We at Unemployment Solutions for You proudly offer our unemployment claims management services across the United States. We are a leader in our industry not only because we offer an outstanding product, but also because we have a deep knowledge-base in the many differing unemployment laws across the 50 states. Part of our mission is to also educate you about how these laws may differ from state to state because those differences can affect you directly. So, join us on our continuing series, in which we explore the differences in unemployment eligibility, tax rate ranges, base periods, and much more in each state. This month, in Your State’s Unemployment Tax Laws, we’ll be looking at Illinois, the Prairie State.
Eligibility for Claimants
Claimants are eligible to collect unemployment insurance if they meet the minimum requirements:
- Earn at least $1,600 during a recent 12-month base period
- Earned at least $440 outside of this base period quarter in which earnings were highest
- The employer must be in an applicable designation which excludes certain agricultural, domestic, railroad, and government work, as well as work done for one’s family and on commission
- Working more than 20 hours
- Unemployment must be involuntary
- Must be able, willing, and available to work
- Actively seeking employment
So then, how does this affect your business?
Your business’ tax rate will be affected by your business’ Experience Rate (which is calculated from the amount of UI benefits paid to former employees over the past 3 years). The more unemployment caused by the employer – the higher the rate. This is different in Canada compared to the US, and so it is worth speaking to tax lawyers from that nation if there are any concerns.
Here are the tax rates for Illinois Employer UI Contribution Tax Rates:
| ?Rates | ?Maximum | ?Minimum | ?Taxable Wage Base |
| ?2018 | ?6.925%? | 0.525%?? | $12,960??? |
| ?2017 | 7.350%? | 0.550%? | $12,960?? |
| 2016? | 7.750%? | 0.550%?? | $12,960? |
| 2015? | ?8.150% | 0.550%? | ?$12.960 |
Failure for a business to follow tax laws can lead to employer consequences as stated by the Illinois Department of Employment Security. Hiring someone who can help break down Good Service Tax as well as this form can help you avoid a multitiude of repurcusions, which can include:
- Personal liability of corporate officers for willfully failing to make Unemployment Insurance payments or not submitting information and reports as required by law (just to make you aware, you can find PL insurance quotes provided by constructaquote.com)
- Increased employer Unemployment Insurance taxes
- Penalties for late reports and interest charges for late payments
- Possible inspection by a field auditor
- Mandatory appeal hearings
If this process seems daunting at first, don’t worry! Unemployment Solutions For You is here to offer our services in unemployment management software, as well as in educating you to better manage your UI tax rate. It’s important never to forget that you have a partner in protecting your business from this significant liability.
In case you missed it, last time we covered the unemployment tax laws of Texas. You can find last month’s blog featuring Texas here, and a few of the other states we’ve featured here.
