98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3403

 

Introduced , by Rep. Michael Unes

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/1506.1  from Ch. 48, par. 576.1

    Amends the Unemployment Insurance Act. Provides that the contribution rate for any calendar year shall be based upon the 2, rather than 3, calendar years immediately preceding the calendar year for which the rate is being determined.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3403LRB098 10132 JLS 40291 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Unemployment Insurance Act is amended by
5changing Section 1506.1 as follows:
 
6    (820 ILCS 405/1506.1)  (from Ch. 48, par. 576.1)
7    Sec. 1506.1. Determination of Employer's Contribution
8Rate.
9    A. The contribution rate for any calendar year prior to
101991 of each employer whose contribution rate is determined as
11provided in Sections 1501 through 1507, inclusive, shall be
12determined in accordance with the provisions of this Act as
13amended and in effect on November 18, 2011.
14    B. (Blank).
15    C. (Blank).
16    D. (Blank).
17    E. The contribution rate for calendar year 1991 and each
18calendar year thereafter of each employer who has incurred
19liability for the payment of contributions within each of the
20three (in the case of calendar years before 2014) or 2 (in the
21case of calendar year 2014 and each calendar year thereafter)
22calendar years immediately preceding the calendar year for
23which a rate is being determined shall be the product obtained

 

 

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1by multiplying the employer's benefit ratio defined by Section
21503.1 for that calendar year by the adjusted state experience
3factor for the same year, provided that:
4        1. Except as otherwise provided in this paragraph, an
5    employer's minimum contribution rate shall be the greater
6    of 0.2% or the product obtained by multiplying 0.2% by the
7    adjusted state experience factor for the applicable
8    calendar year. An employer's minimum contribution rate
9    shall be 0.1% for calendar year 1996. An employer's minimum
10    contribution rate shall be 0.0% for calendar years 2012
11    through 2019.
12        2. An employer's maximum contribution rate shall be the
13    greater of 6.4% or the product of 6.4% and the adjusted
14    state experience factor for the applicable calendar year.
15        3. If any product obtained in this subsection is not an
16    exact multiple of one-tenth of one percent, it shall be
17    increased or reduced, as the case may be to the nearer
18    multiple of one-tenth of one percent. If such product is
19    equally near to two multiples of one-tenth of one percent,
20    it shall be increased to the higher multiple of one-tenth
21    of one percent.
22        4. Intermediate rates between such minimum and maximum
23    rates shall be at one-tenth of one percent intervals.
24    The contribution rate of each employer for whom wages
25became benefit wages during the applicable period specified in
26Section 1503 or for whom benefit payments became benefit

 

 

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1charges during the applicable period specified in Section
21503.1, but who did not report wages for insured work during
3such period, shall be the maximum contribution rate as
4determined by paragraph 2 of this subsection. The contribution
5rate for each employer for whom no wages became benefit wages
6during the applicable period specified in Section 1503 or for
7whom no benefit payments became benefit charges during the
8applicable period specified in Section 1503.1, and who did not
9report wages for insured work during such period, shall be the
10greater of 2.7% or 2.7% times the then current adjusted state
11experience factor as determined by the Director in accordance
12with the provisions of Sections 1504 and 1505.
13    F. (Blank).
14    G. Notwithstanding the other provisions of this Section, no
15employer's contribution rate with respect to calendar year 1989
16and each calendar year thereafter shall exceed 5.4% of the
17wages for insured work paid by him during any calendar quarter,
18if such wages paid during such calendar quarter total less than
19$50,000, plus any applicable penalty contribution rate
20calculated pursuant to subsection C of Section 1507.1.
21(Source: P.A. 97-621, eff. 11-18-11; 97-791, eff. 1-1-13.)