Public Act 90-0374 of the 90th General Assembly
Public Act 90-0374
HB0981 Enrolled LRB9002465KDcc
AN ACT to amend the Illinois Income Tax Act by changing
Section 704.
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 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
shall make such payments and returns as hereinafter provided.
(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. Where the tax is withheld from a
person engaged in domestic service employment, as that term
is defined in Section 3510 of the Internal Revenue Code,
returns shall be filed on or before the 15th day of the
fourth month following the close of the employer's taxable
year.
(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. 87-205.)
Section 99. Effective date. This Act takes effect upon
becoming law.