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The
change impacts employers, payroll service providers, software
developers and individuals that pay gambling and lottery
winnings. IDOR believes the detailed reporting of amounts and
dates of any tax withheld under the new quarterly filing will
make it easier and more accurate for withholding filers.
“By transitioning to a detailed quarterly withholding filing, we
can increase employer compliance and help employers avoid
unnecessary interest and penalty charges,” said Connie Beard,
IDOR Director. “Quarterly withholding filing also aids in
Revenue’s ongoing efforts to detect and combat fraudulent
filings that occur when instances of inflated withholding
amounts or deceptive practices are utilized. By switching from
an annual to quarterly system, we will be able to better
identify individuals who report false income.”
Income taxes withheld from
employees’ paychecks every pay period are collected by the
employer and paid to IDOR. Withholding taxes are considered a
trust tax. Most state income tax revenues come in through the
withholding of taxes from employees paychecks and remitted by
the employer to IDOR. In FY 2016, Withholding tax receipts
totaled over $12 billion, equating to approximately 80% of
individual income taxes owed and approximately 60% of total
income taxes, including individual, Business and Personal
Property Replacement Tax revenues.
For more information on the withholding tax changes that took
effect January 1, 2017, please review IDOR’s informational
bulletin on their website: tax.illinois.gov. A chart of the 2017
Withholding Income Tax Payment and Return Due Dates may be found
here.
[Illinois Department of Revenue]
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