Full Text of HB2425 100th General Assembly
HB2425 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB2425 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Provides that an employer with fewer than 25 employees shall make returns for withholding taxes annually. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 704A as follows: | 6 | | (35 ILCS 5/704A) | 7 | | Sec. 704A. Employer's return and payment of tax withheld. | 8 | | (a) In general, every employer who deducts and withholds or | 9 | | is required to deduct and withhold tax under this Act on or | 10 | | after January 1, 2008 shall make those payments and returns as | 11 | | provided in this Section. | 12 | | (b) Returns. Every employer shall, in the form and manner | 13 | | required by the Department, make returns with respect to taxes | 14 | | withheld or required to be withheld under this Article 7 for | 15 | | each quarter beginning on or after January 1, 2008, on or | 16 | | before the last day of the first month following the close of | 17 | | that quarter. On and after January 1, 2017, an employer with an | 18 | | average employee head count of fewer than 25 employees during | 19 | | the previous calendar year shall make returns with respect to | 20 | | taxes withheld or required to be withheld under this Article 7 | 21 | | annually. | 22 | | (c) Payments. With respect to amounts withheld or required | 23 | | to be withheld on or after January 1, 2008: |
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| 1 | | (1) Semi-weekly payments. For each calendar year, each | 2 | | employer who withheld or was required to withhold more than | 3 | | $12,000 during the one-year period ending on June 30 of the | 4 | | immediately preceding calendar year, payment must be made: | 5 | | (A) on or before each Friday of the calendar year, | 6 | | for taxes withheld or required to be withheld on the | 7 | | immediately preceding Saturday, Sunday, Monday, or | 8 | | Tuesday; | 9 | | (B) on or before each Wednesday of the calendar | 10 | | year, for taxes withheld or required to be withheld on | 11 | | the immediately preceding Wednesday, Thursday, or | 12 | | Friday. | 13 | | Beginning with calendar year 2011, payments made under | 14 | | this paragraph (1) of subsection (c) must be made by | 15 | | electronic funds transfer. | 16 | | (2) Semi-weekly payments. Any employer who withholds | 17 | | or is required to withhold more than $12,000 in any quarter | 18 | | of a calendar year is required to make payments on the | 19 | | dates set forth under item (1) of this subsection (c) for | 20 | | each remaining quarter of that calendar year and for the | 21 | | subsequent calendar year.
| 22 | | (3) Monthly payments. Each employer, other than an | 23 | | employer described in items (1) or (2) of this subsection, | 24 | | shall pay to the Department, on or before the 15th day of | 25 | | each month the taxes withheld or required to be withheld | 26 | | during the immediately preceding month. |
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| 1 | | (4) Payments with returns. Each employer shall pay to | 2 | | the Department, on or before the due date for each return | 3 | | required to be filed under this Section, any tax withheld | 4 | | or required to be withheld during the period for which the | 5 | | return is due and not previously paid to the Department. | 6 | | (d) Regulatory authority. The Department may, by rule: | 7 | | (1) Permit employers, in lieu of the requirements of | 8 | | subsections (b) and (c), to file annual returns due on or | 9 | | before January 31 of the year for taxes withheld or | 10 | | required to be withheld during the previous calendar year | 11 | | and, if the aggregate amounts required to be withheld by | 12 | | the employer under this Article 7 (other than amounts | 13 | | required to be withheld under Section 709.5) do not exceed | 14 | | $1,000 for the previous calendar year, to pay the taxes | 15 | | required to be shown on each such return no later than the | 16 | | due date for such return. | 17 | | (2) Provide that any payment required to be made under | 18 | | subsection (c)(1) or (c)(2) is deemed to be timely to the | 19 | | extent paid by electronic funds transfer on or before the | 20 | | due date for deposit of federal income taxes withheld from, | 21 | | or federal employment taxes due with respect to, the wages | 22 | | from which the Illinois taxes were withheld. | 23 | | (3) Designate one or more depositories to which payment | 24 | | of taxes required to be withheld under this Article 7 must | 25 | | be paid by some or all employers. | 26 | | (4) Increase the threshold dollar amounts at which |
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| 1 | | employers are required to make semi-weekly payments under | 2 | | subsection (c)(1) or (c)(2). | 3 | | (e) Annual return and payment. Every employer who deducts | 4 | | and withholds or is required to deduct and withhold tax from a | 5 | | person engaged in domestic service employment, as that term is | 6 | | defined in Section 3510 of the Internal Revenue Code, may | 7 | | comply with the requirements of this Section with respect to | 8 | | such employees by filing an annual return and paying the taxes | 9 | | required to be deducted and withheld on or before the 15th day | 10 | | of the fourth month following the close of the employer's | 11 | | taxable year. The Department may allow the employer's return to | 12 | | be submitted with the employer's individual income tax return | 13 | | or to be submitted with a return due from the employer under | 14 | | Section 1400.2 of the Unemployment Insurance Act. | 15 | | (f) Magnetic media and electronic filing. Any W-2 Form | 16 | | that, under the Internal Revenue Code and regulations | 17 | | promulgated thereunder, is required to be submitted to the | 18 | | Internal Revenue Service on magnetic media or electronically | 19 | | must also be submitted to the Department on magnetic media or | 20 | | electronically for Illinois purposes, if required by the | 21 | | Department. | 22 | | (g) For amounts deducted or withheld after December 31, | 23 | | 2009, a taxpayer who makes an election under subsection (f) of | 24 | | Section 5-15 of the Economic Development for a Growing Economy | 25 | | Tax Credit Act for a taxable year shall be allowed a credit | 26 | | against payments due under this Section for amounts withheld |
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| 1 | | during the first calendar year beginning after the end of that | 2 | | taxable year equal to the amount of the credit for the | 3 | | incremental income tax attributable to full-time employees of | 4 | | the taxpayer awarded to the taxpayer by the Department of | 5 | | Commerce and Economic Opportunity under the Economic | 6 | | Development for a Growing Economy Tax Credit Act for the | 7 | | taxable year and credits not previously claimed and allowed to | 8 | | be carried forward under Section 211(4) of this Act as provided | 9 | | in subsection (f) of Section 5-15 of the Economic Development | 10 | | for a Growing Economy Tax Credit Act. The credit or credits may | 11 | | not reduce the taxpayer's obligation for any payment due under | 12 | | this Section to less than zero. If the amount of the credit or | 13 | | credits exceeds the total payments due under this Section with | 14 | | respect to amounts withheld during the calendar year, the | 15 | | excess may be carried forward and applied against the | 16 | | taxpayer's liability under this Section in the succeeding | 17 | | calendar years as allowed to be carried forward under paragraph | 18 | | (4) of Section 211 of this Act. The credit or credits shall be | 19 | | applied to the earliest year for which there is a tax | 20 | | liability. If there are credits from more than one taxable year | 21 | | that are available to offset a liability, the earlier credit | 22 | | shall be applied first. Each employer who deducts and withholds | 23 | | or is required to deduct and withhold tax under this Act and | 24 | | who retains income tax withholdings under subsection (f) of | 25 | | Section 5-15 of the Economic Development for a Growing Economy | 26 | | Tax Credit Act must make a return with respect to such taxes |
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| 1 | | and retained amounts in the form and manner that the | 2 | | Department, by rule, requires and pay to the Department or to a | 3 | | depositary designated by the Department those withheld taxes | 4 | | not retained by the taxpayer. For purposes of this subsection | 5 | | (g), the term taxpayer shall include taxpayer and members of | 6 | | the taxpayer's unitary business group as defined under | 7 | | paragraph (27) of subsection (a) of Section 1501 of this Act. | 8 | | This Section is exempt from the provisions of Section 250 of | 9 | | this Act. | 10 | | (h) An employer may claim a credit against payments due | 11 | | under this Section for amounts withheld during the first | 12 | | calendar year ending after the date on which a tax credit | 13 | | certificate was issued under Section 35 of the Small Business | 14 | | Job Creation Tax Credit Act. The credit shall be equal to the | 15 | | amount shown on the certificate, but may not reduce the | 16 | | taxpayer's obligation for any payment due under this Section to | 17 | | less than zero. If the amount of the credit exceeds the total | 18 | | payments due under this Section with respect to amounts | 19 | | withheld during the calendar year, the excess may be carried | 20 | | forward and applied against the taxpayer's liability under this | 21 | | Section in the 5 succeeding calendar years. The credit shall be | 22 | | applied to the earliest year for which there is a tax | 23 | | liability. If there are credits from more than one calendar | 24 | | year that are available to offset a liability, the earlier | 25 | | credit shall be applied first. This Section is exempt from the | 26 | | provisions of Section 250 of this Act. |
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| 1 | | (Source: P.A. 96-834, eff. 12-14-09; 96-888, eff. 4-13-10; | 2 | | 96-905, eff. 6-4-10; 96-1027, eff. 7-12-10; 97-333, eff. | 3 | | 8-12-11; 97-507, eff. 8-23-11.)
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.
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