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1 | | AN ACT concerning employment.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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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.
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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. Any W-2 Form |
12 | | that, under the Internal Revenue Code and regulations |
13 | | promulgated thereunder, is required to be submitted to the |
14 | | Internal Revenue Service on magnetic media or electronically |
15 | | must also be submitted to the Department on magnetic media or |
16 | | electronically for Illinois purposes, if required by the |
17 | | Department. |
18 | | (g) For amounts deducted or withheld after December 31, |
19 | | 2009, a taxpayer who makes an election under subsection (f) of |
20 | | Section 5-15 of the Economic Development for a Growing Economy |
21 | | Tax Credit Act for a taxable year shall be allowed a credit |
22 | | against payments due under this Section for amounts withheld |
23 | | during the first calendar year beginning after the end of that |
24 | | taxable year equal to the amount of the credit for the |
25 | | incremental income tax attributable to full-time employees of |
26 | | the taxpayer awarded to the taxpayer by the Department of |
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1 | | Commerce and Economic Opportunity under the Economic |
2 | | Development for a Growing Economy Tax Credit Act for the |
3 | | taxable year and credits not previously claimed and allowed to |
4 | | be carried forward under Section 211(4) of this Act as provided |
5 | | in subsection (f) of Section 5-15 of the Economic Development |
6 | | for a Growing Economy Tax Credit Act. The credit or credits may |
7 | | not reduce the taxpayer's obligation for any payment due under |
8 | | this Section to less than zero. If the amount of the credit or |
9 | | credits exceeds the total payments due under this Section with |
10 | | respect to amounts withheld during the calendar year, the |
11 | | excess may be carried forward and applied against the |
12 | | taxpayer's liability under this Section in the succeeding |
13 | | calendar years as allowed to be carried forward under paragraph |
14 | | (4) of Section 211 of this Act. The credit or credits shall be |
15 | | applied to the earliest year for which there is a tax |
16 | | liability. If there are credits from more than one taxable year |
17 | | that are available to offset a liability, the earlier credit |
18 | | shall be applied first. Each employer who deducts and withholds |
19 | | or is required to deduct and withhold tax under this Act and |
20 | | who retains income tax withholdings under subsection (f) of |
21 | | Section 5-15 of the Economic Development for a Growing Economy |
22 | | Tax Credit Act must make a return with respect to such taxes |
23 | | and retained amounts in the form and manner that the |
24 | | Department, by rule, requires and pay to the Department or to a |
25 | | depositary designated by the Department those withheld taxes |
26 | | not retained by the taxpayer. For purposes of this subsection |
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1 | | (g), the term taxpayer shall include taxpayer and members of |
2 | | the taxpayer's unitary business group as defined under |
3 | | paragraph (27) of subsection (a) of Section 1501 of this Act. |
4 | | This Section is exempt from the provisions of Section 250 of |
5 | | this Act. |
6 | | (h) An employer may claim a credit against payments due |
7 | | under this Section for amounts withheld during the first |
8 | | calendar year ending after the date on which a tax credit |
9 | | certificate was issued under Section 35 of the Small Business |
10 | | Job Creation Tax Credit Act. The credit shall be equal to the |
11 | | amount shown on the certificate, but may not reduce the |
12 | | taxpayer's obligation for any payment due under this Section to |
13 | | less than zero. If the amount of the credit exceeds the total |
14 | | payments due under this Section with respect to amounts |
15 | | withheld during the calendar year, the excess may be carried |
16 | | forward and applied against the taxpayer's liability under this |
17 | | Section in the 5 succeeding calendar years. The credit shall be |
18 | | applied to the earliest year for which there is a tax |
19 | | liability. If there are credits from more than one calendar |
20 | | year that are available to offset a liability, the earlier |
21 | | credit shall be applied first. This Section is exempt from the |
22 | | provisions of Section 250 of this Act. |
23 | | (i) Each employer that does not employ more than 50 |
24 | | employees at any time during the applicable payment period may |
25 | | claim a credit against payments due under this Section for each |
26 | | qualified employee, in an amount equal to the maximum credit |
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1 | | multiplied by the number of hours the employee worked during |
2 | | the reporting period. The credit or credits may be taken |
3 | | against payments due for reporting periods that begin on or |
4 | | after January 1, 2018 and end on or before either: (1) December |
5 | | 31, 2025 for employers that employ more than 5 employees during |
6 | | the applicable payment period; or (2) December 31, 2027 for |
7 | | employers that employ no more than 5 employees during the |
8 | | applicable payment period. An employer may not claim a credit |
9 | | for an employee who has worked less than 90 consecutive days |
10 | | immediately preceding the reporting period; however, such |
11 | | credits may accrue during that 90-day period and be claimed |
12 | | against payments under this Section for future reporting |
13 | | periods after the employee has worked for the employer at least |
14 | | 90 consecutive days. |
15 | | For each reporting period, the employer may not claim a |
16 | | credit or credits for more employees than the number of |
17 | | employees making less than the minimum or reduced wage for the |
18 | | current calendar year during the last reporting period of the |
19 | | preceding calendar year. Notwithstanding any other provision |
20 | | of this subsection, an employer shall not be eligible for |
21 | | credits for a reporting period unless the average wage paid by |
22 | | the employer per employee for all employees making less than |
23 | | $55,000 during the reporting period is greater than the average |
24 | | wage paid by the employer per employee for all employees making |
25 | | less than $55,000 during the same reporting period of the prior |
26 | | calendar year. |
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1 | | The credit or credits may not reduce the employer's |
2 | | obligation for any payment due under this Section by more than |
3 | | (i) 25% for reporting periods that begin during calendar year |
4 | | 2018, (ii) 20% for reporting periods that begin during calendar |
5 | | year 2019, (iii) 15% for reporting periods that begin during |
6 | | calendar year 2020, (iv) 10% for reporting periods that begin |
7 | | during calendar year 2021, and (v) 5% for reporting periods |
8 | | that begin during calendar year 2022. For calendar years 2023 |
9 | | through (1) December 31, 2025 for employers that employ more |
10 | | than 5 employees during the applicable payment period or (2) |
11 | | December 31, 2027 for employers that employ no more than 5 |
12 | | employees during the applicable payment period, the total |
13 | | amount of credits awarded to a taxpayer in each calendar year |
14 | | shall be equal to the total amount of credits awarded to that |
15 | | taxpayer in calendar year 2022. The taxpayer may apply all or a |
16 | | portion of the total credit amount for any such calendar year |
17 | | to any reporting period or periods in that calendar year, |
18 | | provided that the total amount of credits claimed by the |
19 | | taxpayer in that taxable year does not exceed the total amount |
20 | | of credits awarded to that taxpayer in calendar year 2022. Each |
21 | | employer who deducts and withholds or is required to deduct and |
22 | | withhold tax under this Act and who retains income tax |
23 | | withholdings under this subsection must make a return with |
24 | | respect to such taxes and retained amounts in the form and |
25 | | manner that the Department, by rule, requires and pay to the |
26 | | Department or to a depositary designated by the Department |
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1 | | those 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; |
20 | | 96-905, eff. 6-4-10; 96-1027, eff. 7-12-10; 97-333, eff. |
21 | | 8-12-11; 97-507, eff. 8-23-11.) |
22 | | Section 10. The Minimum Wage Law is amended by changing |
23 | | Section 4 as follows:
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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 |
2 | | employees in every
occupation wages of not less than $2.30 per |
3 | | hour or in the case of
employees under 18 years of age wages of |
4 | | not less than $1.95 per hour,
except as provided in Sections 5 |
5 | | and 6 of this Act, and on and after
January 1, 1984, every |
6 | | employer shall pay to each of his employees in every
occupation |
7 | | wages of not less than $2.65 per hour or in the case of
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8 | | employees under 18 years of age wages of not less than $2.25 |
9 | | per hour, and
on and after October 1, 1984 every employer shall |
10 | | pay to each of his
employees in every occupation wages of not |
11 | | less than $3.00 per hour or in
the case of employees under 18 |
12 | | years of age wages of not less than $2.55
per hour, and on or |
13 | | after July 1, 1985 every employer shall pay to each of
his |
14 | | employees in every occupation wages of not less than $3.35 per |
15 | | hour or
in the case of employees under 18 years of age wages of |
16 | | not less than $2.85
per hour,
and from January 1, 2004 through |
17 | | December 31, 2004 every employer shall pay
to
each of his or |
18 | | her employees who is 18 years of age or older in every
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19 | | occupation wages of not less than $5.50 per hour, and from
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20 | | January 1,
2005 through June 30, 2007 every employer shall pay |
21 | | to each of his or her employees who is 18 years
of age or older |
22 | | in every occupation wages of not less than $6.50 per hour, and |
23 | | from July 1, 2007 through June 30, 2008 every employer shall |
24 | | pay to each of his or her employees who is 18 years
of age or |
25 | | older in every occupation wages of not less than $7.50 per |
26 | | hour, and from July 1, 2008 through June 30, 2009 every |
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1 | | employer shall pay to each of his or her employees who is 18 |
2 | | years
of age or older in every occupation wages of not less |
3 | | than $7.75 per hour, and from July 1, 2009 through June 30, |
4 | | 2010 every employer shall pay to each of his or her employees |
5 | | who is 18 years
of age or older in every occupation wages of |
6 | | not less than $8.00 per hour, and from on and after July 1, |
7 | | 2010 through December 31, 2017 every employer shall pay to each |
8 | | of his or her employees who is 18 years of age or older in every |
9 | | occupation wages of not less than $8.25 per hour , and from |
10 | | January 1, 2018 to December 31, 2018 every employer shall pay |
11 | | to each of his or her employees who is 18 years of age or older |
12 | | in every occupation wages of not less than $9 per hour, and |
13 | | from January 1, 2019 to December 31, 2019 every employer shall |
14 | | pay to each of his or her employees who is 18 years of age or |
15 | | older in every occupation wages of not less than $10 per hour, |
16 | | and from January 1, 2020 to December 31, 2020 every employer |
17 | | shall pay to each of his or her employees who is 18 years of age |
18 | | or older in every occupation wages of not less than $11.25 per |
19 | | hour, and from January 1, 2021 to December 31, 2021 every |
20 | | employer shall pay to each of his or her employees who is 18 |
21 | | years of age or older in every occupation wages of not less |
22 | | than $13 per hour, and on and after January 1, 2022 every |
23 | | employer shall pay to each of his or her employees who is 18 |
24 | | years of age or older in every occupation wages of not less |
25 | | than $15 per hour .
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26 | | (2) Unless an employee's wages are reduced under Section 6, |
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1 | | then in lieu of the rate prescribed in item (1) of this |
2 | | subsection (a), an employer may pay an employee who is 18 years |
3 | | of age or older, during the first 90 consecutive calendar days |
4 | | after the employee is initially employed by the employer, a |
5 | | wage that is not more than 50¢
less than the wage prescribed in |
6 | | item (1) of this subsection (a); however, an employer shall pay |
7 | | not less than the rate prescribed in item (1) of this |
8 | | subsection (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 |
16 | | wages paid to any employee under 18 years of age be more than |
17 | | 50¢
less than the wage required to be paid to employees who are |
18 | | at least 18 years
of age under item (1) of this subsection (a). |
19 | | Beginning on or after January 1, 2018, every employer shall pay |
20 | | to each of his or her employees who is under 18 years of age |
21 | | that has worked more than 650 hours for the employer during any |
22 | | calendar year a wage not less than the wage required for |
23 | | employees who are 18 years of age or older under paragraph (1) |
24 | | of subsection (a) of Section 4 of this Law. Every employer |
25 | | shall pay to each of his or her employees who is under 18 years |
26 | | of age that has not worked more than 650 hours for the employer |
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1 | | during any calendar year: (1) $8 per hour from January 1, 2018 |
2 | | to December 31, 2018; (2) $8.50 per hour from January 1, 2019 |
3 | | to December 31, 2019; (3) $9.25 per hour from January 1, 2020 |
4 | | to December 31, 2020; (4) $10.50 per hour from January 1, 2021 |
5 | | to December 31, 2021; and (5) $12 per hour on and after January |
6 | | 1, 2022.
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7 | | (b) No employer shall discriminate between employees on the |
8 | | basis of sex
or mental or physical disability, except as |
9 | | otherwise provided in this Act by
paying wages to employees at |
10 | | a rate less than the rate at which he pays
wages to employees |
11 | | for the same or substantially
similar work on jobs the |
12 | | performance of which requires equal skill, effort,
and |
13 | | responsibility, and which are performed under similar working
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14 | | conditions, except where such payment is made pursuant to (1) a |
15 | | seniority
system; (2) a merit system; (3) a system which |
16 | | measures earnings by
quantity or quality of production; or (4) |
17 | | a differential based on any other
factor other than sex or |
18 | | mental or physical disability, except as otherwise
provided in |
19 | | this Act.
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20 | | (c) Every employer of an employee engaged in an
occupation |
21 | | in which gratuities have customarily and usually constituted |
22 | | and
have been recognized as part of the remuneration for hire |
23 | | purposes is
entitled to an allowance for gratuities as part of |
24 | | the hourly wage rate
provided in Section 4, subsection (a) in |
25 | | an amount not to exceed 40% of the
applicable minimum wage |
26 | | rate. The Director shall require each employer
desiring an |
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1 | | allowance for gratuities to provide substantial evidence that
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2 | | the amount claimed, which may not exceed 40% of the applicable |
3 | | minimum wage
rate, was received by the employee in the period |
4 | | for which the claim of
exemption is made, and no part thereof |
5 | | was returned to the employer.
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6 | | (d) No camp counselor who resides on the premises of a |
7 | | seasonal camp of
an organized not-for-profit corporation shall |
8 | | be subject to the adult minimum
wage if the camp counselor (1) |
9 | | works 40 or more hours per week, and (2)
receives a total |
10 | | weekly salary of not less than the adult minimum
wage for a |
11 | | 40-hour week. If the counselor works less than 40 hours per
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12 | | week, the counselor shall be paid the minimum hourly wage for |
13 | | each hour
worked. Every employer of a camp counselor under this |
14 | | subsection is entitled
to an allowance for meals and lodging as |
15 | | part of the hourly wage rate provided
in Section 4, subsection |
16 | | (a), in an amount not to exceed 25% of the
minimum wage rate.
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17 | | (e) A camp counselor employed at a day camp is not subject |
18 | | to the adult minimum wage if the
camp counselor is paid a |
19 | | stipend on a onetime or periodic basis and, if
the camp |
20 | | counselor is a minor, the minor's parent, guardian or other
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21 | | custodian has consented in writing to the terms of payment |
22 | | before the
commencement of such employment.
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23 | | (Source: P.A. 99-143, eff. 7-27-15.)
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24 | | Section 99. Effective date. This Act takes effect upon |
25 | | becoming law. |