Full Text of SB2760 99th General Assembly
SB2760 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB2760 Introduced 2/17/2016, by Sen. Jason A. Barickman 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 issuance 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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| | | FISCAL NOTE ACT MAY APPLY | |
| | 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 for | 22 | | any calendar
quarter may, at the discretion of the Director, be | 23 | | required to report
and to pay contributions on a calendar month |
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| 1 | | basis. Such contributions
shall not be deducted, in whole or in | 2 | | part, from the wages of
individuals in such employer's employ. | 3 | | If the Director shall find that
the collection of any | 4 | | contributions will be jeopardized by delay, he may
declare the | 5 | | 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 1405 | 23 | | 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 employing | 18 | | unit. Except as otherwise provided in this Section, where the | 19 | | employing unit, within 30 days of the date of service of a | 20 | | notice sent pursuant to Section 1509 of this Act, notifies the | 21 | | Director that it declines to pay by electronic funds transfer, | 22 | | the regulation shall not apply to the employing unit with | 23 | | respect to any payment due after the date the employing unit so | 24 | | notifies the Director. The Director is authorized to provide by | 25 | | regulation reasonable penalties for employing units that are | 26 | | subject to and fail to comply with such a regulation. Any |
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| 1 | | employing unit that is not subject to the regulation may elect | 2 | | to become subject to the regulation by paying amounts due for | 3 | | contributions, payments in lieu of contributions, penalties, | 4 | | or interest by an electronic funds transfer. Notwithstanding | 5 | | any other provision to the contrary, in the case of an entity | 6 | | representing 5 or more employing units, neither the entity nor | 7 | | the employing units (for as long as they are represented by | 8 | | that entity) shall have the option to decline to pay by | 9 | | electronic funds transfer. | 10 | | (b) For an annual administrative fee not to exceed $100, an | 11 | | employer subject to the payment of contributions may pay its | 12 | | quarterly contributions due for wages paid during the first 3 | 13 | | quarters of a calendar year in equal installments as follows: | 14 | | (1) For contributions due for wages paid during the | 15 | | first quarter of that calendar year, one-fourth of the | 16 | | contributions due must be paid on or before April 30 of | 17 | | that calendar year, one-fourth must be paid on or before | 18 | | July 31 of that calendar year, one-fourth must be paid on | 19 | | or before October 31 of that calendar year, and one-fourth | 20 | | must be paid on or before January 31 of the succeeding | 21 | | calendar year. | 22 | | (2) In addition to the payments specified in paragraph | 23 | | (1) above, for contributions due for wages paid during the | 24 | | second quarter of that calendar year, one-third of the | 25 | | contributions due must be paid on or before July 31 of that | 26 | | calendar year, one-third must be paid on or before October |
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| 1 | | 31 of that calendar year, and one-third must be paid on or | 2 | | before January 31 of the succeeding calendar year. | 3 | | (3) In addition to the payments specified in paragraphs | 4 | | (1) and (2), for contributions due for wages paid during | 5 | | the third quarter of that calendar year, one-half of the | 6 | | contributions due must be paid on or before October 31 of | 7 | | that calendar year, and one-half must be paid on or before | 8 | | January 31 of the succeeding calendar year. | 9 | | (4) The annual administrative fee assessed for | 10 | | electing to pay under this subsection for a calendar year | 11 | | shall be due and payable on or before April 30 of that | 12 | | calendar year and shall be deposited into the Special | 13 | | Administrative Account. | 14 | | Interest shall not accrue on any contribution that becomes | 15 | | due for wages paid during the first 3 quarters of a calendar | 16 | | year if the employer elects to utilize the provisions of this | 17 | | subsection and pays its contributions and administrative fee in | 18 | | accordance with paragraphs (1) through (4). If an employer | 19 | | elects to utilize the provisions of this subsection but fails | 20 | | to pay its contributions when due in accordance with paragraphs | 21 | | (1) through 4, interest shall accrue as of the date that such | 22 | | payment was originally due without regard to this subsection. | 23 | | The Director may promulgate such rules as he or she deems | 24 | | necessary to carry out the provisions of this subsection. | 25 | | The provisions of this subsection shall not be in effect | 26 | | for a calendar year if, as of January 1 of that calendar year, |
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| 1 | | there are bonds outstanding pursuant to the Illinois | 2 | | Unemployment Insurance Trust Fund Financing Act. | 3 | | (Source: P.A. 98-107, eff. 7-23-13.)
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