A Publication of WTVP

Another one of Illinois’ “best kept secrets”—TaxNet—is now available. The Illinois Department of Employment Security (IDES) has taken the lead in providing more than just an on-line tax filing system. IDES, along with the Department of Revenue (IDOR), recently completed phase three of TaxNet, a time-saving Internet tax filing application. This interactive system makes reporting a lot simpler and provides you complete control over wage records and business tax monitoring.

TaxNet allows employers or their representatives to submit the Unemployment Insurance “Employer’s Quarterly Contribution and Wage Report” (U.I. 3/40), the Illinois Department of Revenue “State Quarterly Withholding Income Return” (IL-941), “Withholding Income Tax Payment” (IL-501), and the “Annual Withholding Income Return” (IL-W3) via the Internet.

The instructional information below for TaxNet represents yet another example of the programs available to you at no additional cost and how IDES is working hard to assist the Illinois business community with value added products and services.

TaxNet Instructions
To file quarterly reports, update information, or register for an Unemployment Insurance account number on your clients’ accounts, you must first have a power of attorney on file with the Illinois Department of Employment Security. Secondly, you must register with the Illinois Department of Employment Security as a service bureau. After receiving your designation as a service bureau, depending on the limits of your power of attorney, you’ll be allowed to receive and/or take action on correspondence including the “Notice of Claim” (BIS-32), the “Employer’s Quarterly Contribution and Wage Report” (UI-3/40), the “Annual Contribution Rate Determination” (UI-5A/5B), “Benefit Appeals,” and the “Federal Unemployment Tax Certification.”

Depending on the limits of the power of attorney, service bureaus can view and/or change specific information. A service bureau can secure rate notice reprints, statements of account, detailed account reconciliations, and Federal Unemployment Tax certifications. A service bureau may be able to correct the business name. It may be able to correct the doing-business-as name. It can change and/or update the main address. In some cases, it can close the account.

When the service bureau enters an employee’s wages on the UI-3/40 “Contribution and Wage Report,” the system automatically displays and uses the rate established in the Illinois Department of Employment Security database. Based on the annual wage base, it’ll compute the taxable wages for each employee. It then will calculate the amount of contributions due. Before the data is submitted, the accountant may review the report for correctness. After the data is submitted, a confirmation number with the date and time received is issued. The accountant can print a copy or save a copy in a .PDF file.

When the service bureau files subsequent reports, the workers from the previous quarter will be displayed. The authorized representative can sort these workers by name or Social Security number. The names and Social Security numbers may be modified. Workers may be added or deleted. When the new quarterly wages are submitted, the system will calculate the amount of contributions due.

Service bureaus can remit unemployment contributions and/or pay withholding tax in two ways. The payments may be made by an “ACH Debit” or by check. If the payment is going to be made by check, the TaxNet program will produce a coupon which must be mailed along with the check. If the payment is going to be made by ACH debit, the payment can be debited as of a future date on or prior to the due date of the payment. This date can be changed. When the payment is completed electronically, a confirmation number and the date and time of receipt are issued for the electronic payment.

If an accountant or accounting firm wants to secure service bureau designation, their representative should mail to the address below or fax a letter to John Gretz, manager of the Employer FAX Hotline Unit, at (312) 793-6296. The request should say that the accountant or accounting firm would like to be designated as a “service bureau” for TaxNet purposes. It must provide the accountant or accounting firm’s name, address, phone number, and the name of a contact person. The request must contain a list of the company names, employer identification numbers (EIN), and the Illinois account numbers of the businesses for whom there’s a valid power of attorney. Gretz will call the contact person with a service bureau designation.

For questions regarding TaxNet or other contribution issues, please write Bob Hellgeth at 33 S. State Street, Chicago, Illinois, 60603; call him at (312) 793-1911; or e-mail him at [email protected]. We’re here to help and we look forward to the opportunity to serve you. IBI