Sen. Pamela J. Althoff

Filed: 2/21/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1283

2    AMENDMENT NO. ______. Amend Senate Bill 1283 immediately
3below the enacting clause, by inserting the following:
 
4    "Section 3. The Illinois Income Tax Act is amended by
5changing 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
9is required to deduct and withhold tax under this Act on or
10after January 1, 2008 shall make those payments and returns as
11provided in this Section.
12    (b) Returns. Every employer shall, in the form and manner
13required by the Department, make returns with respect to taxes
14withheld or required to be withheld under this Article 7 for
15each quarter beginning on or after January 1, 2008, on or
16before the last day of the first month following the close of

 

 

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1that quarter.
2    (c) Payments. With respect to amounts withheld or required
3to 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,

 

 

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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

 

 

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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
7and withholds or is required to deduct and withhold tax from a
8person engaged in domestic service employment, as that term is
9defined in Section 3510 of the Internal Revenue Code, may
10comply with the requirements of this Section with respect to
11such employees by filing an annual return and paying the taxes
12required to be deducted and withheld on or before the 15th day
13of the fourth month following the close of the employer's
14taxable year. The Department may allow the employer's return to
15be submitted with the employer's individual income tax return
16or to be submitted with a return due from the employer under
17Section 1400.2 of the Unemployment Insurance Act.
18    (f) Magnetic media and electronic filing.
19    With respect to taxes withheld in calendar years prior to
202017, any Any W-2 Form that, under the Internal Revenue Code
21and regulations promulgated thereunder, is required to be
22submitted to the Internal Revenue Service on magnetic media or
23electronically must also be submitted to the Department on
24magnetic media or electronically for Illinois purposes, if
25required by the Department.
26    With respect to taxes withheld in 2017 and subsequent

 

 

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1calendar years, the Department may, by rule, require that any
2return (including any amended return) under this Section and
3any W-2 Form that is required to be submitted to the Department
4must be submitted on magnetic media or electronically.
5    The due date for submitting W-2 Forms shall be as
6prescribed by the Department by rule.
7    (g) For amounts deducted or withheld after December 31,
82009, a taxpayer who makes an election under subsection (f) of
9Section 5-15 of the Economic Development for a Growing Economy
10Tax Credit Act for a taxable year shall be allowed a credit
11against payments due under this Section for amounts withheld
12during the first calendar year beginning after the end of that
13taxable year equal to the amount of the credit for the
14incremental income tax attributable to full-time employees of
15the taxpayer awarded to the taxpayer by the Department of
16Commerce and Economic Opportunity under the Economic
17Development for a Growing Economy Tax Credit Act for the
18taxable year and credits not previously claimed and allowed to
19be carried forward under Section 211(4) of this Act as provided
20in subsection (f) of Section 5-15 of the Economic Development
21for a Growing Economy Tax Credit Act. The credit or credits may
22not reduce the taxpayer's obligation for any payment due under
23this Section to less than zero. If the amount of the credit or
24credits exceeds the total payments due under this Section with
25respect to amounts withheld during the calendar year, the
26excess may be carried forward and applied against the

 

 

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1taxpayer's liability under this Section in the succeeding
2calendar years as allowed to be carried forward under paragraph
3(4) of Section 211 of this Act. The credit or credits shall be
4applied to the earliest year for which there is a tax
5liability. If there are credits from more than one taxable year
6that are available to offset a liability, the earlier credit
7shall be applied first. Each employer who deducts and withholds
8or is required to deduct and withhold tax under this Act and
9who retains income tax withholdings under subsection (f) of
10Section 5-15 of the Economic Development for a Growing Economy
11Tax Credit Act must make a return with respect to such taxes
12and retained amounts in the form and manner that the
13Department, by rule, requires and pay to the Department or to a
14depositary designated by the Department those withheld taxes
15not retained by the taxpayer. For purposes of this subsection
16(g), the term taxpayer shall include taxpayer and members of
17the taxpayer's unitary business group as defined under
18paragraph (27) of subsection (a) of Section 1501 of this Act.
19This Section is exempt from the provisions of Section 250 of
20this Act.
21    (h) An employer may claim a credit against payments due
22under this Section for amounts withheld during the first
23calendar year ending after the date on which a tax credit
24certificate was issued under Section 35 of the Small Business
25Job Creation Tax Credit Act. The credit shall be equal to the
26amount shown on the certificate, but may not reduce the

 

 

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1taxpayer's obligation for any payment due under this Section to
2less than zero. If the amount of the credit exceeds the total
3payments due under this Section with respect to amounts
4withheld during the calendar year, the excess may be carried
5forward and applied against the taxpayer's liability under this
6Section in the 5 succeeding calendar years. The credit shall be
7applied to the earliest year for which there is a tax
8liability. If there are credits from more than one calendar
9year that are available to offset a liability, the earlier
10credit shall be applied first. This Section is exempt from the
11provisions of Section 250 of this Act.
12(Source: P.A. 96-834, eff. 12-14-09; 96-888, eff. 4-13-10;
1396-905, eff. 6-4-10; 96-1027, eff. 7-12-10; 97-333, eff.
148-12-11; 97-507, eff. 8-23-11.)".