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Full Text of HB0198  100th General Assembly

HB0198ham001 100TH GENERAL ASSEMBLY

Rep. Will Guzzardi

Filed: 3/27/2017

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 198

2    AMENDMENT NO. ______. Amend House Bill 198 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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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. Any W-2 Form
19that, under the Internal Revenue Code and regulations
20promulgated thereunder, is required to be submitted to the
21Internal Revenue Service on magnetic media or electronically
22must also be submitted to the Department on magnetic media or
23electronically for Illinois purposes, if required by the
24Department.
25    (g) For amounts deducted or withheld after December 31,
262009, a taxpayer who makes an election under subsection (f) of

 

 

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

 

 

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

 

 

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1year that are available to offset a liability, the earlier
2credit shall be applied first. This Section is exempt from the
3provisions of Section 250 of this Act.
4    (i) Each employer that does not employ more than 50
5employees at any time during the applicable payment period may
6claim a credit against payments due under this Section for
7reporting periods that begin on or after January 1, 2018 and
8end on or before December 31, 2022, for each qualified
9employee, in an amount equal to the maximum credit multiplied
10by the number of hours the employee worked during the reporting
11period. An employer may not claim a credit for a qualified
12employee who has worked less than 90 consecutive days
13immediately preceding the reporting period; however, such
14credits may accrue during that 90-day period and be claimed
15against payments under this Section for future reporting
16periods after the qualified employee has worked for the
17employer at least 90 consecutive days.
18    For each reporting period, the employer may not claim a
19credit or credits for more employees than the number of
20employees making less than the minimum or reduced wage for the
21current calendar year during the last reporting period of the
22preceding calendar year. Notwithstanding any other provision
23of this subsection, an employer shall not be eligible for
24credits for a reporting period unless the average wage paid by
25the employer per employee for all employees making less than
26$55,000 during the reporting period is greater than the average

 

 

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1wage paid by the employer per employee for all employees making
2less than $55,000 during the same reporting period of the prior
3calendar year.
4    The credit or credits may not reduce the employer's
5obligation for any payment due under this Section by more than
6(i) 25% for reporting periods that begin during calendar year
72018, (ii) 20% for reporting periods that begin during calendar
8year 2019, (iii) 15% for reporting periods that begin during
9calendar year 2020, (iv) 10% for reporting periods that begin
10during calendar year 2021, and (v) 5% for reporting periods
11that begin during calendar year 2022 and end on or before
12December 31, 2022. Each employer who deducts and withholds or
13is required to deduct and withhold tax under this Act and who
14retains income tax withholdings under this subsection must make
15a return with respect to such taxes and retained amounts in the
16form and manner that the Department, by rule, requires and pay
17to the Department or to a depositary designated by the
18Department those withheld taxes not retained by the employer.
19    For the purposes of this subsection (i):
20        (1) "Category of employee" means:
21            (A) employees who are under 18 years of age;
22            (B) employees who are 18 years of age or older, but
23        who qualify for a reduced minimum wage as provided
24        under paragraph (2) of subsection (a) of Section 4 of
25        the Minimum Wage Law;
26            (C) employees who are engaged in an occupation in

 

 

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1        which gratuities have customarily and usually
2        constituted, and have been recognized as part of, the
3        remuneration for hire purposes, as provided in
4        subsection (c) of Section 4 of the Minimum Wage Law;
5            (D) employees who are 18 years of age or older, but
6        who qualify for a reduced minimum wage under Section 5
7        of the Minimum Wage Law;
8            (E) employees who are 18 years of age or older, but
9        who qualify for a reduced minimum wage under Section 6
10        of the Minimum Wage Law; and
11            (F) employees who are 18 years of age or older and
12        do not qualify under paragraph (B), (C), (D), or (E) of
13        this item (1).
14        (2) "Employer" and "employee" have the meanings
15    ascribed to those terms in the Minimum Wage Law, except
16    that "employee" also includes employees who work for an
17    employer employing fewer than 4 employees. "Employer" does
18    not include an employer that is (A) an establishment
19    operated pursuant to a franchise agreement, where the
20    franchisor and its franchisees together operate more than
21    10 establishments in the aggregate nationally, or (B) part
22    of an integrated enterprise that owns or operates more than
23    10 establishments in the aggregate nationally, where an
24    integrated enterprise shall mean two or more entities
25    sufficiently integrated so as to be considered a single
26    employer as determined by the degree of interrelation

 

 

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1    between the operations of multiple entities, the degree to
2    which the entities share common management, the degree of
3    centralized control of labor relations, and the degree of
4    common ownership or financial control.
5        (3) "Maximum credit" means: (A) $0.45 per hour for
6    qualified employees for whom the employer receives an
7    allowance for gratuities under subsection (c) of Section 4
8    of the Minimum Wage Law; (B) $0.53 per hour for employees
9    who receive a reduced minimum wage under Section 6 of the
10    Minimum Wage Law; and (C) $0.75 per hour for all other
11    qualified employees.
12        (4) "Qualified employee" means an employee who: (i)
13    makes no more per hour than an amount equal to the minimum
14    wage or reduced minimum wage for that category of employee
15    plus $0.25; and (ii) has an average wage paid per hour by
16    the employer during the reporting period equal to or
17    greater than his or her average wage paid per hour by the
18    employer during each reporting period for the immediately
19    preceding 12 months.
20(Source: P.A. 96-834, eff. 12-14-09; 96-888, eff. 4-13-10;
2196-905, eff. 6-4-10; 96-1027, eff. 7-12-10; 97-333, eff.
228-12-11; 97-507, eff. 8-23-11.)
 
23    Section 10. The Minimum Wage Law is amended by changing
24Section 4 as follows:
 

 

 

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1    (820 ILCS 105/4)  (from Ch. 48, par. 1004)
2    Sec. 4. (a)(1) Every employer shall pay to each of his
3employees in every occupation wages of not less than $2.30 per
4hour or in the case of employees under 18 years of age wages of
5not less than $1.95 per hour, except as provided in Sections 5
6and 6 of this Act, and on and after January 1, 1984, every
7employer shall pay to each of his employees in every occupation
8wages of not less than $2.65 per hour or in the case of
9employees under 18 years of age wages of not less than $2.25
10per hour, and on and after October 1, 1984 every employer shall
11pay to each of his employees in every occupation wages of not
12less than $3.00 per hour or in the case of employees under 18
13years of age wages of not less than $2.55 per hour, and on or
14after July 1, 1985 every employer shall pay to each of his
15employees in every occupation wages of not less than $3.35 per
16hour or in the case of employees under 18 years of age wages of
17not less than $2.85 per hour, and from January 1, 2004 through
18December 31, 2004 every employer shall pay to each of his or
19her employees who is 18 years of age or older in every
20occupation wages of not less than $5.50 per hour, and from
21January 1, 2005 through June 30, 2007 every employer shall pay
22to each of his or her employees who is 18 years of age or older
23in every occupation wages of not less than $6.50 per hour, and
24from July 1, 2007 through June 30, 2008 every employer shall
25pay to each of his or her employees who is 18 years of age or
26older in every occupation wages of not less than $7.50 per

 

 

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1hour, and from July 1, 2008 through June 30, 2009 every
2employer shall pay to each of his or her employees who is 18
3years of age or older in every occupation wages of not less
4than $7.75 per hour, and from July 1, 2009 through June 30,
52010 every employer shall pay to each of his or her employees
6who is 18 years of age or older in every occupation wages of
7not less than $8.00 per hour, and from on and after July 1,
82010 through December 31, 2017 every employer shall pay to each
9of his or her employees who is 18 years of age or older in every
10occupation wages of not less than $8.25 per hour, and from
11January 1, 2018 to December 31, 2018 every employer shall pay
12to each of his or her employees who is 18 years of age or older
13in every occupation wages of not less than $9 per hour, and
14from January 1, 2019 to December 31, 2019 every employer shall
15pay to each of his or her employees who is 18 years of age or
16older in every occupation wages of not less than $10 per hour,
17and from January 1, 2020 to December 31, 2020 every employer
18shall pay to each of his or her employees who is 18 years of age
19or older in every occupation wages of not less than $11.25 per
20hour, and from January 1, 2021 to December 31, 2021 every
21employer shall pay to each of his or her employees who is 18
22years of age or older in every occupation wages of not less
23than $13 per hour, and on and after January 1, 2022 every
24employer shall pay to each of his or her employees who is 18
25years of age or older in every occupation wages of not less
26than $15 per hour.

 

 

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1    (2) Unless an employee's wages are reduced under Section 6,
2then in lieu of the rate prescribed in item (1) of this
3subsection (a), an employer may pay an employee who is 18 years
4of age or older, during the first 90 consecutive calendar days
5after the employee is initially employed by the employer, a
6wage that is not more than 50 less than the wage prescribed in
7item (1) of this subsection (a); however, an employer shall pay
8not less than the rate prescribed in item (1) of this
9subsection (a) to:
10        (A) a day or temporary laborer, as defined in Section 5
11    of the Day and Temporary Labor Services Act, who is 18
12    years of age or older; and
13        (B) an employee who is 18 years of age or older and
14    whose employment is occasional or irregular and requires
15    not more than 90 days to complete.
16    (3) At no time shall the wages paid to any employee under
1718 years of age be more than 50 less than the wage required to
18be paid to employees who are at least 18 years of age under
19item (1) of this subsection (a).
20    (b) No employer shall discriminate between employees on the
21basis of sex or mental or physical disability, except as
22otherwise provided in this Act by paying wages to employees at
23a rate less than the rate at which he pays wages to employees
24for the same or substantially similar work on jobs the
25performance of which requires equal skill, effort, and
26responsibility, and which are performed under similar working

 

 

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1conditions, except where such payment is made pursuant to (1) a
2seniority system; (2) a merit system; (3) a system which
3measures earnings by quantity or quality of production; or (4)
4a differential based on any other factor other than sex or
5mental or physical disability, except as otherwise provided in
6this Act.
7    (c) Every employer of an employee engaged in an occupation
8in which gratuities have customarily and usually constituted
9and have been recognized as part of the remuneration for hire
10purposes is entitled to an allowance for gratuities as part of
11the hourly wage rate provided in Section 4, subsection (a) in
12an amount not to exceed 40% of the applicable minimum wage
13rate. The Director shall require each employer desiring an
14allowance for gratuities to provide substantial evidence that
15the amount claimed, which may not exceed 40% of the applicable
16minimum wage rate, was received by the employee in the period
17for which the claim of exemption is made, and no part thereof
18was returned to the employer.
19    (d) No camp counselor who resides on the premises of a
20seasonal camp of an organized not-for-profit corporation shall
21be subject to the adult minimum wage if the camp counselor (1)
22works 40 or more hours per week, and (2) receives a total
23weekly salary of not less than the adult minimum wage for a
2440-hour week. If the counselor works less than 40 hours per
25week, the counselor shall be paid the minimum hourly wage for
26each hour worked. Every employer of a camp counselor under this

 

 

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1subsection is entitled to an allowance for meals and lodging as
2part of the hourly wage rate provided in Section 4, subsection
3(a), in an amount not to exceed 25% of the minimum wage rate.
4    (e) A camp counselor employed at a day camp is not subject
5to the adult minimum wage if the camp counselor is paid a
6stipend on a onetime or periodic basis and, if the camp
7counselor is a minor, the minor's parent, guardian or other
8custodian has consented in writing to the terms of payment
9before the commencement of such employment.
10(Source: P.A. 99-143, eff. 7-27-15.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.".