Accounting Articles > Illinois Unemployment:

What does it mean when I am responsible for the unemployment?

An employer is automatically given a percentage rate for the unemployment compensation upon the start-up of his or her business. Each quarter, the employer submits a form to the Department of Employment Security, using that percentage and the total payroll for that quarter to determine monies due.

Once a former employee begins to collect unemployment with your company as the most recent employer, those payments, along with the total taxable payroll for the quarters are used to readjust the percentage rate.

For example, if your company does not have any unemployment claims paid, then the percentage rate may go down, and you will pay less in compensation. But if your former employees begin to collect unemployment, then your percentage rate for compensation will increase

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Accounting Articles > Illinois Unemployment:

What does it mean when I am responsible for the unemployment?

An employer is automatically given a percentage rate for the unemployment compensation upon the start-up of his or her business. Each quarter, the employer submits a form to the Department of Employment Security, using that percentage and the total payroll for that quarter to determine monies due.

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