GUIDE TO THE ILLINOIS U. I. ACT Part IV
This Section applies to all employers, including non-profit organizations and governmental entities which elect to reimburse
benefits in lieu of paying contributions.
A. Wages Defined
In general, “wages” means every form of remuneration for personal services, including salaries, commission, bonuses, and the
reasonable money value of all remuneration in any medium other than cash.
The reasonable money value of remuneration in any medium other than cash shall be estimated and determined in accordance with
rules prescribed by the Director. Such rules shall be based on the reasonable past experience of the workers and the employing
units. (Section 234)
B. Meals and Lodging as Wages
Board, lodging, meals or other payment in kind received by a worker from his employer in addition to or in lieu of (rather than a
deduction from) money wages shall be considered remuneration paid by the employer.
The Director shall determine or approve the cash value of such payments. This cash value shall be used in determining the wages
paid to the worker and in computing the contributions due under the Act.
Where a money value for board or lodging or both furnished a worker is agreed upon in an employment contract, the amount agreed
upon shall be considered the cash value of such board and lodging. (56 Ill. Adm. Code 2730.100) However, meals given for the
convenience of the employer are not remuneration for services and do not constitute wages. (56 Ill. Adm. Code 2730.100)
C. Tips as Wages
Employers which have individuals in their employ who customarily receive tips in the course of their work are required by law and
regulation to post notices advising such workers of their duty to report the amount of tips they receive. (56 Ill. Adm. Code 2730.105
and Section 234)
Employers should request copies of the required posters and forms from Employer Hot Line, Department of Employment Security,
Detailed rules with respect to the reporting of tips as “wages” can also be obtained from the Office of Legal Counsel, 9th Floor,
Department of Employment Security, in Chicago.
D. Remuneration Not Considered Wages
There are several classes of remuneration which are NOT considered “wages”, which need NOT be reported, and on which
contributions are NOT required. (Section 235)
The exemptions from the definition of “wages” are also available to nonprofit organizations and local governmental entities that
elect to reimburse benefits in lieu of paying contributions.
The exemptions to the definition of “wages” include:
1. Payments to a worker for actual expenses incurred for the employer in the course of his employment, for which the employee is
required to submit a current and itemized account to his employer.
2. Payments under a plan or into a fund (including accident insurance premiums) on behalf of workers or their dependents on
account of sickness or accident disability, medical or hospital expenses for sickness or accident disability, or death;
Click tabs to swap between content that is broken into logical sections.