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 During routine preparation of tax rates for calendar year 2016, the
Department discovered calculation errors in its system program that
erroneously inflated average industry tax rates for 2013 through
2015, impacting employers in the administrative, support/waste
management, construction, company management, manufacturing, mining,
information, transportation/warehousing, and unclassified
industries. The Department has corrected the billing rates for any
new employers who register in the future. Impacted employers who
already paid taxes at the incorrect higher rates will be credited
for their overpayments towards their next quarterly contribution.
A new employer is one who has not incurred liability for state
unemployment taxes within the three previous calendar years. New
employer rates are generally the greater of a standard new employer
rate or the average tax rate for the new employer’s industry, as
defined by the North American Industry Classification System (NAICS).
Both the standard tax rate and average industry rates are calculated
according to a formula prescribed in the law.
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The Department discovered system errors that incorrectly increased
the average industry tax rates. In some instances, employers who
should have been subject to the standard new employer rate were
incorrectly assigned a higher rate. In other instances, although the
employer should have been assessed at the average rate for its
industry, the rate initially assigned for the industry was too high.
“We have identified a calculation error in previous tax rate
determinations and found an effective solution to fix it,” said
Director Jeff Mays. “For those employers who have diligently paid
their unemployment taxes and have had a tough time the last few
years surviving in Illinois’ struggling economy, we hope this will
help a bit.”
[Illinois Department of Employment
Security] |
