Rep. Jeanne M Ives
Filed: 11/4/2013
 
 


 




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1
AMENDMENT TO HOUSE BILL 383 




2 AMENDMENT NO. ______. Amend House Bill 383, AS AMENDED, by 
3replacing everything after the enacting clause with the 
4following:


5 "Section 5. The Illinois Income Tax Act is amended by 
6changing Section 704 as follows:





7 (35 ILCS 5/704) (from Ch. 120, par. 7-704)


8 Sec. 704. Employer's Return and Payment of Tax Withheld. 

9 (a) In general, every employer who deducts and withholds or 
10is required
to deduct and withhold tax under this Act prior to 
11January 1, 2008, shall make such payments and
returns as 
12provided in this Section.

13 (b) Quarter Monthly Payments: Returns. Every employer who 
14deducts
and withholds or is required to deduct and withhold tax 
15under this Act
shall, on or before the third banking day 
16following the close of a quarter
monthly period, pay to the 
 
 
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1Department or to a depositary designated by the
Department, 
2pursuant to regulations prescribed by the Department, the taxes

3so required to be deducted and withheld, whenever the aggregate 
4amount
withheld by such employer (together with amounts 
5previously withheld and
not paid to the Department) exceeds 
6$1,000. For purposes of this Section,
Saturdays, Sundays, legal 
7holidays and local bank holidays are not banking
days. A 
8quarter monthly period, for purposes of this subsection, ends 
9on
the 7th, 15th, 22nd and last day of each calendar month. 
10Every such
employer shall for each calendar quarter, on or 
11before the last day of the
first month following the close of 
12such quarter, and for the calendar year,
on or before January 
1331 of the succeeding calendar year, make a return with
respect 
14to such taxes in such form and manner as the Department may by

15regulations prescribe, and pay to the Department or to a 
16depositary
designated by the Department all withheld taxes not 
17previously paid to
the Department.

18 (c) Monthly Payments: Returns. Every employer required to 
19deduct and
withhold tax under this Act shall, on or before the 
2015th day of the second
and third months of each calendar 
21quarter, and on or before the last day of
the month following 
22the last month of each such quarter, pay to the
Department or 
23to a depositary designated by the Department, pursuant to

24regulations prescribed by the Department, the taxes so required 
25to be
deducted and withheld, whenever the aggregate amount 
26withheld by such employer
(together with amounts previously 
 
 
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1withheld and not paid to the
Department) exceeds $500 but does 
2not exceed $1,000. Every such employer
shall for each calendar 
3quarter, on or before the last day of the first
month following 
4the close of such quarter, and for the calendar year, on or

5before January 31 of the succeeding calendar year, make a 
6return with
respect to such taxes in such form and manner as 
7the Department may by
regulations prescribe, and pay to the 
8Department or to a depositary
designated by the Department all 
9withheld taxes not previously paid to
the Department.

10 (d) Annual Payments: Returns. Where the amount of 
11compensation paid
by an employer is not sufficient to require 
12the withholding of tax from the
compensation of any of its 
13employees (or where the aggregate amount
withheld is less than 
14$500), the Department may by regulation permit such
employer to 
15file only an annual return and to pay the taxes required to be

16deducted and withheld at the time of filing such annual return.

17 (e) Annual Return. The Department may, as it deems 
18appropriate, prescribe
by regulation for the filing of annual 
19returns in lieu of quarterly returns
described in subsections 
20(b) and (c).

21 (e-5) Annual Return and Payment. On and after January 1, 
221998,
notwithstanding subsections (b) through (d) of this 
23Section, every employer who
deducts and withholds or is 
24required to deduct and withhold tax from a person
engaged in 
25domestic service employment, as that term is defined in Section 
263510
of the Internal Revenue Code, may comply with the 
 
 
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1requirements of this Section
by filing an annual return and 
2paying the taxes required to be deducted and
withheld on or 
3before the 15th day of the fourth month following the close of

4the employer's taxable year. The annual return may be submitted 
5with the
employer's individual income tax return. 

6 (f) Magnetic Media Filing. Forms W-2 that, pursuant to
the 
7Internal Revenue Code and regulations promulgated thereunder, 
8are
required to be submitted to the Internal Revenue Service on 
9magnetic media,
must also be submitted to the Department on 
10magnetic media for Illinois
purposes, if required by the 
11Department.

12 (g) EDGE Credit assistance. Every employer who
deducts and 
13withholds or is required to deduct and withhold tax under this 
14Act who retains income tax withholdings under Section 5-16 of 
15the Economic Development for a Growing Economy Tax Credit Act 
16must make a return with
respect to those taxes and retained 
17amounts in the form and manner that the Department, by
rule, 
18requires and pay to the Department or to a depositary

19designated by the Department those withheld taxes not retained 
20by the taxpayer.

21(Source: P.A. 95-8, eff. 6-29-07.)



22 Section 10. The Economic Development for a Growing Economy 
23Tax Credit Act is amended by adding Section 5-16 as follows:

24 (35 ILCS 10/5-16 new)
 
 
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1 Sec. 5-16. Optional retention; income tax withholding.

2 (a) An applicant who has been awarded a Credit under this 
3this Act may, in the applicant's sole discretion, opt to retain 
4taxes withheld under Article 7 of the Illinois Income Tax Act 
5in lieu of an income tax credit. The amount of withheld taxes 
6retained by the applicant in a taxable year may not exceed the 
7amount of the Credit awarded by the Department for that taxable 
8year.
9 (b) Each employee whose taxes were withheld by an employer 
10who retains amounts under this subsection must receive credit 
11for 100% of the taxes withheld from his or her pay.
12 (c) The Department shall file annual reports with the 
13General Assembly and the Governor on or before January 1 each 
14year concerning the applicants' retention of withheld taxes 
15during the previous year and regarding the progress this 
16assistance has made in advancing economic development in 
17Illinois and its various regions.


18 Section 99. Effective date. This Act takes effect upon 
19becoming law.".