Introduction
 Employers
have important roles and responsibilities in the unemployment
insurance program in Illinois, especially from a tax standpoint.
The section below provides a brief overview of some of the requirements.
For more detailed employer tax information
(as well as links to mandatory State posters, regional Revenue
offices, commonly-used phone numbers, and other employer services)
try these:
Other IDES services available to employers
UI Tax Contribution Rates
State Experience
Factor & Employers'
UI Contribution Rates (EA-50): 2009 | 2008
| Rates |
Maximum |
Minimum |
Taxable
Wage Base |
| 2009 |
6.8% |
0.6% |
$12,300 |
| 2008 |
7.2% |
0.8% |
$12,000 |
| 2007 |
8.2% |
1.0% |
$11,500 |
| 2006 |
8.9% |
1.1% |
$11,000 |
For a detailed rate chart covering 1999-2009, click here
For the Calculation of 2008 Average Contribution Rates by North
American Industry Classification System (NAICS), click here
For experience-rated employers (those with three
or more years of experience), the contribution rate is based
on a ratio, called the benefit ratio, which is determined in
such a way that the greater the unemployment caused by the employer,
the higher the rate.
Non-profit institutions and governmental entities may elect to
make payments in lieu of contributions due. These are equal to
100% of regular benefit amounts, including dependents' allowances,
that are paid to beneficiaries.
If you are a new employer:
Every newly created employing unit must register
with IDES within 30 days of start-up. Use the UI-1
form, "Report to Determine Liability Under the Illinois Unemployment
Insurance Act". Employers can also register electronically
through the Illinois
TaxNet website.
See Fast
Facts for Employers for an overview of the unemployment insurance
program in Illinois.
For information regarding in-depth workshops
that address Unemployment Insurance claims / protest issues
and value-added programs and services available to you, please
contact Bill Harrison at 309-343-3100, ext 202, or by email, William.Harrison@illinois.gov
For additional information, contact the Revenue
Division staff in one of the department's Regional
Offices (click for map), or at the following phone numbers:
| Chicago |
312-793-5000 |
| Northern |
630-844-8455 |
| Central |
217-782-2790 |
Quarterly filing requirements
Employers must file wage reports (Form
UI-3/40) and pay contributions in the month after the close
of each calendar quarter - that is, on or before April 30,
July 31, October 31 and January 31.
Although IDES sends quarterly tax packets
to most employers, it is still an employer's responsibility to
obtain the proper forms and file on time even if a packet is not
received. Nonprofit and governmental organizations are also required
to file wage reports, although they may reimburse IDES for benefits
paid rather than making quarterly contributions. >> more
| The department
requires that employers use the forms and return mail envelope
in the quarterly packet. However, in cases where this is
not possible, mail completed forms and payments to:
IDES
P.O. Box 19300
Springfield, Illinois 62794-9300
For more information, call the Employer Services Hotline,
at 800-247-4984 (option 1) or 312-793-4880 (option 1).
The Tax Hotline TTY number
is 866-212-8831 |
Make Unemployment Insurance Payments Using a Credit Card or a Debit Card
IDES now accepts employer credit card and debit card payments for UI taxes over
the internet or by telephone at 1-866-268-3956. [more]
Small Employers
An employer whose contribution rate is 5.5% or
higher and whose total quarterly wages are less than $50,000 pays
contributions at 5.4% in that quarter.
SUTA Dumping
Effective January 1, 2006, if an individual or
entity transfers all or a portion of its trade or business and
there is any substantial common ownership, management or control
of the transferor and transferee, the experience rating records
of the transferor and transferee shall be combined for the purpose
of determining their contribution rate. However, if the transferor
or transferee had a contribution rate applicable to it for the
calendar year in which the transfer occurred, it shall continue
with that contribution rate for the remainder of the calendar
year. If the transferee had no contribution rate applicable to
it for the calendar year in which the transfer occurred, the contribution
rate of the transferee shall be the same as the contribution rate
of the transferor for the remainder of the calendar year.
Additionally,
if an individual or entity that is not an employer under the Act
acquires the trade or business of any employing unit, the experience
rating record of the acquired business shall not be transferred
to the individual or entity if the Director finds that the individual
or entity acquired the business solely or primarily to obtain
a lower contribution rate. An employer that knowingly pays or
attempts to pay contributions at a rate that is inconsistent with
the SUTA dumping law is subject to substantial civil penalties
and criminal liability, as is an individual or entity that knowingly
advises another to pay or attempt to pay contributions at a rate
inconsistent with the SUTA dumping law.
About Unemployment Insurance (UI)
This program is
a state-federal partnership, financed by two different employer
taxes. First, state employment security agencies (SESA's)
collect quarterly employer contributions (taxes) in order to pay
unemployment benefits to eligible, unemployed workers. Secondly,
the federal government funds the administrative costs of the employment
security programs in each state through a quarterly federal unemployment
tax (FUTA).
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