Section 2760.120  Employer's Contribution Report and Combined Return for Household Employers

a)         Except for employers that file a Combined Return for Household Employers, as provided in Sections 2760.125 and 2760.128, each quarter the agency shall provide each employer subject to the Unemployment Insurance Act, including employers electing to make payments in lieu of paying contributions under Section 1404, 1405 or 302 of the Act [820 ILCS 405/1404, 1405, 302], with a preprinted packet that includes a form Employer's Contribution and Wage Report or, with respect to employers subject to Section 2760.140, a form Quarterly Electro-Magnetic Filing Notice, in part, for filing its quarterly unemployment insurance contribution report.  Subject to the provisions of Section 2760.140, unless the employer was held subject to the Act within the one year period prior to the due date of this form and had not yet been assigned an Illinois account number, the employer must use the left side of the preprinted form provided for filing its report.  Except as provided in the previous sentence, the use of a blank (not preprinted for the employer) form will be considered an incomplete submission and be returned to the employer for resubmission.  Replacement preprinted forms are available upon request (see Section 2760.125(a)(4) for extensions of the time for filing).

1)         In the event that an employer files a petition in bankruptcy under the Bankruptcy Code (USC Title 11), the employer shall file two Employer's Contribution and Wage Reports or Combined Returns for Household Employers, as the case may be, for the quarter in which the petition is filed. One report shall address the period beginning on the first day of the quarter to, and including, the day prior to the date of the filing of the petition. The other report shall address the period beginning on the date of the filing of the petition to, and including, the last day of the calendar quarter.

            EXAMPLE 1:  Corporation A files a petition in bankruptcy on August 15, 1994. Corporation A is required to file two Employer's Contribution and Wage Reports for the third quarter of 1994, both due October 31, 1994.  One will cover the period to and including August 14, 1994, and Corporation A will calculate contributions due for that period.  The other report will cover the period beginning August 15, 1994 to, and including, September 30, 1994 and will reflect the contributions due for that period.

EXAMPLE 2:  Employer A, which is a household annual filer, files a petition in bankruptcy on August 15, 2008.  Employer A is required to file two Combined Returns for Household Employers, both due April 15, 2009.  One will cover the period to and including August 14, 2008, and Employer A will calculate contributions due for that period.  The other report will cover the period beginning August 15, 2008 to, and including, December 31, 2008 and will reflect the contributions due for that period.

2)         In the event that an employer transfers substantially all of its employing enterprises to another employing unit but continues to be a liable employer, the employer shall file two Employer's Contribution and Wage Reports for the calendar quarter in which the transfer occurs.  One report shall address the period beginning on the first day of the quarter to, and including, the date of transfer.  The other report shall address the period beginning on the first day after the date of transfer to, and including, the last day of the calendar quarter.

            EXAMPLE:  On August 15, 1994, Corporation A, which owns a retail establishment named the XYZ Store, sells the entire business except the name "XYZ Store" to Corporation B.  The officers of Corporation A continue to perform services and are paid wages after the transfer.  Corporation A is required to file two Employer's Contribution and Wage Reports for the third quarter of 1994, both due October 31, 1994.  One will cover the period to, and including, August 15, 1994, and Corporation A will calculate contributions due for that period.  The other report will cover the period beginning August 16, 1994 to, and including, September 30, 1994, and will reflect the contributions due for that period.

3)         The employer may obtain a second imprinted Employer's Contribution and Wage Report form or Combined Return for Household Employers upon request (see Section 2760.125(a)(4) for extensions of time for filing).

4)         In the event the employer files only one report for a quarter for which two reports are required under subsection (a)(1) or (a)(2) and provides the total and taxable wages for the entire quarter in the report, or filed only one return for a year for which two returns are required, and provides the total and taxable wages for the entire year in the return, the report or return, as the case may be, will be deemed to be insufficient as provided in Section 1402 of the Act.  The employer must file, within 30 days after the mailing of a notice to it of insufficiency, the two reports or returns as required in either subsection (a)(1) or (a)(2) as applicable, or the penalties provided in Section 1402 shall apply.

5)         Except as otherwise provided in this subsection (a)(5), the penalties provided for in Section 1402 of the Act regarding each report or return required under subsection (a)(1) or (a)(2) of this Section shall be calculated on the basis of the total wages paid and contributions due for the period to which that report or return applies.  Regardless of whether the employer fails to timely file one or both of the reports or returns, the total penalty for such failure shall not exceed $5,000 and the minimum penalty for such failure shall be $50.  The minimum penalty for willful failure to pay any contribution, or part thereof, with intent to defraud the Director, shall be $400, regardless of whether the employer fails to make the payment for both or only one of the periods.

            EXAMPLE:  An employer timely files a report representing the part of the quarter prior to the date of filing of the petition in bankruptcy.  He or she is late in filing the report for the part of the quarter including the date the petition is filed.  The penalty will be calculated only on the amount of wages paid as reflected in the report for the period including the date the petition in bankruptcy is filed.

b)         In addition to the identifying information on the Employer's Contribution and Wage Report or Combined Return for Household Employers, the employer must provide the total wages paid during the quarter, the taxable wages paid during the quarter and the number of employees during the pay period that includes the 12^th day of each month of that quarter.  For purposes of this subsection (b), when an employer is required to file two reports or returns pursuant to subsection (a)(1) or (a)(2), "quarter" shall mean the period required to be addressed by the report or return.

(Source:  Amended at 35 Ill. Reg. 6136, effective March 25, 2011)