Current through Register Vol. 48, No. 38, September 20, 2024
a) The
Director shall find good cause for the waiver of all interest, accrued upon
unpaid contributions which are due and owing for any period prior to January 1,
1988, if the contributions were based on the payment of wages in employment to
an individual where:
1) The employer or its
predecessor has not treated any individual holding a substantially similar
position as an employee for purposes of the Act, or for Federal Unemployment
Tax Act (FUTA), Internal Revenue Code or Social Security Act purposes,
and;
2) The employer's treatment of
such individual was in reasonable reliance upon:
A) A judicial precedent or an Internal
Revenue Service letter ruling for the employer; or,
B) A past agency audit of such employer where
there was no assessment attributable to the treatment of individuals holding
positions substantially similar to the position held by such individual;
or,
C) A long-standing industry
practice recognized by a significant segment of the industry in which such
individual or employer is engaged.
3) Example: Pursuant to this subsection, an
employer requests a waiver of interest on contributions which were due and
owing for the first quarter of 1987. Contributions for the first quarter of
1987 became due and owing on April 30, 1987 but had not been paid because the
employer appealed a determination and assessment covering this period. The
waiver, if granted would cover all interest which accrued from May 1, 1987
through the date that payment of the contributions was made. The employer must
pay all contributions due for the first quarter of 1987 as a condition
precedent to the granting of a waiver.
b) The provisions of Section
2765.74
shall not be applicable to requests for waiver under this Section.
c) The payment of all contributions assessed,
within 30 days from the effective date of this Section or within 30 days from
the date that such assessment becomes final, if such date is later, is a
condition precedent to an application for waiver (see Section
2765.75)
pursuant to this Section.
1) Example: During
the course of a hearing pursuant to 56 Ill. Adm. Code
2725.200 et
seq., the employing unit requests, on the record, that, if the subject
assessment is affirmed, in full or in part, it be granted waiver pursuant to
this Section. If it is recommended that the assessment be affirmed, in full or
in part, the Director's Representative shall also recommend a decision with
respect to the request for waiver. If such recommendation is to deny,
objections may be filed in the same manner and within the same time limits as
set forth in 56 Ill. Adm. Code
2725.275.
If the request for waiver is granted, but the contributions assessed are not
paid within 30 days from the date that the assessment becomes final, then the
request for waiver shall be deemed to have been denied as of the date of the
decision which had granted the waiver.
2) Example: An employer meets the
requirements for waiver pursuant to subsection (a) above with respect to wages
for services which were the subject of a determination and assessment which
became final on February 13, 1988. If this employer has not yet paid this
assessment, it has 30 days from the effective date of this rule to pay the
contributions due and file its application for waiver.
3) Example: An employer meets the
requirements for waiver pursuant to subsection (a) with respect to wages for
services which are the subject of a determination and assessments which becomes
final after the effective date of this rule. This employer has 30 days from the
date that this assessment becomes final to pay the contributions due and file
its application for waiver.
d) Notwithstanding any other provisions of
this Part, no employer shall be entitled to a refund or credit of any interest
paid prior to the adoption of this Section.
