upon
 
                            -5-      LRB093 10804 WGH 11240 b
 1    becoming law.