TaxEmployerInformation

TaxEmployerInformation

​​ Employer Tax Information 

 
 
 

 

Register for A New Account

 

Register for a New Unemployment Insurance Account Number

​​​Newly-created businesses (employing units) must register with IDES within 30 days of start-up. (820 ILCS 405/1800; 56 Ill. Adm. Code 2760.105).

  1. ​​Online - Employers can register through the Illinois TaxNet website​ by clicking Log on to TaxNet on the left of the page, click New User, which requires you to create an online username and password click create account, and click the button to obtain a new UI Account Number, answer all the questions, click sign form and you will be provided a UI account number.

  2. ​​On Paper - Employers can register by completing one of the two forms below:
    1. ​​​​Report to Determine Liability Under the Illinois Unemployment Insurance Act using the UI-1 form
    2. Report to ​​Determine Liability for Domestic Employment - If you or your organization paid a domestic worker or combination ​of domestic workers cash wages totaling at least $1,000 in a calendar quarter during the current or preceding four years, you or your organization is an employer liable under the Illinois Unemployment Insurance Act. Common types of domestic employees are: live-in companions, housekeepers, butlers, maids, chauffeurs and baby sitters. Babysitting, laundry or other services performed outside the home of the person or organization for which the services are provided do not constitute domestic service. Use the UI-1 DOM​ form.
 

Report a change in entity, a merger, or a purchase of another business​

​​Did you acquire your Illinois business or any portion of it by purchase, reorganization or a change in entity, for example, a change from sole proprietor to corporation? If yes, report the changes online at the IllinoisTaxNet​ website or complete forms below:

  • ​Report to Determine Succession - UI-1S&P
  • Report to Determine Liability Under the Illinois Unemployment Insurance Act - UI-1
  • Request for Letter of Clearance - UI-2600
  • Notice of Change - UI-50​

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File Quarterly, Monthly or New Hire reports and/or Request Filing Extensions Quarterly Reporting

 

Quarterly Reporting

The Rules of the Illinois Department of Employment Security (56 Ill. Code 2760.140) require that employers with 25 or more employees during the prior calendar year file their Quarterly Employer’s Contribution and Wage Report (UI-3/40) electronically.

The ONLY approved filing methods for Quarterly UI 3/40 Reports are:

Filing Due Dates
1st Quarter: January - March​​ Due April 30th
​2nd Quarter: April - June Due July 31st
3rd Quarter: July - September Due October 31st
4th Quarter: October - December Due January 31st

File Format Guides
Quarterly filing guides are available for download below in the Adobe PDF Format. Click here to download a free copy of Adobe Reader.

*Please note that failure to file your Employer’s (monthly & quarterly) Contribution and Wage Report (UI-3/40​) will result in the assessment of a penalty. ​
Find current year contribution (tax) rate | historical table

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Monthly Reporting and Filing Due Dates

 

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 report.

If your company has reported a total of 25 or more employees for the calendar year of 2015, you will be required to file monthly and quarterly electronic wage reports for the period beginning July 2016 and continuing through June 2017. Note that if you had a total of 25 or more employees in 2014, you are currently subject to this requirement through June 2016.

Monthly Electronic Reports

  • Monthly Reports are filed electronically through TaxNet only, the Department's online tax filing / wage reporting application. To setup a TaxNet account click here. Employers that are already registered on TaxNet can file using their existing TaxNet account.

  • Monthly Reports are required for the first and second months of each quarter: January and February; April and May; July and August; October and November.

  • 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 is NOT a manual entry option for the monthly wage reports.

  • 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.

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​​​Reporting Month

​First date of upload eligibility

​Final date of timely report without penalty

Final date of report with penalty 

​January

​ January 16th

​February 28th / 29th

​March​ 31st

​​February​

​ February 16th

March 31st

​April 30th Include resubmission data within the Qtrly report

​March

​​No report for the last month of the quarter is to be submitted.  The last month of the quarter is to be included in the quarterly report.

       

​April

​April 16th

​May 31st

​June 30th

​May

​May 16th

​June 30th

​July 31st Include resubmission data within the Qtrly report

​June

​ ​​No report for the last month of the quarter is to be submitted.  The last month of the quarter is to be included in the quarterly report.

       

​July

​July 16th

​August 31st

​September 30th

​August

​August 16th

​September 30th

​October 31st Include resubmission data within the Qtrly report

​September

​ ​​No report for the last month of the quarter is to be submitted.  The last month of the quarter is to be included in the quarterly report.

       

​October​

​October 16th

​November 30th

​December 31st

November

​November 16th

​December 31st

​January 31st Include resubmission data within the Qtrly report

​​December

​ No report for the last month of the quarter​ is to be submitted.  The last month of the quarter is to be included in the quarterly report.​

 

References:
Registration Instructions: For employers who do not have a TaxNet account
TaxNet Monthly Wage Reporting - File Upload Guide: A step-by-step guide for the file upload process (PDF)
File Format Guide For Monthly Wage Reporting (PDF)

 

Request Filing Extensions
NOTE – If you are unable to file your quarterly and/or monthly report on time, you may request a quarterly and/or a monthly filing extension, which must be received on or before the filing due date. Send an email with your account number, the quarter and year, or the month and year of your request to DES.TaxNetExtensions@Illinois.gov.

  • Quarterly Extensions:  If your extension request is granted, you will have an additional 30 days to file your QUARTERLY report
  • Monthly Extensions: If your request is granted, you will have an additional 15 days to file your MONTHLY report.

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New Hire Reporting

 

The New Hire Reporting Program is part of the federal welfare reform law and includes increased efforts to locate absent parents who are not supporting their children. Since 1997, a nationwide employer New Hire Registry has been used to locate absent parents in order to enforce child support orders. In Illinois, IDES has the responsibility for obtaining the information for this registry.

All employers are required to report new employees to their state's New Hire Directory within 20 days of the employee's first day on the payroll and provide all of the necessary information.

Reporting Options:
To begin reporting new hires, choose one of the following:

For federal guidelines, please visit the U.S. Department of Health and Human Services: New Hire Registry.

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Pay Your Quarterly UI Contributions​

 

IDES offers employers different options to pay UI taxes:

  • Illinois TaxNet - Debit
    • You can file your report and pay via Automated Clearing House (ACH) debit transactions by using Illinois TaxNet, which requires you to register (see registration instructions​) and to set up a bank account under the “Administration” option once registered and logged into TaxNet.​​Proceed to the TaxNet website enter your username and password, select Log on to TaxNet, select “Pay a Quarter” under unemployment Insurance. The drop-down box will allow you to select the year and quarter for payment.

  • Payments by Credit Card - Credit or Debit
    • IDES accepts MasterCard, Visa, Discover and American Express credit and debit card payment via Paybill. You can use Paybill online or through a telephone option. To use this payment method, you must have the payment coupon code which is located at the bottom of each UI-3/40 or collections payment coupon that the Department mails. The employer will be asked to enter the 27 digit code located at the bottom of the coupon. If you do not have the 27 digit codes please call the Employer Hotline 800-247-4984.​The Service Provider charges a convenience fee to process credit/debit card payments. This fee is paid directly to the service provider. IDES does not receive any portion of this convenience fee. The credit card and debit card information furnished to the service provider is not disclosed to IDES.

  • Website Option: Visit https://www.paybill.com/IDES. The site will provide step-by-step prompts.

    Telephone Option: Employers may use the telephone option by calling (866) 268-3956 and following the step-by-step prompts.​
This option will not be available after September 1, 2017.  ACH debit and credit options will remain available in the My Tax Illinois Portal in September. 
For more information about My Tax Illinois, please see the “Coming Soon”  section which can be found on the 
home page​​ of this website.​
 
  • Electronic Funds Transfer (EFT) -Credit
    • Using an ACH credit option, this service assures your payment will take only 24 hours to process and the funds will clear your bank account the next day. Please call the TaxNet Hotline at (800) 247-4984 to set up your Electronic Funds Transfer (see instructions). Employers may contact IDES with questions regarding these options.

  •  Pay via regular check using payment coupon
    • To use this payment method, you must have the payment coupon which is located at the bottom of each UI-3/40 or collections payment coupon that the Department mails.
      • Do not make changes to the payment coupon
      • Make checks payable to Illinois Department of Employment Security
      • Enter the amount of your check on the coupon in the space provided
      • Do not staple forms on checks

        Mail the payment coupon, your check, with the envelope provided to:
        Illinois Department of Employment Security
        P.O. Box 19300
        Springfield, Illinois 62794-9300

    • Find out: current year contribution (tax) rate | historic table​​​

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Updates to Employer Accounts

 

Make Changes to your UI Account - Request to close your UI account, make wage corrections - Name or social security number corrections

​Complete the changes online at the TaxNet website or the Notice of Change form UI-50 for:

  • ​Phone Number Change/Name Change/Address Change/Miscellaneous Changes
  • Business Name change without change in legal entity
  • Reorganization, Sale or Other Organizational Change
  • Request to Close UI Account ​

Complete the forms below for Wage/Name/Social Security Corrections

 

Report Entity Changes (Report a change in entity, a merger, or a purchase of another business)

Did you acquire your Illinois business or any portion of it by purchase, reorganization or a change in entity, for example, a change from sole proprietor to corporation? If yes, report the changes online at the TaxNet website​ or complete the forms below:

Power of Attorney, Third Party Agent​
Grant Power of Attorney (POA) to a Third Party Agent and Register as a Third Party Agent for Multi-account Filers (Service Bureau)

Combined Power of Attorney LE-10 and Special Mailing UI-1M
These forms are used to represent an employer before the director in any and all matters, to act in the Employer’s stead with the same consequences as the Employer. The special mailing form is to notify the Department of a request to have correspondence sent to an address other than your business address or to terminate a preexisting address.​

Accountants, Tax Preparers, Payroll Services, Multi-account filers or anyone submitting reports and/or payments to the Illinois Department of Employment Security on behalf of an employer is advised to register with IDES as a Service Bureau. Registering as an IDES Service Bureau will simplify the filing and payment processes for multi-account filers. You will be able to select from a list of registered employers, easily switching from client to client. In order to register, please submit:

  1. A letter, on company letterhead, requesting multi-account registration
  2. Power of Attorney (POA)documentation for each company represented. Use combined form LE-10 and UI-1M. If filing reports via TaxNet, be sure to check the UI-3/40 on the UI-1M form.
  3. If POA documents have already been filed with IDES, simply submit a letter listing the companies and account numbers for verification.
  4. Upon receipt of your IDES Service Bureau ID, follow the user setup instructions.
  5. Please submit your forms and/or request for POA or Service Bureau to Des.UItax@illinois.gov​ or fax 312-793-6296.

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Submitting Electronic Claim Protests - State Information Data Exchange System​ (SIDES)

 

​​​A Solution
SIDES is a free electronic system that uses a nationally standardized format to allow employers to easily respond to UI Notice of Claims ​information requests, attach documentation when needed, and receive a date-stamped confirmation of receipt.​ If you would like to receive or respond to UI information requests electronically, please enroll for SIDES using TaxNet.​ For assistance please call 800-247-4984. ​ ​​

Options
Why should I consider SIDES?
The SIDES website provides an easy, efficient and secure way to electronically respond to UI Notice of Claims information requests from IDES.​

  • Eliminates delays related to paper mail delivery
  • Allows more time to gather information and respond
  • Ensures more complete information is provided through standard validations and business rules
  • Reduces time-consuming follow-up telephone calls
  • Keeps UI tax rates lower by reducing improper payments.​

​Potential Cost Savings
SIDES also addresses two of the largest causes of UI overpayment

  1. Incorrect initial eligibility decisions (job separation issues) and
  2. Working while receiving UI benefits

Additional information is available at the Unemployment Insurance State Information Data Exchange (SIDES).​

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