IDES - Monthly Wage Reporting

Monthly Wage Reporting

Monthly Wage Reporting

​​Monthly Wage Reporting

Good news for employers who experienced difficulty in monthly wage reporting

8/28/15 - The Illinois Department of Employment Security (IDES) will provide relief to employers who tried their level best to comply with the new e-filing wage reporting requirement but were unable to for legitimate reasons.
 
IDES will issue $16 million in credits, including associated interest charges, to nearly 13,000 Illinois employers who experienced difficulties in transitioning to new wage reporting requirements under the 2012 Medicaid reform law and Department rulemaking.  The Department credited $1.5 million on Aug. 14 to approximately 4,000 impacted employers and $14.5 million will be credited to the remaining number of employers by the end of the 4th quarter.  Refunds would be issued only if the credits cannot be applied to other liabilities by Jan. 31, 2016, under a rule agreed upon by the business and labor communities.
 
In 2013, IDES implemented rules under the Illinois Unemployment Insurance Act which 1) required employers who had 25 or more employees in the previous calendar year to file electronic wage reports and 2) phased in monthly reporting through July 2014, as required under the SMART ACT, also referred to as the Illinois Medicaid Reform Act of 2012.  These requirements were designed to help combat Medicaid fraud and limit eligibility to those whose incomes qualify them for the program.  However, many Illinois employers experienced problems transitioning to the new requirements, and as a result, incurred penalties and interest charges.​

To address this issue, the Department adopted new rules to:

  • Remove penalties and interest employers incurred as a result of confusion over the electronic reporting requirement’s implementation schedule
  • Retroactively align the electronic reporting requirement with the existing monthly reporting implementation schedule and
  • Waive up to the first two quarters’ of penalties for late monthly reports, as long as the employer submitted quarterly reports for that same quarter in a timely  manner.  
The Department will continue its efforts to enhance the wage reporting system and prevent Unemployment Insurance benefit fraud to help save Illinois taxpayers hundreds of millions of dollars each year.  Additional information is also available through the Employer Hotline (800) 247-4984 and through the Department’s wage reporting online tool​ TaxNet.

 

 ​Employers with 25 or more employees required to file quarterly and monthly wage reports (starts July 25)

Pursuant to Public Act 97-0689, employers with a cumulative total of 25 or more employees in the prior calendar year are required to submit monthly wage reports electronically. Employers will continue to submit quarterly contribution and wage reports, and submit eight additional monthly wage reports.

 

​If your company has reported a total of 25 or more employees for the calendar year of 2014, you will be required to file monthly and quarterly electronic wage reports for the period beginning July 2015 and continuing through June 2016.  Note that if you had a total of 25 or more employees in 2012 and 2013, you are currently subject to this requirement through June 2015.

 
Please see below guide: 
 
  • ​Monthly Electronic Reports
    • Required for the first and second months of each quarter: July, August, October, November, January, February, April and May
    • Should contain only employee names, social security numbers and each employee’s total wages for the period being reported
    • Unemployment insurance contributions are not calculated or remitted​
    • Failure to submit in an electronic format through Illinois TaxNet will result in a penalty.
  • ​Quarterly Electronic Reports
    • Required for the full quarter, which also covers the filing requirement for the months of September, December, March & June
    • Unemployment insurance contributions are calculated and remitted
    • Failure to submit in required electronic formats – Illinois TaxNet, FSET (through QuickBooks or other vendor software) or FTP (used by large service bureaus or employers) – will result in a penalty
 
For a brief explanation on TaxNet, please click on the video links below:
 

​​icon_current.jpg Phase in Period
  Effective Dates (based on # of Employees)
 
250 or more - January 2013
100 - 249 - July 2013
50 - 99 - January 2014
25 - 49 - July 2014​

   Using TaxNet
 
Monthly wage filing must be done via TaxNet, the Department's online tax filing / wage reporting application.  Employers that are already registered on TaxNet can file using their existing TaxNet account.
 
 
 
Recommended Browser: The TaxNet web application is best viewed with Internet Explorer 
(visit the Internet Explorer download site).​
 
TaxNet will only accept a comma separated (.csv) plain ASCII text format file for the monthly wage report. A file can contain a single employer or multiple employers.
Please note: There will NOT be a manual entry option for the monthly wage reports.​

File Format Guide
More information and the electronic file format specifications can be found in the File Format Guide For Monthly Wage Reporting (pdf).
 
Call the IDES TaxNet Hotline, toll free at (800) 247-4984 for TaxNet related questions, or contact IDES in writing.​