Unemployment Insurance Rule Regarding Monthly Electronic Reporting Filed
The Illinois Department of Employment Security (IDES) will implement an emergency rule that will be effective for 180 days on January 1 that will require employers of 250 employees or more to file monthly electronic wage reports. Over an 18 month period the rule also proposes to phase in the rule’s application to smaller employers. Monthly electronic reporting will be required of employers of 100 to 249 on July 1, 2013, of employers of 50-99 employees on January 1, 2014 and employers of 25-49 on July 1, 2014. The purpose of the additional reporting is to better eliminate fraud for both unemployment insurance and Medicaid. For the three years of 2008-2011, the US Department of Labor had estimated that Illinois had paid over $1.2 billion in inappropriate unemployment insurance benefits. That was more than half of the outstanding debt owed by the state to the federal government for borrowed UI benefits.
Other UI Rules Anticipated in 2013: IDES is considering:
- revisions regarding the grounds for reopening a benefit appeal hearing where a party has failed to appear, for granting a continuance of a benefit appeal hearing and for the Board of Review to remand a case in which the referee has defaulted a party;
- rulemaking to require certain larger employers and some employer representatives to file their benefit claim protests electronically;
- providing that refunds of overpaid contributions be made only by electronic funds transfer; and
rulemaking to implement a recent amendment to Section 706 of the Unemployment Insurance Act penalizing employers whose failure to provide timely information to the Department under certain circumstances results in benefit overpayments; (this is the area that the Council’s Unemployment Insurance Committee has provided suggestions to IDES)