98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4370

 

Introduced , by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/1400.2
820 ILCS 405/1402  from Ch. 48, par. 552
820 ILCS 405/1404  from Ch. 48, par. 554
820 ILCS 405/1405  from Ch. 48, par. 555

    Amends the Unemployment Insurance Act. Deletes provisions requiring employers to file, on a monthly basis, reports regarding employee wages.


LRB098 15820 OMW 50859 b

 

 

A BILL FOR

 

HB4370LRB098 15820 OMW 50859 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Unemployment Insurance Act is amended by
5changing Sections 1400.2, 1402, 1404, 1405, and 1801.1 as
6follows:
 
7    (820 ILCS 405/1400.2)
8    Sec. 1400.2. Annual reporting and paying; household
9workers. This Section applies to an employer who solely employs
10one or more household workers with respect to whom the employer
11files federal unemployment taxes as part of his or her federal
12income tax return, or could file federal unemployment taxes as
13part of his or her federal income tax return if the worker or
14workers were providing services in employment for purposes of
15the federal unemployment tax. For purposes of this Section,
16"household worker" has the meaning ascribed to it for purposes
17of Section 3510 of the federal Internal Revenue Code. If an
18employer to whom this Section applies notifies the Director, in
19writing, that he or she wishes to pay his or her contributions
20for each quarter and submit his or her wage reports for each
21month or quarter, as the case may be, on an annual basis, then
22the due date for filing the reports and paying the
23contributions shall be April 15 of the calendar year

 

 

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1immediately following the close of the months or quarters to
2which the reports and quarters to which the contributions
3apply, except that the Director may, by rule, establish a
4different due date for good cause.
5(Source: P.A. 97-689, eff. 6-14-12.)
 
6    (820 ILCS 405/1402)  (from Ch. 48, par. 552)
7    Sec. 1402. Penalties.
8    A. If any employer fails, within the time prescribed in
9this Act as amended and in effect on October 5, 1980, and the
10regulations of the Director, to file a report of wages paid to
11each of his workers, or to file a sufficient report of such
12wages after having been notified by the Director to do so, for
13any period which begins prior to January 1, 1982, he shall pay
14to the Department as a penalty a sum determined in accordance
15with the provisions of this Act as amended and in effect on
16October 5, 1980.
17    B. Except as otherwise provided in this Section, any
18employer who fails to file a report of wages paid to each of
19his workers for any period which begins on or after January 1,
201982, within the time prescribed by the provisions of this Act
21and the regulations of the Director, or, if the Director
22pursuant to such regulations extends the time for filing the
23report, fails to file it within the extended time, shall, in
24addition to any sum otherwise payable by him under the
25provisions of this Act, pay to the Department as a penalty a

 

 

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1sum equal to the lesser of (1) $5 for each $10,000 or fraction
2thereof of the total wages for insured work paid by him during
3the period or (2) $2,500, for each month or part thereof of
4such failure to file the report. With respect to an employer
5who has elected to file reports of wages on an annual basis
6pursuant to Section 1400.2, in assessing penalties for the
7failure to submit all reports by the due date established
8pursuant to that Section, the 30-day period immediately
9following the due date shall be considered as one month.
10    If the Director deems an employer's report of wages paid to
11each of his workers for any period which begins on or after
12January 1, 1982, insufficient, he shall notify the employer to
13file a sufficient report. If the employer fails to file such
14sufficient report within 30 days after the mailing of the
15notice to him, he shall, in addition to any sum otherwise
16payable by him under the provisions of this Act, pay to the
17Department as a penalty a sum determined in accordance with the
18provisions of the first paragraph of this subsection, for each
19month or part thereof of such failure to file such sufficient
20report after the date of the notice.
21    For wages paid in calendar years prior to 1988, the penalty
22or penalties which accrue under the two foregoing paragraphs
23with respect to a report for any period shall not be less than
24$100, and shall not exceed the lesser of (1) $10 for each
25$10,000 or fraction thereof of the total wages for insured work
26paid during the period or (2) $5,000. For wages paid in

 

 

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1calendar years after 1987, the penalty or penalties which
2accrue under the 2 foregoing paragraphs with respect to a
3report for any period shall not be less than $50, and shall not
4exceed the lesser of (1) $10 for each $10,000 or fraction of
5the total wages for insured work paid during the period or (2)
6$5,000. With respect to an employer who has elected to file
7reports of wages on an annual basis pursuant to Section 1400.2,
8for purposes of calculating the minimum penalty prescribed by
9this Section for failure to file the reports on a timely basis,
10a calendar year shall constitute a single period. For reports
11of wages paid after 1986, the Director shall not, however,
12impose a penalty pursuant to either of the two foregoing
13paragraphs on any employer who can prove within 30 working days
14after the mailing of a notice of his failure to file such a
15report, that (1) the failure to file the report is his first
16such failure during the previous 20 consecutive calendar
17quarters, and (2) the amount of the total contributions due for
18the calendar quarter of such report (or, in the case of an
19employer who is required to file the reports on a monthly
20basis, the amount of the total contributions due for the
21calendar quarter that includes the month of such report) is
22less than $500.
23    For any month which begins on or after January 1, 2013, a
24report of the wages paid to each of an employer's workers shall
25be due on or before the last day of the month next following
26the calendar month in which the wages were paid if the employer

 

 

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1is required to report such wages electronically pursuant to the
2regulations of the Director; otherwise a report of the wages
3paid to each of the employer's workers shall be due on or
4before the last day of the month next following the calendar
5quarter in which the wages were paid.
6    Any employer who wilfully fails to pay any contribution or
7part thereof, based upon wages paid prior to 1987, when
8required by the provisions of this Act and the regulations of
9the Director, with intent to defraud the Director, shall in
10addition to such contribution or part thereof pay to the
11Department a penalty equal to 50 percent of the amount of such
12contribution or part thereof, as the case may be, provided that
13the penalty shall not be less than $200.
14    Any employer who willfully fails to pay any contribution or
15part thereof, based upon wages paid in 1987 and in each
16calendar year thereafter, when required by the provisions of
17this Act and the regulations of the Director, with intent to
18defraud the Director, shall in addition to such contribution or
19part thereof pay to the Department a penalty equal to 60% of
20the amount of such contribution or part thereof, as the case
21may be, provided that the penalty shall not be less than $400.
22    However, all or part of any penalty may be waived by the
23Director for good cause shown.
24(Source: P.A. 97-689, eff. 6-14-12; 97-791, eff. 1-1-13;
2598-463, eff. 8-16-13.)
 

 

 

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1    (820 ILCS 405/1404)  (from Ch. 48, par. 554)
2    Sec. 1404. Payments in lieu of contributions by nonprofit
3organizations.
4    A. For the year 1972 and for each calendar year thereafter,
5contributions shall accrue and become payable, pursuant to
6Section 1400, by each nonprofit organization (defined in
7Section 211.2) upon the wages paid by it with respect to
8employment after 1971, unless the nonprofit organization
9elects, in accordance with the provisions of this Section, to
10pay, in lieu of contributions, an amount equal to the amount of
11regular benefits and one-half the amount of extended benefits
12(defined in Section 409) paid to individuals, for any weeks
13which begin on or after the effective date of the election, on
14the basis of wages for insured work paid to them by such
15nonprofit organization during the effective period of such
16election. Notwithstanding the preceding provisions of this
17subsection and the provisions of subsection D, with respect to
18benefit years beginning prior to July 1, 1989, any adjustment
19after September 30, 1989 to the base period wages paid to the
20individual by any employer shall not affect the ratio for
21determining the payments in lieu of contributions of a
22nonprofit organization which has elected to make payments in
23lieu of contributions. Provided, however, that with respect to
24benefit years beginning on or after July 1, 1989, the nonprofit
25organization shall be required to make payments equal to 100%
26of regular benefits, including dependents' allowances, and 50%

 

 

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1of extended benefits, including dependents' allowances, paid
2to an individual with respect to benefit years beginning during
3the effective period of the election, but only if the nonprofit
4organization: (a) is the last employer as provided in Section
51502.1 and (b) paid to the individual receiving benefits, wages
6for insured work during his base period. If the nonprofit
7organization described in this paragraph meets the
8requirements of (a) but not (b), with respect to benefit years
9beginning on or after July 1, 1989, it shall be required to
10make payments in an amount equal to 50% of regular benefits,
11including dependents' allowances, and 25% of extended
12benefits, including dependents' allowances, paid to an
13individual with respect to benefit years beginning during the
14effective period of the election.
15        1. Any employing unit which becomes a nonprofit
16    organization on January 1, 1972, may elect to make payments
17    in lieu of contributions for not less than one calendar
18    year beginning with January 1, 1972, provided that it files
19    its written election with the Director not later than
20    January 31, 1972.
21        2. Any employing unit which becomes a nonprofit
22    organization after January 1, 1972, may elect to make
23    payments in lieu of contributions for a period of not less
24    than one calendar year beginning as of the first day with
25    respect to which it would, in the absence of its election,
26    incur liability for the payment of contributions, provided

 

 

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1    that it files its written election with the Director not
2    later than 30 days immediately following the end of the
3    calendar quarter in which it becomes a nonprofit
4    organization.
5        3. A nonprofit organization which has incurred
6    liability for the payment of contributions for at least 2
7    calendar years and is not delinquent in such payment and in
8    the payment of any interest or penalties which may have
9    accrued, may elect to make payments in lieu of
10    contributions beginning January 1 of any calendar year,
11    provided that it files its written election with the
12    Director prior to such January 1, and provided, further,
13    that such election shall be for a period of not less than 2
14    calendar years.
15        4. An election to make payments in lieu of
16    contributions shall not terminate any liability incurred
17    by an employer for the payment of contributions, interest
18    or penalties with respect to any calendar quarter (or
19    month, as the case may be) which ends prior to the
20    effective period of the election.
21        5. A nonprofit organization which has elected,
22    pursuant to paragraph 1, 2, or 3, to make payments in lieu
23    of contributions may terminate the effective period of the
24    election as of January 1 of any calendar year subsequent to
25    the required minimum period of the election only if, prior
26    to such January 1, it files with the Director a written

 

 

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1    notice to that effect. Upon such termination, the
2    organization shall become liable for the payment of
3    contributions upon wages for insured work paid by it on and
4    after such January 1 and, notwithstanding such
5    termination, it shall continue to be liable for payments in
6    lieu of contributions with respect to benefits paid to
7    individuals on and after such January 1, with respect to
8    benefit years beginning prior to July 1, 1989, on the basis
9    of wages for insured work paid to them by the nonprofit
10    organization prior to such January 1, and, with respect to
11    benefit years beginning after June 30, 1989, if such
12    employer was the last employer as provided in Section
13    1502.1 during a benefit year beginning prior to such
14    January 1.
15        6. Written elections to make payments in lieu of
16    contributions and written notices of termination of
17    election shall be filed in such form and shall contain such
18    information as the Director may prescribe. Upon the filing
19    of such election or notice, the Director shall either order
20    it approved, or, if it appears to the Director that the
21    nonprofit organization has not filed such election or
22    notice within the time prescribed, he shall order it
23    disapproved. The Director shall serve notice of his order
24    upon the nonprofit organization. The Director's order
25    shall be final and conclusive upon the nonprofit
26    organization unless, within 15 days after the date of

 

 

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1    mailing of notice thereof, the nonprofit organization
2    files with the Director an application for its review,
3    setting forth its reasons in support thereof. Upon receipt
4    of an application for review within the time prescribed,
5    the Director shall order it allowed, or shall order that it
6    be denied, and shall serve notice upon the nonprofit
7    organization of his order. All of the provisions of Section
8    1509, applicable to orders denying applications for review
9    of determinations of employers' rates of contribution and
10    not inconsistent with the provisions of this subsection,
11    shall be applicable to an order denying an application for
12    review filed pursuant to this subsection.
13    B. As soon as practicable following the close of each
14calendar quarter, the Director shall mail to each nonprofit
15organization which has elected to make payments in lieu of
16contributions a Statement of the amount due from it for the
17regular and one-half the extended benefits paid (or the amounts
18otherwise provided for in subsection A) during the calendar
19quarter, together with the names of its workers or former
20workers and the amounts of benefits paid to each of them during
21the calendar quarter, with respect to benefit years beginning
22prior to July 1, 1989, on the basis of wages for insured work
23paid to them by the nonprofit organization; or, with respect to
24benefit years beginning after June 30, 1989, if such nonprofit
25organization was the last employer as provided in Section
261502.1 with respect to a benefit year beginning during the

 

 

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1effective period of the election. The amount due shall be
2payable, and the nonprofit organization shall make payment of
3such amount not later than 30 days after the date of mailing of
4the Statement. The Statement shall be final and conclusive upon
5the nonprofit organization unless, within 20 days after the
6date of mailing of the Statement, the nonprofit organization
7files with the Director an application for revision thereof.
8Such application shall specify wherein the nonprofit
9organization believes the Statement to be incorrect, and shall
10set forth its reasons for such belief. All of the provisions of
11Section 1508, applicable to applications for revision of
12Statements of Benefit Wages and Statements of Benefit Charges
13and not inconsistent with the provisions of this subsection,
14shall be applicable to an application for revision of a
15Statement filed pursuant to this subsection.
16        1. Payments in lieu of contributions made by any
17    nonprofit organization shall not be deducted or
18    deductible, in whole or in part, from the remuneration of
19    individuals in the employ of the organization, nor shall
20    any nonprofit organization require or accept any waiver of
21    any right under this Act by an individual in its employ.
22    The making of any such deduction or the requirement or
23    acceptance of any such waiver is a Class A misdemeanor. Any
24    agreement by an individual in the employ of any person or
25    concern to pay all or any portion of a payment in lieu of
26    contributions, required under this Act from a nonprofit

 

 

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1    organization, is void.
2        2. A nonprofit organization which fails to make any
3    payment in lieu of contributions when due under the
4    provisions of this subsection shall pay interest thereon at
5    the rates specified in Section 1401. A nonprofit
6    organization which has elected to make payments in lieu of
7    contributions shall be subject to the penalty provisions of
8    Section 1402. In the making of any payment in lieu of
9    contributions or in the payment of any interest or
10    penalties, a fractional part of a cent shall be disregarded
11    unless it amounts to one-half cent or more, in which case
12    it shall be increased to one cent.
13        3. All of the remedies available to the Director under
14    the provisions of this Act or of any other law to enforce
15    the payment of contributions, interest, or penalties under
16    this Act, including the making of determinations and
17    assessments pursuant to Section 2200, are applicable to the
18    enforcement of payments in lieu of contributions and of
19    interest and penalties, due under the provisions of this
20    Section. For the purposes of this paragraph, the term
21    "contribution" or "contributions" which appears in any
22    such provision means "payment in lieu of contributions" or
23    "payments in lieu of contributions." The term
24    "contribution" which appears in Section 2800 also means
25    "payment in lieu of contributions."
26        4. All of the provisions of Sections 2201 and 2201.1,

 

 

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1    applicable to adjustment or refund of contributions,
2    interest and penalties erroneously paid and not
3    inconsistent with the provisions of this Section, shall be
4    applicable to payments in lieu of contributions
5    erroneously made or interest or penalties erroneously paid
6    by a nonprofit organization.
7        5. Payment in lieu of contributions shall be due with
8    respect to any sum erroneously paid as benefits to an
9    individual unless such sum has been recouped pursuant to
10    Section 900 or has otherwise been recovered. If such
11    payment in lieu of contributions has been made, the amount
12    thereof shall be adjusted or refunded in accordance with
13    the provisions of paragraph 4 and Section 2201 if
14    recoupment or other recovery has been made.
15        6. A nonprofit organization which has elected to make
16    payments in lieu of contributions and thereafter ceases to
17    be an employer shall continue to be liable for payments in
18    lieu of contributions with respect to benefits paid to
19    individuals on and after the date it has ceased to be an
20    employer, with respect to benefit years beginning prior to
21    July 1, 1989, on the basis of wages for insured work paid
22    to them by it prior to the date it ceased to be an
23    employer, and, with respect to benefit years beginning
24    after June 30, 1989, if such employer was the last employer
25    as provided in Section 1502.1 prior to the date that it
26    ceased to be an employer.

 

 

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1        7. With respect to benefit years beginning prior to
2    July 1, 1989, wages paid to an individual during his base
3    period, by a nonprofit organization which elects to make
4    payments in lieu of contributions, for less than full time
5    work, performed during the same weeks in the base period
6    during which the individual had other insured work, shall
7    not be subject to payments in lieu of contributions (upon
8    such employer's request pursuant to the regulation of the
9    Director) so long as the employer continued after the end
10    of the base period, and continues during the applicable
11    benefit year, to furnish such less than full time work to
12    the individual on the same basis and in substantially the
13    same amount as during the base period. If the individual is
14    paid benefits with respect to a week (in the applicable
15    benefit year) after the employer has ceased to furnish the
16    work hereinabove described, the nonprofit organization
17    shall be liable for payments in lieu of contributions with
18    respect to the benefits paid to the individual after the
19    date on which the nonprofit organization ceases to furnish
20    the work.
21    C. With respect to benefit years beginning prior to July 1,
221989, whenever benefits have been paid to an individual on the
23basis of wages for insured work paid to him by a nonprofit
24organization, and the organization incurred liability for the
25payment of contributions on some of the wages because only a
26part of the individual's base period was within the effective

 

 

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1period of the organization's written election to make payments
2in lieu of contributions, the organization shall pay an amount
3in lieu of contributions which bears the same ratio to the
4total benefits paid to the individual as the total wages for
5insured work paid to him during the base period by the
6organization upon which it did not incur liability for the
7payment of contributions (for the aforesaid reason) bear to the
8total wages for insured work paid to the individual during the
9base period by the organization.
10    D. With respect to benefit years beginning prior to July 1,
111989, whenever benefits have been paid to an individual on the
12basis of wages for insured work paid to him by a nonprofit
13organization which has elected to make payments in lieu of
14contributions, and by one or more other employers, the
15nonprofit organization shall pay an amount in lieu of
16contributions which bears the same ratio to the total benefits
17paid to the individual as the wages for insured work paid to
18the individual during his base period by the nonprofit
19organization bear to the total wages for insured work paid to
20the individual during the base period by all of the employers.
21If the nonprofit organization incurred liability for the
22payment of contributions on some of the wages for insured work
23paid to the individual, it shall be treated, with respect to
24such wages, as one of the other employers for the purposes of
25this paragraph.
26    E. Two or more nonprofit organizations which have elected

 

 

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1to make payments in lieu of contributions may file a joint
2application with the Director for the establishment of a group
3account, effective January 1 of any calendar year, for the
4purpose of sharing the cost of benefits paid on the basis of
5the wages for insured work paid by such nonprofit
6organizations, provided that such joint application is filed
7with the Director prior to such January 1. The application
8shall identify and authorize a group representative to act as
9the group's agent for the purposes of this paragraph, and shall
10be filed in such form and shall contain such information as the
11Director may prescribe. Upon his approval of a joint
12application, the Director shall, by order, establish a group
13account for the applicants and shall serve notice upon the
14group's representative of such order. Such account shall remain
15in effect for not less than 2 calendar years and thereafter
16until terminated by the Director for good cause or, as of the
17close of any calendar quarter, upon application by the group.
18Upon establishment of the account, the group shall be liable to
19the Director for payments in lieu of contributions in an amount
20equal to the total amount for which, in the absence of the
21group account, liability would have been incurred by all of its
22members; provided, with respect to benefit years beginning
23prior to July 1, 1989, that the liability of any member to the
24Director with respect to any payment in lieu of contributions,
25interest or penalties not paid by the group when due with
26respect to any calendar quarter shall be in an amount which

 

 

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1bears the same ratio to the total benefits paid during such
2quarter on the basis of the wages for insured work paid by all
3members of the group as the total wages for insured work paid
4by such member during such quarter bear to the total wages for
5insured work paid during the quarter by all members of the
6group, and, with respect to benefit years beginning on or after
7July 1, 1989, that the liability of any member to the Director
8with respect to any payment in lieu of contributions, interest
9or penalties not paid by the group when due with respect to any
10calendar quarter shall be in an amount which bears the same
11ratio to the total benefits paid during such quarter to
12individuals with respect to whom any member of the group was
13the last employer as provided in Section 1502.1 as the total
14wages for insured work paid by such member during such quarter
15bear to the total wages for insured work paid during the
16quarter by all members of the group. With respect to calendar
17months and quarters beginning on or after January 1, 2013, the
18liability of any member to the Director with respect to any
19penalties that are assessed for failure to file a timely and
20sufficient report of wages and which are not paid by the group
21when due with respect to the calendar month or quarter, as the
22case may be, shall be in an amount which bears the same ratio
23to the total penalties due with respect to such month or
24quarter as the total wages for insured work paid by such member
25during such month or quarter bear to the total wages for
26insured work paid during the month or quarter by all members of

 

 

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1the group. All of the provisions of this Section applicable to
2nonprofit organizations which have elected to make payments in
3lieu of contributions, and not inconsistent with the provisions
4of this paragraph, shall apply to a group account and, upon its
5termination, to each former member thereof. The Director shall
6by regulation prescribe the conditions for establishment,
7maintenance and termination of group accounts, and for addition
8of new members to and withdrawal of active members from such
9accounts.
10    F. Whenever service of notice is required by this Section,
11such notice may be given and be complete by depositing it with
12the United States Mail, addressed to the nonprofit organization
13(or, in the case of a group account, to its representative) at
14its last known address. If such organization is represented by
15counsel in proceedings before the Director, service of notice
16may be made upon the nonprofit organization by mailing the
17notice to such counsel.
18(Source: P.A. 97-689, eff. 6-14-12.)
 
19    (820 ILCS 405/1405)  (from Ch. 48, par. 555)
20    Sec. 1405. Financing Benefits for Employees of Local
21Governments.
22    A. 1. For the year 1978 and for each calendar year
23thereafter, contributions shall accrue and become payable,
24pursuant to Section 1400, by each governmental entity (other
25than the State of Illinois and its wholly owned

 

 

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1instrumentalities) referred to in clause (B) of Section 211.1,
2upon the wages paid by such entity with respect to employment
3after 1977, unless the entity elects to make payments in lieu
4of contributions pursuant to the provisions of subsection B.
5Notwithstanding the provisions of Sections 1500 to 1510,
6inclusive, a governmental entity which has not made such
7election shall, for liability for contributions incurred prior
8to January 1, 1984, pay contributions equal to 1 percent with
9respect to wages for insured work paid during each such
10calendar year or portion of such year as may be applicable. As
11used in this subsection, the word "wages", defined in Section
12234, is subject to all of the provisions of Section 235.
13    2. An Indian tribe for which service is exempted from the
14federal unemployment tax under Section 3306(c)(7) of the
15Federal Unemployment Tax Act may elect to make payments in lieu
16of contributions in the same manner and subject to the same
17conditions as provided in this Section with regard to
18governmental entities, except as otherwise provided in
19paragraphs 7, 8, and 9 of subsection B.
20    B. Any governmental entity subject to subsection A may
21elect to make payments in lieu of contributions, in amounts
22equal to the amounts of regular and extended benefits paid to
23individuals, for any weeks which begin on or after the
24effective date of the election, on the basis of wages for
25insured work paid to them by the entity during the effective
26period of such election. Notwithstanding the preceding

 

 

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1provisions of this subsection and the provisions of subsection
2D of Section 1404, with respect to benefit years beginning
3prior to July 1, 1989, any adjustment after September 30, 1989
4to the base period wages paid to the individual by any employer
5shall not affect the ratio for determining payments in lieu of
6contributions of a governmental entity which has elected to
7make payments in lieu of contributions. Provided, however, that
8with respect to benefit years beginning on or after July 1,
91989, the governmental entity shall be required to make
10payments equal to 100% of regular benefits, including
11dependents' allowances, and 100% of extended benefits,
12including dependents' allowances, paid to an individual with
13respect to benefit years beginning during the effective period
14of the election, but only if the governmental entity: (a) is
15the last employer as provided in Section 1502.1 and (b) paid to
16the individual receiving benefits, wages for insured work
17during his base period. If the governmental entity described in
18this paragraph meets the requirements of (a) but not (b), with
19respect to benefit years beginning on or after July 1, 1989, it
20shall be required to make payments in an amount equal to 50% of
21regular benefits, including dependents' allowances, and 50% of
22extended benefits, including dependents' allowances, paid to
23an individual with respect to benefit years beginning during
24the effective period of the election.
25    1. Any such governmental entity which becomes an employer
26on January 1, 1978 pursuant to Section 205 may elect to make

 

 

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1payments in lieu of contributions for not less than one
2calendar year beginning with January 1, 1978, provided that it
3files its written election with the Director not later than
4January 31, 1978.
5    2. A governmental entity newly created after January 1,
61978, may elect to make payments in lieu of contributions for a
7period of not less than one calendar year beginning as of the
8first day with respect to which it would, in the absence of its
9election, incur liability for the payment of contributions,
10provided that it files its written election with the Director
11not later than 30 days immediately following the end of the
12calendar quarter in which it has been created.
13    3. A governmental entity which has incurred liability for
14the payment of contributions for at least 2 calendar years, and
15is not delinquent in such payment and in the payment of any
16interest or penalties which may have accrued, may elect to make
17payments in lieu of contributions beginning January 1 of any
18calendar year, provided that it files its written election with
19the Director prior to such January 1, and provided, further,
20that such election shall be for a period of not less than 2
21calendar years.
22    4. An election to make payments in lieu of contributions
23shall not terminate any liability incurred by a governmental
24entity for the payment of contributions, interest or penalties
25with respect to any calendar quarter (or month, as the case may
26be) which ends prior to the effective period of the election.

 

 

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1    5. The termination by a governmental entity of the
2effective period of its election to make payments in lieu of
3contributions, and the filing of and subsequent action upon
4written notices of termination of election, shall be governed
5by the provisions of paragraphs 5 and 6 of Section 1404A,
6pertaining to nonprofit organizations.
7    6. With respect to benefit years beginning prior to July 1,
81989, wages paid to an individual during his base period by a
9governmental entity which elects to make payments in lieu of
10contributions for less than full time work, performed during
11the same weeks in the base period during which the individual
12had other insured work, shall not be subject to payments in
13lieu of contribution (upon such employer's request pursuant to
14the regulation of the Director) so long as the employer
15continued after the end of the base period, and continues
16during the applicable benefit year, to furnish such less than
17full time work to the individual on the same basis and in
18substantially the same amount as during the base period. If the
19individual is paid benefits with respect to a week (in the
20applicable benefit year) after the employer has ceased to
21furnish the work hereinabove described, the governmental
22entity shall be liable for payments in lieu of contributions
23with respect to the benefits paid to the individual after the
24date on which the governmental entity ceases to furnish the
25work.
26    7. An Indian tribe may elect to make payments in lieu of

 

 

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1contributions for calendar year 2003, provided that it files
2its written election with the Director not later than January
331, 2003, and provided further that it is not delinquent in the
4payment of any contributions, interest, or penalties.
5    8. Failure of an Indian tribe to make a payment in lieu of
6contributions, or a payment of interest or penalties due under
7this Act, within 90 days after the Department serves notice of
8the finality of a determination and assessment shall cause the
9Indian tribe to lose the option of making payments in lieu of
10contributions, effective as of the calendar year immediately
11following the date on which the Department serves the notice.
12Notice of the loss of the option to make payments in lieu of
13contributions may be protested in the same manner as a
14determination and assessment under Section 2200 of this Act.
15    9. An Indian tribe that, pursuant to paragraph 8, loses the
16option of making payments in lieu of contributions may again
17elect to make payments in lieu of contributions for a calendar
18year if: (a) the Indian tribe has incurred liability for the
19payment of contributions for at least one calendar year since
20losing the option pursuant to paragraph 8, (b) the Indian tribe
21is not delinquent in the payment of any liabilities under the
22Act, including interest or penalties, and (c) the Indian tribe
23files its written election with the Director not later than
24January 31 of the year with respect to which it is making the
25election.
26    C. As soon as practicable following the close of each

 

 

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1calendar quarter, the Director shall mail to each governmental
2entity which has elected to make payments in lieu of
3contributions a Statement of the amount due from it for all the
4regular and extended benefits paid during the calendar quarter,
5together with the names of its workers or former workers and
6the amounts of benefits paid to each of them during the
7calendar quarter with respect to benefit years beginning prior
8to July 1, 1989, on the basis of wages for insured work paid to
9them by the governmental entity; or, with respect to benefit
10years beginning after June 30, 1989, if such governmental
11entity was the last employer as provided in Section 1502.1 with
12respect to a benefit year beginning during the effective period
13of the election. All of the provisions of subsection B of
14Section 1404 pertaining to nonprofit organizations, not
15inconsistent with the preceding sentence, shall be applicable
16to payments in lieu of contributions by a governmental entity.
17    D. The provisions of subsections C through F, inclusive, of
18Section 1404, pertaining to nonprofit organizations, shall be
19applicable to each governmental entity which has elected to
20make payments in lieu of contributions.
21    E. 1. If an Indian tribe fails to pay any liability under
22this Act (including assessments of interest or penalty) within
2390 days after the Department issues a notice of the finality of
24a determination and assessment, the Director shall immediately
25notify the United States Internal Revenue Service and the
26United States Department of Labor.

 

 

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1    2. Notices of payment and reporting delinquencies to Indian
2tribes shall include information that failure to make full
3payment within the prescribed time frame:
4        a. will cause the Indian tribe to lose the exemption
5    provided by Section 3306(c)(7) of the Federal Unemployment
6    Tax Act with respect to the federal unemployment tax;
7        b. will cause the Indian tribe to lose the option to
8    make payments in lieu of contributions.
9(Source: P.A. 97-689, eff. 6-14-12.)