EXAMPLE: Employee Leasing Company X erroneously reports the wages of certain workers on its Wage Report and pays the contributions due on these wages. It is determined that the wages should have been reported instead by its client, Company Y. The Director shall, upon the joint request of Employee Leasing Company X and Company Y, transfer the payment made by Employee Leasing Company X to the credit of Company Y. The wages reported by the leasing company for Company Y's workers will also be credited to Company Y. As a result, Company Y will only owe additional contributions due, if any, to the extent that the amount due from it exceeds the amount paid by the employee leasing firm. To the extent that the payment by the employee leasing company was untimely or not sufficient to cover the amount due, interest shall accrue. If the amount paid by the employee leasing company exceeds the amount due from Company Y, Company Y may file a request for an adjustment or a refund of the overpayment to the extent and within the time allowed by Section 2201 of the Act.
EXAMPLE 1: Employee Leasing Company X erroneously reports the wages of certain workers on its wage report and pays the contributions due on these wages. It is determined that the wages should have been reported instead by its client, Company Y. Y presents evidence that X is no longer in business and that there is no one who could agree to the joint transfer of contributions. The Director shall transfer any available contributions. If the amount of contributions available in the account of X is insufficient to cover the amount of contributions owed by Y, Y must pay the unpaid contribution balance, with interest, itself.
EXAMPLE 2: Employee Leasing Company X erroneously reports the wages of certain workers on its wage report and pays the contributions due on these wages. At the time, X's contribution rate was 1%, which resulted in $100 in contributions owed. It is determined that the wages should have been reported instead by its client, Company Y. Y presents evidence that X is no longer in business and that there is no one who could agree to the joint transfer of contributions. Y's contribution rate for the year was 6%, which will result in $600 in contributions owed by Y. Upon proper application of Y, the Director shall transfer the $100 in available contributions from the account of X to the account of Y. Y must pay the $500 in unpaid contributions, with interest, itself.
EXAMPLE 3: Employee Leasing Company A had agreements with Employers B, C and D for A to assume responsibility for personnel management of workers leased to each of B, C and D during the year 2016. Company A reported the identity of its clients B and C to the Department, as required by 56 Ill. Adm. Code 2732.306, but failed to report the identity of its client D. B, C and D each had one leased worker performing services for them; each leased worker was paid $10,000 in the first quarter of 2016. A's contribution rate for 2016 was 5%. Company A timely reported to the Department the wages of the leased workers providing services to B, C and D. According to the report submitted by A, A owed a total of $1,500 in contributions for the first quarter of 2016. However, A made payments to the Department totaling only $1,200. For 2016, B, C and D each had a contribution rate of 3.75 %. In 2017, it is discovered that A failed to report D's identity to the Department and, therefore, D remained liable for the payment of contributions regarding its leased worker. D presents evidence that A is no longer in business in Illinois and that there is no one who could agree to the joint transfer of contributions. Under subsection (b), the amount of contributions available for transfer to D's account cannot exceed the amount of the credit standing to A's account for the quarter, as of the time of the application, based on the adjustment with respect to the wages on which D should have reported contributions due. The amount necessary to pay the contributions owed by A for the first quarter of 2016 is $1,000 (5% x $20,000). So even though D owes a total of $375 in contributions for 2016 (3.75% x $10,000), there is only $200 in available contributions to transfer to D's account ($1,200 - $1,000). D must pay the additional $175, plus interest, itself.
EXAMPLE: Employee Leasing Company A had agreements with Employers B, C and D for A to assume responsibility for personnel management of workers leased to each of B, C and D during the year 2016. Company A did not report the identity of B, C or D to the Department, as required by 56 Ill. Adm. Code 2732.306. B, C and D each had one leased worker performing services for them; each leased worker was paid $10,000 in the first quarter of 2016. A's contribution rate for 2016 was 5%. Company A timely reported to the Department the wages of the leased workers providing services to B, C and D. According to the report submitted by A, A owed a total of $1,500 in contributions. However, A made payments to the Department totaling only $500. For 2016, B, C and D also had contribution rates of 5%. In 2017, it is discovered that A failed to report D's identity to the Department and, therefore, D remained liable for the payment of contributions regarding its leased worker. D presents evidence that A is no longer in business in Illinois and that there is no one who could agree to the joint transfer of contributions. Under subsection (b), the amount of contributions available for transfer to D's account cannot exceed the amount of the credit standing to A's account for the quarter, as of the time of the application, based on the adjustment with respect to the wages on which D should have reported contributions due. At the time of D's application, the Department was not aware of A's relationship to B and C, or A's failure to report its relationship with B and C, and there was no credit standing to A's account. At the time of D's application, it appeared that the employee leasing company should have paid contributions of $1,000 for the first quarter of 2016. Since A paid only $500, there are no funds available to transfer to D. Subsequently, the Department discovers A's relationship with C, and the fact that the relationship was not properly reported to the Department, as required by 56 Ill. Adm. Code 2732.306. C's wages are removed from A's account, but still, there are no contributions available to transfer to C's account. At the time of C's application, it appears that A owes $500 in contributions for the first quarter of 2016. Since that is all A paid for the quarter, there is no credit standing to its account. Subsequently, the Department discovers A's relationship with B, and the fact that the relationship was not properly reported to the Department, as required by 56 Ill. Adm. Code 2732.306. B's wages are removed from A's account, which creates a credit balance of $500 in A's account. The available balance will transfer to the account of B.
Ill. Admin. Code tit. 56, § 2765.64
Added at 17 Ill. Reg. 308, effective December 28, 1992