IHA Daily Briefing: April 21

Important Change to Wage Reporting to Begin July 1
IHA members should be aware of an important change in the Illinois Administrative Code impacting wage reporting that is scheduled to begin on July 1, 2026.

Currently, employer contributions to 401(k) plans are considered wages to be reported and are subject to unemployment insurance (UI) contributions. Beginning July 1, that designation will change and from that point forward any 401(k) contributions from employers will no longer be subject to UI contributions.

Employer contribution payments to a worker's 401(k) plan made on and after July 1, are no longer considered to be "wages" for purposes of the Illinois Unemployment Insurance Act. Therefore, these payments should not be included when reporting the wages paid to workers to the Illinois Dept. of Employment Security (IDES) after July 1. Employee contributions to their 401(k) plan will continue to be considered "wages."

Any employer contribution payments to a worker's 401(k) plan made prior to July 1, 2026, should continue to be included as wages when reporting to IDES.

For reference, the section of the Illinois Administrative Code that changed is located here. This change was made to be consistent with the way that the Internal Revenue Service now treats employer contribution payments to a worker's 401(k) plan.

Please note that this change only applies to employer contribution payments to workers' 401(k) plans and not other plans.

Questions can be directed to IDES at 800-247-4984.

Reminder: April 28 Healthcare Industry Panel in Will County
Don't miss the opportunity to join healthcare leaders for the Health of the Healthcare Industry panel discussion moderated by A.J. Wilhelmi, IHA President and CEO. The event will bring together local hospital executives to discuss key issues impacting care delivery across Will County.

This in-person event, hosted by the Workforce Investment Board of Will County in partnership with IHA, will take place from 1-2:30 p.m. CT on April 28 at Crest Hill City Hall, located at 20600 City Center Blvd., in Crest Hill. Panelists include Michael Mutterer, President and CEO of Silver Cross Hospital; Yvette Saba, President of Edward Hospital; and Larry Coomes, CEO of St. Joseph Medical Center.

The discussion will focus on workforce challenges, access to care, and innovations shaping the future of healthcare in the region. Healthcare leaders, frontline staff, public health professionals, and workforce and education partners are encouraged to attend and take part in this timely conversation.

Those interested in attending can register here. For questions, contact John Hall at [email protected].

EO Prioritizes Research, Funding for Psychedelic Drug Treatments
President Donald Trump on April 18 signed an executive order (EO) to accelerate research into psychedelic drugs for the treatment of serious mental illnesses, easing federal restrictions that had made it more difficult to study these substances. The EO also allocates $50 million that the Secretary of Health and Human Services, through the Advanced Research Projects Agency for Health, is directed to use in collaboration with states developing programs to advance the use of psychedelics to treat mental illness.