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1 | AN ACT concerning economic development.
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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 704 as follows:
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6 | (35 ILCS 5/704) (from Ch. 120, par. 7-704)
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7 | Sec. 704. Employer's Return and Payment of Tax Withheld.
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8 | (a) In general, every employer who deducts and withholds or | ||||||||||||||||||||||||||
9 | is required
to deduct and withhold tax under this Act prior to | ||||||||||||||||||||||||||
10 | January 1, 2008, shall make such payments and
returns as | ||||||||||||||||||||||||||
11 | provided in this Section.
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12 | (b) Quarter Monthly Payments: Returns. Every employer who | ||||||||||||||||||||||||||
13 | deducts
and withholds or is required to deduct and withhold tax | ||||||||||||||||||||||||||
14 | under this Act
shall, on or before the third banking day | ||||||||||||||||||||||||||
15 | following the close of a quarter
monthly period, pay to the | ||||||||||||||||||||||||||
16 | Department or to a depositary designated by the
Department, | ||||||||||||||||||||||||||
17 | pursuant to regulations prescribed by the Department, the taxes
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18 | so required to be deducted and withheld, whenever the aggregate | ||||||||||||||||||||||||||
19 | amount
withheld by such employer (together with amounts | ||||||||||||||||||||||||||
20 | previously withheld and
not paid to the Department) exceeds | ||||||||||||||||||||||||||
21 | $1,000. For purposes of this Section,
Saturdays, Sundays, legal | ||||||||||||||||||||||||||
22 | holidays and local bank holidays are not banking
days. A | ||||||||||||||||||||||||||
23 | quarter monthly period, for purposes of this subsection, ends |
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1 | on
the 7th, 15th, 22nd and last day of each calendar month. | ||||||
2 | Every such
employer shall for each calendar quarter, on or | ||||||
3 | before the last day of the
first month following the close of | ||||||
4 | such quarter, and for the calendar year,
on or before January | ||||||
5 | 31 of the succeeding calendar year, make a return with
respect | ||||||
6 | to such taxes in such form and manner as the Department may by
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7 | regulations prescribe, and pay to the Department or to a | ||||||
8 | depositary
designated by the Department all withheld taxes not | ||||||
9 | previously paid to
the Department.
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10 | (c) Monthly Payments: Returns. Every employer required to | ||||||
11 | deduct and
withhold tax under this Act shall, on or before the | ||||||
12 | 15th day of the second
and third months of each calendar | ||||||
13 | quarter, and on or before the last day of
the month following | ||||||
14 | the last month of each such quarter, pay to the
Department or | ||||||
15 | to a depositary designated by the Department, pursuant to
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16 | regulations prescribed by the Department, the taxes so required | ||||||
17 | to be
deducted and withheld, whenever the aggregate amount | ||||||
18 | withheld by such employer
(together with amounts previously | ||||||
19 | withheld and not paid to the
Department) exceeds $500 but does | ||||||
20 | not exceed $1,000. Every such employer
shall for each calendar | ||||||
21 | quarter, on or before the last day of the first
month following | ||||||
22 | the close of such quarter, and for the calendar year, on or
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23 | before January 31 of the succeeding calendar year, make a | ||||||
24 | return with
respect to such taxes in such form and manner as | ||||||
25 | the Department may by
regulations prescribe, and pay to the | ||||||
26 | Department or to a depositary
designated by the Department all |
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1 | withheld taxes not previously paid to
the Department.
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2 | (d) Annual Payments: Returns. Where the amount of | ||||||
3 | compensation paid
by an employer is not sufficient to require | ||||||
4 | the withholding of tax from the
compensation of any of its | ||||||
5 | employees (or where the aggregate amount
withheld is less than | ||||||
6 | $500), the Department may by regulation permit such
employer to | ||||||
7 | file only an annual return and to pay the taxes required to be
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8 | deducted and withheld at the time of filing such annual return.
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9 | (e) Annual Return. The Department may, as it deems | ||||||
10 | appropriate, prescribe
by regulation for the filing of annual | ||||||
11 | returns in lieu of quarterly returns
described in subsections | ||||||
12 | (b) and (c).
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13 | (e-5) Annual Return and Payment. On and after January 1, | ||||||
14 | 1998,
notwithstanding subsections (b) through (d) of this | ||||||
15 | Section, every employer who
deducts and withholds or is | ||||||
16 | required to deduct and withhold tax from a person
engaged in | ||||||
17 | domestic service employment, as that term is defined in Section | ||||||
18 | 3510
of the Internal Revenue Code, may comply with the | ||||||
19 | requirements of this Section
by filing an annual return and | ||||||
20 | paying the taxes required to be deducted and
withheld on or | ||||||
21 | before the 15th day of the fourth month following the close of
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22 | the employer's taxable year. The annual return may be submitted | ||||||
23 | with the
employer's individual income tax return.
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24 | (f) Magnetic Media Filing. Forms W-2 that, pursuant to
the | ||||||
25 | Internal Revenue Code and regulations promulgated thereunder, | ||||||
26 | are
required to be submitted to the Internal Revenue Service on |
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1 | magnetic media,
must also be submitted to the Department on | ||||||
2 | magnetic media for Illinois
purposes, if required by the | ||||||
3 | Department.
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4 | (g) EDGE Credit assistance. Every employer who
deducts and | ||||||
5 | withholds or is required to deduct and withhold tax under this | ||||||
6 | Act who retains income tax withholdings under Section 5-16 of | ||||||
7 | the Economic Development for a Growing Economy Tax Credit Act | ||||||
8 | must make a return with
respect to such taxes and retained | ||||||
9 | amounts in the form and manner that the Department, by
rule, | ||||||
10 | requires and pay to the Department or to a depositary
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11 | designated by the Department those withheld taxes not retained | ||||||
12 | by the taxpayer.
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13 | (Source: P.A. 95-8, eff. 6-29-07.)
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14 | Section 10. The Economic Development for a Growing Economy | ||||||
15 | Tax Credit Act is amended by adding Section 5-16 as follows: | ||||||
16 | (35 ILCS 10/5-16 new) | ||||||
17 | Sec. 5-16. Optional retention; income tax withholding.
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18 | (a) An applicant who has been awarded a Credit under this | ||||||
19 | this Act may, in the applicant's sole discretion, opt to retain | ||||||
20 | taxes withheld under Article 7 of the Illinois Income Tax Act | ||||||
21 | in lieu of an income tax credit. The amount of withheld taxes | ||||||
22 | retained by the applicant in a taxable year may not exceed the | ||||||
23 | amount of the Credit awarded by the Department for that taxable | ||||||
24 | year. |
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1 | (b) Each employee whose taxes were withheld by an employer | ||||||
2 | who retains amounts under this subsection must receive credit | ||||||
3 | for 100% of the taxes withheld from his or her pay. | ||||||
4 | (c) The Department shall file annual reports with the | ||||||
5 | General Assembly and the Governor on or before January 1 each | ||||||
6 | year concerning the applicants' retention of withheld taxes | ||||||
7 | during the previous year and regarding the progress this | ||||||
8 | assistance has made in advancing economic development in | ||||||
9 | Illinois and its various regions.
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10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.
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