Rep. Karen May

Filed: 2/23/2011

 

 


 

 


 
09700HB1355ham001LRB097 07051 HLH 51326 a

1
AMENDMENT TO HOUSE BILL 1355

2    AMENDMENT NO. ______. Amend House Bill 1355 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by adding Section
62505-755 as follows:
 
7    (20 ILCS 2505/2505-755 new)
8    Sec. 2505-755. Deposit of State funds. Notwithstanding any
9other provision of law, the proceeds from any tax imposed by
10the State and collected and administered by the Department
11shall be deposited into the appropriate fund in the State
12treasury within 3 business days after the proceeds are received
13by the Department.
 
14    Section 10. The Illinois Income Tax Act is amended by
15changing Sections 704 and 803 as follows:
 

 

 

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1    (35 ILCS 5/704)  (from Ch. 120, par. 7-704)
2    Sec. 704. Employer's Return and Payment of Tax Withheld.
3    (a) In general, every employer who deducts and withholds or
4is required to deduct and withhold tax under this Act prior to
5January 1, 2008, shall make such payments and returns as
6provided in this Section.
7    (b) Quarter Monthly Payments: Returns. Every employer who
8deducts and withholds or is required to deduct and withhold tax
9under this Act shall, on or before the third banking day
10following the close of a quarter monthly period, pay to the
11Department or to a depositary designated by the Department,
12pursuant to regulations prescribed by the Department, the taxes
13so required to be deducted and withheld, whenever the aggregate
14amount withheld by such employer (together with amounts
15previously withheld and not paid to the Department) exceeds
16$1,000. For purposes of this Section, Saturdays, Sundays, legal
17holidays and local bank holidays are not banking days. A
18quarter monthly period, for purposes of this subsection, ends
19on the 7th, 15th, 22nd and last day of each calendar month.
20Every such employer shall for each calendar quarter, on or
21before the last day of the first month following the close of
22such quarter, and for the calendar year, on or before January
2331 of the succeeding calendar year, make a return with respect
24to such taxes in such form and manner as the Department may by
25regulations prescribe, and pay to the Department or to a

 

 

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1depositary designated by the Department all withheld taxes not
2previously paid to the Department.
3    (c) Monthly Payments: Returns. Every employer required to
4deduct and withhold tax under this Act shall, on or before the
515th day of the second and third months of each calendar
6quarter, and on or before the last day of the month following
7the last month of each such quarter, pay to the Department or
8to a depositary designated by the Department, pursuant to
9regulations prescribed by the Department, the taxes so required
10to be deducted and withheld, whenever the aggregate amount
11withheld by such employer (together with amounts previously
12withheld and not paid to the Department) exceeds $500 but does
13not exceed $1,000. Every such employer shall for each calendar
14quarter, on or before the last day of the first month following
15the close of such quarter, and for the calendar year, on or
16before January 31 of the succeeding calendar year, make a
17return with respect to such taxes in such form and manner as
18the Department may by regulations prescribe, and pay to the
19Department or to a depositary designated by the Department all
20withheld taxes not previously paid to the Department.
21    (d) Annual Payments: Returns. Where the amount of
22compensation paid by an employer is not sufficient to require
23the withholding of tax from the compensation of any of its
24employees (or where the aggregate amount withheld is less than
25$500), the Department may by regulation permit such employer to
26file only an annual return and to pay the taxes required to be

 

 

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1deducted and withheld at the time of filing such annual return.
2    (e) Annual Return. The Department may, as it deems
3appropriate, prescribe by regulation for the filing of annual
4returns in lieu of quarterly returns described in subsections
5(b) and (c).
6    (e-5) Annual Return and Payment. On and after January 1,
71998, notwithstanding subsections (b) through (d) of this
8Section, every employer who deducts and withholds or is
9required to deduct and withhold tax from a person engaged in
10domestic service employment, as that term is defined in Section
113510 of the Internal Revenue Code, may comply with the
12requirements of this Section by filing an annual return and
13paying the taxes required to be deducted and withheld on or
14before the 15th day of the fourth month following the close of
15the employer's taxable year. The annual return may be submitted
16with the employer's individual income tax return.
17    (e-10) Annual Return and Payment. On and after the
18effective date of this amendatory Act of the 97th General
19Assembly, every employer who deducts and withholds or is
20required to deduct and withhold tax from fewer than 5 employees
21during the taxable year may comply with the requirements of
22this Section by filing an annual return and paying the taxes
23required to be deducted and withheld on or before the 15th day
24of the fourth month following the close of the employer's
25taxable year. The annual return may be submitted with the
26employer's income tax return.

 

 

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1    (f) Magnetic Media Filing. Forms W-2 that, pursuant to the
2Internal Revenue Code and regulations promulgated thereunder,
3are required to be submitted to the Internal Revenue Service on
4magnetic media, must also be submitted to the Department on
5magnetic media for Illinois purposes, if required by the
6Department.
7(Source: P.A. 95-8, eff. 6-29-07.)
 
8    (35 ILCS 5/803)  (from Ch. 120, par. 8-803)
9    Sec. 803. Payment of Estimated Tax.
10    (a) Every taxpayer other than an estate, trust,
11partnership, Subchapter S corporation, business employing
12fewer than 5 employees, or farmer is required to pay estimated
13tax for the taxable year, in such amount and with such forms as
14the Department shall prescribe, if the amount payable as
15estimated tax can reasonably be expected to be more than (i)
16$250 for taxable years ending before December 31, 2001 and $500
17for taxable years ending on or after December 31, 2001 or (ii)
18$400 for corporations.
19    (b) Estimated tax defined. The term "estimated tax" means
20the excess of:
21        (1) The amount which the taxpayer estimates to be his
22    tax under this Act for the taxable year, over
23        (2) The amount which he estimates to be the sum of any
24    amounts to be withheld on account of or credited against
25    such tax.

 

 

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1    (c) Joint payment. If they are eligible to do so for
2federal tax purposes, a husband and wife may pay estimated tax
3as if they were one taxpayer, in which case the liability with
4respect to the estimated tax shall be joint and several. If a
5joint payment is made but the husband and wife elect to
6determine their taxes under this Act separately, the estimated
7tax for such year may be treated as the estimated tax of either
8husband or wife, or may be divided between them, as they may
9elect.
10    (d) There shall be paid 4 equal installments of estimated
11tax for each taxable year, payable as follows:
12Required Installment:Due Date:
131stApril 15
142ndJune 15
153rdSeptember 15
164thIndividuals: January 15 of the
17following taxable year
18Corporations: December 15
19    (e) Farmers. An individual, having gross income from
20farming for the taxable year which is at least 2/3 of his total
21estimated gross income for such year.
22    (f) Application to short taxable years. The application of
23this section to taxable years of less than 12 months shall be
24in accordance with regulations prescribed by the Department.
25    (g) Fiscal years. In the application of this section to the
26case of a taxable year beginning on any date other than January

 

 

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11, there shall be substituted, for the months specified in
2subsections (d) and (e), the months which correspond thereto.
3    (h) Installments paid in advance. Any installment of
4estimated tax may be paid before the date prescribed for its
5payment.
6    The changes in this Section made by this amendatory Act of
71985 shall apply to taxable years ending on or after January 1,
81986.
9(Source: P.A. 91-913, eff. 1-1-01.)
 
10    Section 15. The Unemployment Insurance Act is amended by
11changing Section 1400.2 as follows:
 
12    (820 ILCS 405/1400.2)
13    Sec. 1400.2. Annual reporting and paying; household
14workers. This Section applies to an employer who solely employs
15fewer than 5 workers, or any number of one or more household
16workers, with respect to whom the employer files federal
17unemployment taxes as part of his or her federal income tax
18return, or could file federal unemployment taxes as part of his
19or her federal income tax return if the worker or workers were
20providing services in employment for purposes of the federal
21unemployment tax. For purposes of this Section, "household
22worker" means a person who provides domestic service in a
23private home of the employer, as defined in has the meaning
24ascribed to it for purposes of Section 3510 of the federal

 

 

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1Internal Revenue Code. If an employer to whom this Section
2applies notifies the Director, in writing, that he or she
3wishes to pay his or her contributions for each quarter and
4submit his or her wage and contribution reports for each
5quarter on an annual basis, then the due date for filing the
6reports and paying the contributions shall be April 15 of the
7calendar year immediately following the close of the quarters
8to which the reports and contributions apply, except that the
9Director may, by rule, establish a different due date for good
10cause.
11(Source: P.A. 94-723, eff. 1-19-06.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".