Illinois employers have been mailed annual notification of the coming year's Unemployment Insurance (UI) tax rates by the Illinois Department of Employment Security (IDES) and 88 % of them will receive a lower rate. The maximum rate has gone down from 9.8% for 2005 to 8.9% for 2006; the minimum rate and the 2006 employer (Standard) rate have been reduced.

Employer Unemployment Insurance contributions are experienced-based, meaning that firms that discharge a relatively large number of employees will pay higher rates than employers who have few lay-offs or dismissals. Rates in 2006 will range from 1.1% to 8.9%; 147,880 employers will pay the lowest rate while 43,475 employers will pay the highest rate. The wage base will go up for minimum, new employer and maximum tax rate categories from $10,500 to $11,000. Wages beyond $11,000 are not subject to tax rates.

Employers' payments due at the end of January 2006 cover the last quarter of 2005, at 2005 rates. The first payment based on 2006 rates will be due April 30, 2006.

...back to 15 December 2005


Further information:
88% of Illinois Employers will have 2006 Unemployment Insurance tax rates lower than their current 2005 rates
2006 Unemployment Insurance Rate Chart

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