Unemployment Taxes & Reporting

• Watch the Online Tax Resource for Employers Video  (2:23)
• For a convenient online reference for employers, download Fast Facts for Employers 
• UI Tax Contribution Rates 

Most for-profit employers are required to pay contributions (taxes) as soon as they have:

1. Paid $1,500 in wages in a single calendar quarter, or employed one or more persons for 20 weeks in a given calendar year; or
2. Paid $1,000 in cash wages in one calendar quarter for domestic work; or
3. Paid $20,000 in cash wages in one calendar quarter or employed 10 or more workers for 20 weeks in a given calendar year for farm work.

Non-profit organizations are liable for the year when it has employed four or more persons during each of 20 weeks in a given calendar year.

Local governmental organizations are liable if it pays wages.

TaxNet / Wage Reporting / Paying Taxes

• With Illinois TaxNet you can file your monthly or quarterly wage report, and pay via ACH Debit by using this secure online application.

• The TaxNet website is best viewed with Internet Explorer 8 and above. Select the Download button below to be directed to the Internet Explorer download site.

• Frequently Asked Questions
  • For New Employers
  • For Small Employers
  • Quarterly Filing Requirements
• Frequently Requested Documents & Forms  
  • Revenue / UI Tax Forms for Employers 
  • UI-1 Report to Determine Liability Under the UI Act
  • UI-3/40 Employer's Contribution and Wage Report - Quarterly
• Household Worker Taxes
• Legal Services Program
• Report New Hires
• UI Fraud by Employers

The Unemployment Insurance Act was recently amended to provide for the personal liability of any officer or employee of an employer who has control, supervision or responsibility for the filing of reports or the payment of contributions, payments in lieu of contributions, penalties or interest for the employer and who willfully fails to file the reports or make the payments. The courts have interpreted similar provisions broadly with respect to both who is a responsible party and what constitutes a willful failure to report or to pay. Beginning with the reports and payments for the first quarter of 2012, if an employer fails to file a report or fails to pay any contributions, payments in lieu of contributions, penalties or interest, when due, the Department will be looking to corporate officers and other responsible individuals for payment and, if such payments are not made, liens on homes, autos, boats and other property and levies on personal bank accounts may follow. (news release)

Every business with employees in Illinois must register with IDES and file unemployment insurance contribution (tax) reports each quarter.  Employers who are subject to the Illinois Unemployment Insurance Act supply the funds IDES uses to pay benefits to the unemployed.