Full Text of SB0068 101st General Assembly
SB0068sam004 101ST GENERAL ASSEMBLY | Sen. Julie A. Morrison Filed: 3/29/2019
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| 1 | | AMENDMENT TO SENATE BILL 68
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 68, 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 704A as follows: | 7 | | (35 ILCS 5/704A) | 8 | | Sec. 704A. 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 on or | 11 | | after January 1, 2008 shall make those payments and returns as | 12 | | provided in this Section. | 13 | | (b) Returns. Every employer shall, in the form and manner | 14 | | required by the Department, make returns with respect to taxes | 15 | | withheld or required to be withheld under this Article 7 for | 16 | | each quarter beginning on or after January 1, 2008, on or |
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| 1 | | before the last day of the first month following the close of | 2 | | that quarter. | 3 | | (c) Payments. With respect to amounts withheld or required | 4 | | to be withheld on or after January 1, 2008: | 5 | | (1) Semi-weekly payments. For each calendar year, each | 6 | | employer who withheld or was required to withhold more than | 7 | | $12,000 during the one-year period ending on June 30 of the | 8 | | immediately preceding calendar year, payment must be made: | 9 | | (A) on or before each Friday of the calendar year, | 10 | | for taxes withheld or required to be withheld on the | 11 | | immediately preceding Saturday, Sunday, Monday, or | 12 | | Tuesday; | 13 | | (B) on or before each Wednesday of the calendar | 14 | | year, for taxes withheld or required to be withheld on | 15 | | the immediately preceding Wednesday, Thursday, or | 16 | | Friday. | 17 | | Beginning with calendar year 2011, payments made under | 18 | | this paragraph (1) of subsection (c) must be made by | 19 | | electronic funds transfer. | 20 | | (2) Semi-weekly payments. Any employer who withholds | 21 | | or is required to withhold more than $12,000 in any quarter | 22 | | of a calendar year is required to make payments on the | 23 | | dates set forth under item (1) of this subsection (c) for | 24 | | each remaining quarter of that calendar year and for the | 25 | | subsequent calendar year.
| 26 | | (3) Monthly payments. Each employer, other than an |
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| 1 | | employer described in items (1) or (2) of this subsection, | 2 | | shall pay to the Department, on or before the 15th day of | 3 | | each month the taxes withheld or required to be withheld | 4 | | during the immediately preceding month. | 5 | | (4) Payments with returns. Each employer shall pay to | 6 | | the Department, on or before the due date for each return | 7 | | required to be filed under this Section, any tax withheld | 8 | | or required to be withheld during the period for which the | 9 | | return is due and not previously paid to the Department. | 10 | | (d) Regulatory authority. The Department may, by rule: | 11 | | (1) Permit employers, in lieu of the requirements of | 12 | | subsections (b) and (c), to file annual returns due on or | 13 | | before January 31 of the year for taxes withheld or | 14 | | required to be withheld during the previous calendar year | 15 | | and, if the aggregate amounts required to be withheld by | 16 | | the employer under this Article 7 (other than amounts | 17 | | required to be withheld under Section 709.5) do not exceed | 18 | | $1,000 for the previous calendar year, to pay the taxes | 19 | | required to be shown on each such return no later than the | 20 | | due date for such return. | 21 | | (2) Provide that any payment required to be made under | 22 | | subsection (c)(1) or (c)(2) is deemed to be timely to the | 23 | | extent paid by electronic funds transfer on or before the | 24 | | due date for deposit of federal income taxes withheld from, | 25 | | or federal employment taxes due with respect to, the wages | 26 | | from which the Illinois taxes were withheld. |
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| 1 | | (3) Designate one or more depositories to which payment | 2 | | of taxes required to be withheld under this Article 7 must | 3 | | be paid by some or all employers. | 4 | | (4) Increase the threshold dollar amounts at which | 5 | | employers are required to make semi-weekly payments under | 6 | | subsection (c)(1) or (c)(2). | 7 | | (e) Annual return and payment. Every employer who deducts | 8 | | and withholds or is required to deduct and withhold tax from a | 9 | | person engaged in domestic service employment, as that term is | 10 | | defined in Section 3510 of the Internal Revenue Code, may | 11 | | comply with the requirements of this Section with respect to | 12 | | such employees by filing an annual return and paying the taxes | 13 | | required to be deducted and withheld on or before the 15th day | 14 | | of the fourth month following the close of the employer's | 15 | | taxable year. The Department may allow the employer's return to | 16 | | be submitted with the employer's individual income tax return | 17 | | or to be submitted with a return due from the employer under | 18 | | Section 1400.2 of the Unemployment Insurance Act. | 19 | | (f) Magnetic media and electronic filing. With respect to | 20 | | taxes withheld in calendar years prior to 2017, any W-2 Form | 21 | | that, under the Internal Revenue Code and regulations | 22 | | promulgated thereunder, is required to be submitted to the | 23 | | Internal Revenue Service on magnetic media or electronically | 24 | | must also be submitted to the Department on magnetic media or | 25 | | electronically for Illinois purposes, if required by the | 26 | | Department. |
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| 1 | | With respect to taxes withheld in 2017 and subsequent | 2 | | calendar years, the Department may, by rule, require that any | 3 | | return (including any amended return) under this Section and | 4 | | any W-2 Form that is required to be submitted to the Department | 5 | | must be submitted on magnetic media or electronically. | 6 | | The due date for submitting W-2 Forms shall be as | 7 | | prescribed by the Department by rule. | 8 | | (g) For amounts deducted or withheld after December 31, | 9 | | 2009, a taxpayer who makes an election under subsection (f) of | 10 | | Section 5-15 of the Economic Development for a Growing Economy | 11 | | Tax Credit Act for a taxable year shall be allowed a credit | 12 | | against payments due under this Section for amounts withheld | 13 | | during the first calendar year beginning after the end of that | 14 | | taxable year equal to the amount of the credit for the | 15 | | incremental income tax attributable to full-time employees of | 16 | | the taxpayer awarded to the taxpayer by the Department of | 17 | | Commerce and Economic Opportunity under the Economic | 18 | | Development for a Growing Economy Tax Credit Act for the | 19 | | taxable year and credits not previously claimed and allowed to | 20 | | be carried forward under Section 211(4) of this Act as provided | 21 | | in subsection (f) of Section 5-15 of the Economic Development | 22 | | for a Growing Economy Tax Credit Act. The credit or credits may | 23 | | not reduce the taxpayer's obligation for any payment due under | 24 | | this Section to less than zero. If the amount of the credit or | 25 | | credits exceeds the total payments due under this Section with | 26 | | respect to amounts withheld during the calendar year, the |
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| 1 | | excess may be carried forward and applied against the | 2 | | taxpayer's liability under this Section in the succeeding | 3 | | calendar years as allowed to be carried forward under paragraph | 4 | | (4) of Section 211 of this Act. The credit or credits shall be | 5 | | applied to the earliest year for which there is a tax | 6 | | liability. If there are credits from more than one taxable year | 7 | | that are available to offset a liability, the earlier credit | 8 | | shall be applied first. Each employer who deducts and withholds | 9 | | or is required to deduct and withhold tax under this Act and | 10 | | who retains income tax withholdings under subsection (f) of | 11 | | Section 5-15 of the Economic Development for a Growing Economy | 12 | | Tax Credit Act must make a return with respect to such taxes | 13 | | and retained amounts in the form and manner that the | 14 | | Department, by rule, requires and pay to the Department or to a | 15 | | depositary designated by the Department those withheld taxes | 16 | | not retained by the taxpayer. For purposes of this subsection | 17 | | (g), the term taxpayer shall include taxpayer and members of | 18 | | the taxpayer's unitary business group as defined under | 19 | | paragraph (27) of subsection (a) of Section 1501 of this Act. | 20 | | This Section is exempt from the provisions of Section 250 of | 21 | | this Act. No credit awarded under the Economic Development for | 22 | | a Growing Economy Tax Credit Act for agreements entered into on | 23 | | or after January 1, 2015 may be credited against payments due | 24 | | under this Section. | 25 | | (h) An employer may claim a credit against payments due | 26 | | under this Section for amounts withheld during the first |
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| 1 | | calendar year ending after the date on which a tax credit | 2 | | certificate was issued under Section 35 of the Small Business | 3 | | Job Creation Tax Credit Act. The credit shall be equal to the | 4 | | amount shown on the certificate, but may not reduce the | 5 | | taxpayer's obligation for any payment due under this Section to | 6 | | less than zero. If the amount of the credit exceeds the total | 7 | | payments due under this Section with respect to amounts | 8 | | withheld during the calendar year, the excess may be carried | 9 | | forward and applied against the taxpayer's liability under this | 10 | | Section in the 5 succeeding calendar years. The credit shall be | 11 | | applied to the earliest year for which there is a tax | 12 | | liability. If there are credits from more than one calendar | 13 | | year that are available to offset a liability, the earlier | 14 | | credit shall be applied first. This Section is exempt from the | 15 | | provisions of Section 250 of this Act. | 16 | | (i) Each employer with 50 or fewer full-time equivalent | 17 | | employees during the reporting period may claim a credit | 18 | | against the payments due under this Section for each qualified | 19 | | employee in an amount equal to the maximum credit allowable. | 20 | | The credit may be taken against payments due for reporting | 21 | | periods that begin on or after January 1, 2020, and end on or | 22 | | before December 31, 2027. An employer may not claim a credit | 23 | | for an employee who has worked fewer than 90 consecutive days | 24 | | immediately preceding the reporting period; however, such | 25 | | credits may accrue during that 90-day period and be claimed | 26 | | against payments under this Section for future reporting |
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| 1 | | periods after the employee has worked for the employer at least | 2 | | 90 consecutive days. In no event may the credit exceed the | 3 | | employer's liability for the reporting period. Each employer | 4 | | who deducts and withholds or is required to deduct and withhold | 5 | | tax under this Act and who retains income tax withholdings | 6 | | under this subsection must make a return with respect to such | 7 | | taxes and retained amounts in the form and manner that the | 8 | | Department, by rule, requires and pay to the Department or to a | 9 | | depositary designated by the Department those withheld taxes | 10 | | not retained by the employer. | 11 | | For each reporting period, the employer may not claim a | 12 | | credit or credits for more employees than the number of | 13 | | employees making less than the minimum or reduced wage for the | 14 | | current calendar year during the last reporting period of the | 15 | | preceding calendar year. Notwithstanding any other provision | 16 | | of this subsection, an employer shall not be eligible for | 17 | | credits for a reporting period unless the average wage paid by | 18 | | the employer per employee for all employees making less than | 19 | | $55,000 during the reporting period is greater than the average | 20 | | wage paid by the employer per employee for all employees making | 21 | | less than $55,000 during the same reporting period of the prior | 22 | | calendar year. | 23 | | For purposes of this subsection (i): | 24 | | "Compensation paid in Illinois" has the meaning ascribed to | 25 | | that term under Section 304(a)(2)(B) of this Act. | 26 | | "Employer" and "employee" have the meaning ascribed to |
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| 1 | | those terms in the Minimum Wage Law, except that "employee" | 2 | | also includes employees who work for an employer with fewer | 3 | | than 4 employees. Employers that operate more than one | 4 | | establishment pursuant to a franchise agreement or that | 5 | | constitute members of a unitary business group shall aggregate | 6 | | their employees for purposes of determining eligibility for the | 7 | | credit. | 8 | | "Full-time equivalent employees" means the ratio of the | 9 | | number of paid hours during the reporting period and the number | 10 | | of working hours in that period. | 11 | | "Maximum credit" means the percentage listed below of the | 12 | | difference between the amount of compensation paid in Illinois | 13 | | to employees who are paid not more than the required minimum | 14 | | wage reduced by the amount of compensation paid in Illinois to | 15 | | employees who were paid less than the current required minimum | 16 | | wage during the reporting period prior to each increase in the | 17 | | required minimum wage on January 1. If an employer pays an | 18 | | employee more than the required minimum wage and that employee | 19 | | previously earned less than the required minimum wage, the | 20 | | employer may include the portion that does not exceed the | 21 | | required minimum wage as compensation paid in Illinois to | 22 | | employees who are paid not more than the required minimum wage. | 23 | | (1) 25% for reporting periods beginning on or after | 24 | | January 1, 2020 and ending on or before December 31, 2020; | 25 | | (2) 21% for reporting periods beginning on or after | 26 | | January 1, 2021 and ending on or before December 31, 2021; |
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| 1 | | (3) 17% for reporting periods beginning on or after | 2 | | January 1, 2022 and ending on or before December 31, 2022; | 3 | | (4) 13% for reporting periods beginning on or after | 4 | | January 1, 2023 and ending on or before December 31, 2023; | 5 | | (5) 9% for reporting periods beginning on or after | 6 | | January 1, 2024 and ending on or before December 31, 2024; | 7 | | (6) 5% for reporting periods beginning on or after | 8 | | January 1, 2025 and ending on or before December 31, 2025. | 9 | | The amount computed under this subsection may continue to | 10 | | be claimed for reporting periods beginning on or after January | 11 | | 1, 2026 and: | 12 | | (A) ending on or before December 31, 2026 for employers | 13 | | with more than 5 employees; or | 14 | | (B) ending on or before December 31, 2027 for employers | 15 | | with no more than 5 employees. | 16 | | "Qualified employee" means an employee who is paid not more | 17 | | than the required minimum wage and has an average wage paid per | 18 | | hour by the employer during the reporting period equal to or | 19 | | greater than his or her average wage paid per hour by the | 20 | | employer during each reporting period for the immediately | 21 | | preceding 12 months. A new qualified employee is deemed to have | 22 | | earned the required minimum wage in the preceding reporting | 23 | | period. | 24 | | "Reporting period" means the quarter for which a return is | 25 | | required to be filed under subsection (b) of this Section. | 26 | | (j) For reporting periods beginning on or after January 1, |
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| 1 | | 2020, if a private employer grants all of its employees the | 2 | | option of taking a paid leave of absence of at least 30 days | 3 | | for the purpose of serving as an organ donor or bone marrow | 4 | | donor, then the private employer may take a credit against the | 5 | | payments due under this Section in an amount equal to the | 6 | | amount withheld under this Section with respect to wages paid | 7 | | while the employee is on organ donation leave, not to exceed | 8 | | $1,000 in withholdings for each employee who takes organ | 9 | | donation leave. To be eligible for the credit, such a leave of | 10 | | absence must be taken without loss of pay, vacation time,
| 11 | | compensatory time, personal days, or sick time for at least the | 12 | | first 30 days of the leave of absence. The private employer | 13 | | shall adopt rules governing organ donation leave, including | 14 | | rules that (i) establish conditions and procedures for | 15 | | requesting and approving leave and (ii) require medical | 16 | | documentation of the proposed organ or bone marrow donation | 17 | | before leave is approved by the private employer. A private | 18 | | employer must provide, in the manner required by the | 19 | | Department, documentation from the employee's medical | 20 | | provider, which the private employer receives from the | 21 | | employee, that verifies the employee's organ donation. The | 22 | | private employer must also provide, in the manner required by | 23 | | the Department, documentation that shows that a qualifying | 24 | | organ donor leave policy was in place and offered to all | 25 | | qualifying employees at the time the leave was taken. For the | 26 | | private employer to receive the tax credit, the employee taking |
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| 1 | | organ donor leave must allow for the applicable medical records | 2 | | to be disclosed to the Department. If the private employer | 3 | | cannot provide the required documentation to the Department, | 4 | | then the private employer is ineligible for the credit under | 5 | | this Section. A private employer must also provide, in the form | 6 | | required by the Department, any additional documentation or | 7 | | information required by the Department to administer the credit | 8 | | under this Section. The credit under this subsection (j) shall | 9 | | be taken within one year after the date upon which the organ | 10 | | donation leave begins. If the leave taken spans into a second | 11 | | tax year, the employer qualifies for the allowable credit in | 12 | | the later of the 2 years. If the amount of credit exceeds the | 13 | | tax liability for the year, the excess may be carried and | 14 | | applied to the tax liability for the 3 taxable years following | 15 | | the excess credit year. The tax credit shall be applied to the | 16 | | earliest year for which there is a tax liability. If there are | 17 | | credits for more than one year that are available to offset | 18 | | liability, the earlier credit shall be applied first. | 19 | | Nothing in this subsection (j) prohibits a private employer | 20 | | from providing an unpaid leave of absence to its employees for | 21 | | the purpose of serving as an organ donor or bone marrow donor; | 22 | | however, if the employer's policy provides for fewer than 30 | 23 | | days of paid leave for organ or bone marrow donation, then the | 24 | | employer shall not be eligible for the credit under this | 25 | | Section. | 26 | | As used in this subsection (j): |
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| 1 | | "Organ" means any biological tissue of the human body | 2 | | that may be donated by a living donor, including, but not | 3 | | limited to, the kidney, liver, lung, pancreas, intestine, | 4 | | bone, skin, or any subpart of those organs. | 5 | | "Organ donor" means a person from whose body an organ | 6 | | is taken to be transferred to the body of another person. | 7 | | "Private employer" means a sole proprietorship, | 8 | | corporation, partnership, limited liability company, or | 9 | | other entity with one or more employees. "Private employer" | 10 | | does not include a municipality, county, State agency, or | 11 | | other public employer. | 12 | | This subsection (j) is exempt from the provisions of | 13 | | Section 250 of this Act. | 14 | | (Source: P.A. 100-303, eff. 8-24-17; 100-511, eff. 9-18-17; | 15 | | 100-863, eff. 8-14-18; 101-1, eff. 2-19-19.) | 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.".
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