Senate Sponsors: LAUZEN. House Sponsors: MADIGAN,MJ-HOFFMAN-STROGER-LINDNER Short description: UNEMP INS-CONTRIBUTION RATES Synopsis of Bill as introduced: Amends the Unemployment Insurance Act. Makes various changes in employers' contribution rates and fund building rates in 2002 and subsequent years. FISCAL NOTE (Department of Employment Security) The 0.1% reduction in the tax rate paid by employers would equate to a maximum tax break of $9 per covered employee for all affected employers. The estimated first year impact totals $8 million, less than one percent of all projected tax revenues that first year. Of the 288,584 employers assigned a tax rate for CY 2001, 158,305 (55%) are at the minimum tax rate and would likely benefit from the tax reduction in 2002. Unemploy- ment benefit payments would not be affected by this proposal. Illinois' unemployment trust fund, where employer taxes are deposited and from which unemployment benefits are paid, has a current balance of $1.7 billion. If future economic changes result in trust fund insolvency, State law triggers benefit freezes or reductions and an additional State surcharge on employers, and federal law triggers penalty taxes on employers and assesses interest on any debt that must be paid with other State funds. HOUSE AMENDMENT NO. 1. Deletes reference to: 820 ILCS 405/1506.1 820 ILCS 405/1506.3 Adds reference to: 820 ILCS 405/241 from Ch. 48, par. 351 Deletes everything. Amends the Unemployment Insurance Act. Makes a technical change in a Section concerning the definition of "week". Last action on Bill: SESSION SINE DIE Last action date: JAN-07-2003 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0 END OF INQUIRY Full Text Bill Status