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Sen. Larry Bomke,
R-Springfield, and
Rep. Rich Brauer,
R-Springfield, were chief sponsors of the legislation,
Senate Bill 2066, which requires the Illinois Department of
Employment Security to offer unemployed citizens the opportunity to
have state taxes withheld a little at a time, rather than expecting
these individuals -- who are already financially burdened -- to be
responsible for providing a large lump-sum payment at the end of the
year. "Previously, unemployed citizens would be required to pay
significant amounts in state taxes when they file their income tax
forms because Illinois taxes weren't being withheld from their
unemployment checks on a check-by-check basis," Bomke explained. "By
allowing these individuals to withhold state tax on each check, I
believe that the economic strain on these citizens will be
significantly reduced."
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 The new law will allow taxpayers collecting unemployment to have
3 percent per pay period deducted from each check, rather than
forcing them to pay 3 percent of their annual benefits in one lump
sum. Previously, unemployed taxpayers were not even given the option
to withhold state income tax.
Bomke believes that the law will also improve fluidity of the
state's cash flow. He explained that by withholding tax on a
per-check basis, the state would receive revenue steadily throughout
the year -- instead of continuing to cultivate a system where the
collection of unemployment tax return revenue is contingent on the
taxpayers filing their tax returns.
The new law went into effect upon receiving the governor's
approval.
[Illinois
Senate Republican Caucus news release]
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