State of Illinois
90th General Assembly
Legislation

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[ Engrossed ][ Enrolled ][ Senate Amendment 001 ]

90_HB0981

      35 ILCS 5/704             from Ch. 120, par. 7-704
          Amends the Illinois Income Tax Act.  Provides  that  when
      tax  is  withheld  from  a person engaged in domestic service
      employment, as that term is defined in the  Internal  Revenue
      Code,  returns  shall  be  made  on a calendar year basis and
      shall be filed on or before the 15th day of the fourth  month
      following  the  close  of  the  employer's  taxable year that
      begins in such calendar year.  Effective immediately.
                                                     LRB9002465KDcc
                                               LRB9002465KDcc
 1        AN ACT to amend the Illinois Income Tax Act  by  changing
 2    Section 704.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 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
10    or  is  required  to  deduct  and withhold tax under this Act
11    shall make such payments and returns as hereinafter provided.
12        (b)  Quarter Monthly Payments:  Returns.  Every  employer
13    who  deducts  and  withholds  or  is  required  to deduct and
14    withhold tax under this Act shall, on  or  before  the  third
15    banking  day following the close of a quarter monthly period,
16    pay to the Department or to a depositary  designated  by  the
17    Department,   pursuant   to  regulations  prescribed  by  the
18    Department,  the  taxes  so  required  to  be  deducted   and
19    withheld,  whenever  the  aggregate  amount  withheld by such
20    employer (together with amounts previously withheld  and  not
21    paid  to the Department) exceeds $1,000. For purposes of this
22    Section, Saturdays, Sundays, legal holidays  and  local  bank
23    holidays  are not banking days. A quarter monthly period, for
24    purposes of this subsection, ends on the 7th, 15th, 22nd  and
25    last  day  of each calendar month.  Every such employer shall
26    for each calendar quarter, on or before the last day  of  the
27    first  month following the close of such quarter, and for the
28    calendar year, on or before  January  31  of  the  succeeding
29    calendar  year,  make  a return with respect to such taxes in
30    such form and manner as the  Department  may  by  regulations
31    prescribe,  and  pay  to  the  Department  or to a depositary
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 1    designated  by  the  Department  all   withheld   taxes   not
 2    previously paid to the Department.
 3        (c)  Monthly Payments:  Returns.  Every employer required
 4    to deduct and withhold tax under this Act shall, on or before
 5    the  15th day of the second and third months of each calendar
 6    quarter, and on or before the last day of the month following
 7    the last month of each such quarter, pay to the Department or
 8    to a depositary designated by  the  Department,  pursuant  to
 9    regulations  prescribed  by  the  Department,  the  taxes  so
10    required  to be deducted and withheld, whenever the aggregate
11    amount withheld  by  such  employer  (together  with  amounts
12    previously  withheld  and not paid to the Department) exceeds
13    $500 but does not exceed $1,000.  Every such  employer  shall
14    for  each  calendar quarter, on or before the last day of the
15    first month following the close of such quarter, and for  the
16    calendar  year,  on  or  before  January 31 of the succeeding
17    calendar year, make a return with respect to  such  taxes  in
18    such  form  and  manner  as the Department may by regulations
19    prescribe, and pay to  the  Department  or  to  a  depositary
20    designated   by   the   Department  all  withheld  taxes  not
21    previously paid to the Department.
22        (d)  Annual Payments:   Returns.   Where  the  amount  of
23    compensation paid by an employer is not sufficient to require
24    the  withholding  of  tax from the compensation of any of its
25    employees (or where the aggregate  amount  withheld  is  less
26    than  $500),  the  Department  may  by regulation permit such
27    employer to file only an annual return and to pay  the  taxes
28    required  to  be  deducted and withheld at the time of filing
29    such annual return.
30        (e)  Annual Return.  The  Department  may,  as  it  deems
31    appropriate, prescribe by regulation for the filing of annual
32    returns in lieu of quarterly returns described in subsections
33    (b) and (c).
34        (e-5)  Annual  Return.   Where the tax is withheld from a
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 1    person engaged in domestic service employment, as  that  term
 2    is  defined  in  Section  3510  of the Internal Revenue Code,
 3    returns shall be made on a calendar year basis and  shall  be
 4    filed on or before the 15th day of the fourth month following
 5    the  close of the employer's taxable year that begins in such
 6    calendar year.
 7        (f)  Magnetic Media Filing.  Forms W-2 that, pursuant  to
 8    the   Internal   Revenue  Code  and  regulations  promulgated
 9    thereunder, are required to  be  submitted  to  the  Internal
10    Revenue  Service on magnetic media, must also be submitted to
11    the Department on magnetic media for  Illinois  purposes,  if
12    required by the Department.
13    (Source: P.A. 87-205.)
14        Section  99.  Effective date.  This Act takes effect upon
15    becoming law.

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