Full Text of SB0263 99th General Assembly
SB0263sam001 99TH GENERAL ASSEMBLY | Sen. Kimberly A. Lightford Filed: 1/9/2017
| | 09900SB0263sam001 | | LRB099 03426 HLH 52196 a |
|
| 1 | | AMENDMENT TO SENATE BILL 263
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 263 by replacing | 3 | | everything after the enacting clause with the following:
| 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 |
| | | 09900SB0263sam001 | - 2 - | LRB099 03426 HLH 52196 a |
|
| 1 | | that quarter. | 2 | | (c) Payments. With respect to amounts withheld or required | 3 | | to be withheld on or after January 1, 2008: | 4 | | (1) Semi-weekly payments. For each calendar year, each | 5 | | employer who withheld or was required to withhold more than | 6 | | $12,000 during the one-year period ending on June 30 of the | 7 | | immediately preceding calendar year, payment must be made: | 8 | | (A) on or before each Friday of the calendar year, | 9 | | for taxes withheld or required to be withheld on the | 10 | | immediately preceding Saturday, Sunday, Monday, or | 11 | | Tuesday; | 12 | | (B) on or before each Wednesday of the calendar | 13 | | year, for taxes withheld or required to be withheld on | 14 | | the immediately preceding Wednesday, Thursday, or | 15 | | Friday. | 16 | | Beginning with calendar year 2011, payments made under | 17 | | this paragraph (1) of subsection (c) must be made by | 18 | | electronic funds transfer. | 19 | | (2) Semi-weekly payments. Any employer who withholds | 20 | | or is required to withhold more than $12,000 in any quarter | 21 | | of a calendar year is required to make payments on the | 22 | | dates set forth under item (1) of this subsection (c) for | 23 | | each remaining quarter of that calendar year and for the | 24 | | subsequent calendar year.
| 25 | | (3) Monthly payments. Each employer, other than an | 26 | | employer described in items (1) or (2) of this subsection, |
| | | 09900SB0263sam001 | - 3 - | LRB099 03426 HLH 52196 a |
|
| 1 | | shall pay to the Department, on or before the 15th day of | 2 | | each month the taxes withheld or required to be withheld | 3 | | during the immediately preceding month. | 4 | | (4) Payments with returns. Each employer shall pay to | 5 | | the Department, on or before the due date for each return | 6 | | required to be filed under this Section, any tax withheld | 7 | | or required to be withheld during the period for which the | 8 | | return is due and not previously paid to the Department. | 9 | | (d) Regulatory authority. The Department may, by rule: | 10 | | (1) Permit employers, in lieu of the requirements of | 11 | | subsections (b) and (c), to file annual returns due on or | 12 | | before January 31 of the year for taxes withheld or | 13 | | required to be withheld during the previous calendar year | 14 | | and, if the aggregate amounts required to be withheld by | 15 | | the employer under this Article 7 (other than amounts | 16 | | required to be withheld under Section 709.5) do not exceed | 17 | | $1,000 for the previous calendar year, to pay the taxes | 18 | | required to be shown on each such return no later than the | 19 | | due date for such return. | 20 | | (2) Provide that any payment required to be made under | 21 | | subsection (c)(1) or (c)(2) is deemed to be timely to the | 22 | | extent paid by electronic funds transfer on or before the | 23 | | due date for deposit of federal income taxes withheld from, | 24 | | or federal employment taxes due with respect to, the wages | 25 | | from which the Illinois taxes were withheld. | 26 | | (3) Designate one or more depositories to which payment |
| | | 09900SB0263sam001 | - 4 - | LRB099 03426 HLH 52196 a |
|
| 1 | | of taxes required to be withheld under this Article 7 must | 2 | | be paid by some or all employers. | 3 | | (4) Increase the threshold dollar amounts at which | 4 | | employers are required to make semi-weekly payments under | 5 | | subsection (c)(1) or (c)(2). | 6 | | (e) Annual return and payment. Every employer who deducts | 7 | | and withholds or is required to deduct and withhold tax from a | 8 | | person engaged in domestic service employment, as that term is | 9 | | defined in Section 3510 of the Internal Revenue Code, may | 10 | | comply with the requirements of this Section with respect to | 11 | | such employees by filing an annual return and paying the taxes | 12 | | required to be deducted and withheld on or before the 15th day | 13 | | of the fourth month following the close of the employer's | 14 | | taxable year. The Department may allow the employer's return to | 15 | | be submitted with the employer's individual income tax return | 16 | | or to be submitted with a return due from the employer under | 17 | | Section 1400.2 of the Unemployment Insurance Act. | 18 | | (f) Magnetic media and electronic filing. Any W-2 Form | 19 | | that, under the Internal Revenue Code and regulations | 20 | | promulgated thereunder, is required to be submitted to the | 21 | | Internal Revenue Service on magnetic media or electronically | 22 | | must also be submitted to the Department on magnetic media or | 23 | | electronically for Illinois purposes, if required by the | 24 | | Department. | 25 | | (g) For amounts deducted or withheld after December 31, | 26 | | 2009, a taxpayer who makes an election under subsection (f) of |
| | | 09900SB0263sam001 | - 5 - | LRB099 03426 HLH 52196 a |
|
| 1 | | Section 5-15 of the Economic Development for a Growing Economy | 2 | | Tax Credit Act for a taxable year shall be allowed a credit | 3 | | against payments due under this Section for amounts withheld | 4 | | during the first calendar year beginning after the end of that | 5 | | taxable year equal to the amount of the credit for the | 6 | | incremental income tax attributable to full-time employees of | 7 | | the taxpayer awarded to the taxpayer by the Department of | 8 | | Commerce and Economic Opportunity under the Economic | 9 | | Development for a Growing Economy Tax Credit Act for the | 10 | | taxable year and credits not previously claimed and allowed to | 11 | | be carried forward under Section 211(4) of this Act as provided | 12 | | in subsection (f) of Section 5-15 of the Economic Development | 13 | | for a Growing Economy Tax Credit Act. The credit or credits may | 14 | | not reduce the taxpayer's obligation for any payment due under | 15 | | this Section to less than zero. If the amount of the credit or | 16 | | credits exceeds the total payments due under this Section with | 17 | | respect to amounts withheld during the calendar year, the | 18 | | excess may be carried forward and applied against the | 19 | | taxpayer's liability under this Section in the succeeding | 20 | | calendar years as allowed to be carried forward under paragraph | 21 | | (4) of Section 211 of this Act. The credit or credits shall be | 22 | | applied to the earliest year for which there is a tax | 23 | | liability. If there are credits from more than one taxable year | 24 | | that are available to offset a liability, the earlier credit | 25 | | shall be applied first. Each employer who deducts and withholds | 26 | | or is required to deduct and withhold tax under this Act and |
| | | 09900SB0263sam001 | - 6 - | LRB099 03426 HLH 52196 a |
|
| 1 | | who retains income tax withholdings under subsection (f) of | 2 | | Section 5-15 of the Economic Development for a Growing Economy | 3 | | Tax Credit Act must make a return with respect to such taxes | 4 | | and retained amounts in the form and manner that the | 5 | | Department, by rule, requires and pay to the Department or to a | 6 | | depositary designated by the Department those withheld taxes | 7 | | not retained by the taxpayer. For purposes of this subsection | 8 | | (g), the term taxpayer shall include taxpayer and members of | 9 | | the taxpayer's unitary business group as defined under | 10 | | paragraph (27) of subsection (a) of Section 1501 of this Act. | 11 | | This Section is exempt from the provisions of Section 250 of | 12 | | this Act. | 13 | | (h) An employer may claim a credit against payments due | 14 | | under this Section for amounts withheld during the first | 15 | | calendar year ending after the date on which a tax credit | 16 | | certificate was issued under Section 35 of the Small Business | 17 | | Job Creation Tax Credit Act. The credit shall be equal to the | 18 | | amount shown on the certificate, but may not reduce the | 19 | | taxpayer's obligation for any payment due under this Section to | 20 | | less than zero. If the amount of the credit exceeds the total | 21 | | payments due under this Section with respect to amounts | 22 | | withheld during the calendar year, the excess may be carried | 23 | | forward and applied against the taxpayer's liability under this | 24 | | Section in the 5 succeeding calendar years. The credit shall be | 25 | | applied to the earliest year for which there is a tax | 26 | | liability. If there are credits from more than one calendar |
| | | 09900SB0263sam001 | - 7 - | LRB099 03426 HLH 52196 a |
|
| 1 | | year that are available to offset a liability, the earlier | 2 | | credit shall be applied first. This Section is exempt from the | 3 | | provisions of Section 250 of this Act. | 4 | | (i) Each employer that does not employ more than 50 | 5 | | employees at any time during the applicable payment period may | 6 | | claim a credit against payments due under this Section for | 7 | | reporting periods that begin on or after July 1, 2017 and end | 8 | | on or before June 30, 2020, for each qualified employee, in an | 9 | | amount equal to: (1) the maximum credit, minus (2) the | 10 | | difference between the average wage paid to the qualified | 11 | | employee by the employer during the reporting period and the | 12 | | minimum wage in effect for that category of employee in the | 13 | | jurisdiction where the employee is employed, multiplied by (3) | 14 | | the number of hours the employee worked during the reporting | 15 | | period. | 16 | | For the purposes of this subsection (i): | 17 | | (1) "Category of employee" means: | 18 | | (A) employees who are under 18 years of age; | 19 | | (B) employees who are 18 years of age or older, but | 20 | | who qualify for a reduced minimum wage as provided | 21 | | under paragraph (2) of subsection (a) of Section 4 of | 22 | | the Minimum Wage Law; | 23 | | (C) employees who are engaged in an occupation in | 24 | | which gratuities have customarily and usually | 25 | | constituted, and have been recognized as part of, the | 26 | | remuneration for hire purposes, as provided in |
| | | 09900SB0263sam001 | - 8 - | LRB099 03426 HLH 52196 a |
|
| 1 | | subsection (c) of Section 4 of the Minimum Wage Law; | 2 | | (D) employees who are 18 years of age or older, but | 3 | | who qualify for a reduced minimum wage under Section 5 | 4 | | of the Minimum Wage Law; | 5 | | (E) employees who are 18 years of age or older, but | 6 | | who qualify for a reduced minimum wage under Section 6 | 7 | | of the Minimum Wage Law; and | 8 | | (F) employees who are 18 years of age or older and | 9 | | do not qualify under paragraph (B), (C), (D), or (E) of | 10 | | this item (1). | 11 | | (2) "Employer" and "employee" have the meanings | 12 | | ascribed to those terms in the Minimum Wage Law, except | 13 | | that "employee" also includes employees who work for an | 14 | | employer employing fewer than 4 employees. | 15 | | (3) "Maximum credit" means: (A) $0.45 per hour for | 16 | | qualified employees for whom the employer receives an | 17 | | allowance for gratuities under subsection (c) of Section 4 | 18 | | of the Minimum Wage Law; (B) $0.53 per hour for employees | 19 | | who receive a reduced minimum wage under Section 6 of the | 20 | | Minimum Wage Law; and (C) $0.75 per hour for all other | 21 | | qualified employees. | 22 | | (4) "Qualified employee" means an employee making no | 23 | | more than $0.75 per hour more than the minimum wage for | 24 | | that category of employee, except that: (A) in the case of | 25 | | employees who are engaged in an occupation in which | 26 | | gratuities have customarily and usually constituted, and |
| | | 09900SB0263sam001 | - 9 - | LRB099 03426 HLH 52196 a |
|
| 1 | | have been recognized as part of, the remuneration for hire | 2 | | purposes, as provided in subsection (c) of Section 4 of the | 3 | | Minimum Wage Law, "qualified employee" means an employee | 4 | | making no more than $0.45 per hour more than the minimum | 5 | | wage for that category of employee; and (B) for employees | 6 | | who qualify for a reduced minimum wage under Section 6 of | 7 | | the Minimum Wage Law, "qualified employee" means an | 8 | | employee making no more than $0.53 per hour more than the | 9 | | minimum wage for that category of employee. | 10 | | (Source: P.A. 96-834, eff. 12-14-09; 96-888, eff. 4-13-10; | 11 | | 96-905, eff. 6-4-10; 96-1027, eff. 7-12-10; 97-333, eff. | 12 | | 8-12-11; 97-507, eff. 8-23-11.) | 13 | | Section 10. The Minimum Wage Law is amended by changing | 14 | | Section 4 as follows:
| 15 | | (820 ILCS 105/4) (from Ch. 48, par. 1004)
| 16 | | Sec. 4. (a)(1) Every employer shall pay to each of his | 17 | | employees in every
occupation wages of not less than $2.30 per | 18 | | hour or in the case of
employees under 18 years of age wages of | 19 | | not less than $1.95 per hour,
except as provided in Sections 5 | 20 | | and 6 of this Act, and on and after
January 1, 1984, every | 21 | | employer shall pay to each of his employees in every
occupation | 22 | | wages of not less than $2.65 per hour or in the case of
| 23 | | employees under 18 years of age wages of not less than $2.25 | 24 | | per hour, and
on and after October 1, 1984 every employer shall |
| | | 09900SB0263sam001 | - 10 - | LRB099 03426 HLH 52196 a |
|
| 1 | | pay to each of his
employees in every occupation wages of not | 2 | | less than $3.00 per hour or in
the case of employees under 18 | 3 | | years of age wages of not less than $2.55
per hour, and on or | 4 | | after July 1, 1985 every employer shall pay to each of
his | 5 | | employees in every occupation wages of not less than $3.35 per | 6 | | hour or
in the case of employees under 18 years of age wages of | 7 | | not less than $2.85
per hour,
and from January 1, 2004 through | 8 | | December 31, 2004 every employer shall pay
to
each of his or | 9 | | her employees who is 18 years of age or older in every
| 10 | | occupation wages of not less than $5.50 per hour, and from
| 11 | | January 1,
2005 through June 30, 2007 every employer shall pay | 12 | | to each of his or her employees who is 18 years
of age or older | 13 | | in every occupation wages of not less than $6.50 per hour, and | 14 | | from July 1, 2007 through June 30, 2008 every employer shall | 15 | | pay to each of his or her employees who is 18 years
of age or | 16 | | older in every occupation wages of not less than $7.50 per | 17 | | hour, and from July 1, 2008 through June 30, 2009 every | 18 | | employer shall pay to each of his or her employees who is 18 | 19 | | years
of age or older in every occupation wages of not less | 20 | | than $7.75 per hour, and from July 1, 2009 through June 30, | 21 | | 2010 every employer shall pay to each of his or her employees | 22 | | who is 18 years
of age or older in every occupation wages of | 23 | | not less than $8.00 per hour, and from on and after July 1, | 24 | | 2010 through June 30, 2017 every employer shall pay to each of | 25 | | his or her employees who is 18 years of age or older in every | 26 | | occupation wages of not less than $8.25 per hour , and from July |
| | | 09900SB0263sam001 | - 11 - | LRB099 03426 HLH 52196 a |
|
| 1 | | 1, 2017 to June 30, 2018 every employer shall pay to each of | 2 | | his or her employees who is 18 years of age or older in every | 3 | | occupation wages of not less than $9.00 per hour, and from July | 4 | | 1, 2018 to June 30, 2019 every employer shall pay to each of | 5 | | his or her employees who is 18 years of age or older in every | 6 | | occupation wages of not less than $9.50 per hour, and from July | 7 | | 1, 2019 to June 30, 2020 every employer shall pay to each of | 8 | | his or her employees who is 18 years of age or older in every | 9 | | occupation wages of not less than $10.00 per hour, and from | 10 | | July 1, 2020 to June 30, 2021 every employer shall pay to each | 11 | | of his or her employees who is 18 years of age or older in every | 12 | | occupation wages of not less than $10.50 per hour, and on and | 13 | | after July 1, 2021 every employer shall pay to each of his or | 14 | | her employees who is 18 years of age or older in every | 15 | | occupation wages of not less than $11.00 per hour .
| 16 | | (2) Unless an employee's wages are reduced under Section 6, | 17 | | then in lieu of the rate prescribed in item (1) of this | 18 | | subsection (a), an employer may pay an employee who is 18 years | 19 | | of age or older, during the first 90 consecutive calendar days | 20 | | after the employee is initially employed by the employer, a | 21 | | wage that is not more than 50˘
less than the wage prescribed in | 22 | | item (1) of this subsection (a); however, an employer shall pay | 23 | | not less than the rate prescribed in item (1) of this | 24 | | subsection (a) to: | 25 | | (A) a day or temporary laborer, as defined in Section 5 | 26 | | of the Day and Temporary Labor Services Act, who is 18 |
| | | 09900SB0263sam001 | - 12 - | LRB099 03426 HLH 52196 a |
|
| 1 | | years of age or older; and | 2 | | (B) an employee who is 18 years of age or older and | 3 | | whose employment is occasional or irregular and
requires | 4 | | not more than 90 days to complete. | 5 | | (3) At no time
shall the wages paid to any employee under | 6 | | 18 years of age be more than 50˘
less than the wage required to | 7 | | be paid to employees who are at least 18 years
of age under | 8 | | item (1) of this subsection (a).
| 9 | | (b) No employer shall discriminate between employees on the | 10 | | basis of sex
or mental or physical disability, except as | 11 | | otherwise provided in this Act by
paying wages to employees at | 12 | | a rate less than the rate at which he pays
wages to employees | 13 | | for the same or substantially
similar work on jobs the | 14 | | performance of which requires equal skill, effort,
and | 15 | | responsibility, and which are performed under similar working
| 16 | | conditions, except where such payment is made pursuant to (1) a | 17 | | seniority
system; (2) a merit system; (3) a system which | 18 | | measures earnings by
quantity or quality of production; or (4) | 19 | | a differential based on any other
factor other than sex or | 20 | | mental or physical disability, except as otherwise
provided in | 21 | | this Act.
| 22 | | (c) Every employer of an employee engaged in an
occupation | 23 | | in which gratuities have customarily and usually constituted | 24 | | and
have been recognized as part of the remuneration for hire | 25 | | purposes is
entitled to an allowance for gratuities as part of | 26 | | the hourly wage rate
provided in Section 4, subsection (a) in |
| | | 09900SB0263sam001 | - 13 - | LRB099 03426 HLH 52196 a |
|
| 1 | | an amount not to exceed 40% of the
applicable minimum wage | 2 | | rate. The Director shall require each employer
desiring an | 3 | | allowance for gratuities to provide substantial evidence that
| 4 | | the amount claimed, which may not exceed 40% of the applicable | 5 | | minimum wage
rate, was received by the employee in the period | 6 | | for which the claim of
exemption is made, and no part thereof | 7 | | was returned to the employer.
| 8 | | (d) No camp counselor who resides on the premises of a | 9 | | seasonal camp of
an organized not-for-profit corporation shall | 10 | | be subject to the adult minimum
wage if the camp counselor (1) | 11 | | works 40 or more hours per week, and (2)
receives a total | 12 | | weekly salary of not less than the adult minimum
wage for a | 13 | | 40-hour week. If the counselor works less than 40 hours per
| 14 | | week, the counselor shall be paid the minimum hourly wage for | 15 | | each hour
worked. Every employer of a camp counselor under this | 16 | | subsection is entitled
to an allowance for meals and lodging as | 17 | | part of the hourly wage rate provided
in Section 4, subsection | 18 | | (a), in an amount not to exceed 25% of the
minimum wage rate.
| 19 | | (e) A camp counselor employed at a day camp is not subject | 20 | | to the adult minimum wage if the
camp counselor is paid a | 21 | | stipend on a onetime or periodic basis and, if
the camp | 22 | | counselor is a minor, the minor's parent, guardian or other
| 23 | | custodian has consented in writing to the terms of payment | 24 | | before the
commencement of such employment.
| 25 | | (f) Preemption of home rule powers. | 26 | | (1) The establishment of a minimum wage that employers |
| | | 09900SB0263sam001 | - 14 - | LRB099 03426 HLH 52196 a |
|
| 1 | | must pay their employees is an exclusive power and function | 2 | | of the State. Except as provided in paragraph (2) of this | 3 | | subsection (f), a home rule unit may not regulate or | 4 | | establish a minimum wage. This subsection (f) is a denial | 5 | | and limitation of the home rule powers and functions under | 6 | | subsection (h) of Section 6 of Article VII of the Illinois | 7 | | Constitution. | 8 | | (2) Paragraph (1) of this subsection (f) shall not | 9 | | apply to Ordinance No. 02014-9680 adopted by the City | 10 | | Council of the City of Chicago on December 2, 2014, | 11 | | provided that: (i) the provisions set forth in that | 12 | | ordinance are not changed by the City Council of the City | 13 | | of Chicago after December 2, 2014; (ii) the minimum wage | 14 | | required to be paid to employees subject to Section | 15 | | 1-24-020 of that ordinance beginning July 1, 2019, and each | 16 | | year thereafter, is no greater than $13.00 per hour; and | 17 | | (iii) the minimum wage required to be paid employees | 18 | | subject to that ordinance in occupations receiving | 19 | | gratuities beginning July 1, 2019, and each year | 20 | | thereafter, is no greater than the amount calculated by the | 21 | | Commissioner of Business Affairs and Consumer Protection | 22 | | of the City of Chicago by June 1, 2018 pursuant to | 23 | | paragraph (3) of subsection (a) of Section 1-24-030 of that | 24 | | ordinance. This paragraph (2) of this subsection (f) is a | 25 | | limitation under subsection (i) of Section 6 of Article VII | 26 | | of the Illinois Constitution. |
| | | 09900SB0263sam001 | - 15 - | LRB099 03426 HLH 52196 a |
|
| 1 | | (Source: P.A. 99-143, eff. 7-27-15.)
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.".
|
|