Rep. Will Guzzardi

Filed: 5/26/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 81

2    AMENDMENT NO. ______. Amend Senate Bill 81 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 each
7qualified employee, in an amount equal to the maximum credit
8multiplied by the number of hours the employee worked during
9the reporting period. The credit or credits may be taken
10against payments due for reporting periods that begin on or
11after January 1, 2018 and end on or before either: (1) December
1231, 2025 for employers that employ more than 5 employees during
13the applicable payment period; or (2) December 31, 2027 for
14employers that employ no more than 5 employees during the
15applicable payment period. An employer may not claim a credit
16for an employee who has worked less than 90 consecutive days
17immediately preceding the reporting period; however, such
18credits may accrue during that 90-day period and be claimed
19against payments under this Section for future reporting
20periods after the employee has worked for the employer at least
2190 consecutive days.
22    For each reporting period, the employer may not claim a
23credit or credits for more employees than the number of
24employees making less than the minimum or reduced wage for the
25current calendar year during the last reporting period of the
26preceding calendar year. Notwithstanding any other provision

 

 

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1of this subsection, an employer shall not be eligible for
2credits for a reporting period unless the average wage paid by
3the employer per employee for all employees making less than
4$55,000 during the reporting period is greater than the average
5wage paid by the employer per employee for all employees making
6less than $55,000 during the same reporting period of the prior
7calendar year.
8    The credit or credits may not reduce the employer's
9obligation for any payment due under this Section by more than
10(i) 25% for reporting periods that begin during calendar year
112018, (ii) 20% for reporting periods that begin during calendar
12year 2019, (iii) 15% for reporting periods that begin during
13calendar year 2020, (iv) 10% for reporting periods that begin
14during calendar year 2021, and (v) 5% for reporting periods
15that begin during calendar year 2022. For calendar years 2023
16through (1) December 31, 2025 for employers that employ more
17than 5 employees during the applicable payment period or (2)
18December 31, 2027 for employers that employ no more than 5
19employees during the applicable payment period, the total
20amount of credits awarded to a taxpayer in each calendar year
21shall be equal to the total amount of credits awarded to that
22taxpayer in calendar year 2022. The taxpayer may apply all or a
23portion of the total credit amount for any such calendar year
24to any reporting period or periods in that calendar year,
25provided that the total amount of credits claimed by the
26taxpayer in that taxable year does not exceed the total amount

 

 

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1of credits awarded to that taxpayer in calendar year 2022. Each
2employer who deducts and withholds or is required to deduct and
3withhold tax under this Act and who retains income tax
4withholdings under this subsection must make a return with
5respect to such taxes and retained amounts in the form and
6manner that the Department, by rule, requires and pay to the
7Department or to a depositary designated by the Department
8those withheld taxes not retained by the employer.
9    For the purposes of this subsection (i):
10        (1) "Category of employee" means:
11            (A) employees who are under 18 years of age;
12            (B) employees who are 18 years of age or older, but
13        who qualify for a reduced minimum wage as provided
14        under paragraph (2) of subsection (a) of Section 4 of
15        the Minimum Wage Law;
16            (C) employees who are engaged in an occupation in
17        which gratuities have customarily and usually
18        constituted, and have been recognized as part of, the
19        remuneration for hire purposes, as provided in
20        subsection (c) of Section 4 of the Minimum Wage Law;
21            (D) employees who are 18 years of age or older, but
22        who qualify for a reduced minimum wage under Section 5
23        of the Minimum Wage Law;
24            (E) employees who are 18 years of age or older, but
25        who qualify for a reduced minimum wage under Section 6
26        of the Minimum Wage Law; and

 

 

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1            (F) employees who are 18 years of age or older and
2        do not qualify under paragraph (B), (C), (D), or (E) of
3        this item (1).
4        (2) "Employer" and "employee" have the meanings
5    ascribed to those terms in the Minimum Wage Law, except
6    that "employee" also includes employees who work for an
7    employer employing fewer than 4 employees. "Employer" does
8    not include an employer that owns or operates 4 or more
9    establishments in the aggregate nationally pursuant to a
10    franchise agreement.
11        (3) "Maximum credit" means: (A) $0.45 per hour for
12    qualified employees for whom the employer receives an
13    allowance for gratuities under subsection (c) of Section 4
14    of the Minimum Wage Law; (B) $0.53 per hour for employees
15    who receive a reduced minimum wage under Section 6 of the
16    Minimum Wage Law; and (C) $0.75 per hour for all other
17    qualified employees.
18        (4) "Qualified employee" means an employee who: (i)
19    makes no more per hour than an amount equal to the minimum
20    wage or reduced minimum wage for that category of employee
21    plus $0.25; and (ii) has an average wage paid per hour by
22    the employer during the reporting period equal to or
23    greater than his or her average wage paid per hour by the
24    employer during each reporting period for the immediately
25    preceding 12 months.
26(Source: P.A. 96-834, eff. 12-14-09; 96-888, eff. 4-13-10;

 

 

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196-905, eff. 6-4-10; 96-1027, eff. 7-12-10; 97-333, eff.
28-12-11; 97-507, eff. 8-23-11.)
 
3    Section 10. The Minimum Wage Law is amended by changing
4Section 4 as follows:
 
5    (820 ILCS 105/4)  (from Ch. 48, par. 1004)
6    Sec. 4. (a)(1) Every employer shall pay to each of his
7employees in every occupation wages of not less than $2.30 per
8hour or in the case of employees under 18 years of age wages of
9not less than $1.95 per hour, except as provided in Sections 5
10and 6 of this Act, and on and after January 1, 1984, every
11employer shall pay to each of his employees in every occupation
12wages of not less than $2.65 per hour or in the case of
13employees under 18 years of age wages of not less than $2.25
14per hour, and on and after October 1, 1984 every employer shall
15pay to each of his employees in every occupation wages of not
16less than $3.00 per hour or in the case of employees under 18
17years of age wages of not less than $2.55 per hour, and on or
18after July 1, 1985 every employer shall pay to each of his
19employees in every occupation wages of not less than $3.35 per
20hour or in the case of employees under 18 years of age wages of
21not less than $2.85 per hour, and from January 1, 2004 through
22December 31, 2004 every employer shall pay to each of his or
23her employees who is 18 years of age or older in every
24occupation wages of not less than $5.50 per hour, and from

 

 

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1January 1, 2005 through June 30, 2007 every employer shall pay
2to each of his or her employees who is 18 years of age or older
3in every occupation wages of not less than $6.50 per hour, and
4from July 1, 2007 through June 30, 2008 every employer shall
5pay to each of his or her employees who is 18 years of age or
6older in every occupation wages of not less than $7.50 per
7hour, and from July 1, 2008 through June 30, 2009 every
8employer shall pay to each of his or her employees who is 18
9years of age or older in every occupation wages of not less
10than $7.75 per hour, and from July 1, 2009 through June 30,
112010 every employer shall pay to each of his or her employees
12who is 18 years of age or older in every occupation wages of
13not less than $8.00 per hour, and from on and after July 1,
142010 through December 31, 2017 every employer shall pay to each
15of his or her employees who is 18 years of age or older in every
16occupation wages of not less than $8.25 per hour, and from
17January 1, 2018 to December 31, 2018 every employer shall pay
18to each of his or her employees who is 18 years of age or older
19in every occupation wages of not less than $9 per hour, and
20from January 1, 2019 to December 31, 2019 every employer shall
21pay to each of his or her employees who is 18 years of age or
22older in every occupation wages of not less than $10 per hour,
23and from January 1, 2020 to December 31, 2020 every employer
24shall pay to each of his or her employees who is 18 years of age
25or older in every occupation wages of not less than $11.25 per
26hour, and from January 1, 2021 to December 31, 2021 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 $13 per hour, and on and after January 1, 2022 every
4employer shall pay to each of his or her employees who is 18
5years of age or older in every occupation wages of not less
6than $15 per hour.
7    (2) Unless an employee's wages are reduced under Section 6,
8then in lieu of the rate prescribed in item (1) of this
9subsection (a), an employer may pay an employee who is 18 years
10of age or older, during the first 90 consecutive calendar days
11after the employee is initially employed by the employer, a
12wage that is not more than 50 less than the wage prescribed in
13item (1) of this subsection (a); however, an employer shall pay
14not less than the rate prescribed in item (1) of this
15subsection (a) to:
16        (A) a day or temporary laborer, as defined in Section 5
17    of the Day and Temporary Labor Services Act, who is 18
18    years of age or older; and
19        (B) an employee who is 18 years of age or older and
20    whose employment is occasional or irregular and requires
21    not more than 90 days to complete.
22    (3) On or before December 31, 2017, at At no time shall the
23wages paid to any employee under 18 years of age be more than
2450 less than the wage required to be paid to employees who are
25at least 18 years of age under item (1) of this subsection (a).
26Beginning on or after January 1, 2018, every employer shall pay

 

 

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1to each of his or her employees who is under 18 years of age
2that has worked more than 650 hours for the employer during any
3calendar year a wage not less than the wage required for
4employees who are 18 years of age or older under paragraph (1)
5of subsection (a) of Section 4 of this Law. Every employer
6shall pay to each of his or her employees who is under 18 years
7of age that has not worked more than 650 hours for the employer
8during any calendar year: (1) $8 per hour from January 1, 2018
9to December 31, 2018; (2) $8.50 per hour from January 1, 2019
10to December 31, 2019; (3) $9.25 per hour from January 1, 2020
11to December 31, 2020; (4) $10.50 per hour from January 1, 2021
12to December 31, 2021; and (5) $12 per hour on and after January
131, 2022.
14    (b) No employer shall discriminate between employees on the
15basis of sex or mental or physical disability, except as
16otherwise provided in this Act by paying wages to employees at
17a rate less than the rate at which he pays wages to employees
18for the same or substantially similar work on jobs the
19performance of which requires equal skill, effort, and
20responsibility, and which are performed under similar working
21conditions, except where such payment is made pursuant to (1) a
22seniority system; (2) a merit system; (3) a system which
23measures earnings by quantity or quality of production; or (4)
24a differential based on any other factor other than sex or
25mental or physical disability, except as otherwise provided in
26this Act.

 

 

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1    (c) Every employer of an employee engaged in an occupation
2in which gratuities have customarily and usually constituted
3and have been recognized as part of the remuneration for hire
4purposes is entitled to an allowance for gratuities as part of
5the hourly wage rate provided in Section 4, subsection (a) in
6an amount not to exceed 40% of the applicable minimum wage
7rate. The Director shall require each employer desiring an
8allowance for gratuities to provide substantial evidence that
9the amount claimed, which may not exceed 40% of the applicable
10minimum wage rate, was received by the employee in the period
11for which the claim of exemption is made, and no part thereof
12was returned to the employer.
13    (d) No camp counselor who resides on the premises of a
14seasonal camp of an organized not-for-profit corporation shall
15be subject to the adult minimum wage if the camp counselor (1)
16works 40 or more hours per week, and (2) receives a total
17weekly salary of not less than the adult minimum wage for a
1840-hour week. If the counselor works less than 40 hours per
19week, the counselor shall be paid the minimum hourly wage for
20each hour worked. Every employer of a camp counselor under this
21subsection is entitled to an allowance for meals and lodging as
22part of the hourly wage rate provided in Section 4, subsection
23(a), in an amount not to exceed 25% of the minimum wage rate.
24    (e) A camp counselor employed at a day camp is not subject
25to the adult minimum wage if the camp counselor is paid a
26stipend on a onetime or periodic basis and, if the camp

 

 

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1counselor is a minor, the minor's parent, guardian or other
2custodian has consented in writing to the terms of payment
3before the commencement of such employment.
4(Source: P.A. 99-143, eff. 7-27-15.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.".