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Public Act 095-0008 |
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Income Tax Act is amended by | ||||
changing Section 704 and by adding Section 704A as follows:
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(35 ILCS 5/704) (from Ch. 120, par. 7-704)
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Sec. 704. Employer's Return and Payment of Tax Withheld.
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(a) In general, every employer who deducts and withholds or | ||||
is required
to deduct and withhold tax under this Act prior to | ||||
January 1, 2008, shall make such payments and
returns as | ||||
hereinafter provided in this Section .
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(b) Quarter Monthly Payments: Returns. Every employer who | ||||
deducts
and withholds or is required to deduct and withhold tax | ||||
under this Act
shall, on or before the third banking day | ||||
following the close of a quarter
monthly period, pay to the | ||||
Department or to a depositary designated by the
Department, | ||||
pursuant to regulations prescribed by the Department, the taxes
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so required to be deducted and withheld, whenever the aggregate | ||||
amount
withheld by such employer (together with amounts | ||||
previously withheld and
not paid to the Department) exceeds | ||||
$1,000. For purposes of this Section,
Saturdays, Sundays, legal | ||||
holidays and local bank holidays are not banking
days. A | ||||
quarter monthly period, for purposes of this subsection, ends |
on
the 7th, 15th, 22nd and last day of each calendar month. | ||
Every such
employer shall for each calendar quarter, on or | ||
before the last day of the
first month following the close of | ||
such quarter, and for the calendar year,
on or before January | ||
31 of the succeeding calendar year, make a return with
respect | ||
to such taxes in such form and manner as the Department may by
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regulations prescribe, and pay to the Department or to a | ||
depositary
designated by the Department all withheld taxes not | ||
previously paid to
the Department.
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(c) Monthly Payments: Returns. Every employer required to | ||
deduct and
withhold tax under this Act shall, on or before the | ||
15th day of the second
and third months of each calendar | ||
quarter, and on or before the last day of
the month following | ||
the last month of each such quarter, pay to the
Department or | ||
to a depositary designated by the Department, pursuant to
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regulations prescribed by the Department, the taxes so required | ||
to be
deducted and withheld, whenever the aggregate amount | ||
withheld by such employer
(together with amounts previously | ||
withheld and not paid to the
Department) exceeds $500 but does | ||
not exceed $1,000. Every such employer
shall for each calendar | ||
quarter, on or before the last day of the first
month following | ||
the close of such quarter, and for the calendar year, on or
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before January 31 of the succeeding calendar year, make a | ||
return with
respect to such taxes in such form and manner as | ||
the Department may by
regulations prescribe, and pay to the | ||
Department or to a depositary
designated by the Department all |
withheld taxes not previously paid to
the Department.
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(d) Annual Payments: Returns. Where the amount of | ||
compensation paid
by an employer is not sufficient to require | ||
the withholding of tax from the
compensation of any of its | ||
employees (or where the aggregate amount
withheld is less than | ||
$500), the Department may by regulation permit such
employer to | ||
file only an annual return and to pay the taxes required to be
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deducted and withheld at the time of filing such annual return.
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(e) Annual Return. The Department may, as it deems | ||
appropriate, prescribe
by regulation for the filing of annual | ||
returns in lieu of quarterly returns
described in subsections | ||
(b) and (c).
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(e-5) Annual Return and Payment. On and after January 1, | ||
1998,
notwithstanding subsections (b) through (d) of this | ||
Section, every employer who
deducts and withholds or is | ||
required to deduct and withhold tax from a person
engaged in | ||
domestic service employment, as that term is defined in Section | ||
3510
of the Internal Revenue Code, may comply with the | ||
requirements of this Section
by filing an annual return and | ||
paying the taxes required to be deducted and
withheld on or | ||
before the 15th day of the fourth month following the close of
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the employer's taxable year. The annual return may be submitted | ||
with the
employer's individual income tax return.
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(f) Magnetic Media Filing. Forms W-2 that, pursuant to
the | ||
Internal Revenue Code and regulations promulgated thereunder, | ||
are
required to be submitted to the Internal Revenue Service on |
magnetic media,
must also be submitted to the Department on | ||
magnetic media for Illinois
purposes, if required by the | ||
Department.
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(Source: P.A. 90-374, eff. 8-14-97; 90-562, eff. 12-16-97.)
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(35 ILCS 5/704A new) | ||
Sec. 704A. Employer's return and payment of tax withheld. | ||
(a) In general, every employer who deducts and withholds or | ||
is required to deduct and withhold tax under this Act on or | ||
after January 1, 2008 shall make those payments and returns as | ||
provided in this Section. | ||
(b) Returns. Every employer shall, in the form and manner | ||
required by the Department, make returns with respect to taxes | ||
withheld or required to be withheld under this Article 7 | ||
beginning on or after January 1, 2008, on or before the last | ||
day of the first month following the close of that quarter. | ||
(c) Payments. With respect to amounts withheld or required | ||
to be withheld on or after January 1, 2008: | ||
(1) Semi-weekly payments. For each calendar year, each | ||
employer who withheld or was required to withhold more than | ||
$12,000 during the one-year period ending on June 30 of the | ||
immediately preceding calendar year, payment must be made: | ||
(A) on or before each Friday of the calendar year, | ||
for taxes withheld or required to be withheld on the | ||
immediately preceding Saturday, Sunday, Monday, or | ||
Tuesday; |
(B) on or before each Wednesday of the calendar | ||
year, for taxes withheld or required to be withheld on | ||
the immediately preceding Wednesday, Thursday, or | ||
Friday. | ||
(2) Semi-weekly payments. Any employer who withholds | ||
or is required to withhold more than $12,000 in any quarter | ||
of a calendar year is required to make payments on the | ||
dates set forth under item (1) of this subsection (c) for | ||
each remaining quarter of that calendar year and for the | ||
subsequent calendar year.
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(3) Monthly payments. Each employer, other than an | ||
employer described in items (1) or (2) of this subsection, | ||
shall pay to the Department, on or before the 15th day of | ||
each month the taxes withheld or required to be withheld | ||
during the immediately preceding month. | ||
(4) Payments with returns. Each employer shall pay to | ||
the Department, on or before the due date for each return | ||
required to be filed under this Section, any tax withheld | ||
or required to be withheld during the period for which the | ||
return is due and not previously paid to the Department. | ||
(d) Regulatory authority. The Department may, by rule: | ||
(1) If the aggregate amounts required to be withheld | ||
under this Article 7 do not exceed $1,000 for the calendar | ||
year, permit employers, in lieu of the requirements of | ||
subsections (b) and (c), to file annual returns due on or | ||
before January 31 of the following year for taxes withheld |
or required to be withheld during that calendar year and to | ||
pay the taxes required to be shown on each such return no | ||
later than the due date for such return. | ||
(2) Provide that any payment required to be made under | ||
subsection (c)(1) or (c)(2) is deemed to be timely to the | ||
extent paid by electronic funds transfer on or before the | ||
due date for deposit of federal income taxes withheld from, | ||
or federal employment taxes due with respect to, the wages | ||
from which the Illinois taxes were withheld. | ||
(3) Designate one or more depositories to which payment | ||
of taxes required to be withheld under this Article 7 must | ||
be paid by some or all employers. | ||
(4) Increase the threshold dollar amounts at which | ||
employers are required to make semi-weekly payments under | ||
subsection (c)(1) or (c)(2). | ||
(e) Annual return and payment. Every employer who deducts | ||
and withholds or is required to deduct and withhold tax from a | ||
person engaged in domestic service employment, as that term is | ||
defined in Section 3510 of the Internal Revenue Code, may | ||
comply with the requirements of this Section with respect to | ||
such employees by filing an annual return and paying the taxes | ||
required to be deducted and withheld on or before the 15th day | ||
of the fourth month following the close of the employer's | ||
taxable year. The Department may allow the employer's return to | ||
be submitted with the employer's individual income tax return | ||
or to be submitted with a return due from the employer under |
Section 1400.2 of the Unemployment Insurance Act. | ||
(f) Magnetic media and electronic filing. Any W-2 Form | ||
that, under the Internal Revenue Code and regulations | ||
promulgated thereunder, is required to be submitted to the | ||
Internal Revenue Service on magnetic media or electronically | ||
must also be submitted to the Department on magnetic media or | ||
electronically for Illinois purposes, if required by the | ||
Department.
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Section 10. The Illinois Municipal Code is amended by | ||
changing Section 8-11-1.1 as follows:
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(65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
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Sec. 8-11-1.1. Non-home rule municipalities; imposition of | ||
taxes.
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(a) The corporate authorities of a non-home rule
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municipality
may, upon approval of the electors of the | ||
municipality pursuant to
subsection (b) of this Section, impose | ||
by ordinance or resolution the tax authorized in Sections | ||
8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
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(b) The corporate authorities of the municipality may by | ||
ordinance or
resolution call for the submission to the electors | ||
of the municipality
the question of whether the municipality | ||
shall impose such tax. Such
question shall be certified by the | ||
municipal clerk to the election
authority in accordance with | ||
Section 28-5 of the Election Code and shall be
in a form in |
accordance with Section 16-7 of the Election Code.
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If a majority of the electors in the municipality voting | ||
upon the
question vote in the affirmative, such tax shall be | ||
imposed.
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An ordinance or resolution imposing the tax of not more | ||
than 1% hereunder or
discontinuing the same shall be adopted | ||
and a certified copy thereof,
together with a certification | ||
that the ordinance or resolution received
referendum approval | ||
in the case of the imposition of such tax, filed with
the | ||
Department of Revenue, on or before the first day of June, | ||
whereupon
the Department shall proceed to administer and | ||
enforce
the additional tax or to discontinue the tax, as the | ||
case may be, as of the
first day of September next following | ||
such adoption and filing.
Beginning January 1, 1992, an | ||
ordinance or resolution imposing
or discontinuing the tax | ||
hereunder shall be adopted and a certified copy
thereof filed | ||
with the Department on or before the first day of July,
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whereupon the Department shall proceed to administer and | ||
enforce this
Section as of the first day of October next | ||
following such adoption and filing.
Beginning January 1, 1993, | ||
an ordinance or resolution imposing or
discontinuing the tax | ||
hereunder shall be adopted and a certified copy
thereof filed | ||
with the Department on or before the first day of October,
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whereupon the Department shall proceed to administer and | ||
enforce this
Section as of the first day of January next | ||
following such adoption and filing.
Beginning October 1, 2002, |
an ordinance or resolution imposing or
discontinuing the tax
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under this Section or effecting a change in the rate of tax | ||
must either (i) be
adopted
and a
certified copy of the | ||
ordinance or resolution filed with the Department on or
before | ||
the first day
of April,
whereupon the Department shall proceed | ||
to administer and enforce this Section
as of the
first day of | ||
July next following the adoption and filing; or (ii) be adopted
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and a certified
copy of the ordinance or resolution filed with | ||
the Department on or before the
first day
of October,
whereupon | ||
the Department shall proceed to administer and enforce this | ||
Section
as of the
first day of January next following the | ||
adoption and filing.
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Notwithstanding any provision in this Section to the | ||
contrary, if, in a non-home rule municipality with more than | ||
150,000 but fewer than 200,000 inhabitants, as determined by | ||
the last preceding federal decennial census, an ordinance or | ||
resolution under this Section imposes or discontinues a tax or | ||
changes the tax rate as of July 1, 2007, then that ordinance or | ||
resolution, together with a certification that the
ordinance or | ||
resolution received referendum approval in the case of the
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imposition of the tax, must be adopted and a certified copy of | ||
that ordinance or resolution must be filed with the Department | ||
on or before May 15, 2007, whereupon the Department shall | ||
proceed to administer and enforce this Section as of July 1, | ||
2007.
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A non-home rule municipality may file
a
certified copy of |
an ordinance or resolution, with a certification that the
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ordinance or resolution received referendum approval in the | ||
case of the
imposition of the tax, with the
Department of | ||
Revenue, as required under this Section, only after October 2,
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2000.
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The tax authorized by this Section may not be more than 1% | ||
and
may be imposed only in 1/4% increments.
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(Source: P.A. 94-679, eff. 1-1-06.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law. |