Illinois Code § 820 ILCS 405/1300

Waiver or transfer of benefit rights - Partial exemption.
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(A) Except as otherwise provided herein any agreement by an individual
to waive, release or commute his rights under this Act shall be void.

 
(B) Benefits due under this Act shall not be assigned, pledged, encumbered,
released or commuted and shall be exempt from all claims of creditors and
from levy, execution and attachment or other remedy for recovery or
collection of a debt. However, nothing in this Section shall prohibit a
specified or agreed upon deduction from benefits by an individual, or a
court or administrative order for withholding of income, for payment of
past due child support from being enforced and collected by the Department
of Healthcare and Family Services on behalf of persons receiving a grant of financial aid under
Article IV of the Illinois Public Aid Code, persons for whom an application
has been made and approved for child support enforcement services under
Section 10-1 of such
Code, or persons similarly situated and receiving like services
in other states. It is provided that:

 
 
(1) The aforementioned deduction of benefits and 
 
order for withholding of income apply only if appropriate arrangements have been made for reimbursement to the Department by the Department of Healthcare and Family Services for any administrative costs incurred under this Section.

 
 
(2) The Director shall deduct and withhold from 
 
benefits payable under this Act, or under any arrangement for the payment of benefits entered into by the Director pursuant to the powers granted under Section 2700 of this Act, the amount specified or agreed upon. In the case of a court or administrative order for withholding of income, the Director shall withhold the amount of the order.

 
 
(3) Any amount deducted and withheld by the Director 
 
shall be paid to the Department of Healthcare and Family Services or the State Disbursement Unit established under Section 10-26 of the Illinois Public Aid Code, as directed by the Department of Healthcare and Family Services, on behalf of the individual.

 
 
(4) Any amount deducted and withheld under subsection 
 
(3) shall for all purposes be treated as if it were paid to the individual as benefits and paid by such individual to the Department of Healthcare and Family Services or the State Disbursement Unit in satisfaction of the individual's child support obligations.

 
 
(5) For the purpose of this Section, child support is 
 
defined as those obligations which are being enforced pursuant to a plan described in Title IV, Part D, Section 454 of the Social Security Act and approved by the Secretary of Health and Human Services.

 
 
(6) The deduction of benefits and order for 
 
withholding of income for child support shall be governed by Titles III and IV of the Social Security Act and all regulations duly promulgated thereunder.

 
(C) Nothing in this Section prohibits an individual from voluntarily
electing to have federal income tax deducted and withheld from his or her
unemployment insurance benefit payments.

 
 
(1) The Director shall, at the time that an 
 
individual files his or her claim for benefits that establishes his or her benefit year, inform the individual that:

 
 
 
(a) unemployment insurance is subject to federal, 
 
 
State, and local income taxes;

 
 
 
(b) requirements exist pertaining to estimated 
 
 
tax payments;

 
 
 
(c) the individual may elect to have federal 
 
 
income tax deducted and withheld from his or her payments of unemployment insurance in the amount specified in the federal Internal Revenue Code; and

 
 
 
(d) the individual is permitted to change a 
 
 
previously elected withholding status.

 
 
(2) Amounts deducted and withheld from unemployment 
 
insurance shall remain in the unemployment fund until transferred to the federal taxing authority as a payment of income tax.

 
 
(3) The Director shall follow all procedures 
 
specified by the United States Department of Labor and the federal Internal Revenue Service pertaining to the deducting and withholding of income tax.

 
 
(4) Amounts shall be deducted and withheld in 
 
accordance with the priorities established in rules promulgated by the Director.

 
(D) Nothing in this Section prohibits an individual from voluntarily
electing to have State of Illinois income tax deducted and withheld from his or
her unemployment insurance benefit payments.

 
 
(1) The Director shall, at the time that an 
 
individual files his or her claim for benefits that establishes his or her benefit year, in addition to providing the notice required under subsection C, inform the individual that:

 
 
 
(a) the individual may elect to have State of 
 
 
Illinois income tax deducted and withheld from his or her payments of unemployment insurance; and

 
 
 
(b) the individual is permitted to change a 
 
 
previously elected withholding status.

 
 
(2) Amounts deducted and withheld from unemployment 
 
insurance shall remain in the unemployment fund until transferred to the Department of Revenue as a payment of State of Illinois income tax.

 
 
(3) Amounts shall be deducted and withheld in 
 
accordance with the priorities established in rules promulgated by the Director.

 
(E) Nothing in this Section prohibits the deduction and withholding of an
uncollected overissuance of food stamp coupons from unemployment insurance
benefits pursuant to this subsection (E).

 
 
(1) At the time that an individual files a claim for 
 
benefits that establishes his or her benefit year, that individual must disclose whether or not he or she owes an uncollected overissuance (as defined in Section 13(c)(1) of the federal Food Stamp Act of 1977) of food stamp coupons. The Director shall notify the State food stamp agency enforcing such obligation of any individual who discloses that he or she owes an uncollected overissuance of food stamp coupons and who meets the monetary eligibility requirements of subsection E of Section 500.

 
 
(2) The Director shall deduct and withhold from any 
 
unemployment insurance benefits payable to an individual who owes an uncollected overissuance of food stamp coupons:

 
 
 
(a) the amount specified by the individual to the 
 
 
Director to be deducted and withheld under this subsection (E);

 
 
 
(b) the amount (if any) determined pursuant to an 
 
 
agreement submitted to the State food stamp agency under Section 13(c)(3)(A) of the federal Food Stamp Act of 1977; or

 
 
 
(c) any amount otherwise required to be deducted 
 
 
and withheld from unemployment insurance benefits pursuant to Section 13(c)(3)(B) of the federal Food Stamp Act of 1977.

 
 
(3) Any amount deducted and withheld pursuant to this 
 
subsection (E) shall be paid by the Director to the State food stamp agency.

 
 
(4) Any amount deducted and withheld pursuant to this 
 
subsection (E) shall for all purposes be treated as if it were paid to the individual as unemployment insurance benefits and paid by the individual to the State food stamp agency as repayment of the individual's uncollected overissuance of food stamp coupons.

 
 
(5) For purposes of this subsection (E), 
 
"unemployment insurance benefits" means any compensation payable under this Act including amounts payable by the Director pursuant to an agreement under any federal law providing for compensation, assistance, or allowances with respect to unemployment.

 
 
(6) This subsection (E) applies only if arrangements 
 
have been made for reimbursement by the State food stamp agency for the administrative costs incurred by the Director under this subsection (E) which are attributable to the repayment of uncollected overissuances of food stamp coupons to the State food stamp agency.

order for withholding of income apply only if appropriate arrangements have been made for reimbursement to the Department by the Department of Healthcare and Family Services for any administrative costs incurred under this Section.
benefits payable under this Act, or under any arrangement for the payment of benefits entered into by the Director pursuant to the powers granted under Section 2700 of this Act, the amount specified or agreed upon. In the case of a court or administrative order for withholding of income, the Director shall withhold the amount of the order.
shall be paid to the Department of Healthcare and Family Services or the State Disbursement Unit established under Section 10-26 of the Illinois Public Aid Code, as directed by the Department of Healthcare and Family Services, on behalf of the individual.
(3) shall for all purposes be treated as if it were paid to the individual as benefits and paid by such individual to the Department of Healthcare and Family Services or the State Disbursement Unit in satisfaction of the individual's child support obligations.
defined as those obligations which are being enforced pursuant to a plan described in Title IV, Part D, Section 454 of the Social Security Act and approved by the Secretary of Health and Human Services.
withholding of income for child support shall be governed by Titles III and IV of the Social Security Act and all regulations duly promulgated thereunder.
individual files his or her claim for benefits that establishes his or her benefit year, inform the individual that:
State, and local income taxes;
tax payments;
income tax deducted and withheld from his or her payments of unemployment insurance in the amount specified in the federal Internal Revenue Code; and
previously elected withholding status.
insurance shall remain in the unemployment fund until transferred to the federal taxing authority as a payment of income tax.
specified by the United States Department of Labor and the federal Internal Revenue Service pertaining to the deducting and withholding of income tax.
accordance with the priorities established in rules promulgated by the Director.
individual files his or her claim for benefits that establishes his or her benefit year, in addition to providing the notice required under subsection C, inform the individual that:
Illinois income tax deducted and withheld from his or her payments of unemployment insurance; and
previously elected withholding status.
insurance shall remain in the unemployment fund until transferred to the Department of Revenue as a payment of State of Illinois income tax.
accordance with the priorities established in rules promulgated by the Director.
benefits that establishes his or her benefit year, that individual must disclose whether or not he or she owes an uncollected overissuance (as defined in Section 13(c)(1) of the federal Food Stamp Act of 1977) of food stamp coupons. The Director shall notify the State food stamp agency enforcing such obligation of any individual who discloses that he or she owes an uncollected overissuance of food stamp coupons and who meets the monetary eligibility requirements of subsection E of Section 500.
unemployment insurance benefits payable to an individual who owes an uncollected overissuance of food stamp coupons:
Director to be deducted and withheld under this subsection (E);
agreement submitted to the State food stamp agency under Section 13(c)(3)(A) of the federal Food Stamp Act of 1977; or
and withheld from unemployment insurance benefits pursuant to Section 13(c)(3)(B) of the federal Food Stamp Act of 1977.
subsection (E) shall be paid by the Director to the State food stamp agency.
subsection (E) shall for all purposes be treated as if it were paid to the individual as unemployment insurance benefits and paid by the individual to the State food stamp agency as repayment of the individual's uncollected overissuance of food stamp coupons.
"unemployment insurance benefits" means any compensation payable under this Act including amounts payable by the Director pursuant to an agreement under any federal law providing for compensation, assistance, or allowances with respect to unemployment.
have been made for reimbursement by the State food stamp agency for the administrative costs incurred by the Director under this subsection (E) which are attributable to the repayment of uncollected overissuances of food stamp coupons to the State food stamp agency.

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