Bill Text: IL HB2597 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-02-19 - Referred to Rules Committee [HB2597 Detail]

Download: Illinois-2015-HB2597-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB2597 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED:
820 ILCS 405/1400 from Ch. 48, par. 550
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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AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Unemployment Insurance Act is amended by
changing Section 1400 as follows:
(820 ILCS 405/1400) (from Ch. 48, par. 550)
Sec. 1400. Payment of contributions.
(a) On and after July 1, 1937, contributions shall accrue
and become payable by each employer for each calendar year in
which he is subject to this Act, with respect to wages payable
for employment occurring during the six months' period
beginning July 1, 1937, and the calendar years 1938, 1939, and
1940. For the year 1941 and for each calendar year thereafter,
contributions shall accrue and become payable by each employer
upon the wages paid with respect to employment after December
31, 1940. Except as otherwise provided in subsection (b) and
Section 1400.2, such contributions shall become due and shall
be paid quarterly on or before the last day of the month next
following the calendar quarter for which such contributions
have accrued; except that any employer who is delinquent in
filing a contribution report or in paying his contributions for
any calendar quarter may, at the discretion of the Director, be
required to report and to pay contributions on a calendar month

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basis. Such contributions shall not be deducted, in whole or in
part, from the wages of individuals in such employer's employ.
If the Director shall find that the collection of any
contributions will be jeopardized by delay, he may declare the
same to be immediately due and payable.
In the payment of any contributions, interest, or
penalties, a fractional part of a cent shall be disregarded
unless it amounts to one-half cent or more, in which case it
shall be increased to one cent.
The Director may by regulation provide that if, at any
time, a total amount of less than $2 is payable with respect to
a quarter, including any contributions, payments in lieu of
contributions, interest or penalties, such amount may be
disregarded. Any amounts disregarded under this paragraph are
deemed to have been paid for all other purposes of this Act.
Nothing in this paragraph is intended to relieve any employer
from filing any reports required by this Act or by any rules or
regulations adopted by the Director pursuant to this Act.
Except with respect to the provisions concerning amounts
that may be disregarded pursuant to regulation, this Section
does not apply to any nonprofit organization or any
governmental entity referred to in subsection B of Section 1405
for any period with respect to which it does not incur
liability for the payment of contributions by reason of having
elected to make payments in lieu of contributions, or to any
political subdivision or municipal corporation for any period

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with respect to which it is not subject to payments in lieu of
contributions under the provisions of paragraph 1 of Section
302C by reason of having elected to make payments in lieu of
contributions under paragraph 2 of that Section, or to the
State of Illinois or any of its instrumentalities.
The Director may, by regulation, provide that amounts due
from an employing unit for contributions, payments in lieu of
contributions, penalties, or interest be paid by an electronic
funds transfer, including amounts paid on behalf of an
employing unit by an entity representing the employing unit.
The regulation shall not apply to an employing unit until the
Director notifies the employing unit of the regulation. Except
as otherwise provided in this Section, where the employing
unit, within 30 days of the date of service of the notice sent
pursuant to this amendatory Act of the 98th General Assembly,
notifies the Director that it declines to pay by electronic
funds transfer, the regulation shall not apply to the employing
unit. Except as otherwise provided in this Section, where the
employing unit, within 30 days of the date of service of a
notice sent pursuant to Section 1509 of this Act, notifies the
Director that it declines to pay by electronic funds transfer,
the regulation shall not apply to the employing unit with
respect to any payment due after the date the employing unit so
notifies the Director. The Director is authorized to provide by
regulation reasonable penalties for employing units that are
subject to and fail to comply with such a regulation. Any

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employing unit that is not subject to the regulation may elect
to become subject to the regulation by paying amounts due for
contributions, payments in lieu of contributions, penalties,
or interest by an electronic funds transfer. Notwithstanding
any other provision to the contrary, in the case of an entity
representing 5 or more employing units, neither the entity nor
the employing units (for as long as they are represented by
that entity) shall have the option to decline to pay by
electronic funds transfer.
(b) For an annual administrative fee not to exceed $100, an
employer subject to the payment of contributions may pay its
quarterly contributions due for wages paid during the first 3
quarters of a calendar year in equal installments as follows:
(1) For contributions due for wages paid during the
first quarter of that calendar year, one-fourth of the
contributions due must be paid on or before April 30 of
that calendar year, one-fourth must be paid on or before
July 31 of that calendar year, one-fourth must be paid on
or before October 31 of that calendar year, and one-fourth
must be paid on or before January 31 of the succeeding
calendar year.
(2) In addition to the payments specified in paragraph
(1) above, for contributions due for wages paid during the
second quarter of that calendar year, one-third of the
contributions due must be paid on or before July 31 of that
calendar year, one-third must be paid on or before October

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31 of that calendar year, and one-third must be paid on or
before January 31 of the succeeding calendar year.
(3) In addition to the payments specified in paragraphs
(1) and (2), for contributions due for wages paid during
the third quarter of that calendar year, one-half of the
contributions due must be paid on or before October 31 of
that calendar year, and one-half must be paid on or before
January 31 of the succeeding calendar year.
(4) The annual administrative fee assessed for
electing to pay under this subsection for a calendar year
shall be due and payable on or before April 30 of that
calendar year and shall be deposited into the Special
Administrative Account.
Interest shall not accrue on any contribution that becomes
due for wages paid during the first 3 quarters of a calendar
year if the employer elects to utilize the provisions of this
subsection and pays its contributions and administrative fee in
accordance with paragraphs (1) through (4). If an employer
elects to utilize the provisions of this subsection but fails
to pay its contributions when due in accordance with paragraphs
(1) through 4, interest shall accrue as of the date that such
payment was originally due without regard to this subsection.
The Director may promulgate such rules as he or she deems
necessary to carry out the provisions of this subsection.
The provisions of this subsection shall not be in effect
for a calendar year if, as of January 1 of that calendar year,

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there are bonds outstanding pursuant to the Illinois
Unemployment Insurance Trust Fund Financing Act.
(Source: P.A. 98-107, eff. 7-23-13.)