News & Information

CCH® UNEMPLOYMENT INSURANCE — 10/03/17

Illinois amends its UI law on various subjects

Illinois has amended its Unemployment Insurance Act as follows:

Benefit charges. An employer will not be chargeable for any benefits that result from payments to an individual for any week of unemployment after September 8, 2017, if the payment was the result of that individual voluntarily leaving work because he or she is in training, which was approved under the federal Trade Act of 1974, in order to improve his or her skills or wages.

Transfer of business. If an individual or entity transfers its trade or business, or a portion thereof, to another individual or entity and, at the time of the transfer, there is any substantial common ownership, management, or control of the transferor and transferee, then the experience rating record attributable to the transferred trade or business will be transferred to the transferee. Note that for the purpose of calculating the contribution rates of the transferor and transferee, within 30 days of the date of a transfer, the transferor and transferee must provide to the Department information that will show the portion of the transferor's experience rating record that is attributable to the transferred trade or business.

In addition, if, following a transfer of experience rating records, the Director determines that a substantial purpose of the transfer was to obtain a reduced liability for contributions, the experience rating accounts of the employers involved will be combined into a single account and a single rate will be assigned to that account.

Disclosure of information. Communication with an individual or entity through unencrypted email or other unencrypted electronic means is now permitted even if the communication contains the individual's or entity's account number.

Adjustment of contributions. Except as otherwise provided, not later than three years after the date upon which an employing unit has paid contributions, interest, or penalties erroneously, the employing unit may file a claim with the Director for an adjustment in connection with subsequent contribution payments, or for a refund where an adjustment cannot be made. Note that in the case of an erroneous payment that occurred on or after January 1, 2015, and before September 8, 2017, the employing unit may file the claim for adjustment or refund not later than June 30, 2018, or three years after the date of the erroneous payment, whichever is later, subject to certain conditions.

Credit balances. The Director now must furnish each employer quarterly (formerly semi-annually) with a statement of credit balances in the employer's account where the balances with respect to all contributions, penalties, and interest combined equal or exceed $2.