(40 ILCS 5/21-109)
(from Ch. 108 1/2, par. 21-109)
Payment of Contributions.
(a) Absolute coverage group: Each political subdivision which has
established Social Security coverage for its employees under this Article
shall pay contributions on
covered wages paid prior to January 1, 1987 in the amounts and at the rates
prescribed by subchapters A and B of the Federal Insurance Contributions
Act at the times prescribed in the regulations of the State Agency.
Taxes due on wages covered under the Social Security Coverage Agreement
paid after December 31, 1986 shall be paid by each political subdivision to
the Internal Revenue Service in the amounts and at the rates specified in
the Federal Insurance Contributions Act and at the times prescribed in the
regulations of the Internal Revenue Service.
Every political subdivision required to make
payments is authorized in consideration of the employee's retention in,
or entry upon, employment to impose upon each of its employees, as to
services which are covered by the coverage agreement, a contribution with
respect to wages computed by applying the rates of contribution prescribed by
Subchapter A of the Federal Insurance Contributions Act, and to deduct the
amount of such contribution from such employee's wages when paid.
Failure to deduct such contribution shall not relieve the employee or
employer of liability therefor.
(b) Retirement system coverage group: As a condition of its coverage
agreement, the governing body or board of trustees of any retirement system
which has adopted Social Security coverage for its members under this Article
shall assume responsibility to the State Agency for the compiling of wage data,
the collection of related contributions prescribed by subchapters A and B of
the Federal Insurance Contributions Act, and the timely reporting and payment
of such items upon the wages of all covered employees paid prior to January 1,
1987 in the manner and at the times prescribed by the State Agency.
Coincident to the adoption of coverage, the governing body or board of
trustees of the retirement system shall promulgate rules and regulations
in conformity with federal regulations, applicable to the State or local
governmental entities or to the agencies and employees participating
therein, to insure the correct application of coverage and the timely and
accurate reporting of wages and collection of contributions.
In the event of failure by the retirement system or the governmental
entities or agencies participating therein to comply with the timely reporting
and payment requirements imposed by this Section, the retirement system
shall be assessed any federal interest or late filing penalties arising
The contributions collected under this Section by any retirement system which
elects to adopt coverage shall be remitted at such times as the State Agency
The employees comprising the executive and administrative staff of any
retirement system which elects to adopt the provisions of this
Article shall have the contributions made by the body employing them.
(c) If more or less than the correct amount of contributions is paid to
the State Agency, proper adjustment, or refund without interest if
adjustment is impractical, shall be made in such manner and at such times
as the State Agency shall prescribe.
(Source: P.A. 90-448, eff. 8-16-97.)