The State Disability Insurance (SDI) withholding rate (i.e., employee contribution rate) for 2005 is 1.08%, which is the base rate of 1.0% plus 0.08% for Paid Family Leave. The SDI taxable wage base for 2005 is $79,418. The elective coverage rate is 3.03% for 2005.

Unemployment Insurance Law
For 2005, the "126 to 162 million" rate schedule of the tax table applies, the fund balance having been between those figures as of July 1, 2004. Rates range from 0.3% to 2.5% for positive-balance employers, and from 2.8% to 5.4% for negative-balance employers, with unrated employers paying 1.7%. The surcharge for benefits not effectively charged remains at 0.22%.
Note that the solvency tax surcharge remains in effect for 2005 as well. The tax varies by employer, but is charged against all ratable employer accounts with less than 20 percent of excess, excluding government agencies, political subdivisions and nonprofit organizations that are reimbursable employers. Employers with an increased percent of excess pay at a lower rate, while those with a decreased percent of excess pay at a higher one. The tax will increase each year for as long as it is required, but may not go past the limit set by law in 1990.

Department of Human Rights Rules of Practice and Procedure
The regulations of practice and procedure of the Illinois Department of Human Rights governing procedures applicable to all agencies have been amended. Title 56, Chapter II, Sections 2520.30, 2520.40, 2520.330, and 2520.587, as amended effective Dec. 28, 2004. Procedure, as amended effective Dec. 28, 2004. ¶14-20,126, ¶14-20,127.30, ¶14-20,127.40, ¶14-20,127.330, and ¶14-20,127.587.

Unemployment Insurance Law
For 2005, there is a 10% reduction in rates and the social charge tax, which is computed as a percentage of each employer's basic reduced rate and then added to such rate, is 28.45%. There is no negative reserve rate or solvency tax for 2005. Rates for employers with a negative reserve ratio range from 2.18% to 6.20%, and rates for employers with a positive reserve ratio range from 0.10% to 2.13% in 2005. Note that the part of an employer's contribution rate that results from the social charge tax is not creditable to the employer's experience rating account. Rates for new employers for 2005 range from 1.28% to 6.20%, depending upon industry classification.

Criminal Background Checks Rules
Nurses and nursing applicants are required to undergo a criminal background check as a condition of licensure. Title 46, Part XLVII, Chapter 33, Section 3330, as amended effective Dec. 20, 2004. ¶19-23,650.11

Unemployment Insurance Law
Contribution rates for employers with five or more years of experience will range from
0.06% to 10.3% in 2005. The maximum rate of 10.3% includes a 6.3% maximum chargeable benefit component, a 3.0% maximum account building component, and a 1.0% maximum nonchargeable benefits component. If the employer has submitted no quarterly tax reports, that employer's maximum tax rate will be 10.3%, and the employer will also be assessed a penalty of 3.0%, which is separate from the contribution rate.

The nonchargeable benefits component (NBC) for 2005 may range from 0.06% to
1.0%, depending upon an employer's experience.

Wage Payment Law
Michigan has amended its wage payment law with respect to direct deposit and debit cards. Specifically, the law now provides that an employer may pay wages to an employee through the issuance of a payroll debit card to the employee. The employee's written consent for this method of payment is required unless the employer was paying wages in this manner to one or more of its employees as of January 1, 2005 (S. 851, L. 2003).

Also, beginning October 1, 2005, nonclassified state government employees' payroll and payments and all elected and appointed state officials' payroll and payments shall be paid by electronic funds transfer (S. 850, L. 2003).

Equal Opportunity Rules—Public Employees
The rules providing for affirmative action, non discrimination and prohibition of sexual harassment have been amended. Title 25, Subchapter 1C, Section .0200, Sections .0202 through .0213, as amended effective Oct. 1, 2004. ¶34-23,450.02 through ¶34-23,450.13.

Access to personnel Records and Reports—Public Employees Rules
Regulations regarding the inspection and disclosure of public employees' personnel records and reports have been amended. Title 25, Subchapter 1C, Section .0300, Sections .0301 through .0310, as amended effective Oct. 1, 2004. ¶34-23,750.01 through ¶34-23,750.10.

Affirmative Action-State Employment Rules
Rules have been adopted to provide state employers guidance on affirmative action regarding the development and implementation of affirmative action goals and timetables, and the monitoring of progress toward those goals and timetables. Title 357, Chapter 357-25, Sections 357-25-005 through 357-25-055, as adopted effective July 1, 2005.

Access to Personnel Files Rules—State Employees
State employers are required to maintain an official file of each employee showing a record of employment and such other information as may be required for business and legal purposes. Title 357, Chapter 357-22, Sections 357-22-010 through 357-22-045, as adopted effective July 1, 2005.

For 2005, experience-rated employers pay rates ranging from 0.29% to 8.79%.
Any delinquent employer is assessed 2.0% plus the assignable basic rate, the total of which may not exceed 8.79% for 2005. New employers pay the following rates by industry classification for 2005: raw materials and energy production, 1.33%; goods production, 2.32%; distribution and transportation of goods, 1.29%; information, 1.29%; finance, insurance, real estate, and rental and leasing, 1.29%; professional and business services, 1.29%; education, health and social assistance, 1.29%; leisure, accommodation, and food services, 1.29%; other services (except public administration), 1.29%; public administration, 1.29%; and unclassified employers, 2.97%.