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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||
5 | changing Section 704 and by adding Section 704A as follows:
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6 | (35 ILCS 5/704) (from Ch. 120, par. 7-704)
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7 | Sec. 704. Employer's Return and Payment of Tax Withheld.
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8 | (a) In general, every employer who deducts and withholds or | ||||||
9 | is required
to deduct and withhold tax under this Act prior to | ||||||
10 | January 1, 2008, shall make such payments and
returns as | ||||||
11 | hereinafter provided in this Section .
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12 | (b) Quarter Monthly Payments: Returns. Every employer who | ||||||
13 | deducts
and withholds or is required to deduct and withhold tax | ||||||
14 | under this Act
shall, on or before the third banking day | ||||||
15 | following the close of a quarter
monthly period, pay to the | ||||||
16 | Department or to a depositary designated by the
Department, | ||||||
17 | pursuant to regulations prescribed by the Department, the taxes
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18 | so required to be deducted and withheld, whenever the aggregate | ||||||
19 | amount
withheld by such employer (together with amounts | ||||||
20 | previously withheld and
not paid to the Department) exceeds | ||||||
21 | $1,000. For purposes of this Section,
Saturdays, Sundays, legal | ||||||
22 | holidays and local bank holidays are not banking
days. A | ||||||
23 | quarter monthly period, for purposes of this subsection, ends |
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1 | on
the 7th, 15th, 22nd and last day of each calendar month. | ||||||
2 | Every such
employer shall for each calendar quarter, on or | ||||||
3 | before the last day of the
first month following the close of | ||||||
4 | such quarter, and for the calendar year,
on or before January | ||||||
5 | 31 of the succeeding calendar year, make a return with
respect | ||||||
6 | to such taxes in such form and manner as the Department may by
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7 | regulations prescribe, and pay to the Department or to a | ||||||
8 | depositary
designated by the Department all withheld taxes not | ||||||
9 | previously paid to
the Department.
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10 | (c) Monthly Payments: Returns. Every employer required to | ||||||
11 | deduct and
withhold tax under this Act shall, on or before the | ||||||
12 | 15th day of the second
and third months of each calendar | ||||||
13 | quarter, and on or before the last day of
the month following | ||||||
14 | the last month of each such quarter, pay to the
Department or | ||||||
15 | to a depositary designated by the Department, pursuant to
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16 | regulations prescribed by the Department, the taxes so required | ||||||
17 | to be
deducted and withheld, whenever the aggregate amount | ||||||
18 | withheld by such employer
(together with amounts previously | ||||||
19 | withheld and not paid to the
Department) exceeds $500 but does | ||||||
20 | not exceed $1,000. Every such employer
shall for each calendar | ||||||
21 | quarter, on or before the last day of the first
month following | ||||||
22 | the close of such quarter, and for the calendar year, on or
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23 | before January 31 of the succeeding calendar year, make a | ||||||
24 | return with
respect to such taxes in such form and manner as | ||||||
25 | the Department may by
regulations prescribe, and pay to the | ||||||
26 | Department or to a depositary
designated by the Department all |
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1 | withheld taxes not previously paid to
the Department.
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2 | (d) Annual Payments: Returns. Where the amount of | ||||||
3 | compensation paid
by an employer is not sufficient to require | ||||||
4 | the withholding of tax from the
compensation of any of its | ||||||
5 | employees (or where the aggregate amount
withheld is less than | ||||||
6 | $500), the Department may by regulation permit such
employer to | ||||||
7 | file only an annual return and to pay the taxes required to be
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8 | deducted and withheld at the time of filing such annual return.
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9 | (e) Annual Return. The Department may, as it deems | ||||||
10 | appropriate, prescribe
by regulation for the filing of annual | ||||||
11 | returns in lieu of quarterly returns
described in subsections | ||||||
12 | (b) and (c).
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13 | (e-5) Annual Return and Payment. On and after January 1, | ||||||
14 | 1998,
notwithstanding subsections (b) through (d) of this | ||||||
15 | Section, every employer who
deducts and withholds or is | ||||||
16 | required to deduct and withhold tax from a person
engaged in | ||||||
17 | domestic service employment, as that term is defined in Section | ||||||
18 | 3510
of the Internal Revenue Code, may comply with the | ||||||
19 | requirements of this Section
by filing an annual return and | ||||||
20 | paying the taxes required to be deducted and
withheld on or | ||||||
21 | before the 15th day of the fourth month following the close of
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22 | the employer's taxable year. The annual return may be submitted | ||||||
23 | with the
employer's individual income tax return.
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24 | (f) Magnetic Media Filing. Forms W-2 that, pursuant to
the | ||||||
25 | Internal Revenue Code and regulations promulgated thereunder, | ||||||
26 | are
required to be submitted to the Internal Revenue Service on |
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1 | magnetic media,
must also be submitted to the Department on | ||||||
2 | magnetic media for Illinois
purposes, if required by the | ||||||
3 | Department.
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4 | (Source: P.A. 90-374, eff. 8-14-97; 90-562, eff. 12-16-97.)
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5 | (35 ILCS 5/704A new) | ||||||
6 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
7 | (a) In general, every employer who deducts and withholds or | ||||||
8 | is required to deduct and withhold tax under this Act on or | ||||||
9 | after January 1, 2008 shall make those payments and returns as | ||||||
10 | provided in this Section. | ||||||
11 | (b) Returns. Every employer shall, in the form and manner | ||||||
12 | required by the Department, make returns with respect to taxes | ||||||
13 | withheld or required to be withheld under this Article 7 | ||||||
14 | beginning on or after January 1, 2008, on or before the last | ||||||
15 | day of the first month following the close of that quarter. | ||||||
16 | (c) Payments. With respect to amounts withheld or required | ||||||
17 | to be withheld on or after January 1, 2008: | ||||||
18 | (1) Semi-weekly payments. For each calendar year, each | ||||||
19 | employer who withheld or was required to withhold more than | ||||||
20 | $12,000 during the one-year period ending on June 30 of the | ||||||
21 | immediately preceding calendar year, payment must be made: | ||||||
22 | (A) on or before each Friday of the calendar year, | ||||||
23 | for taxes withheld or required to be withheld on the | ||||||
24 | immediately preceding Saturday, Sunday, Monday, or | ||||||
25 | Tuesday; |
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1 | (B) on or before each Wednesday of the calendar | ||||||
2 | year, for taxes withheld or required to be withheld on | ||||||
3 | the immediately preceding Wednesday, Thursday, or | ||||||
4 | Friday. | ||||||
5 | (2) Semi-weekly payments. Any employer who withholds | ||||||
6 | or is required to withhold more than $12,000 in any quarter | ||||||
7 | of a calendar year is required to make payments on the | ||||||
8 | dates set forth under item (1) of this subsection (c) for | ||||||
9 | each remaining quarter of that calendar year and for the | ||||||
10 | subsequent calendar year.
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11 | (3) Monthly payments. Each employer, other than an | ||||||
12 | employer described in items (1) or (2) of this subsection, | ||||||
13 | shall pay to the Department, on or before the 15th day of | ||||||
14 | each month the taxes withheld or required to be withheld | ||||||
15 | during the immediately preceding month. | ||||||
16 | (4) Payments with returns. Each employer shall pay to | ||||||
17 | the Department, on or before the due date for each return | ||||||
18 | required to be filed under this Section, any tax withheld | ||||||
19 | or required to be withheld during the period for which the | ||||||
20 | return is due and not previously paid to the Department. | ||||||
21 | (d) Regulatory authority. The Department may, by rule: | ||||||
22 | (1) If the aggregate amounts required to be withheld | ||||||
23 | under this Article 7 do not exceed $1,000 for the calendar | ||||||
24 | year, permit employers, in lieu of the requirements of | ||||||
25 | subsections (b) and (c), to file annual returns due on or | ||||||
26 | before January 31 of the following year for taxes withheld |
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1 | or required to be withheld during that calendar year and to | ||||||
2 | pay the taxes required to be shown on each such return no | ||||||
3 | later than the due date for such return. | ||||||
4 | (2) Provide that any payment required to be made under | ||||||
5 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
6 | extent paid by electronic funds transfer on or before the | ||||||
7 | due date for deposit of federal income taxes withheld from, | ||||||
8 | or federal employment taxes due with respect to, the wages | ||||||
9 | from which the Illinois taxes were withheld. | ||||||
10 | (3) Designate one or more depositories to which payment | ||||||
11 | of taxes required to be withheld under this Article 7 must | ||||||
12 | be paid by some or all employers. | ||||||
13 | (4) Increase the threshold dollar amounts at which | ||||||
14 | employers are required to make semi-weekly payments under | ||||||
15 | subsection (c)(1) or (c)(2). | ||||||
16 | (e) Annual return and payment. Every employer who deducts | ||||||
17 | and withholds or is required to deduct and withhold tax from a | ||||||
18 | person engaged in domestic service employment, as that term is | ||||||
19 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
20 | comply with the requirements of this Section with respect to | ||||||
21 | such employees by filing an annual return and paying the taxes | ||||||
22 | required to be deducted and withheld on or before the 15th day | ||||||
23 | of the fourth month following the close of the employer's | ||||||
24 | taxable year. The Department may allow the employer's return to | ||||||
25 | be submitted with the employer's individual income tax return | ||||||
26 | or to be submitted with a return due from the employer under |
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1 | Section 1400.2 of the Unemployment Insurance Act. | ||||||
2 | (f) Magnetic media and electronic filing. Any W-2 Form | ||||||
3 | that, under the Internal Revenue Code and regulations | ||||||
4 | promulgated thereunder, is required to be submitted to the | ||||||
5 | Internal Revenue Service on magnetic media or electronically | ||||||
6 | must also be submitted to the Department on magnetic media or | ||||||
7 | electronically for Illinois purposes, if required by the | ||||||
8 | Department.
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9 | Section 99. Effective date. This Act takes effect upon | ||||||
10 | becoming law. |