Full Text of SB1355 103rd General Assembly
SB1355 103RD GENERAL ASSEMBLY |
| | 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 |
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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.
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| | A BILL FOR |
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| 1 | | AN ACT concerning employment.
| 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 1400 as follows:
| 6 | | (820 ILCS 405/1400) (from Ch. 48, par. 550)
| 7 | | Sec. 1400. Payment of contributions. | 8 | | (a) On and after July 1, 1937,
contributions shall accrue | 9 | | and become payable by each employer for each
calendar year in | 10 | | which he is subject to this Act, with respect to wages
payable | 11 | | for employment occurring during the six months' period | 12 | | beginning
July 1, 1937, and the calendar years 1938, 1939, and | 13 | | 1940. For the year
1941 and for each calendar year thereafter, | 14 | | contributions shall accrue
and become payable by each employer | 15 | | upon the wages paid with respect to
employment after December | 16 | | 31, 1940. Except as otherwise provided in subsection (b) and | 17 | | Section 1400.2, such contributions shall become due
and shall | 18 | | be paid quarterly on or before the last day of the month next
| 19 | | following the calendar quarter for which such contributions | 20 | | have
accrued; except that any employer who is delinquent in | 21 | | filing a
contribution report or in paying his contributions | 22 | | for any calendar
quarter may, at the discretion of the | 23 | | Director, be required to report
and to pay contributions on a |
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| 1 | | calendar month basis. Such contributions
shall not be | 2 | | deducted, in whole or in part, from the wages of
individuals in | 3 | | such employer's employ. If the Director shall find that
the | 4 | | collection of any contributions will be jeopardized by delay, | 5 | | he may
declare the same to be immediately due and payable.
| 6 | | In the payment of any contributions, interest, or | 7 | | penalties, a
fractional part of a cent shall be disregarded | 8 | | unless it amounts to
one-half cent or more, in which case it | 9 | | shall be increased to one cent.
| 10 | | The Director may by regulation provide that if, at any | 11 | | time, a total
amount of less
than $2 is payable with respect to | 12 | | a quarter, including any
contributions, payments in lieu of | 13 | | contributions, interest or
penalties, such amount may be | 14 | | disregarded. Any amounts
disregarded under this paragraph are | 15 | | deemed to have been paid for all
other purposes of this Act. | 16 | | Nothing in this paragraph is intended to
relieve any employer | 17 | | from filing any reports required by this Act or by
any rules or | 18 | | regulations adopted by the Director pursuant to this Act.
| 19 | | Except with respect to the provisions concerning amounts | 20 | | that may be
disregarded pursuant to regulation, this Section | 21 | | does not apply to any
nonprofit organization or any | 22 | | governmental
entity referred to in subsection B of Section | 23 | | 1405 for any
period with respect to which it does not incur | 24 | | liability for the payment
of contributions by reason of having | 25 | | elected to make payments in lieu of
contributions, or to any | 26 | | political subdivision or municipal corporation
for any period |
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| 1 | | with respect to which it is not subject to payments in
lieu of | 2 | | contributions under the provisions of paragraph 1 of Section
| 3 | | 302C by reason of having elected to make payments in lieu of
| 4 | | contributions under paragraph 2 of that Section, or to the | 5 | | State of
Illinois or any of its instrumentalities.
| 6 | | The Director may, by regulation, provide that amounts due | 7 | | from an employing unit for contributions, payments in lieu of | 8 | | contributions, penalties, or interest be paid by an electronic | 9 | | funds transfer, including amounts paid on behalf of an | 10 | | employing unit by an entity representing the employing unit. | 11 | | The regulation shall not apply to an employing unit until the | 12 | | Director notifies the employing unit of the regulation. Except | 13 | | as otherwise provided in this Section, where the employing | 14 | | unit, within 30 days of the date of service of the notice sent | 15 | | pursuant to this amendatory Act of the 98th General Assembly, | 16 | | notifies the Director that it declines to pay by electronic | 17 | | funds transfer, the regulation shall not apply to the | 18 | | employing unit. Except as otherwise provided in this Section, | 19 | | where the employing unit, within 30 days of the date of service | 20 | | of a notice sent pursuant to Section 1509 of this Act, notifies | 21 | | the Director that it declines to pay by electronic funds | 22 | | transfer, the regulation shall not apply to the employing unit | 23 | | with respect to any payment due after the date the employing | 24 | | unit so notifies the Director. The Director is authorized to | 25 | | provide by regulation reasonable penalties for employing units | 26 | | that are subject to and fail to comply with such a regulation. |
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| 1 | | Any employing unit that is not subject to the regulation may | 2 | | elect to become subject to the regulation by paying amounts | 3 | | due for contributions, payments in lieu of contributions, | 4 | | penalties, or interest by an electronic funds transfer. | 5 | | Notwithstanding any other provision to the contrary, in the | 6 | | case of an entity representing 5 or more employing units, | 7 | | neither the entity nor the employing units (for as long as they | 8 | | are represented by that entity) shall have the option to | 9 | | decline to pay by electronic funds transfer. | 10 | | (b) For an annual administrative fee not to exceed $100, | 11 | | an employer subject to the payment of contributions may pay | 12 | | its quarterly contributions due for wages paid during the | 13 | | first 3 quarters of a calendar year in equal installments as | 14 | | follows: | 15 | | (1) For contributions due for wages paid during the | 16 | | first quarter of that calendar year, one-fourth of the | 17 | | contributions due must be paid on or before April 30 of | 18 | | that calendar year, one-fourth must be paid on or before | 19 | | July 31 of that calendar year, one-fourth must be paid on | 20 | | or before October 31 of that calendar year, and one-fourth | 21 | | must be paid on or before January 31 of the succeeding | 22 | | calendar year. | 23 | | (2) In addition to the payments specified in paragraph | 24 | | (1) above, for contributions due for wages paid during the | 25 | | second quarter of that calendar year, one-third of the | 26 | | contributions due must be paid on or before July 31 of that |
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| 1 | | calendar year, one-third must be paid on or before October | 2 | | 31 of that calendar year, and one-third must be paid on or | 3 | | before January 31 of the succeeding calendar year. | 4 | | (3) In addition to the payments specified in | 5 | | paragraphs (1) and (2), for contributions due for wages | 6 | | paid during the third quarter of that calendar year, | 7 | | one-half of the contributions due must be paid on or | 8 | | before October 31 of that calendar year, and one-half must | 9 | | be paid on or before January 31 of the succeeding calendar | 10 | | year. | 11 | | (4) The annual administrative fee assessed for | 12 | | electing to pay under this subsection for a calendar year | 13 | | shall be due and payable on or before April 30 of that | 14 | | calendar year and shall be deposited into the Special | 15 | | Administrative Account. | 16 | | Interest shall not accrue on any contribution that becomes | 17 | | due for wages paid during the first 3 quarters of a calendar | 18 | | year if the employer elects to utilize the provisions of this | 19 | | subsection and pays its contributions and administrative fee | 20 | | in accordance with paragraphs (1) through (4). If an employer | 21 | | elects to utilize the provisions of this subsection but fails | 22 | | to pay its contributions when due in accordance with | 23 | | paragraphs (1) through (4), interest shall accrue as of the | 24 | | date that such payment was originally due without regard to | 25 | | this subsection. | 26 | | The Director may adopt such rules as he or she deems |
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| 1 | | necessary to carry out the provisions of this subsection. | 2 | | The provisions of this subsection shall not be in effect | 3 | | for a calendar year if, as of January 1 of that calendar year, | 4 | | there are bonds outstanding pursuant to the Illinois | 5 | | Unemployment Insurance Trust Fund Financing Act. | 6 | | (Source: P.A. 98-107, eff. 7-23-13.)
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