Title 56 IDES RULES Part 2732
Example: Newspaper A contracts a former tennis pro turned sports writer to cover the U.S. Open tennis
tournament. The assignment is for a three week period. Newspaper A allows the sports writer to take on
assignments from other sources provided they do not interfere with his coverage of the Open. This writer is
providing freelance services to this newspaper.
2) "Editorial" means work pertaining to the literary or artistic activities or contents of a newspaper as distinguished
from the newspaper's business and advertising activities.
Example: Professor A is a world authority on economic theory C. Newspaper B hires professor A to write a
column which explains why the President must adopt economic theory C as part of his reelection strategy.
Professor A is performing editorial work for the newspaper.
Example: Newspaper A wishes to print a story about a local fair. It hires a resident of the local area to write
a column about the fair. The writer of this story is performing editorial work for the newspaper.
Example: Newspaper A is considering raising its advertising rates. Therefore, it hires a consultant to
examine all local media advertising rates and recommend a course of action. This consultant is not
performing editorial services for the newspaper.
b) The application of Section 225(B) is limited to services performed for a newspaper. Freelance editorial or
photographic services performed for a magazine do not fall within this exception.
c) Section 225(B) of the Act shall apply only to services performed on or after September 22, 1992.
(Source: Added at 17 Ill. Reg. 8809, effective June 2, 1993)
Section 2732.227 Exemption For The Delivery Or Distribution Of Newspaper Or Shopping News To The Ultimate
a) For the purpose of applying Section 225(C) of the Act (Ill. Rev. Stat. 1991, ch. 48, par. 335(C), as amended by P.A.
87-1178, effective September 22, 1992) [820 ILCS 405/225(C), as amended by P.A. 87-11780]:
1) The "substantially all the remuneration" requirement is satisfied if at least 75 per cent of the total remuneration
received by the individual for the calendar quarter from the employing unit claiming the exemption is directly
related to sales, "per piece" fees or other output rather than to the number of hours worked. A "base fee" or
other payment provided as a reasonable reimbursement for mileage and other expenses will not be included in
calculating whether the requirement is met.
Example: An individual's compensation consists of $.05 for each newspaper that he delivers and a base fee
of $50.00 per week. The individual's weekly mileage expense is approximately $25.00 and his other
expenses total approximately $10.00. The base fee is a reasonable reimbursement for mileage and other
expenses. Therefore, since the base fee is not considered, regardless of the number of newspapers
delivered, 100 per cent, therefore, "substantially all" of the individual's remuneration is directly related to
Example: An individual's compensation consists of $.05 for each newspaper that he delivers and a flat fee
of $100.00 per week. The individual's weekly mileage expense is approximately $20.00 and his other
expenses total approximately $7.00. The fee is not a reasonable reimbursement for mileage and other
expenses. The difference between the fee and the actual expenses is included in determining whether the
"substantially all the remuneration" requirement is met. The individual's output based remuneration would
have to be at least 75% of the individual's total pay for the exemption to apply.
2) The "written contract" requirement is not met unless the contract specifically states that the individual will not
be treated as an employee for Federal tax purposes. It will not be sufficient for the contract to merely state that
the individual will not be treated as an employee. Any services provided prior to the date of the execution of the
required written contract shall not be exempt under Section 225(C) of the Act; whether these services
constituted employment under the Act shall be determined under Section 212 of the Act.
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