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Income Tax Filing Requirements - PDF

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					Illinois Department of Revenue
Brian Hamer, Director




Publication 131                                                                                                                  December 2010

Withholding Income Tax Payment and Filing Requirements
 The information in this publication        About this publication
 is current as of the date of the pub-      This publication is about paying and reporting Illinois Withholding Income Tax. You
 lication. Please visit our web site at     need to know this information if you are an employer or withholding agent. There
 tax.illinois.gov to verify you have the    are three different payment and return schedules and every registered employer is
 most current revision.                     assigned to one of the three. Household employers should refer to Publication 121,
                                            Illinois Income Tax Withholding for Household Employees, instead of this publication.
 This publication is written in the plain
                                            The objectives of this publication are to explain
 English style so the tax information is
 easier to understand. As a result, we          when and how to make your payments and file your returns, and
 do not directly quote Illinois statutes        the three different payment and return schedules.
 and the Illinois Administrative Code.
 The contents of this publication are
 informational only and do not take         Related publications: Publication 130, Who is Required to Withhold Illinois Income
                                            Tax. See Booklet IL-700-T, Illinois Withholding Income Tax Tables, to calculate with-
 the place of statutes, rules, and court
                                            holding.
 decisions.

                                            Contents
                                            When am I required to pay? ........................................................................................2
For information or forms                    When am I required to file Form IL-941? ......................................................................2

  Visit our web site at tax.illinois.gov    What is the “look-back” period? ....................................................................................2

  Call 1 800 732-8866 or 217 782-3336       How may I pay or file? ..................................................................................................2

  Call our TDD (telecommunications
                                            Are there any special payment requirements? .............................................................2
  device for the deaf) at 1 800 544-5304    May I make my payments more frequently? .................................................................2
  Call our 24-hour Forms Order Line at      Avoid these common errors ..........................................................................................2
  1 800 356-6302
                                            Descriptions of all three payment and return schedules...............................................3
                                            Semi-weekly, monthly, and annual payment and return examples ...............................4



   Taxpayer Bill of Rights
   You have the right to call the Department of Revenue for                     If you have overpaid your taxes, you have the right, within
   help in resolving tax problems.                                              specified time periods, to a credit (or, in some cases, a
                                                                                refund) of that overpayment.
   You have the right to privacy and confidentiality under most
   tax laws.                                                                    For more information about these rights and other depart-
                                                                                ment procedures, you may write us at the following address:
   You have the right to respond, within specified time peri-
   ods, to department notices by asking questions, paying the                   Problems Resolution Office
   amount due, or providing proof to refute the department’s                    Illinois Department of Revenue
   findings.                                                                     PO Box 19014
                                                                                Springfield, IL 62794-9014
   You have the right to appeal department decisions, in many
   instances, within specified time periods, by asking for de-
   partment review or by taking the issue to court.


Get forms and other information faster and easier at tax.illinois.gov
                                                                                  Withholding Income Tax Filing and Payment Requirements


General Information
When am I required to pay?                         the dollar amount, debit date, and tax     and the other half of your employees on
Your payment due dates are determined by           period for your payments. No software      Friday, July 1, 2011, both payments are due
two things:                                        is required and it is available 24 hours   on Wednesday, July 6, 2011. However, the
                                                   a day, 7 days a week. You can also file     payday of June 30 is in the 2nd quarter
•    the schedule we assign to you each            your return, Form IL-941, and pay your     and the payday of July 1, 2011, is in the 3rd
     year, and                                     balance due. Visit our web site for more   quarter. Therefore, two separate payments
•    the date of your payroll.                     information.                               are required.

You are assigned to either a semi-weekly,       2) TaxNet                                     For more information about penalties and
monthly, or annual payment schedule                Use TaxNet to file and pay your Illinois    interest, see Publication 103, Penalties and
based on the “look-back” period de-                withholding tax and/or Illinois Unem-      Interest for Illinois Taxes.
scribed below. You must make payments              ployment Insurance and Wage Reports
(Form IL-501s) based on the appropriate            (UI-3/40). Visit our web site to enroll.   May I make my payments
schedule after you make a payroll.
                                                3) Federal/State Employment Taxes             more frequently?
       Beginning January 1, 2011,                  Program (FSET)                             Yes, you may pay more frequently using
       taxpayers assigned to the semi-                                                        one of our electronic methods or a Pay-
       weekly schedule must make all               If you are a large employer, you can
                                                                                              ment Coupon (Form IL-501). Do not use
       payments electronically.                    use FSET to file and pay your Illinois
                                                                                              your return, Form IL-941, to pay more
                                                   withholding and federal employment
                                                                                              frequently.
When am I required to file                          taxes through a payroll service provider
                                                   or your own software. Visit our web site         If you are assigned to the annual pay-
Form IL-941?                                       for software specifications.                ment and return schedule, you may elect
If you were assigned to the semi-weekly or                                                    to file quarterly returns and make monthly
monthly payment schedule, you must file          4) Other electronic options:
                                                                                              payments. To do so, you must file Form
your return (Form IL-941) quarterly.               ACH credit instructs your financial         IL-941 for any quarter of the year, report the
                                                   institution to transfer funds from your    total amount withheld, and pay all amounts
If you were assigned to the annual payment
                                                   account to ours.                           withheld from January 1 through the end
schedule, you may file AND pay together
                                                                                              of this quarter. You then must begin mak-
(Form IL-941) annually.                            ACH pay-by-phone debit option is
                                                                                              ing monthly payments and filing quarterly
                                                   your instruction to us to take the pay-
                                                                                              returns for the remainder of the year.
What is the “look-back”                            ment from your account.
period?                                            You must complete Form EFT-1 if us-
Payment and return due dates are deter-            ing one of the two electronic options          Avoid these common
mined by the total tax due during the “look-       above. You may complete it on our web
back” period, which is the one-year period         site or complete and mail it to us at
                                                                                                  errors
ending on June 30 of the immediately               Electronic Funds Transfer, Illinois De-        Making payments with Form
preceding calendar year. For calendar year         partment of Revenue, P.O. Box 19015,           IL-941 more than one time a
2011, the look-back period is July 1, 2009,        Springfield, Illinois 62794-9015.               quarter (or year for annual
through June 30, 2010.                                                                            payers) —
                                                5) Paper forms

How may I pay or file?                              If we assign you to the monthly or                 You must always use
                                                   annual payment and return schedule,                Form IL-501 to make your
If your annual tax liability exceeds $12,000,
                                                   you may complete Payment Coupons                   payments. Only use Form
you must make all payments electronically.
                                                   (Form IL-501s) and quarterly or yearly             IL-941 to file your return and
                                                   returns (Form IL-941s).                            report the payments already
    Withholding income tax is not                                                                     made.
    considered withheld until the date
    you pay your employees.                     Are there any special                             Not completing every line on
                                                payment requirements?                             Form IL-941 —
We encourage taxpayers to use our elec-         If you are assigned to the semi-weekly
tronic program WebFile and WebPay. Visit        payment and quarterly return schedule,                You must always complete
our web site at tax.illinois.gov for more in-   and your tax withheld is from two different           every line on Form IL-941.
formation regarding our electronic options.     quarters, you must send us two separate
                                                                                                  Not completing Line 3 correctly
                                                payments. Be sure to identify the quarter
1) WebFile and WebPay                                                                             on Form IL-941 —
                                                to which each payment applies. Otherwise,
    Our free, online program is designed to     we will apply your payments to one quarter            You must put the full amount
    be an easy, convenient, and fast way        only, which may result in a penalty.                  of tax you paid to us with
    for you to submit your payments, Form                                                             Form IL-501s on this line.
    IL-501s, at any time. You can schedule      For example: If you pay one half of your
                                                employees on Thursday, June 30, 2011,
Page 2 of 4                                                                                                                  PUB-131 (R-12/10)
                                                                                       Withholding Income Tax Filing and Payment Requirements


Descriptions of all three payment and return schedules
Semi-weekly                                          Illinois follows the federal rule that               Semi-weekly Payment and
Taxpayers who, during the “look-back”                allows you at least three banking                    Quarterly Return Schedule
period, reported more than $12,000 in with-          days to make your payments after                                            File your return
                                                     you withhold tax.                               Must pay electronically   electronically or use
holding, are assigned to the semi-weekly                                                                                         Form IL-941 by
payment and quarterly return schedule.                                                             Wednesday for amounts       the last day of April,
                                                     For example, if you withhold tax on
                                                                                                   withheld on the preceding   July, October, and
You are required to make all of your pay-            a Friday and Monday is a holiday,
                                                                                                   Wednesday, Thursday, or     January.
ments electronically.                                your payment is due on Thursday               Friday, and
                                                     rather than Wednesday.                        Friday for amounts
                                                                                                   withheld on the preceding
                                                                                                   Saturday, Sunday,
                                                                                                   Monday, or Tuesday.




Monthly                                         If you exceed $12,000 in withholding during                  Monthly Payment and
                                                any quarter, you must file Form IL-941 and                  Quarterly Return Schedule
Taxpayers who, during the “look-back”
                                                electronically pay
period, reported more than $1,000, but                                                                                           File your return
                                                                                                        Pay electronically     electronically or use
no more than $12,000 in withholding, are         •   all withholding income tax from Janu-            or use Form IL-501 by      Form IL-941 by
assigned to the monthly payment and                  ary 1 to the end of this quarter, using        15th of each month         the last day of April,
quarterly return schedule.                           this quarter’s due date, and                   for amounts withheld on    July, October, and
                                                                                                    the preceding month.       January.
                                                 •   using the semi-weekly payment and
                                                     quarterly return schedule in the fol-
                                                     lowing quarter, the remainder of the
                                                     year, and the subsequent year.




Annual                                                    Annual Payment and                       For example: ABC Corporation was
                                                           Return Schedule                         assigned to the annual payment and return
Taxpayers who, during the “look-back” pe-
                                                          File and pay electronically or           schedule based on the look-back period.
riod, reported $1,000 or less in withholding
                                                              use Form IL-941 by                   However, in January of 2011, the corpora-
and are in good standing with the depart-                                                          tion grew by a substantial amount.
ment, are assigned to the annual payment        January 31 of the following year for amounts
and return schedule.                            withheld the entire year.                          1st quarter: ABC withheld          $11,500
                                                                                                   2nd quarter: ABC withheld          $11,000
      You must use Form IL-941, Illinois        If you exceed $12,000 in withholding during        3rd quarter: ABC withheld          $12,500
      Withholding Income Tax Return, to         any quarter, you must file Form IL-941 and                                             $35,000
      file and pay your total withholding tax    electronically pay                                 ABC Corporation must electronically pay
      by January 31 of the following year.       •   all withholding income tax from               us $35,000 by the 3rd quarter’s due date
If you are assigned to the annual payment            January 1 to the end of this quarter,         of October 31 and file Form IL-941 for each
and return schedule, you may elect to file            using this quarter’s due date, and            of the first 3 quarters. The corporation then
                                                 •   using the semi-weekly payment and             must begin to use the semi-weekly pay-
quarterly returns and make monthly pay-
                                                                                                   ment and quarterly return schedule for the
ments. To do so, you must file Form IL-941            quarterly return schedule in the fol-
                                                                                                   4th quarter and subsequent year and make
for any quarter of the year, report the total        lowing quarter, the remainder of the
                                                                                                   all payments electronically.
amount withheld, and pay all amount with-            year, and the subsequent year.
held from January 1 through the end of
this quarter. You then must begin mak-
ing monthly payments and filing quar-
terly returns for the remainder of the year.
Please remember to continue following this
schedule or you may be subject to penal-
ties. For more information about penalties
and interest, see Publication 103, Penalties
and Interest for Illinois Taxes.


                                       Examples of all three schedules are on the next page.
PUB-131 (R-12/10)                                                                                                                          Page 3 of 4
                                                                                             Withholding Income Tax Filing and Payment Requirements

Semi-weekly payment and quarterly return example
 This example reflects tax year 2011 and should be adjusted in subsequent years. We assigned ABC Corporation to the semi-weekly
 payment and quarterly return schedule which requires all payments to be made electronically. ABC Corporation pays its employees
 every two weeks on Friday. Shown below are the withholding income tax (WIT) payment and filing due dates for the first quarter.

Quarter 1
                           Payday                                          Your WIT payment is due
January                    Friday, January 7                               Wednesday, January 12
                           Friday, January 21                              Wednesday, January 26

February                   Friday, February 4                              Wednesday, February 9
                           Friday, February 18                             Thursday, February 24 (Monday, February 21 holiday)

March                      Friday, March 4                                 Wednesday, March 9
                           Friday, March 18                                Wednesday, March 23

Quarter 1 is complete. You must make your payments electronically. Use WebFile and WebPay to make all of your payments
(IL-501s) and to file your quarterly returns (IL-941s).



Monthly payment and quarterly return example
  This example reflects tax year 2011 and should be adjusted in subsequent years. We assigned DEF Corporation to the monthly
  payment and quarterly return schedule. DEF Corporation pays its employees every two weeks on Friday. Shown below are the
  withholding income tax (WIT) payment and filing due dates for the first quarter.

Quarter 1
                                  Payday                                     Payday                                 Your WIT payment is due
January                           Friday, January 7                          Friday, January 21                     Tuesday, February 15

February                          Friday, February 4                         Friday, February 18                    Tuesday, March 15

March                             Friday, March 4                            Friday, March 18                       Monday, April 18
                                                                                                                    (Friday, April 15 holiday)

Quarter 1 is complete. Use WebFile and WebPay to make all of your payments (IL-501s) and to file your quarterly returns (IL-941s).



Annual payment and return example
  This example reflects tax year 2011 and should be adjusted in subsequent years. We assigned GHI Corporation to the annual payment
  and return schedule. GHI Corporation pays its employees every two weeks on Friday. Shown below are the paydays for the entire year.


Payday                            Payday                                     Payday                                 Payday
January                           April                                      July                                   October
Friday, January 7                 Friday, April 1                            Friday, July 8                         Friday, October 14
Friday, January 21                Friday, April 15                           Friday, July 22                        Friday, October 28
February                          Friday, April 29                           August                                 November
Friday, February 4                May                                        Friday, August 5                       Friday, November 11
Friday, February 18               Friday, May 13                             Friday, August 19                      Friday, November 25
March,                            Friday, May 27                             September                              December
Friday, March 4                   June                                       Friday, September 2                    Friday, December 9
Friday, March 18                  Friday, June 10                            Friday, September 16                   Friday, December 23
                                  Friday, June 24                            Friday, September 30

The entire year is complete. Use WebFile and WebPay or Form IL-941 to pay and file your annual return by Tuesday, January 31, 2012.


                                                       Printed by authority of the State of Illinois
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