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New Illinois Department of Employment Security Reporting Requirement

March 21, 2013

 

Now that employers have updated their payroll systems to accommodate the return of the 6.2% Social Security rate for employees, and any change to their state unemployment rates, there are two reporting changes mandated by the Illinois Department of Employment Security (IDES) we wanted to pass along.

 

The first change requires all employers with 25 or more employees during the prior calendar quarter to file their employer's quarterly contribution and wage report (Form UI-3/40) electronically. IDES will no longer accept returns filed on paper or any form of magnetic media (diskette, CD or cartridge) from these employers. Penalties may be assessed for filing using any of these methods.

 

Registration can be done online at https://taxnet.ides.state.il.us. This site also allows employers the ability to safely and conveniently arrange for ACH payment of taxes due.

The second change, included in the Illinois Save Medicaid Access and Resources (SMART) Act enacted on June 14, 2012, now requires monthly wage reporting from employers who are currently required to submit their contribution and wage reports electronically, beginning in February 2013. The requirement will be phased in gradually depending on the number of workers an employer reported in the prior year (not quarter), per below:

 

 
Employers will continue submitting their usual quarterly contribution and wage reports, but will now also submit wage reports for each of the two interim months of each quarter. To determine whether you are required to file monthly, determine how many W-2’s you issued during 2012. If you have 25-49, you will be required to begin filing monthly reports beginning in August 2014 for the month of July. Earlier compliance is required for those employers with more employees. The first reporting required, for employers with more than 250 employees in 2012, needs to be filed by February 28, 2013, to report wages paid in January, 2013.

The monthly report requests minimal information – name, social security number and wages paid for each employee in the preceding month. This information will be used to track and identify Medicaid recipients who have found employment and therefore no longer qualify for benefits, allowing the State to minimize benefit overpayments.

Reports must be filed online using TaxNet, the Illinois Department of Employment Security’s online system for submitting tax information, at https://taxnet.ides.state.il.us. You will need to register with the site to begin submitting monthly reports, so please plan well in advance of the due date to be sure your registration is complete. If you’d like assistance or additional information with either of these changes, please don’t hesitate to call your contact at ECS and we can assist you with the process. 

For more information or assistance, please contact info@ecsfinancial.com

2013 Tax Due Dates:

March 31st –

Monthly Illinois wage report for February due (employers with 250 or more employees)

April 15th –

Income tax returns due for Individuals
Income tax returns due for Partnerships
Extensions due for Individuals and Partnerships unable to file by this date
1st estimated tax payments for 2013 due for Individuals and Corporations

April 30th –

1st quarter 2013 employer payroll tax returns due

This email disclaimer is subject to IRS Circular 230 as mandated by federal law. Unless expressly stated otherwise above, nothing contained in, forwarded with, or attached to this email was intended or written by ECS Financial Services, Inc. to be used, and cannot be used, by any person for the purpose of (1) avoiding any penalties that may be imposed under the Internal Revenue Code, or (2) promoting, marketing or recommending any federal tax transaction or matter addressed herein.