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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.
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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.