Current through Register Vol. 48, No. 38, September 20, 2024
a) Quarterly
Returns. Except as otherwise provided in Section
100.7310
or
100.7350,
every employer required to deduct and withhold tax on compensation paid in
Illinois shall make a return for the first calendar quarter in which the tax is
deducted and withheld and for each subsequent calendar quarter (whether or not
compensation is paid in that quarter) until a final return is filed. (See IITA
Sections 704(c) and 704A(b).) Each return required under this subsection must
be made in the form and manner required by the Department.
(IITA Sections 704(b) and 704A(b)) With respect to taxes withheld in
2017 and subsequent calendar years, the Department may, by rule, provide that
any return (including any amended return) and any W-2 Form due under this
Section must be submitted on magnetic media or electronically. (IITA
Section 704A(f)) The due date for submitting W-2 Forms shall be as
prescribed by the Department by rule. (IITA Section 704A(f))
1) For calendar years after 2009 and prior to
2017, payroll providers who withhold Illinois income tax for employers during
the year and who are required to file federal withholding returns on magnetic
media under
26 CFR
301.6011-2 shall file returns due under this
subsection (a) with the Department using the same magnetic media used for their
federal filing.
2) For calendar
years after 2016, all employers shall file returns due under this subsection
(a) with the Department electronically or using the same magnetic media used
for their federal filing, provided that, upon petition by an employer, the
Department may waive this requirement if the employer demonstrates that it does
not have access to the Internet.
3)
All other returns required under this subsection (a) may be filed with the
Department at the address provided on the Form IL-941, Illinois Quarterly
Withholding Income Tax Return, or its instructions.
b) Filing and Retention of Copies of Combined
W-2
1) For Calendar Years Prior to 2008
A) Every employer required under this Section
or Section
100.7310
or
100.7350
to make a return of tax withheld from compensation for a period ending December
31, or for any period for which a return is made as a final return, shall
retain a copy of each wage and tax statement on the combined W-2 required under
Section
100.7200
to be furnished by the employer with respect to compensation paid during the
calendar year. For calendar years prior to 2008, every employer shall maintain
copies of the combined W-2 forms for three years from the due date of the
IL-W-3 for that period. For each calendar year after 2007, every employer shall
maintain copies of the combined W-2 forms until January 31 of the fourth year
following that calendar year. If the Department makes a written request for
copies of the combined W-2 forms, the copies shall be forwarded to the
Department within 30 days after the written request.
B) If an employer issues a corrected copy of
a combined W-2 to an employee for a prior calendar year (see Section
100.7200(d)
above), a copy shall be retained for a period of four years from the date fixed
for filing the employer's return of tax withheld for the period ending December
31 of the year in which the correction is made, or for any period in the year
for which the return is made as a final return. A statement explaining the
corrections shall also be retained and, if the Department requests, a copy of
the corrected W-2 shall be submitted within 30 days after the written
request.
C) Each year, the
Department will contact a sample of Illinois employers and require those
employers to provide copies of their employee W-2s. Employers chosen by the
Department will be required to file W-2s in the same manner they are required
to file W-2s federally.
i) Employers with
more than 250 employees in the State of Illinois will be required to provide
the W-2s on magnetic tape, diskette, or cartridge meeting the specifications
required by the Social Security Administration (see
26 CFR
301.6011-2) .
ii) All other employers may provide the W-2s
on magnetic media or paper.
D) An extension of time for providing
statements requested by the Department shall be granted upon a showing of good
cause.
2) W-2s Filed
Electronically or on Magnetic Media
A) The
following persons shall file copies of the W-2s with the Department
electronically or using the same magnetic media used for their federal filing:
i) for calendar years after 2007 and prior to
2017, payroll providers who withhold Illinois income tax for employers during
the year and who are required to file copies of the W-2s on magnetic media
under
26 CFR
301.6011-2;
ii) for calendar years after 2008 and prior
to 2017, all employers who are required to file copies of the W-2s on magnetic
media under
26 CFR
301.6011-2; and
iii) for calendar years after 2016, all
employers and payroll providers who withhold Illinois income tax for employers,
provided that, upon petition by an employer or payroll provider, the Department
may waive the magnetic media filing requirement if the employer or payroll
provider demonstrates that it does not have access to the Internet.
B) For calendar years prior to
2014, the copies of W-2s shall be filed no later than March 31 of the year
following the year of the withholding, unless a later due date is prescribed
under federal law for filing the copies of the W-2s, in which case filing of
copies with the Department is due on the same date. For calendar years after
2013 and prior to 2017, the copies of W-2s shall be filed no later than
February 15 of the year following the year of the withholding. For calendar
years after 2016, the copies of W-2s shall be filed no later than January 31 of
the year following the year of the withholding.
C) For all calendar years, if the IRS has
granted an extension of time to file a federal information return that would
otherwise be due from the employer on the due date for filing under this
subsection (b)(2) because of natural disaster under IRC section 7508A, an
employer who files copies of its W-2s on or before the extended due date of the
federal information return is deemed to have reasonable cause for the late
filing. (See IITA Sections 704(f) and 704A(f).)
3) For calendar years after 2007, with
respect to copies of W-2s other than those filed electronically or on magnetic
media:
A) Every employer required under this
Section or Section
100.7310
or
100.7350
to make a return of tax withheld from compensation for a period ending December
31, or for any period for which a return is made as a final return, shall
retain a copy of each wage and tax statement on the combined W-2 required under
Section
100.7200
to be furnished by the employer with respect to compensation paid during the
calendar year. Every employer shall maintain copies of the combined W-2 forms
until January 31 of the fourth year following that calendar year. If the
Department makes a written request for copies of the combined W-2 forms, the
copies shall be forwarded to the Department within 30 days after the written
request.
B) If an employer issues a
corrected copy of a combined W-2 to an employee for a prior calendar year (see
Section
100.7200(d)
), a copy shall be retained for a period of four years from the date fixed for
filing the employer's return of tax withheld for the period ending December 31
of the year in which the correction is made, or for any period in the year for
which the return is made as a final return. A statement explaining the
corrections shall also be retained and, if the Department requests, a copy of
the corrected W-2 shall be submitted within 30 days after the written
request.
C) Each year, the
Department will contact a sample of Illinois employers and require those
employers to provide copies of their employee W-2s.
D) An extension of time for providing
statements requested by the Department shall be granted upon a showing of good
cause.
c)
Payments of amounts withheld prior to January 1, 2008. Except as otherwise
provided in Section
100.7310
or 100.7350, with respect to amounts withheld or required to be withheld prior
to January 1, 2008:
1) Quarter-monthly tax
payments. Every employer required to file a quarterly return under subsection
(a) shall also file a quarter-monthly tax payment form if the amount of tax
deducted and withheld during any quarter-monthly period plus the amount
previously withheld and not remitted to the Department exceeds $1,000. An
employer need not file a quarter-monthly form if no quarter-monthly payment is
due. Certain taxpayers with tax liabilities exceeding statutory thresholds are
required to pay their tax liabilities by electronic funds transfer. 86 Ill.
Adm. Code 750 sets forth the rules of the Department concerning payment of
taxes by electronic funds transfer, as well as the statutory payment
thresholds.
2) Monthly tax
payments. Every employer required to file a quarterly return under subsection
(a) shall also file a monthly tax payment form if the amount of tax deducted
and withheld during any calendar month plus the amount previously withheld and
not remitted to this Department exceeds $500 including amounts previously
withheld and not remitted to the Department, but does not exceed $1,000. An
employer need not file a monthly form if no monthly payment is due. No monthly
form is required for the third month in any calendar quarter. The information
otherwise required to be reported on the monthly form for the third month in a
calendar quarter shall be reported on the quarterly return filed for that
quarter and no monthly form need be filed for that month.
d) Payments of amounts withheld on or after
January 1, 2008. Except as provided in Section
100.7310
or 100.7350, with respect to amounts withheld or required to be withheld on or
after January 1, 2008:
1) Semi-Weekly Tax
Payments
A) An employer who withheld or was
required to withhold more than $12,000 during the look-back period for a
calendar year must make semi-weekly payments for the entire calendar
year.
B) An employer who withholds
or is required to withhold more than $12,000 in any quarter of a calendar year
is required to make semi-weekly payments of amounts withheld or required to be
withheld during each remaining quarter of that calendar year and for the
subsequent calendar year. (See IITA Section 704A(c)(1).)
2) Monthly tax payments. An employer who is
not required to make semi-weekly payments shall make monthly payments of taxes
withheld or required to be withheld. (See IITA Section 704A(c)(3).)