Effective January 1, 2024, Illinois businesses are required to report new independent contractors, including gig workers, in the same way they report newly hired employees. This change, driven by 2023 amendments to Illinois' Unemployment Insurance Act, impacts many Illinois employers.
What Illinois Employers Need to Know
Under this law, Illinois employers must collect a completed W-9 form from all new independent contractors within 20 days of their hire date. This information must then be submitted on the Illinois Department of Employment Security's (IDES) New Hire Reporting Form, either by mail, fax, or online.
While employers will receive a fine of $15 for each individual they fail to report, the IDES will first notify employers of any noncompliance and provide a 21-day grace period to submit the required information. Employers who knowingly submit incomplete or false reports could face fines of up to $500 per person.
If you have questions or need guidance on how these requirements might affect your business, our team of tax professionals at Kemper CPA Group is here to assist.
