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90_SB0714
820 ILCS 405/1506.1 from Ch. 48, par. 576.1
820 ILCS 405/1506.3 from Ch. 48, par. 576.3
Amends the Unemployment Insurance Act. Makes changes
concerning the determination of employers' contribution rates
and fund building rates for 1998 and subsequent years.
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1 AN ACT to amend the Unemployment Insurance Act by
2 changing Sections 1506.1 and 1506.3.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Unemployment Insurance Act is amended by
6 changing Sections 1506.1 and 1506.3 as follows:
7 (820 ILCS 405/1506.1) (from Ch. 48, par. 576.1)
8 Sec. 1506.1. Determination of Employer's Contribution
9 Rate.
10 A. The contribution rate for any calendar year prior to
11 1982 of each employer who has incurred liability for the
12 payment of contributions within each of the three calendar
13 years immediately preceding the calendar year for which a
14 rate is being determined shall be determined in accordance
15 with the provisions of this Act as amended and in effect on
16 October 5, 1980.
17 B. The contribution rate for calendar years 1982 and
18 1983 of each employer who has incurred liability for the
19 payment of contributions within each of the three calendar
20 years immediately preceding the calendar year for which a
21 rate is being determined shall be the product obtained by
22 multiplying the employer's benefit wage ratio for that
23 calendar year by the adjusted state experience factor for the
24 same year, provided that:
25 1. No employer's contribution rate shall be lower
26 than two-tenths of 1 percent or higher than 5.3%; and
27 2. Intermediate contribution rates between such
28 minimum and maximum rates shall be at one-tenth of 1
29 percent intervals.
30 3. If the product obtained as provided in this
31 subsection is not an exact multiple of one-tenth of 1
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1 percent, it shall be increased or reduced, as the case
2 may be, to the nearer multiple of one-tenth of 1 percent.
3 If such product is equally near to two multiples of
4 one-tenth of 1 percent, it shall be increased to the
5 higher multiple of one-tenth of 1 percent. If such
6 product is less than two-tenths of one percent, it shall
7 be increased to two-tenths of 1 percent, and if greater
8 than 5.3%, it shall be reduced to 5.3%.
9 The contribution rate of each employer for whom wages
10 became benefit wages during the applicable period specified
11 in Section 1503, but who paid no contributions upon wages for
12 insured work during such period on or before the date
13 designated in Section 1503, shall be 5.3%.
14 The contribution rate of each employer for whom no wages
15 became benefit wages during the applicable period specified
16 in Section 1503, and who paid no contributions upon wages for
17 insured work during such period on or before the date
18 specified in Section 1503, shall be 2.7 percent.
19 Notwithstanding the other provisions of this Section, no
20 employer's contribution rate with respect to calendar years
21 1982 and 1983 shall exceed 2.7 percent of the wages for
22 insured work paid by him during any calendar quarter, if such
23 wages paid during such calendar quarter total less than
24 $50,000.
25 C. The contribution rate for calendar years 1984, 1985
26 and 1986 of each employer who has incurred liability for the
27 payment of contributions within each of the two calendar
28 years immediately preceding the calendar year for which a
29 rate is being determined shall be the product obtained by
30 multiplying the employer's benefit wage ratio for that
31 calendar year by the adjusted state experience factor for the
32 same year, provided that:
33 1. An employer's minimum contribution rate shall be
34 the greater of: .2%; or, the product obtained by
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1 multiplying .2% by the adjusted state experience factor
2 for the applicable calendar year.
3 2. An employer's maximum contribution rate shall be
4 the greater of 5.5% or the product of 5.5% and the
5 adjusted State experience factor for the applicable
6 calendar year except that such maximum contribution rate
7 shall not be higher than 6.3% for calendar year 1984, nor
8 be higher than 6.6% or lower than 6.4% for calendar year
9 1985, nor be higher than 6.7% or lower than 6.5% for
10 calendar year 1986.
11 3. If any product obtained in this subsection is
12 not an exact multiple of one-tenth of one percent, it
13 shall be increased or reduced, as the case may be to the
14 nearer multiple of one-tenth of one percent. If such
15 product is equally near to two multiples of one-tenth of
16 one percent, it shall be increased to the higher multiple
17 of one-tenth of one percent.
18 4. Intermediate rates between such minimum and
19 maximum rates shall be at one-tenth of one percent
20 intervals.
21 The contribution rate of each employer for whom wages
22 became benefit wages during the applicable period specified
23 in Section 1503, but who paid no contributions upon wages for
24 insured work during such period on or before the date
25 designated in Section 1503, shall be the maximum contribution
26 rate as determined by paragraph 2 of this subsection. The
27 contribution rate for each employer for whom no wages became
28 benefit wages during the applicable period on or before the
29 date specified in Section 1503, and who paid no contributions
30 upon wages for insured work during such period on or before
31 the date specified in Section 1503, shall be the greater of
32 2.7% or 2.7% times the then current adjusted state experience
33 factor as determined by the Director in accordance with the
34 provisions of Sections 1504 and 1505.
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1 Notwithstanding, the other provisions of this Section, no
2 employer's contribution rate with respect to the calendar
3 year 1984 shall exceed 2.7 percent times the then current
4 adjusted state experience factor as determined by the
5 Director in accordance with the provisions of Sections 1504
6 and 1505 of the wages for insured work paid by him during any
7 calendar quarter, if such wages paid during such calendar
8 quarter total less than $50,000.
9 D. The contribution rate for calendar years 1987, 1988,
10 1989 and 1990 of each employer who has incurred liability for
11 the payment of contributions within each of the three
12 calendar years immediately preceding the calendar year for
13 which a rate is being determined shall be the product
14 obtained by multiplying the employer's benefit wage ratio for
15 that calendar year by the adjusted state experience factor
16 for the same year, provided, that:
17 1. An employer's minimum contribution rate shall be
18 the greater of .2% or the product obtained by multiplying
19 .2% by the adjusted State experience factor for the
20 applicable calendar year.
21 2. An employer's maximum contribution rate shall be
22 the greater of 5.5% or the product of 5.5% and the
23 adjusted State experience factor for the calendar year
24 1987 except that such maximum contribution rate shall not
25 be higher than 6.7% or lower than 6.5% and an employer's
26 maximum contribution rate for 1988, 1989 and 1990 shall
27 be the greater of 6.4% or the product of 6.4% and the
28 adjusted State experience factor for the applicable
29 calendar year.
30 3. If any product obtained in this subsection is
31 not an exact multiple of one-tenth of one percent, it
32 shall be increased or reduced, as the case may be to the
33 nearer multiple of one-tenth of 1 percent. If such
34 product is equally near to two multiples of one-tenth of
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1 1 percent, it shall be increased to the higher multiple
2 of one-tenth of 1 percent.
3 4. Intermediate rates between such minimum and
4 maximum rates shall be at one-tenth of 1 percent
5 intervals.
6 The contribution rate of each employer for whom wages
7 became benefit wages during the applicable period specified
8 in Section 1503, but who did not report wages for insured
9 work during such period, shall be the maximum contribution
10 rate as determined by paragraph 2 of this subsection. The
11 contribution rate for each employer for whom no wages became
12 benefit wages during the applicable period specified in
13 Section 1503, and who did not report wages for insured work
14 during such period, shall be the greater of 2.7% or 2.7%
15 times the then current adjusted State experience factor as
16 determined by the Director in accordance with the provisions
17 of Sections 1504 and 1505.
18 E. The contribution rate for calendar year 1991 and each
19 calendar year thereafter of each employer who has incurred
20 liability for the payment of contributions within each of the
21 three calendar years immediately preceding the calendar year
22 for which a rate is being determined shall be the product
23 obtained by multiplying the employer's benefit ratio defined
24 by Section 1503.1 for that calendar year by the adjusted
25 state experience factor for the same year, provided that:
26 1. Except as otherwise provided in this paragraph,
27 An employer's minimum contribution rate for calendar
28 years prior to 1996 and for calendar year 1997 shall be
29 the greater of 0.2% or the product obtained by
30 multiplying 0.2% by the adjusted state experience factor
31 for the applicable calendar year. An employer's minimum
32 contribution rate for calendar years after 1997 shall be
33 the greater of 0.1% or the product obtained by
34 multiplying 0.1% by the adjusted state experience factor
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1 for the applicable calendar year. An employer's minimum
2 contribution rate shall be 0.1% for calendar year 1996.
3 2. An employer's maximum contribution rate shall be
4 the greater of 6.4% or the product of 6.4% and the
5 adjusted state experience factor for the applicable
6 calendar year.
7 3. If any product obtained in this subsection is
8 not an exact multiple of one-tenth of one percent, it
9 shall be increased or reduced, as the case may be to the
10 nearer multiple of one-tenth of one percent. If such
11 product is equally near to two multiples of one-tenth of
12 one percent, it shall be increased to the higher multiple
13 of one-tenth of one percent.
14 4. Intermediate rates between such minimum and
15 maximum rates shall be at one-tenth of one percent
16 intervals.
17 The contribution rate of each employer for whom wages
18 became benefit wages during the applicable period specified
19 in Section 1503 or for whom benefit payments became benefit
20 charges during the applicable period specified in Section
21 1503.1, but who did not report wages for insured work during
22 such period, shall be the maximum contribution rate as
23 determined by paragraph 2 of this subsection. The
24 contribution rate for each employer for whom no wages became
25 benefit wages during the applicable period specified in
26 Section 1503 or for whom no benefit payments became benefit
27 charges during the applicable period specified in Section
28 1503.1, and who did not report wages for insured work during
29 such period, shall be the greater of 2.7% or 2.7% times the
30 then current adjusted state experience factor as determined
31 by the Director in accordance with the provisions of Sections
32 1504 and 1505.
33 F. Notwithstanding the other provisions of this Section,
34 and pursuant to Section 271 of the Tax Equity and Fiscal
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1 Responsibility Act of 1982, as amended, no employer's
2 contribution rate with respect to calendar years 1985, 1986,
3 1987 and 1988 shall, for any calendar quarter during which
4 the wages paid by that employer are less than $50,000, exceed
5 the following: with respect to calendar year 1985, 3.7%; with
6 respect to calendar year 1986, 4.1%; with respect to calendar
7 year 1987, 4.5%; and with respect to calendar year 1988,
8 5.0%.
9 G. Notwithstanding the other provisions of this Section,
10 no employer's contribution rate with respect to calendar year
11 1989 and each calendar year thereafter shall exceed 5.4% of
12 the wages for insured work paid by him during any calendar
13 quarter, if such wages paid during such calendar quarter
14 total less than $50,000.
15 (Source: P.A. 89-446, eff. 2-8-96.)
16 (820 ILCS 405/1506.3) (from Ch. 48, par. 576.3)
17 Sec. 1506.3. Fund building rates - Temporary
18 Administrative Funding.
19 A. Notwithstanding any other provision of this Act, the
20 following fund building rates shall be in effect for the
21 following calendar years:
22 For each employer whose contribution rate for 1988, 1989,
23 1990, the first, third, and fourth quarters of 1991, and 1992
24 through, 1993, 1994, 1995, and 1997 and any calendar year
25 thereafter would, in the absence of this Section, be 0.2% or
26 higher, or whose contribution rate for 1998 and any calendar
27 year thereafter would, in the absence of this Section, be
28 0.1% or higher, a contribution rate which is the sum of such
29 rate and 0.4%;
30 For each employer whose contribution rate for the second
31 quarter of 1991 would, in the absence of this Section, be
32 0.2% or higher, a contribution rate which is the sum of such
33 rate and 0.3%;
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1 For each employer whose contribution rate for 1996 would,
2 in the absence of this Section, be 0.1% or higher, a
3 contribution rate which is the sum of such rate and 0.4%;
4 Notwithstanding the preceding paragraphs of this Section
5 or any other provision of this Act, except for the provisions
6 contained in Section 1500 pertaining to rates applicable to
7 employers classified under the Standard Industrial Code, no
8 employer whose total wages for insured work paid by him
9 during any calendar quarter in 1988 and any calendar year
10 thereafter are less than $50,000 shall pay contributions at a
11 rate with respect to such quarter which exceeds the
12 following: with respect to calendar year 1988, 5%; with
13 respect to 1989 and any calendar year thereafter, 5.4%.
14 Notwithstanding the preceding paragraph of this Section,
15 or any other provision of this Act, no employer's
16 contribution rate with respect to calendar years 1993 through
17 1995 shall exceed 5.4% if the employer ceased operations at
18 an Illinois manufacturing facility in 1991 and remained
19 closed at that facility during all of 1992, and the employer
20 in 1993 commits to invest at least $5,000,000 for the purpose
21 of resuming operations at that facility, and the employer
22 rehires during 1993 at least 250 of the individuals employed
23 by it at that facility during the one year period prior to
24 the cessation of its operations, provided that, within 30
25 days after the effective date of this amendatory Act of 1993,
26 the employer makes application to the Department to have the
27 provisions of this paragraph apply to it. The immediately
28 preceding sentence shall be null and void with respect to an
29 employer which by December 31, 1993 has not satisfied the
30 rehiring requirement specified by this paragraph or which by
31 December 31, 1994 has not made the investment specified by
32 this paragraph.
33 B. Notwithstanding any other provision of this Act, for
34 the second quarter of 1991, the contribution rate of each
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1 employer as determined in accordance with Sections 1500,
2 1506.1, and subsection A of this Section shall be equal to
3 the sum of such rate and 0.1%; provided that this subsection
4 shall not apply to any employer whose rate computed under
5 Section 1506.1 for such quarter is between 5.1% and 5.3%,
6 inclusive, and who qualifies for the 5.4% rate ceiling
7 imposed by the last paragraph of subsection A for such
8 quarter. All payments made pursuant to this subsection shall
9 be deposited in the Employment Security Administrative Fund
10 established under Section 2103.1 and used for the
11 administration of this Act.
12 C. Payments received by the Director which are
13 insufficient to pay the total contributions due under the Act
14 shall be first applied to satisfy the amount due pursuant to
15 subsection B.
16 D. All provisions of this Act applicable to the
17 collection or refund of any contribution due under this Act
18 shall be applicable to the collection or refund of amounts
19 due pursuant to subsection B.
20 (Source: P.A. 88-518; 89-446, eff. 2-8-96.)