ILLINOIS – STATE TOUGHENS PENALTIES FOR FAILING TO FILE REQUIRED EMPLOYMENT REPORTS

Beginning January 1, 2026, if an employer fails to file new hire or monthly unemployment insurance reports, the Illinois Department of Employment Security (IDES) may seek to prohibit the employer from operating in Illinois until the reports are filed. The IDES must provide 30 days’ written notice to the employer.

New Hire Reporting: Employers must submit information on newly hired or rehired employees, including independent contractors, to the IDES within 20 days of the employee’s first day.

Unemployment Insurance Tax: Employers with 25 or more employees in the prior calendar year must submit quarterly contribution and wage reports in addition to monthly wage reports. Employers must file electronically via MyTax Illinois.