Full Text of HB3118 101st General Assembly
HB3118 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB3118 Introduced , by Rep. Lamont J. Robinson, Jr. SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Provides for a credit against the withholding tax liability of an employer with fewer than 15 full-time employees in an amount equal to $2,000 for each employee who is moved from part-time to full-time employment status and who maintains that full-time employment status for a period of 12 consecutive calendar months. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing 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 | 9 | | is required to deduct and withhold tax under this Act on or | 10 | | after January 1, 2008 shall make those payments and returns as | 11 | | provided in this Section. | 12 | | (b) Returns. Every employer shall, in the form and manner | 13 | | required by the Department, make returns with respect to taxes | 14 | | withheld or required to be withheld under this Article 7 for | 15 | | each quarter beginning on or after January 1, 2008, on or | 16 | | before the last day of the first month following the close of | 17 | | that quarter. | 18 | | (c) Payments. With respect to amounts withheld or required | 19 | | to 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 | 26 | | and withholds or is required to deduct and withhold tax from a |
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| 1 | | person engaged in domestic service employment, as that term is | 2 | | defined in Section 3510 of the Internal Revenue Code, may | 3 | | comply with the requirements of this Section with respect to | 4 | | such employees by filing an annual return and paying the taxes | 5 | | required to be deducted and withheld on or before the 15th day | 6 | | of the fourth month following the close of the employer's | 7 | | taxable year. The Department may allow the employer's return to | 8 | | be submitted with the employer's individual income tax return | 9 | | or to be submitted with a return due from the employer under | 10 | | Section 1400.2 of the Unemployment Insurance Act. | 11 | | (f) Magnetic media and electronic filing. With respect to | 12 | | taxes withheld in calendar years prior to 2017, any W-2 Form | 13 | | that, under the Internal Revenue Code and regulations | 14 | | promulgated thereunder, is required to be submitted to the | 15 | | Internal Revenue Service on magnetic media or electronically | 16 | | must also be submitted to the Department on magnetic media or | 17 | | electronically for Illinois purposes, if required by the | 18 | | Department. | 19 | | With respect to taxes withheld in 2017 and subsequent | 20 | | calendar years, the Department may, by rule, require that any | 21 | | return (including any amended return) under this Section and | 22 | | any W-2 Form that is required to be submitted to the Department | 23 | | must be submitted on magnetic media or electronically. | 24 | | The due date for submitting W-2 Forms shall be as | 25 | | prescribed by the Department by rule. | 26 | | (g) For amounts deducted or withheld after December 31, |
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| 1 | | 2009, a taxpayer who makes an election under subsection (f) of | 2 | | Section 5-15 of the Economic Development for a Growing Economy | 3 | | Tax Credit Act for a taxable year shall be allowed a credit | 4 | | against payments due under this Section for amounts withheld | 5 | | during the first calendar year beginning after the end of that | 6 | | taxable year equal to the amount of the credit for the | 7 | | incremental income tax attributable to full-time employees of | 8 | | the taxpayer awarded to the taxpayer by the Department of | 9 | | Commerce and Economic Opportunity under the Economic | 10 | | Development for a Growing Economy Tax Credit Act for the | 11 | | taxable year and credits not previously claimed and allowed to | 12 | | be carried forward under Section 211(4) of this Act as provided | 13 | | in subsection (f) of Section 5-15 of the Economic Development | 14 | | for a Growing Economy Tax Credit Act. The credit or credits may | 15 | | not reduce the taxpayer's obligation for any payment due under | 16 | | this Section to less than zero. If the amount of the credit or | 17 | | credits exceeds the total payments due under this Section with | 18 | | respect to amounts withheld during the calendar year, the | 19 | | excess may be carried forward and applied against the | 20 | | taxpayer's liability under this Section in the succeeding | 21 | | calendar years as allowed to be carried forward under paragraph | 22 | | (4) of Section 211 of this Act. The credit or credits shall be | 23 | | applied to the earliest year for which there is a tax | 24 | | liability. If there are credits from more than one taxable year | 25 | | that are available to offset a liability, the earlier credit | 26 | | shall be applied first. Each employer who deducts and withholds |
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| 1 | | or is required to deduct and withhold tax under this Act and | 2 | | who retains income tax withholdings under subsection (f) of | 3 | | Section 5-15 of the Economic Development for a Growing Economy | 4 | | Tax Credit Act must make a return with respect to such taxes | 5 | | and retained amounts in the form and manner that the | 6 | | Department, by rule, requires and pay to the Department or to a | 7 | | depositary designated by the Department those withheld taxes | 8 | | not retained by the taxpayer. For purposes of this subsection | 9 | | (g), the term taxpayer shall include taxpayer and members of | 10 | | the taxpayer's unitary business group as defined under | 11 | | paragraph (27) of subsection (a) of Section 1501 of this Act. | 12 | | This Section is exempt from the provisions of Section 250 of | 13 | | this Act. No credit awarded under the Economic Development for | 14 | | a Growing Economy Tax Credit Act for agreements entered into on | 15 | | or after January 1, 2015 may be credited against payments due | 16 | | under this Section. | 17 | | (h) An employer may claim a credit against payments due | 18 | | under this Section for amounts withheld during the first | 19 | | calendar year ending after the date on which a tax credit | 20 | | certificate was issued under Section 35 of the Small Business | 21 | | Job Creation Tax Credit Act. The credit shall be equal to the | 22 | | amount shown on the certificate, but may not reduce the | 23 | | taxpayer's obligation for any payment due under this Section to | 24 | | less than zero. If the amount of the credit exceeds the total | 25 | | payments due under this Section with respect to amounts | 26 | | withheld during the calendar year, the excess may be carried |
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| 1 | | forward and applied against the taxpayer's liability under this | 2 | | Section in the 5 succeeding calendar years. The credit shall be | 3 | | applied to the earliest year for which there is a tax | 4 | | liability. If there are credits from more than one calendar | 5 | | year that are available to offset a liability, the earlier | 6 | | credit shall be applied first. This Section is exempt from the | 7 | | provisions of Section 250 of this Act. | 8 | | (i) An employer with fewer than 15 full-time employees may | 9 | | claim a credit against payments due under this Section for | 10 | | amounts required to be withheld on or after July 1, 2019, in an | 11 | | amount equal to $2,000 for each employee of the taxpayer who is | 12 | | moved from part-time to full-time employment status and who | 13 | | maintains that full-time employment status for a period of 12 | 14 | | consecutive calendar months. The credit may not reduce the | 15 | | taxpayer's obligation for any payment due under this Section to | 16 | | less than zero. If the amount of the credit exceeds the amount | 17 | | of the payment due under this Section, the excess credit | 18 | | amounts may be carried forward to each payment due in the 12 | 19 | | calendar months to occur after the credit is initially claimed. | 20 | | If there are credits from more than one payment period that are | 21 | | available to offset a liability, the earlier credit shall be | 22 | | applied first. This Section is exempt from the provisions of | 23 | | Section 250 of this Act. | 24 | | (Source: P.A. 100-303, eff. 8-24-17; 100-511, eff. 9-18-17; | 25 | | 100-863, eff. 8-14-18.)
| 26 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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