HB3345 99TH GENERAL ASSEMBLY

  
  

 


 
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3345

 

Introduced , by Rep. Arthur Turner

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/704A
820 ILCS 105/4  from Ch. 48, par. 1004

    Amends the Minimum Wage Law. Increases the minimum wage from $8.25 to $9.00 beginning July 1, 2015 and increases it to $10.00 per hour on and after July 1, 2016. Provides that the establishment of a minimum wage that employers must pay their employees is an exclusive power and function of the State and is a denial and limitation of the home rule powers and functions, except that the limitation on home rule powers does not apply to a municipality with more than 1,000,000 inhabitants. Amends the Illinois Income Tax Act. Creates a credit against the withholding tax liability of employers with fewer than 50 employees in an amount equal to the increased wages paid as a result of the increase in the minimum wage.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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
17that quarter.
18    (c) Payments. With respect to amounts withheld or required
19to 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
26and withholds or is required to deduct and withhold tax from a

 

 

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1person engaged in domestic service employment, as that term is
2defined in Section 3510 of the Internal Revenue Code, may
3comply with the requirements of this Section with respect to
4such employees by filing an annual return and paying the taxes
5required to be deducted and withheld on or before the 15th day
6of the fourth month following the close of the employer's
7taxable year. The Department may allow the employer's return to
8be submitted with the employer's individual income tax return
9or to be submitted with a return due from the employer under
10Section 1400.2 of the Unemployment Insurance Act.
11    (f) Magnetic media and electronic filing. Any W-2 Form
12that, under the Internal Revenue Code and regulations
13promulgated thereunder, is required to be submitted to the
14Internal Revenue Service on magnetic media or electronically
15must also be submitted to the Department on magnetic media or
16electronically for Illinois purposes, if required by the
17Department.
18    (g) For amounts deducted or withheld after December 31,
192009, a taxpayer who makes an election under subsection (f) of
20Section 5-15 of the Economic Development for a Growing Economy
21Tax Credit Act for a taxable year shall be allowed a credit
22against payments due under this Section for amounts withheld
23during the first calendar year beginning after the end of that
24taxable year equal to the amount of the credit for the
25incremental income tax attributable to full-time employees of
26the taxpayer awarded to the taxpayer by the Department of

 

 

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1Commerce and Economic Opportunity under the Economic
2Development for a Growing Economy Tax Credit Act for the
3taxable year and credits not previously claimed and allowed to
4be carried forward under Section 211(4) of this Act as provided
5in subsection (f) of Section 5-15 of the Economic Development
6for a Growing Economy Tax Credit Act. The credit or credits may
7not reduce the taxpayer's obligation for any payment due under
8this Section to less than zero. If the amount of the credit or
9credits exceeds the total payments due under this Section with
10respect to amounts withheld during the calendar year, the
11excess may be carried forward and applied against the
12taxpayer's liability under this Section in the succeeding
13calendar years as allowed to be carried forward under paragraph
14(4) of Section 211 of this Act. The credit or credits shall be
15applied to the earliest year for which there is a tax
16liability. If there are credits from more than one taxable year
17that are available to offset a liability, the earlier credit
18shall be applied first. Each employer who deducts and withholds
19or is required to deduct and withhold tax under this Act and
20who retains income tax withholdings under subsection (f) of
21Section 5-15 of the Economic Development for a Growing Economy
22Tax Credit Act must make a return with respect to such taxes
23and retained amounts in the form and manner that the
24Department, by rule, requires and pay to the Department or to a
25depositary designated by the Department those withheld taxes
26not retained by the taxpayer. For purposes of this subsection

 

 

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1(g), the term taxpayer shall include taxpayer and members of
2the taxpayer's unitary business group as defined under
3paragraph (27) of subsection (a) of Section 1501 of this Act.
4This Section is exempt from the provisions of Section 250 of
5this Act.
6    (h) An employer may claim a credit against payments due
7under this Section for amounts withheld during the first
8calendar year ending after the date on which a tax credit
9certificate was issued under Section 35 of the Small Business
10Job Creation Tax Credit Act. The credit shall be equal to the
11amount shown on the certificate, but may not reduce the
12taxpayer's obligation for any payment due under this Section to
13less than zero. If the amount of the credit exceeds the total
14payments due under this Section with respect to amounts
15withheld during the calendar year, the excess may be carried
16forward and applied against the taxpayer's liability under this
17Section in the 5 succeeding calendar years. The credit shall be
18applied to the earliest year for which there is a tax
19liability. If there are credits from more than one calendar
20year that are available to offset a liability, the earlier
21credit shall be applied first. This Section is exempt from the
22provisions of Section 250 of this Act.
23    (i) Each employer that (i) does not employ more than 50
24employees at any time during the applicable payment period and
25(ii) is subject to the Minimum Wage Law may claim a credit
26against payments due under this Section on and after July 1,

 

 

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12015 and on or before December 31, 2016 in an amount equal to
2the difference between: (1) the wages paid by the employer to
3employees in Illinois whose wages do not exceed the minimum
4wage, calculated as if those employees were entitled to the
5minimum wage set forth under Section 4 of the Minimum Wage Law
6and not a higher minimum wage adopted by a unit of local
7government; and (2) the wages that would have been paid by the
8employer to those employees if the minimum wage had been $8.25
9per hour during that period.
10(Source: P.A. 96-834, eff. 12-14-09; 96-888, eff. 4-13-10;
1196-905, eff. 6-4-10; 96-1027, eff. 7-12-10; 97-333, eff.
128-12-11; 97-507, eff. 8-23-11.)
 
13    Section 10. The Minimum Wage Law is amended by changing
14Section 4 as follows:
 
15    (820 ILCS 105/4)  (from Ch. 48, par. 1004)
16    Sec. 4. (a)(1) Every employer shall pay to each of his
17employees in every occupation wages of not less than $2.30 per
18hour or in the case of employees under 18 years of age wages of
19not less than $1.95 per hour, except as provided in Sections 5
20and 6 of this Act, and on and after January 1, 1984, every
21employer shall pay to each of his employees in every occupation
22wages of not less than $2.65 per hour or in the case of
23employees under 18 years of age wages of not less than $2.25
24per hour, and on and after October 1, 1984 every employer shall

 

 

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1pay to each of his employees in every occupation wages of not
2less than $3.00 per hour or in the case of employees under 18
3years of age wages of not less than $2.55 per hour, and on or
4after July 1, 1985 every employer shall pay to each of his
5employees in every occupation wages of not less than $3.35 per
6hour or in the case of employees under 18 years of age wages of
7not less than $2.85 per hour, and from January 1, 2004 through
8December 31, 2004 every employer shall pay to each of his or
9her employees who is 18 years of age or older in every
10occupation wages of not less than $5.50 per hour, and from
11January 1, 2005 through June 30, 2007 every employer shall pay
12to each of his or her employees who is 18 years of age or older
13in every occupation wages of not less than $6.50 per hour, and
14from July 1, 2007 through June 30, 2008 every employer shall
15pay to each of his or her employees who is 18 years of age or
16older in every occupation wages of not less than $7.50 per
17hour, and from July 1, 2008 through June 30, 2009 every
18employer shall pay to each of his or her employees who is 18
19years of age or older in every occupation wages of not less
20than $7.75 per hour, and from July 1, 2009 through June 30,
212010 every employer shall pay to each of his or her employees
22who is 18 years of age or older in every occupation wages of
23not less than $8.00 per hour, and from on and after July 1,
242010 through June 30, 2015 every employer shall pay to each of
25his or her employees who is 18 years of age or older in every
26occupation wages of not less than $8.25 per hour, and from July

 

 

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11, 2015 to June 30, 2016 every employer shall pay to each of
2his or her employees who is 18 years of age or older in every
3occupation wages of not less than $9.00 per hour, and on and
4after July 1, 2016 every employer shall pay to each of his or
5her employees who is 18 years of age or older in every
6occupation wages of not less than $10.00 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) At no time shall the wages paid to any employee under
2318 years of age be more than 50 less than the wage required to
24be paid to employees who are at least 18 years of age under
25item (1) of this subsection (a).
26    (b) No employer shall discriminate between employees on the

 

 

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1basis of sex or mental or physical handicap, except as
2otherwise provided in this Act by paying wages to employees at
3a rate less than the rate at which he pays wages to employees
4for the same or substantially similar work on jobs the
5performance of which requires equal skill, effort, and
6responsibility, and which are performed under similar working
7conditions, except where such payment is made pursuant to (1) a
8seniority system; (2) a merit system; (3) a system which
9measures earnings by quantity or quality of production; or (4)
10a differential based on any other factor other than sex or
11mental or physical handicap, except as otherwise provided in
12this Act.
13    (c) Every employer of an employee engaged in an occupation
14in which gratuities have customarily and usually constituted
15and have been recognized as part of the remuneration for hire
16purposes is entitled to an allowance for gratuities as part of
17the hourly wage rate provided in Section 4, subsection (a) in
18an amount not to exceed 40% of the applicable minimum wage
19rate. The Director shall require each employer desiring an
20allowance for gratuities to provide substantial evidence that
21the amount claimed, which may not exceed 40% of the applicable
22minimum wage rate, was received by the employee in the period
23for which the claim of exemption is made, and no part thereof
24was returned to the employer.
25    (d) No camp counselor who resides on the premises of a
26seasonal camp of an organized not-for-profit corporation shall

 

 

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1be subject to the adult minimum wage if the camp counselor (1)
2works 40 or more hours per week, and (2) receives a total
3weekly salary of not less than the adult minimum wage for a
440-hour week. If the counselor works less than 40 hours per
5week, the counselor shall be paid the minimum hourly wage for
6each hour worked. Every employer of a camp counselor under this
7subsection is entitled to an allowance for meals and lodging as
8part of the hourly wage rate provided in Section 4, subsection
9(a), in an amount not to exceed 25% of the minimum wage rate.
10    (e) A camp counselor employed at a day camp is not subject
11to the adult minimum wage if the camp counselor is paid a
12stipend on a onetime or periodic basis and, if the camp
13counselor is a minor, the minor's parent, guardian or other
14custodian has consented in writing to the terms of payment
15before the commencement of such employment.
16    (f) Preemption of home rule powers.
17        (1) The establishment of a minimum wage that employers
18    must pay their employees is an exclusive power and function
19    of the State. Except as provided in paragraph (2) of this
20    subsection (f), a home rule unit may not regulate or
21    establish a minimum wage. This subsection (f) is a denial
22    and limitation of the home rule powers and functions under
23    subsection (h) of Section 6 of Article VII of the Illinois
24    Constitution.
25        (2) Paragraph (1) of this subsection (f) shall not
26    apply to any ordinance adopted by the corporate authorities

 

 

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1    of a municipality having more than 1,000,000 inhabitants.
2(Source: P.A. 94-1072, eff. 7-1-07; 94-1102, eff. 7-1-07;
395-945, eff. 1-1-09.)