Illinois Unemployment Compensation laws & HR compliance analysis

Illinois Unemployment Compensation: What you need to know

Virtually all employers are subject to unemployment insurance taxes under the Illinois Unemployment Insurance Act (820 Ill. Comp. Stat. Ann. 405/100 et seq.). The law's coverage extends to:
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• Anyone who, in the current or preceding calendar year, paid wages of at least $1,500 in any calendar quarter or employed at least one person for some part of a day in each of 20 different calendar weeks;
• Tax-exempt nonprofit organizations employing four or more people for some part of a day in each of 20 or more weeks in either the current or preceding calendar year;
• The state of Illinois and its instrumentalities;
• Employers that voluntarily elect to be covered;
• Anyone who buys or acquires a covered business;
• Employers of agricultural labor that, in either the current or the preceding calendar year, either paid wages of $20,000 or more, or employed 10 or more people in each of 20 different weeks;
• Employers of domestic workers that, in any quarter of either the current or the preceding calendar year, paid $1,000 or more; and
• Employers subject to the Federal Unemployment Tax Act, unless they are specifically excluded by law (820 Ill. Comp. Stat. Ann. 405/205).
The law excludes certain services from coverage, including, for example, services provided by:
• Students working for schools, colleges, or universities;
• Students working for work-study programs;
• Spouses of students working for the school;
• Real estate and insurance salespersons;
• Insurance solicitors and real estate appraisers;
• Student nurses;
• Hospital interns;
• Certain newspaper distributors (e.g., minors);
• Part-time workers for nonprofit entities; and
• Freelance editorial or photographic workers for a newspaper (820 Ill. Comp. ...

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