The new monthly reports also will help prevent fraud in the Medicaid and
Affordable Care Act programs because the up-to-date wage information will more
quickly identify those who make too much money to qualify.
This first-in-the-nation effort shows Illinois takes seriously its
responsibility to guarantee access to crucial safety-net programs while at the
same time protecting taxpayer money and leveraging technology to serve employers
and workers in the most cost-efficient manner possible.
"The best way to fight fraud is to prevent it before it starts. These monthly
wage reports help do exactly that," said IDES Director Jay Rowell. "This
common-sense approach will help every employer because it will lower payroll
taxes, which will create the flexibility to invest in hiring new workers, and
that will grow our economy."
The new monthly wage reports will augment the quarterly wage and contribution
reports. Beginning this quarter, the state's largest companies will be required
to move away from paper and file both reports electronically. Although it is not
yet required, businesses of all sizes are encouraged to use electronic filing.
Monthly and quarterly wage filing will be done using TaxNet, the IDES online
tax filing program. Employers registered on TaxNet can use their existing
account. Other employers can register at
TaxNet will accept a comma- separated (.csv) plain ASCII text file for the
monthly wage report. Technical details, including a file format guide, are
The changes are part of the state's SMART Act, which uses spending
reductions, rate cuts and service restrictions to reform Medicaid and make it
more financially secure. The act also includes the monthly reporting provision
to make more informed eligibility determinations for unemployment insurance,
Medicaid and the Affordable Care Act. This first in-the-nation program will save
$100 million each year by preventing improper benefit payments before they
Key changes to fight fraud in the unemployment,
Medicaid and Affordable Care Act
Monthly wage-only reports are
being added to quarterly reports beginning January 2013.
Monthly and quarterly reports
will be required to be electronic for medium and large employers.
Monthly electronic reports are to be phased in
through summer 2014.
Key details for quarterly and new monthly reports
for medium and large employers
reports replace current manual and other electronic quarterly reporting
methods, such as CDs, cartridges, diskettes, magnetic strips, reel-to-reel
Quarterly reports will
continue to use the current TaxNet system.
Monthly reports will use a
comma-separated (.csv) plain ASCII text file.
[to top of second column]
Monthly reporting schedule will be
Employers who in
2012 had 250 or more employees begin monthly Internet reporting
in February 2013. The late reporting penalty for January will be
waived. Most of these employers already file electronically.
Employers who in
2012 had between 100 and 249 employees must begin monthly
Internet reporting effective July 2013. Hence, the first due
date will be in August 2013.
Employers who in
2012 had between 50 and 99 employees must begin monthly Internet
reporting effective January 2014. Hence, the first due date will
be in February 2014.
Employers who in 2012 had between 25
and 49 employees must begin monthly Internet reporting effective
July 2014. Hence, the first due date will be in August 2014.
All employers, no matter their size, are encouraged to file
monthly and quarterly reports electronically and need not wait for
the monthly implementation date.
Employers will use TaxNet for monthly and quarterly reports:
Technical details for monthly reports, including a file format
guide, are available at
Department of Employment Security
file received from
Illinois Office of
Communication and Information]