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Full Text of SB0081  100th General Assembly

SB0081enr 100TH GENERAL ASSEMBLY

  
  
  

 


 
SB0081 EnrolledLRB100 06367 KTG 16406 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. 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
17that quarter.
18    (c) Payments. With respect to amounts withheld or required
19to be withheld on or after January 1, 2008:
20        (1) Semi-weekly payments. For each calendar year, each
21    employer who withheld or was required to withhold more than
22    $12,000 during the one-year period ending on June 30 of the
23    immediately preceding calendar year, payment must be made:

 

 

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1            (A) on or before each Friday of the calendar year,
2        for taxes withheld or required to be withheld on the
3        immediately preceding Saturday, Sunday, Monday, or
4        Tuesday;
5            (B) on or before each Wednesday of the calendar
6        year, for taxes withheld or required to be withheld on
7        the immediately preceding Wednesday, Thursday, or
8        Friday.
9        Beginning with calendar year 2011, payments made under
10    this paragraph (1) of subsection (c) must be made by
11    electronic funds transfer.
12        (2) Semi-weekly payments. Any employer who withholds
13    or is required to withhold more than $12,000 in any quarter
14    of a calendar year is required to make payments on the
15    dates set forth under item (1) of this subsection (c) for
16    each remaining quarter of that calendar year and for the
17    subsequent calendar year.
18        (3) Monthly payments. Each employer, other than an
19    employer described in items (1) or (2) of this subsection,
20    shall pay to the Department, on or before the 15th day of
21    each month the taxes withheld or required to be withheld
22    during the immediately preceding month.
23        (4) Payments with returns. Each employer shall pay to
24    the Department, on or before the due date for each return
25    required to be filed under this Section, any tax withheld
26    or required to be withheld during the period for which the

 

 

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1    return is due and not previously paid to the Department.
2    (d) Regulatory authority. The Department may, by rule:
3        (1) Permit employers, in lieu of the requirements of
4    subsections (b) and (c), to file annual returns due on or
5    before January 31 of the year for taxes withheld or
6    required to be withheld during the previous calendar year
7    and, if the aggregate amounts required to be withheld by
8    the employer under this Article 7 (other than amounts
9    required to be withheld under Section 709.5) do not exceed
10    $1,000 for the previous calendar year, to pay the taxes
11    required to be shown on each such return no later than the
12    due date for such return.
13        (2) Provide that any payment required to be made under
14    subsection (c)(1) or (c)(2) is deemed to be timely to the
15    extent paid by electronic funds transfer on or before the
16    due date for deposit of federal income taxes withheld from,
17    or federal employment taxes due with respect to, the wages
18    from which the Illinois taxes were withheld.
19        (3) Designate one or more depositories to which payment
20    of taxes required to be withheld under this Article 7 must
21    be paid by some or all employers.
22        (4) Increase the threshold dollar amounts at which
23    employers are required to make semi-weekly payments under
24    subsection (c)(1) or (c)(2).
25    (e) Annual return and payment. Every employer who deducts
26and withholds or is required to deduct and withhold tax from a

 

 

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1person engaged in domestic service employment, as that term is
2defined in Section 3510 of the Internal Revenue Code, may
3comply with the requirements of this Section with respect to
4such employees by filing an annual return and paying the taxes
5required to be deducted and withheld on or before the 15th day
6of the fourth month following the close of the employer's
7taxable year. The Department may allow the employer's return to
8be submitted with the employer's individual income tax return
9or to be submitted with a return due from the employer under
10Section 1400.2 of the Unemployment Insurance Act.
11    (f) Magnetic media and electronic filing. Any W-2 Form
12that, under the Internal Revenue Code and regulations
13promulgated thereunder, is required to be submitted to the
14Internal Revenue Service on magnetic media or electronically
15must also be submitted to the Department on magnetic media or
16electronically for Illinois purposes, if required by the
17Department.
18    (g) For amounts deducted or withheld after December 31,
192009, a taxpayer who makes an election under subsection (f) of
20Section 5-15 of the Economic Development for a Growing Economy
21Tax Credit Act for a taxable year shall be allowed a credit
22against payments due under this Section for amounts withheld
23during the first calendar year beginning after the end of that
24taxable year equal to the amount of the credit for the
25incremental income tax attributable to full-time employees of
26the taxpayer awarded to the taxpayer by the Department of

 

 

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1Commerce and Economic Opportunity under the Economic
2Development for a Growing Economy Tax Credit Act for the
3taxable year and credits not previously claimed and allowed to
4be carried forward under Section 211(4) of this Act as provided
5in subsection (f) of Section 5-15 of the Economic Development
6for a Growing Economy Tax Credit Act. The credit or credits may
7not reduce the taxpayer's obligation for any payment due under
8this Section to less than zero. If the amount of the credit or
9credits exceeds the total payments due under this Section with
10respect to amounts withheld during the calendar year, the
11excess may be carried forward and applied against the
12taxpayer's liability under this Section in the succeeding
13calendar years as allowed to be carried forward under paragraph
14(4) of Section 211 of this Act. The credit or credits shall be
15applied to the earliest year for which there is a tax
16liability. If there are credits from more than one taxable year
17that are available to offset a liability, the earlier credit
18shall be applied first. Each employer who deducts and withholds
19or is required to deduct and withhold tax under this Act and
20who retains income tax withholdings under subsection (f) of
21Section 5-15 of the Economic Development for a Growing Economy
22Tax Credit Act must make a return with respect to such taxes
23and retained amounts in the form and manner that the
24Department, by rule, requires and pay to the Department or to a
25depositary designated by the Department those withheld taxes
26not retained by the taxpayer. For purposes of this subsection

 

 

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1(g), the term taxpayer shall include taxpayer and members of
2the taxpayer's unitary business group as defined under
3paragraph (27) of subsection (a) of Section 1501 of this Act.
4This Section is exempt from the provisions of Section 250 of
5this Act.
6    (h) An employer may claim a credit against payments due
7under this Section for amounts withheld during the first
8calendar year ending after the date on which a tax credit
9certificate was issued under Section 35 of the Small Business
10Job Creation Tax Credit Act. The credit shall be equal to the
11amount shown on the certificate, but may not reduce the
12taxpayer's obligation for any payment due under this Section to
13less than zero. If the amount of the credit exceeds the total
14payments due under this Section with respect to amounts
15withheld during the calendar year, the excess may be carried
16forward and applied against the taxpayer's liability under this
17Section in the 5 succeeding calendar years. The credit shall be
18applied to the earliest year for which there is a tax
19liability. If there are credits from more than one calendar
20year that are available to offset a liability, the earlier
21credit shall be applied first. This Section is exempt from the
22provisions of Section 250 of this Act.
23    (i) Each employer that does not employ more than 50
24employees at any time during the applicable payment period may
25claim a credit against payments due under this Section for each
26qualified employee, in an amount equal to the maximum credit

 

 

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1multiplied by the number of hours the employee worked during
2the reporting period. The credit or credits may be taken
3against payments due for reporting periods that begin on or
4after January 1, 2018 and end on or before either: (1) December
531, 2025 for employers that employ more than 5 employees during
6the applicable payment period; or (2) December 31, 2027 for
7employers that employ no more than 5 employees during the
8applicable payment period. An employer may not claim a credit
9for an employee who has worked less than 90 consecutive days
10immediately preceding the reporting period; however, such
11credits may accrue during that 90-day period and be claimed
12against payments under this Section for future reporting
13periods after the employee has worked for the employer at least
1490 consecutive days.
15    For each reporting period, the employer may not claim a
16credit or credits for more employees than the number of
17employees making less than the minimum or reduced wage for the
18current calendar year during the last reporting period of the
19preceding calendar year. Notwithstanding any other provision
20of this subsection, an employer shall not be eligible for
21credits for a reporting period unless the average wage paid by
22the employer per employee for all employees making less than
23$55,000 during the reporting period is greater than the average
24wage paid by the employer per employee for all employees making
25less than $55,000 during the same reporting period of the prior
26calendar year.

 

 

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1    The credit or credits may not reduce the employer's
2obligation for any payment due under this Section by more than
3(i) 25% for reporting periods that begin during calendar year
42018, (ii) 20% for reporting periods that begin during calendar
5year 2019, (iii) 15% for reporting periods that begin during
6calendar year 2020, (iv) 10% for reporting periods that begin
7during calendar year 2021, and (v) 5% for reporting periods
8that begin during calendar year 2022. For calendar years 2023
9through (1) December 31, 2025 for employers that employ more
10than 5 employees during the applicable payment period or (2)
11December 31, 2027 for employers that employ no more than 5
12employees during the applicable payment period, the total
13amount of credits awarded to a taxpayer in each calendar year
14shall be equal to the total amount of credits awarded to that
15taxpayer in calendar year 2022. The taxpayer may apply all or a
16portion of the total credit amount for any such calendar year
17to any reporting period or periods in that calendar year,
18provided that the total amount of credits claimed by the
19taxpayer in that taxable year does not exceed the total amount
20of credits awarded to that taxpayer in calendar year 2022. Each
21employer who deducts and withholds or is required to deduct and
22withhold tax under this Act and who retains income tax
23withholdings under this subsection must make a return with
24respect to such taxes and retained amounts in the form and
25manner that the Department, by rule, requires and pay to the
26Department or to a depositary designated by the Department

 

 

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1those withheld taxes not retained by the employer.
2    For the purposes of this subsection (i):
3        (1) "Category of employee" means:
4            (A) employees who are under 18 years of age;
5            (B) employees who are 18 years of age or older, but
6        who qualify for a reduced minimum wage as provided
7        under paragraph (2) of subsection (a) of Section 4 of
8        the Minimum Wage Law;
9            (C) employees who are engaged in an occupation in
10        which gratuities have customarily and usually
11        constituted, and have been recognized as part of, the
12        remuneration for hire purposes, as provided in
13        subsection (c) of Section 4 of the Minimum Wage Law;
14            (D) employees who are 18 years of age or older, but
15        who qualify for a reduced minimum wage under Section 5
16        of the Minimum Wage Law;
17            (E) employees who are 18 years of age or older, but
18        who qualify for a reduced minimum wage under Section 6
19        of the Minimum Wage Law; and
20            (F) employees who are 18 years of age or older and
21        do not qualify under paragraph (B), (C), (D), or (E) of
22        this item (1).
23        (2) "Employer" and "employee" have the meanings
24    ascribed to those terms in the Minimum Wage Law, except
25    that "employee" also includes employees who work for an
26    employer employing fewer than 4 employees. "Employer" does

 

 

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1    not include an employer that owns or operates 4 or more
2    establishments in the aggregate nationally pursuant to a
3    franchise agreement.
4        (3) "Maximum credit" means: (A) $0.45 per hour for
5    qualified employees for whom the employer receives an
6    allowance for gratuities under subsection (c) of Section 4
7    of the Minimum Wage Law; (B) $0.53 per hour for employees
8    who receive a reduced minimum wage under Section 6 of the
9    Minimum Wage Law; and (C) $0.75 per hour for all other
10    qualified employees.
11        (4) "Qualified employee" means an employee who: (i)
12    makes no more per hour than an amount equal to the minimum
13    wage or reduced minimum wage for that category of employee
14    plus $0.25; and (ii) has an average wage paid per hour by
15    the employer during the reporting period equal to or
16    greater than his or her average wage paid per hour by the
17    employer during each reporting period for the immediately
18    preceding 12 months.
19(Source: P.A. 96-834, eff. 12-14-09; 96-888, eff. 4-13-10;
2096-905, eff. 6-4-10; 96-1027, eff. 7-12-10; 97-333, eff.
218-12-11; 97-507, eff. 8-23-11.)
 
22    Section 10. The Minimum Wage Law is amended by changing
23Section 4 as follows:
 
24    (820 ILCS 105/4)  (from Ch. 48, par. 1004)

 

 

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1    Sec. 4. (a)(1) Every employer shall pay to each of his
2employees in every occupation wages of not less than $2.30 per
3hour or in the case of employees under 18 years of age wages of
4not less than $1.95 per hour, except as provided in Sections 5
5and 6 of this Act, and on and after January 1, 1984, every
6employer shall pay to each of his employees in every occupation
7wages of not less than $2.65 per hour or in the case of
8employees under 18 years of age wages of not less than $2.25
9per hour, and on and after October 1, 1984 every employer shall
10pay to each of his employees in every occupation wages of not
11less than $3.00 per hour or in the case of employees under 18
12years of age wages of not less than $2.55 per hour, and on or
13after July 1, 1985 every employer shall pay to each of his
14employees in every occupation wages of not less than $3.35 per
15hour or in the case of employees under 18 years of age wages of
16not less than $2.85 per hour, and from January 1, 2004 through
17December 31, 2004 every employer shall pay to each of his or
18her employees who is 18 years of age or older in every
19occupation wages of not less than $5.50 per hour, and from
20January 1, 2005 through June 30, 2007 every employer shall pay
21to each of his or her employees who is 18 years of age or older
22in every occupation wages of not less than $6.50 per hour, and
23from July 1, 2007 through June 30, 2008 every employer shall
24pay to each of his or her employees who is 18 years of age or
25older in every occupation wages of not less than $7.50 per
26hour, and from July 1, 2008 through June 30, 2009 every

 

 

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1employer shall pay to each of his or her employees who is 18
2years of age or older in every occupation wages of not less
3than $7.75 per hour, and from July 1, 2009 through June 30,
42010 every employer shall pay to each of his or her employees
5who is 18 years of age or older in every occupation wages of
6not less than $8.00 per hour, and from on and after July 1,
72010 through December 31, 2017 every employer shall pay to each
8of his or her employees who is 18 years of age or older in every
9occupation wages of not less than $8.25 per hour, and from
10January 1, 2018 to December 31, 2018 every employer shall pay
11to each of his or her employees who is 18 years of age or older
12in every occupation wages of not less than $9 per hour, and
13from January 1, 2019 to December 31, 2019 every employer shall
14pay to each of his or her employees who is 18 years of age or
15older in every occupation wages of not less than $10 per hour,
16and from January 1, 2020 to December 31, 2020 every employer
17shall pay to each of his or her employees who is 18 years of age
18or older in every occupation wages of not less than $11.25 per
19hour, and from January 1, 2021 to December 31, 2021 every
20employer shall pay to each of his or her employees who is 18
21years of age or older in every occupation wages of not less
22than $13 per hour, and on and after January 1, 2022 every
23employer shall pay to each of his or her employees who is 18
24years of age or older in every occupation wages of not less
25than $15 per hour.
26    (2) Unless an employee's wages are reduced under Section 6,

 

 

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1then in lieu of the rate prescribed in item (1) of this
2subsection (a), an employer may pay an employee who is 18 years
3of age or older, during the first 90 consecutive calendar days
4after the employee is initially employed by the employer, a
5wage that is not more than 50 less than the wage prescribed in
6item (1) of this subsection (a); however, an employer shall pay
7not less than the rate prescribed in item (1) of this
8subsection (a) to:
9        (A) a day or temporary laborer, as defined in Section 5
10    of the Day and Temporary Labor Services Act, who is 18
11    years of age or older; and
12        (B) an employee who is 18 years of age or older and
13    whose employment is occasional or irregular and requires
14    not more than 90 days to complete.
15    (3) On or before December 31, 2017, at At no time shall the
16wages paid to any employee under 18 years of age be more than
1750 less than the wage required to be paid to employees who are
18at least 18 years of age under item (1) of this subsection (a).
19Beginning on or after January 1, 2018, every employer shall pay
20to each of his or her employees who is under 18 years of age
21that has worked more than 650 hours for the employer during any
22calendar year a wage not less than the wage required for
23employees who are 18 years of age or older under paragraph (1)
24of subsection (a) of Section 4 of this Law. Every employer
25shall pay to each of his or her employees who is under 18 years
26of age that has not worked more than 650 hours for the employer

 

 

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1during any calendar year: (1) $8 per hour from January 1, 2018
2to December 31, 2018; (2) $8.50 per hour from January 1, 2019
3to December 31, 2019; (3) $9.25 per hour from January 1, 2020
4to December 31, 2020; (4) $10.50 per hour from January 1, 2021
5to December 31, 2021; and (5) $12 per hour on and after January
61, 2022.
7    (b) No employer shall discriminate between employees on the
8basis of sex or mental or physical disability, except as
9otherwise provided in this Act by paying wages to employees at
10a rate less than the rate at which he pays wages to employees
11for the same or substantially similar work on jobs the
12performance of which requires equal skill, effort, and
13responsibility, and which are performed under similar working
14conditions, except where such payment is made pursuant to (1) a
15seniority system; (2) a merit system; (3) a system which
16measures earnings by quantity or quality of production; or (4)
17a differential based on any other factor other than sex or
18mental or physical disability, except as otherwise provided in
19this Act.
20    (c) Every employer of an employee engaged in an occupation
21in which gratuities have customarily and usually constituted
22and have been recognized as part of the remuneration for hire
23purposes is entitled to an allowance for gratuities as part of
24the hourly wage rate provided in Section 4, subsection (a) in
25an amount not to exceed 40% of the applicable minimum wage
26rate. The Director shall require each employer desiring an

 

 

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1allowance for gratuities to provide substantial evidence that
2the amount claimed, which may not exceed 40% of the applicable
3minimum wage rate, was received by the employee in the period
4for which the claim of exemption is made, and no part thereof
5was returned to the employer.
6    (d) No camp counselor who resides on the premises of a
7seasonal camp of an organized not-for-profit corporation shall
8be subject to the adult minimum wage if the camp counselor (1)
9works 40 or more hours per week, and (2) receives a total
10weekly salary of not less than the adult minimum wage for a
1140-hour week. If the counselor works less than 40 hours per
12week, the counselor shall be paid the minimum hourly wage for
13each hour worked. Every employer of a camp counselor under this
14subsection is entitled to an allowance for meals and lodging as
15part of the hourly wage rate provided in Section 4, subsection
16(a), in an amount not to exceed 25% of the minimum wage rate.
17    (e) A camp counselor employed at a day camp is not subject
18to the adult minimum wage if the camp counselor is paid a
19stipend on a onetime or periodic basis and, if the camp
20counselor is a minor, the minor's parent, guardian or other
21custodian has consented in writing to the terms of payment
22before the commencement of such employment.
23(Source: P.A. 99-143, eff. 7-27-15.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.