Bill Text: IL HR0077 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: States our belief that eliminating the first quarter cash crunch of small and mid-market businesses paying unemployment taxes by allowing for quarterly payments based upon the accrued obligation is a pro-business public policy move. Calls upon the Illinois Department of Employment Security to implement an optional quarterly payment system for taxpayers pursuant to all existing statutory authority as quickly as possible.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Passed) 2016-03-03 - Added Chief Co-Sponsor Rep. Camille Y. Lilly [HR0077 Detail]

Download: Illinois-2015-HR0077-Introduced.html

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HR0077 LRB099 06464 GRL 26534 r
HOUSE RESOLUTION
WHEREAS, The unemployment insurance tax is assessed
against employers in order to cover the costs of any benefits
drawn out by the former employees of each employer; and
WHEREAS, The unemployment insurance tax rate varies
according to each employer; and
WHEREAS, The unemployment insurance tax is assessed
against the same base wage of the first $11,000 earned by each
employee; and
WHEREAS, For the vast majority of employers, the entire
unemployment insurance tax is assessed and paid in the first
quarter of the calendar year, as most employees earn more than
$11,000 in the first quarter of the year; and
WHEREAS, For example, if a typical unemployment tax is
approximately $800 per employee, a 10-employee firm must come
up with $8,000 in the first quarter of the year, instead of
$2,000 every quarter, to pay the unemployment tax; and
WHEREAS, This situation presents a cash crunch for small
and mid-market employers who must finance the entire year's
unemployment tax in the first quarter of the calendar year; and

HR0077 - 2 - LRB099 06464 GRL 26534 r
WHEREAS, Larger employers are more likely to have the
capital to finance the unemployment insurance tax over the
entire year, while small and mid-market businesses without the
capital must pay all the tax as it comes due; this situation
hits small and mid-market businesses with a cash flow impact
proportionately harder than larger employers; and
WHEREAS, Small and mid-market businesses would prefer to
spread out the payments for the unemployment insurance tax over
the entire year to avoid the cash crunch in the first quarter,
while still paying the same total amount; therefore, be it
RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE
NINETY-NINTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we
state our belief that eliminating the first quarter cash crunch
of small and mid-market businesses paying unemployment taxes by
allowing for quarterly payments based upon the accrued
obligation is a pro-business public policy move; and be it
further
RESOLVED, That we call upon the Illinois Department of
Employment Security to implement an optional quarterly payment
system for taxpayers pursuant to all existing statutory
authority as quickly as possible; and be it further

HR0077 - 3 - LRB099 06464 GRL 26534 r
RESOLVED, That a suitable copy of this resolution be
delivered to the Director of Employment Security.