Sen. Don Harmon
Filed: 3/13/2007
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1 | AMENDMENT TO SENATE BILL 1395
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2 | AMENDMENT NO. ______. Amend Senate Bill 1395 by replacing | ||||||
3 | everything after the enacting clause with the following:
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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, |
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1 | pursuant to regulations prescribed by the Department, the taxes
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2 | so required to be deducted and withheld, whenever the aggregate | ||||||
3 | amount
withheld by such employer (together with amounts | ||||||
4 | previously withheld and
not paid to the Department) exceeds | ||||||
5 | $1,000. For purposes of this Section,
Saturdays, Sundays, legal | ||||||
6 | holidays and local bank holidays are not banking
days. A | ||||||
7 | quarter monthly period, for purposes of this subsection, ends | ||||||
8 | on
the 7th, 15th, 22nd and last day of each calendar month. | ||||||
9 | Every such
employer shall for each calendar quarter, on or | ||||||
10 | before the last day of the
first month following the close of | ||||||
11 | such quarter, and for the calendar year,
on or before January | ||||||
12 | 31 of the succeeding calendar year, make a return with
respect | ||||||
13 | to such taxes in such form and manner as the Department may by
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14 | regulations prescribe, and pay to the Department or to a | ||||||
15 | depositary
designated by the Department all withheld taxes not | ||||||
16 | previously paid to
the Department.
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17 | (c) Monthly Payments: Returns. Every employer required to | ||||||
18 | deduct and
withhold tax under this Act shall, on or before the | ||||||
19 | 15th day of the second
and third months of each calendar | ||||||
20 | quarter, and on or before the last day of
the month following | ||||||
21 | the last month of each such quarter, pay to the
Department or | ||||||
22 | to a depositary designated by the Department, pursuant to
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23 | regulations prescribed by the Department, the taxes so required | ||||||
24 | to be
deducted and withheld, whenever the aggregate amount | ||||||
25 | withheld by such employer
(together with amounts previously | ||||||
26 | withheld and not paid to the
Department) exceeds $500 but does |
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1 | not exceed $1,000. Every such employer
shall for each calendar | ||||||
2 | quarter, on or before the last day of the first
month following | ||||||
3 | the close of such quarter, and for the calendar year, on or
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4 | before January 31 of the succeeding calendar year, make a | ||||||
5 | return with
respect to such taxes in such form and manner as | ||||||
6 | the Department may by
regulations prescribe, and pay to the | ||||||
7 | Department or to a depositary
designated by the Department all | ||||||
8 | withheld taxes not previously paid to
the Department.
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9 | (d) Annual Payments: Returns. Where the amount of | ||||||
10 | compensation paid
by an employer is not sufficient to require | ||||||
11 | the withholding of tax from the
compensation of any of its | ||||||
12 | employees (or where the aggregate amount
withheld is less than | ||||||
13 | $500), the Department may by regulation permit such
employer to | ||||||
14 | file only an annual return and to pay the taxes required to be
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15 | deducted and withheld at the time of filing such annual return.
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16 | (e) Annual Return. The Department may, as it deems | ||||||
17 | appropriate, prescribe
by regulation for the filing of annual | ||||||
18 | returns in lieu of quarterly returns
described in subsections | ||||||
19 | (b) and (c).
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20 | (e-5) Annual Return and Payment. On and after January 1, | ||||||
21 | 1998,
notwithstanding subsections (b) through (d) of this | ||||||
22 | Section, every employer who
deducts and withholds or is | ||||||
23 | required to deduct and withhold tax from a person
engaged in | ||||||
24 | domestic service employment, as that term is defined in Section | ||||||
25 | 3510
of the Internal Revenue Code, may comply with the | ||||||
26 | requirements of this Section
by filing an annual return and |
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1 | paying the taxes required to be deducted and
withheld on or | ||||||
2 | before the 15th day of the fourth month following the close of
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3 | the employer's taxable year. The annual return may be submitted | ||||||
4 | with the
employer's individual income tax return.
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5 | (f) Magnetic Media Filing. Forms W-2 that, pursuant to
the | ||||||
6 | Internal Revenue Code and regulations promulgated thereunder, | ||||||
7 | are
required to be submitted to the Internal Revenue Service on | ||||||
8 | magnetic media,
must also be submitted to the Department on | ||||||
9 | magnetic media for Illinois
purposes, if required by the | ||||||
10 | Department.
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11 | (Source: P.A. 90-374, eff. 8-14-97; 90-562, eff. 12-16-97.)
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12 | (35 ILCS 5/704A new) | ||||||
13 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
14 | (a) In general, every employer who deducts and withholds or | ||||||
15 | is required to deduct and withhold tax under this Act on or | ||||||
16 | after January 1, 2008 shall make those payments and returns as | ||||||
17 | provided in this Section. | ||||||
18 | (b) Returns. Every employer shall, in the form and manner | ||||||
19 | required by the Department, make returns with respect to taxes | ||||||
20 | withheld or required to be withheld under this Article 7 | ||||||
21 | beginning on or after January 1, 2008, on or before the last | ||||||
22 | day of the first month following the close of that quarter. | ||||||
23 | (c) Payments. With respect to amounts withheld or required | ||||||
24 | to be withheld on or after January 1, 2008: | ||||||
25 | (1) Semi-weekly payments. For each calendar year, each |
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1 | employer who withheld or was required to withhold more than | ||||||
2 | $12,000 during the one-year period ending on June 30 of the | ||||||
3 | immediately preceding calendar year, payment must be made: | ||||||
4 | (A) on or before each Friday of the calendar year, | ||||||
5 | for taxes withheld or required to be withheld on the | ||||||
6 | immediately preceding Saturday, Sunday, Monday, or | ||||||
7 | Tuesday; | ||||||
8 | (B) on or before each Wednesday of the calendar | ||||||
9 | year, for taxes withheld or required to be withheld on | ||||||
10 | the immediately preceding Wednesday, Thursday, or | ||||||
11 | Friday. | ||||||
12 | (2) Semi-weekly payments. Any employer who withholds | ||||||
13 | or is required to withhold more than $12,000 in any quarter | ||||||
14 | of a calendar year is required to make payments on the | ||||||
15 | dates set forth under item (1) of this subsection (c) for | ||||||
16 | each remaining quarter of that calendar year and for the | ||||||
17 | subsequent calendar year.
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18 | (3) Monthly payments. Each employer, other than an | ||||||
19 | employer described in items (1) or (2) of this subsection, | ||||||
20 | shall pay to the Department, on or before the 15th day of | ||||||
21 | each month the taxes withheld or required to be withheld | ||||||
22 | during the immediately preceding month. | ||||||
23 | (4) Payments with returns. Each employer shall pay to | ||||||
24 | the Department, on or before the due date for each return | ||||||
25 | required to be filed under this Section, any tax withheld | ||||||
26 | or required to be withheld during the period for which the |
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1 | return is due and not previously paid to the Department. | ||||||
2 | (d) Regulatory authority. The Department may, by rule: | ||||||
3 | (1) If the aggregate amounts required to be withheld | ||||||
4 | under this Article 7 do not exceed $1,000 for the calendar | ||||||
5 | year, permit employers, in lieu of the requirements of | ||||||
6 | subsections (b) and (c), to file annual returns due on or | ||||||
7 | before January 31 of the following year for taxes withheld | ||||||
8 | or required to be withheld during that calendar year and to | ||||||
9 | pay the taxes required to be shown on each such return no | ||||||
10 | later than the due date for such return. | ||||||
11 | (2) Provide that any payment required to be made under | ||||||
12 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
13 | extent paid by electronic funds transfer on or before the | ||||||
14 | due date for deposit of federal income taxes withheld from, | ||||||
15 | or federal employment taxes due with respect to, the wages | ||||||
16 | from which the Illinois taxes were withheld. | ||||||
17 | (3) Designate one or more depositories to which payment | ||||||
18 | of taxes required to be withheld under this Article 7 must | ||||||
19 | be paid by some or all employers. | ||||||
20 | (4) Increase the threshold dollar amounts at which | ||||||
21 | employers are required to make semi-weekly payments under | ||||||
22 | subsection (c)(1) or (c)(2). | ||||||
23 | (5) Require electronic filing of any return due under | ||||||
24 | this Section or payment by electronic funds transfer of any | ||||||
25 | amount that is required to be withheld under this Article 7 | ||||||
26 | by an employer required to make semi-weekly payments under |
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1 | subsection (c)(1) or (c)(2).
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2 | (e) Annual return and payment. Every employer who deducts | ||||||
3 | and withholds or is required to deduct and withhold tax from a | ||||||
4 | person engaged in domestic service employment, as that term is | ||||||
5 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
6 | comply with the requirements of this Section with respect to | ||||||
7 | such employees by filing an annual return and paying the taxes | ||||||
8 | required to be deducted and withheld on or before the 15th day | ||||||
9 | of the fourth month following the close of the employer's | ||||||
10 | taxable year. The Department may allow the employer's return to | ||||||
11 | be submitted with the employer's individual income tax return | ||||||
12 | or to be submitted with a return due from the employer under | ||||||
13 | Section 1400.2 of the Unemployment Insurance Act. | ||||||
14 | (f) Magnetic media and electronic filing. Any W-2 Form | ||||||
15 | that, under the Internal Revenue Code and regulations | ||||||
16 | promulgated thereunder, is required to be submitted to the | ||||||
17 | Internal Revenue Service on magnetic media or electronically | ||||||
18 | must also be submitted to the Department on magnetic media or | ||||||
19 | electronically for Illinois purposes, if required by the | ||||||
20 | Department.
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21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law.".
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