ILLINOIS U.I. ACT Section 1404
A-60 (12/11)
Every department, institution, agency and instrumentality of the State of Illinois shall make available to the Director such
information with respect to any individual who has performed insured work for it as the Director may find practicable
and necessary for the determination of such individual's rights under this Act. Each such department, institution, agency
and instrumentality shall file such reports with the Director as he may by regulation prescribe.
(Source: P.A. 094-0233, eff. 07-14-05.)
Sec. 1404. Payments in lieu of contributions by nonprofit organizations
A. For the year 1972 and for each calendar year thereafter, contributions shall accrue and become payable, pursuant to
Section 1400, by each nonprofit organization (defined in Section 211.2) upon the wages paid by it with respect to
employment after 1971, unless the nonprofit organization elects, in accordance with the provisions of this Section, to
pay, in lieu of contributions, an amount equal to the amount of regular benefits and one-half the amount of extended
benefits (defined in Section 409) paid to individuals, for any weeks which begin on or after the effective date of the
election, on the basis of wages for insured work paid to them by such nonprofit organization during the effective
period of such election. Notwithstanding the preceding provisions of this subsection and the provisions of subsection
D, with respect to benefit years beginning prior to July 1, 1989, any adjustment after September 30, 1989 to the base
period wages paid to the individual by any employer shall not affect the ratio for determining the payments in lieu of
contributions of a nonprofit organization which has elected to make payments in lieu of contributions. Provided,
however, that with respect to benefit years beginning on or after July 1, 1989, the nonprofit organization shall be
required to make payments equal to 100% of regular benefits, including dependents' allowances, and 50% of
extended benefits, including dependents' allowances, paid to an individual with respect to benefit years beginning
during the effective period of the election, but only if the nonprofit organization: (a) is the last employer as provided
in Section 1502.1 and (b) paid to the individual receiving benefits, wages for insured work during his base period. If
the nonprofit organization described in this paragraph meets the requirements of (a) but not (b), with respect to
benefit years beginning on or after July 1, 1989, it shall be required to make payments in an amount equal to 50% of
regular benefits, including dependents' allowances, and 25% of extended benefits, including dependents' allowances,
paid to an individual with respect to benefit years beginning during the effective period of the election.
1. Any employing unit which becomes a nonprofit organization on January 1, 1972, may elect to make payments
in lieu of contributions for not less than one calendar year beginning with January 1, 1972, provided that it files
its written election with the Director not later than January 31, 1972.
2. Any employing unit which becomes a nonprofit organization after January 1, 1972, may elect to make payments
in lieu of contributions for a period of not less than one calendar year beginning as of the first day with respect
to which it would, in the absence of its election, incur liability for the payment of contributions, provided that it
files its written election with the Director not later than 30 days immediately following the end of the calendar
quarter in which it becomes a nonprofit organization.
3. A nonprofit organization which has incurred liability for the payment of contributions for at least 2 calendar
years and is not delinquent in such payment and in the payment of any interest or penalties which may have
accrued, may elect to make payments in lieu of contributions beginning January 1 of any calendar year,
provided that it files its written election with the Director prior to such January 1, and provided, further, that
such election shall be for a period of not less than 2 calendar years.
4. An election to make payments in lieu of contributions shall not terminate any liability incurred by an employer
for the payment of contributions, interest or penalties with respect to any calendar quarter which ends prior to
the effective period of the election.
5. A nonprofit organization which has elected, pursuant to paragraph 1, 2, or 3, to make payments in lieu of
contributions may terminate the effective period of the election as of January 1 of any calendar year subsequent
to the required minimum period of the election only if, prior to such January 1, it files with the Director a
written notice to that effect. Upon such termination, the organization shall become liable for the payment of
contributions upon wages for insured work paid by it on and after such January 1 and, notwithstanding such
termination, it shall continue to be liable for payments in lieu of contributions with respect to benefits paid to
individuals on and after such January 1, with respect to benefit years beginning prior to July 1, 1989, on the
basis of wages for insured work paid to them by the nonprofit organization prior to such January 1, and, with
respect to benefit years beginning after June 30, 1989, if such employer was the last employer as provided in
Section 1502.1 during a benefit year beginning prior to such January 1.
