Key Issues That Illinois Accountants Should Be Aware Of When Handling IDES Audits

Illinois Department of Employment Security (IDES) audits have changed radically in recent years. Illinois accountants should be aware of the following major changes that have occurred especially with regard to Illinois companies that use independent contractors.

1. The IDES is emphasizing that certain business owners may be personally liable for any assessments that may occur as a result of an IDES audit.
2. IDES auditors lecture the companies they audit that the IDES will not hesitate to assess a 60% fraud charge onto a company that intentionally and willfully misclassifies independent contractors.In the past, the majority of IDES audits have been triggered by misclassified independent contractors who filed for unemployment insurance benefits upon being separated from the company. Random audits were also a big reason for IDES audits. Most recently, IDES audits are triggered because the company has been previously audited by the IDES. These kinds of audits are called FOLLOW-UP AUDITS. I am finding that more and more clients are being hit with these follow-up audits.
3. Illinois companies that are hit with follow-up audits should be particularly sensitive to the fact that they may also be hit with a 60% fraud assessment. If a company was previously audited by the IDES and the company ignored the deficiencies that were found as a result of that prior IDES audit, the IDES can then prove fraud.
4. Accountants who are assisting Illinois trucking companies who use independent contractor owner-operators need to be well versed in the special law and regulations that apply to the trucking industry.

Contact Attorney Nancy E. Joerg (Managing Shareholder of the St. Charles Illinois office of Wessels Sherman) who enjoys a nationwide reputation in working with companies who use Independent Contractors of all types.  Nancy Joerg can be reached at 630-377-1554 or email her at najoerg@wesselssherman.com