Employers
will be able to file yearly instead of quarterly
[JAN. 30, 2006]
GLENCOE -- Building on efforts to cut red tape,
reduce the burden of state regulations and help individuals save
time, Gov. Rod R. Blagojevich announced a new website,
www.household.illinois.gov, that will help working parents and
individuals in Illinois file their household employers' taxes easily
and safely online, and do it once a year instead of every three
months. The new website will help families that employ domestic
workers, including nannies, home health care workers, housekeepers
and others.
"Paying taxes and unemployment insurance for nannies,
babysitters, housekeepers or health care workers will now be a lot
easier," the governor said. "You will be able to do it annually
instead of quarterly, and do it online. This makes it easier to
comply and leaves families some extra time to spend with their
children and doing other important things."
Household employees
include nannies, home health care workers, housekeepers,
baby-sitters, gardeners and others who work in or around the home.
Household employers must pay unemployment insurance for employees
who are paid cash wages of $1,000 or more in any calendar quarter.
Generally, employers also have to withhold Illinois income tax for
Illinois employees if they are required to withhold federal income
taxes.
The announcement, made during a press conference on Sunday at
Glencoe's Public Library, comes on the heels of the recent signing
of
House Bill 2133, which reduces the frequency of tax reporting
for households employing staff from quarterly to annually. The
changes affect unemployment insurance contributions and wage reports
collected by the Illinois Department of Employment Security and
withholding income tax collected by the Illinois Department of
Revenue.
Taxpayers should make sure they are registered as an up-to-date
household employer in Illinois and choose to file annually as
opposed to quarterly before April 15.
The old process was confusing and open to error, said Jeffrey
Stern, a trader and Glencoe resident who has employed a housekeeper
for the past 18 years. "This will be a big help to those of us who
have to file these forms and make payments," Stern added.
State Rep. Karen May, D-Highland Park, sponsor of House Bill
2133, stated at the press conference that "by allowing employers the
ability to file annually instead of four times a year, we make it
easier for citizens to follow the law. This law not only simplifies
the process, but likely will increase state revenues as more people
comply with the requirements."
Quarterly contributions and wage reports for household workers,
previously due by the end of the month following each quarter, now
can be submitted on an annual basis, starting April 15.
The Department of Revenue already has annual filing for household
employees. Withholding household employers will be able to file both
annual withholding taxes and unemployment insurance contributions.
"We are working hard to diminish the frequency and number of
reports and filings that employers must complete to satisfy state
requirements," said state Sen. Carol Ronen, D-Chicago. "This is
crucial for small employers, particularly household employers who
often hire individuals to care for their loved ones."
"An emergency rule change earlier in 2005 allowed employers to
wait until April 2006 to file the unemployment insurance
contributions and wage reports due for quarters in 2005, until this
permanent legislation was passed," said Brenda A. Russell, director
of the Illinois Department of Employment Security.
Revenue Director Brian Hamer added, "IDOR is pleased to have this
application join its expanding online options that increase the ease
and efficiency of filing."
The federal Social Security Act requires employers to submit
quarterly wage reports but allows an express exception for household
employers.
