State of Illinois
2023 and 2024


Introduced 2/9/2023, by Sen. Michael W. Halpin


820 ILCS 405/1801.1

    Amends the Unemployment Insurance Act. In provisions concerning the directory of new hires, provides that the definition of "newly hired employee" includes an individual under an independent contractor arrangement. Effective January 1, 2024.

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SB1747LRB103 30614 SPS 57060 b

1    AN ACT concerning child support enforcement.
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 Section 1801.1 as follows:
6    (820 ILCS 405/1801.1)
7    Sec. 1801.1. Directory of New Hires.
8    A. The Director shall establish and operate an automated
9directory of newly hired employees which shall be known as the
10"Illinois Directory of New Hires" which shall contain the
11information required to be reported by employers to the
12Department under subsection B. In the administration of the
13Directory, the Director shall comply with any requirements
14concerning the Employer New Hire Reporting Program established
15by the federal Personal Responsibility and Work Opportunity
16Reconciliation Act of 1996. The Director is authorized to use
17the information contained in the Directory of New Hires to
18administer any of the provisions of this Act.
19    B. Each employer in Illinois, except a department, agency,
20or instrumentality of the United States, shall file with the
21Department a report in accordance with rules adopted by the
22Department (but in any event not later than 20 days after the
23date the employer hires the employee or, in the case of an



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1employer transmitting reports magnetically or electronically,
2by 2 monthly transmissions, if necessary, not less than 12
3days nor more than 16 days apart) providing the following
4information concerning each newly hired employee: the
5employee's name, address, and social security number, the date
6services for remuneration were first performed by the
7employee, and the employer's name, address, Federal Employer
8Identification Number assigned under Section 6109 of the
9Internal Revenue Code of 1986, and such other information as
10may be required by federal law or regulation, provided that
11each employer may voluntarily file the address to which the
12employer wants income withholding orders to be mailed, if it
13is different from the address given on the Federal Employer
14Identification Number. An employer in Illinois which transmits
15its reports electronically or magnetically and which also has
16employees in another state may report all newly hired
17employees to a single designated state in which the employer
18has employees if it has so notified the Secretary of the United
19States Department of Health and Human Services in writing. An
20employer may, at its option, submit information regarding any
21rehired employee in the same manner as information is
22submitted regarding a newly hired employee. Each report
23required under this subsection shall, to the extent
24practicable, be made on an Internal Revenue Service Form W-4
25or, at the option of the employer, an equivalent form, and may
26be transmitted by first class mail, by telefax, magnetically,



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1or electronically.
2    C. An employer which knowingly fails to comply with the
3reporting requirements established by this Section shall be
4subject to a civil penalty of $15 for each individual whom it
5fails to report. An employer shall be considered to have
6knowingly failed to comply with the reporting requirements
7established by this Section with respect to an individual if
8the employer has been notified by the Department that it has
9failed to report an individual, and it fails, without
10reasonable cause, to supply the required information to the
11Department within 21 days after the date of mailing of the
12notice. Any individual who knowingly conspires with the newly
13hired employee to cause the employer to fail to report the
14information required by this Section or who knowingly
15conspires with the newly hired employee to cause the employer
16to file a false or incomplete report shall be guilty of a Class
17B misdemeanor with a fine not to exceed $500 with respect to
18each employee with whom the individual so conspires.
19    D. As used in this Section, "newly hired employee" means
20an individual who (i) is an employee within the meaning of
21Chapter 24 of the Internal Revenue Code of 1986 including an
22individual under an independent contractor arrangement, and
23(ii) either has not previously been employed by the employer
24or was previously employed by the employer but has been
25separated from that prior employment for at least 60
26consecutive days; however, "newly hired employee" does not



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1include an employee of a federal or State agency performing
2intelligence or counterintelligence functions, if the head of
3that agency has determined that the filing of the report
4required by this Section with respect to the employee could
5endanger the safety of the employee or compromise an ongoing
6investigation or intelligence mission.
7    Notwithstanding Section 205, and for the purposes of this
8Section only, the term "employer" has the meaning given by
9Section 3401(d) of the Internal Revenue Code of 1986 and
10includes any governmental entity and labor organization as
11defined by Section 2(5) of the National Labor Relations Act,
12and includes any entity (also known as a hiring hall) which is
13used by the organization and an employer to carry out the
14requirements described in Section 8(f)(3) of that Act of an
15agreement between the organization and the employer.
16(Source: P.A. 97-621, eff. 11-18-11; 97-689, eff. 6-14-12;
1797-791, eff. 1-1-13; 98-107, eff. 7-23-13; 98-463, eff.
19    Section 99. Effective date. This Act takes effect January
201, 2024.