New Hire Reporting for Illinois Businesses Expanded to Include Independent Contractors

Beginning January 1, 2024, Illinois employers must complete the same new hire reporting protocol for new “gig workers” and other independent contractors as they do for newly hired employees.

This new law is based on amendments to the state’s Unemployment Insurance Act passed by the Illinois legislature in 2023.

What does this means to you?

Within 20 days of hiring any new employee or independent contractor, Illinois employers must obtain a completed W-9 form from the hiree and submit their information via the IDES New Hire reporting form that can be mailed, faxed or filed online.

The Illinois Department of Employment Security will notify the employer of any noncompliance and grant a 21-day grace period to submit the information before assessing any fines for noncompliance. Beyond that, any employer who “knowingly” submit a false or incomplete report will warrant a larger fine of up to $500 per person.

Obviously, this new measure affects a large percentage of Illinois employers and is bound to generate plenty of questions. If you have any, please don’t hesitate to consult your Weiss tax professional. That’s why we’re here.