Full Text of HB0383 98th General Assembly
HB0383ham003 98TH GENERAL ASSEMBLY | Rep. Jeanne M Ives Filed: 11/4/2013
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| 1 | | AMENDMENT TO HOUSE BILL 383
| 2 | | AMENDMENT NO. ______. Amend House Bill 383, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Illinois Income Tax Act is amended by | 6 | | changing Section 704 as follows:
| 7 | | (35 ILCS 5/704) (from Ch. 120, par. 7-704)
| 8 | | Sec. 704. Employer's Return and Payment of Tax Withheld.
| 9 | | (a) In general, every employer who deducts and withholds or | 10 | | is required
to deduct and withhold tax under this Act prior to | 11 | | January 1, 2008, shall make such payments and
returns as | 12 | | provided in this Section.
| 13 | | (b) Quarter Monthly Payments: Returns. Every employer who | 14 | | deducts
and withholds or is required to deduct and withhold tax | 15 | | under this Act
shall, on or before the third banking day | 16 | | following the close of a quarter
monthly period, pay to the |
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| 1 | | Department or to a depositary designated by the
Department, | 2 | | pursuant to regulations prescribed by the Department, the taxes
| 3 | | so required to be deducted and withheld, whenever the aggregate | 4 | | amount
withheld by such employer (together with amounts | 5 | | previously withheld and
not paid to the Department) exceeds | 6 | | $1,000. For purposes of this Section,
Saturdays, Sundays, legal | 7 | | holidays and local bank holidays are not banking
days. A | 8 | | quarter monthly period, for purposes of this subsection, ends | 9 | | on
the 7th, 15th, 22nd and last day of each calendar month. | 10 | | Every such
employer shall for each calendar quarter, on or | 11 | | before the last day of the
first month following the close of | 12 | | such quarter, and for the calendar year,
on or before January | 13 | | 31 of the succeeding calendar year, make a return with
respect | 14 | | to such taxes in such form and manner as the Department may by
| 15 | | regulations prescribe, and pay to the Department or to a | 16 | | depositary
designated by the Department all withheld taxes not | 17 | | previously paid to
the Department.
| 18 | | (c) Monthly Payments: Returns. Every employer required to | 19 | | deduct and
withhold tax under this Act shall, on or before the | 20 | | 15th day of the second
and third months of each calendar | 21 | | quarter, and on or before the last day of
the month following | 22 | | the last month of each such quarter, pay to the
Department or | 23 | | to a depositary designated by the Department, pursuant to
| 24 | | regulations prescribed by the Department, the taxes so required | 25 | | to be
deducted and withheld, whenever the aggregate amount | 26 | | withheld by such employer
(together with amounts previously |
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| 1 | | withheld and not paid to the
Department) exceeds $500 but does | 2 | | not exceed $1,000. Every such employer
shall for each calendar | 3 | | quarter, on or before the last day of the first
month following | 4 | | the close of such quarter, and for the calendar year, on or
| 5 | | before January 31 of the succeeding calendar year, make a | 6 | | return with
respect to such taxes in such form and manner as | 7 | | the Department may by
regulations prescribe, and pay to the | 8 | | Department or to a depositary
designated by the Department all | 9 | | withheld taxes not previously paid to
the Department.
| 10 | | (d) Annual Payments: Returns. Where the amount of | 11 | | compensation paid
by an employer is not sufficient to require | 12 | | the withholding of tax from the
compensation of any of its | 13 | | employees (or where the aggregate amount
withheld is less than | 14 | | $500), the Department may by regulation permit such
employer to | 15 | | file only an annual return and to pay the taxes required to be
| 16 | | deducted and withheld at the time of filing such annual return.
| 17 | | (e) Annual Return. The Department may, as it deems | 18 | | appropriate, prescribe
by regulation for the filing of annual | 19 | | returns in lieu of quarterly returns
described in subsections | 20 | | (b) and (c).
| 21 | | (e-5) Annual Return and Payment. On and after January 1, | 22 | | 1998,
notwithstanding subsections (b) through (d) of this | 23 | | Section, every employer who
deducts and withholds or is | 24 | | required to deduct and withhold tax from a person
engaged in | 25 | | domestic service employment, as that term is defined in Section | 26 | | 3510
of the Internal Revenue Code, may comply with the |
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| 1 | | requirements of this Section
by filing an annual return and | 2 | | paying the taxes required to be deducted and
withheld on or | 3 | | before the 15th day of the fourth month following the close of
| 4 | | the employer's taxable year. The annual return may be submitted | 5 | | with the
employer's individual income tax return.
| 6 | | (f) Magnetic Media Filing. Forms W-2 that, pursuant to
the | 7 | | Internal Revenue Code and regulations promulgated thereunder, | 8 | | are
required to be submitted to the Internal Revenue Service on | 9 | | magnetic media,
must also be submitted to the Department on | 10 | | magnetic media for Illinois
purposes, if required by the | 11 | | Department.
| 12 | | (g) EDGE Credit assistance. Every employer who
deducts and | 13 | | withholds or is required to deduct and withhold tax under this | 14 | | Act who retains income tax withholdings under Section 5-16 of | 15 | | the Economic Development for a Growing Economy Tax Credit Act | 16 | | must make a return with
respect to those taxes and retained | 17 | | amounts in the form and manner that the Department, by
rule, | 18 | | requires and pay to the Department or to a depositary
| 19 | | designated by the Department those withheld taxes not retained | 20 | | by the taxpayer.
| 21 | | (Source: P.A. 95-8, eff. 6-29-07.)
| 22 | | Section 10. The Economic Development for a Growing Economy | 23 | | Tax Credit Act is amended by adding Section 5-16 as follows: | 24 | | (35 ILCS 10/5-16 new) |
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| 1 | | Sec. 5-16. Optional retention; income tax withholding.
| 2 | | (a) An applicant who has been awarded a Credit under this | 3 | | this Act may, in the applicant's sole discretion, opt to retain | 4 | | taxes withheld under Article 7 of the Illinois Income Tax Act | 5 | | in lieu of an income tax credit. The amount of withheld taxes | 6 | | retained by the applicant in a taxable year may not exceed the | 7 | | amount of the Credit awarded by the Department for that taxable | 8 | | year. | 9 | | (b) Each employee whose taxes were withheld by an employer | 10 | | who retains amounts under this subsection must receive credit | 11 | | for 100% of the taxes withheld from his or her pay. | 12 | | (c) The Department shall file annual reports with the | 13 | | General Assembly and the Governor on or before January 1 each | 14 | | year concerning the applicants' retention of withheld taxes | 15 | | during the previous year and regarding the progress this | 16 | | assistance has made in advancing economic development in | 17 | | Illinois and its various regions.
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.".
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