Public Act 095-0008
 
SB1395 Enrolled LRB095 07487 BDD 27631 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Income Tax Act is amended by
changing Section 704 and by adding Section 704A as follows:
 
    (35 ILCS 5/704)  (from Ch. 120, par. 7-704)
    Sec. 704. Employer's Return and Payment of Tax Withheld.
    (a) In general, every employer who deducts and withholds or
is required to deduct and withhold tax under this Act prior to
January 1, 2008, shall make such payments and returns as
hereinafter provided in this Section.
    (b) Quarter Monthly Payments: Returns. Every employer who
deducts and withholds or is required to deduct and withhold tax
under this Act shall, on or before the third banking day
following the close of a quarter monthly period, pay to the
Department or to a depositary designated by the Department,
pursuant to regulations prescribed by the Department, the taxes
so required to be deducted and withheld, whenever the aggregate
amount withheld by such employer (together with amounts
previously withheld and not paid to the Department) exceeds
$1,000. For purposes of this Section, Saturdays, Sundays, legal
holidays and local bank holidays are not banking days. A
quarter monthly period, for purposes of this subsection, ends
on the 7th, 15th, 22nd and last day of each calendar month.
Every such employer shall for each calendar quarter, on or
before the last day of the first month following the close of
such quarter, and for the calendar year, on or before January
31 of the succeeding calendar year, make a return with respect
to such taxes in such form and manner as the Department may by
regulations prescribe, and pay to the Department or to a
depositary designated by the Department all withheld taxes not
previously paid to the Department.
    (c) Monthly Payments: Returns. Every employer required to
deduct and withhold tax under this Act shall, on or before the
15th day of the second and third months of each calendar
quarter, and on or before the last day of the month following
the last month of each such quarter, pay to the Department or
to a depositary designated by the Department, pursuant to
regulations prescribed by the Department, the taxes so required
to be deducted and withheld, whenever the aggregate amount
withheld by such employer (together with amounts previously
withheld and not paid to the Department) exceeds $500 but does
not exceed $1,000. Every such employer shall for each calendar
quarter, on or before the last day of the first month following
the close of such quarter, and for the calendar year, on or
before January 31 of the succeeding calendar year, make a
return with respect to such taxes in such form and manner as
the Department may by regulations prescribe, and pay to the
Department or to a depositary designated by the Department all
withheld taxes not previously paid to the Department.
    (d) Annual Payments: Returns. Where the amount of
compensation paid by an employer is not sufficient to require
the withholding of tax from the compensation of any of its
employees (or where the aggregate amount withheld is less than
$500), the Department may by regulation permit such employer to
file only an annual return and to pay the taxes required to be
deducted and withheld at the time of filing such annual return.
    (e) Annual Return. The Department may, as it deems
appropriate, prescribe by regulation for the filing of annual
returns in lieu of quarterly returns described in subsections
(b) and (c).
    (e-5) Annual Return and Payment. On and after January 1,
1998, notwithstanding subsections (b) through (d) of this
Section, every employer who deducts and withholds or is
required to deduct and withhold tax from a person engaged in
domestic service employment, as that term is defined in Section
3510 of the Internal Revenue Code, may comply with the
requirements of this Section by filing an annual return and
paying the taxes required to be deducted and withheld on or
before the 15th day of the fourth month following the close of
the employer's taxable year. The annual return may be submitted
with the employer's individual income tax return.
    (f) Magnetic Media Filing. Forms W-2 that, pursuant to the
Internal Revenue Code and regulations promulgated thereunder,
are required to be submitted to the Internal Revenue Service on
magnetic media, must also be submitted to the Department on
magnetic media for Illinois purposes, if required by the
Department.
(Source: P.A. 90-374, eff. 8-14-97; 90-562, eff. 12-16-97.)
 
    (35 ILCS 5/704A new)
    Sec. 704A. Employer's return and payment of tax withheld.
    (a) In general, every employer who deducts and withholds or
is required to deduct and withhold tax under this Act on or
after January 1, 2008 shall make those payments and returns as
provided in this Section.
    (b) Returns. Every employer shall, in the form and manner
required by the Department, make returns with respect to taxes
withheld or required to be withheld under this Article 7
beginning on or after January 1, 2008, on or before the last
day of the first month following the close of that quarter.
    (c) Payments. With respect to amounts withheld or required
to be withheld on or after January 1, 2008:
        (1) Semi-weekly payments. For each calendar year, each
    employer who withheld or was required to withhold more than
    $12,000 during the one-year period ending on June 30 of the
    immediately preceding calendar year, payment must be made:
            (A) on or before each Friday of the calendar year,
        for taxes withheld or required to be withheld on the
        immediately preceding Saturday, Sunday, Monday, or
        Tuesday;
            (B) on or before each Wednesday of the calendar
        year, for taxes withheld or required to be withheld on
        the immediately preceding Wednesday, Thursday, or
        Friday.
        (2) Semi-weekly payments. Any employer who withholds
    or is required to withhold more than $12,000 in any quarter
    of a calendar year is required to make payments on the
    dates set forth under item (1) of this subsection (c) for
    each remaining quarter of that calendar year and for the
    subsequent calendar year.
        (3) Monthly payments. Each employer, other than an
    employer described in items (1) or (2) of this subsection,
    shall pay to the Department, on or before the 15th day of
    each month the taxes withheld or required to be withheld
    during the immediately preceding month.
        (4) Payments with returns. Each employer shall pay to
    the Department, on or before the due date for each return
    required to be filed under this Section, any tax withheld
    or required to be withheld during the period for which the
    return is due and not previously paid to the Department.
    (d) Regulatory authority. The Department may, by rule:
        (1) If the aggregate amounts required to be withheld
    under this Article 7 do not exceed $1,000 for the calendar
    year, permit employers, in lieu of the requirements of
    subsections (b) and (c), to file annual returns due on or
    before January 31 of the following year for taxes withheld
    or required to be withheld during that calendar year and to
    pay the taxes required to be shown on each such return no
    later than the due date for such return.
        (2) Provide that any payment required to be made under
    subsection (c)(1) or (c)(2) is deemed to be timely to the
    extent paid by electronic funds transfer on or before the
    due date for deposit of federal income taxes withheld from,
    or federal employment taxes due with respect to, the wages
    from which the Illinois taxes were withheld.
        (3) Designate one or more depositories to which payment
    of taxes required to be withheld under this Article 7 must
    be paid by some or all employers.
        (4) Increase the threshold dollar amounts at which
    employers are required to make semi-weekly payments under
    subsection (c)(1) or (c)(2).
    (e) Annual return and payment. Every employer who deducts
and withholds or is required to deduct and withhold tax from a
person engaged in domestic service employment, as that term is
defined in Section 3510 of the Internal Revenue Code, may
comply with the requirements of this Section with respect to
such employees by filing an annual return and paying the taxes
required to be deducted and withheld on or before the 15th day
of the fourth month following the close of the employer's
taxable year. The Department may allow the employer's return to
be submitted with the employer's individual income tax return
or to be submitted with a return due from the employer under
Section 1400.2 of the Unemployment Insurance Act.
    (f) Magnetic media and electronic filing. Any W-2 Form
that, under the Internal Revenue Code and regulations
promulgated thereunder, is required to be submitted to the
Internal Revenue Service on magnetic media or electronically
must also be submitted to the Department on magnetic media or
electronically for Illinois purposes, if required by the
Department.
 
    Section 10. The Illinois Municipal Code is amended by
changing Section 8-11-1.1 as follows:
 
    (65 ILCS 5/8-11-1.1)  (from Ch. 24, par. 8-11-1.1)
    Sec. 8-11-1.1. Non-home rule municipalities; imposition of
taxes.
    (a) The corporate authorities of a non-home rule
municipality may, upon approval of the electors of the
municipality pursuant to subsection (b) of this Section, impose
by ordinance or resolution the tax authorized in Sections
8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
    (b) The corporate authorities of the municipality may by
ordinance or resolution call for the submission to the electors
of the municipality the question of whether the municipality
shall impose such tax. Such question shall be certified by the
municipal clerk to the election authority in accordance with
Section 28-5 of the Election Code and shall be in a form in
accordance with Section 16-7 of the Election Code.
    If a majority of the electors in the municipality voting
upon the question vote in the affirmative, such tax shall be
imposed.
    An ordinance or resolution imposing the tax of not more
than 1% hereunder or discontinuing the same shall be adopted
and a certified copy thereof, together with a certification
that the ordinance or resolution received referendum approval
in the case of the imposition of such tax, filed with the
Department of Revenue, on or before the first day of June,
whereupon the Department shall proceed to administer and
enforce the additional tax or to discontinue the tax, as the
case may be, as of the first day of September next following
such adoption and filing. Beginning January 1, 1992, an
ordinance or resolution imposing or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department on or before the first day of October,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of January next
following such adoption and filing. Beginning October 1, 2002,
an ordinance or resolution imposing or discontinuing the tax
under this Section or effecting a change in the rate of tax
must either (i) be adopted and a certified copy of the
ordinance or resolution filed with the Department on or before
the first day of April, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
July next following the adoption and filing; or (ii) be adopted
and a certified copy of the ordinance or resolution filed with
the Department on or before the first day of October, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing.
    Notwithstanding any provision in this Section to the
contrary, if, in a non-home rule municipality with more than
150,000 but fewer than 200,000 inhabitants, as determined by
the last preceding federal decennial census, an ordinance or
resolution under this Section imposes or discontinues a tax or
changes the tax rate as of July 1, 2007, then that ordinance or
resolution, together with a certification that the ordinance or
resolution received referendum approval in the case of the
imposition of the tax, must be adopted and a certified copy of
that ordinance or resolution must be filed with the Department
on or before May 15, 2007, whereupon the Department shall
proceed to administer and enforce this Section as of July 1,
2007.
    A non-home rule municipality may file a certified copy of
an ordinance or resolution, with a certification that the
ordinance or resolution received referendum approval in the
case of the imposition of the tax, with the Department of
Revenue, as required under this Section, only after October 2,
2000.
    The tax authorized by this Section may not be more than 1%
and may be imposed only in 1/4% increments.
(Source: P.A. 94-679, eff. 1-1-06.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.