Recently enacted Illinois HB 0821 (Public Act 100-0303) allows the Illinois Department of Revenue to require that all withholding tax returns be filed electronically, this includes Forms IL-941, IL-941-X and Form W-2.Currently, employers may choose whether to file Forms IL-941 and IL-941-X electronically or on paper. (Informational Bulletin FY 2018-05-A, Illinois Department of Revenue.)

According to a Department representative, the Department plans to amend the Form W-2 regulations to require that all employers electronically file Forms W-2. However, whether the change would be effective for calendar year 2017 is still up for debate. Currently, employers required by the Social Security Administrative to file federal Forms W-2 electronically (250 or more employees) must file Forms W-2 electronically with the state by the February 15 following the tax year. Smaller employers are not required to file Forms W-2.

The bill also allows the Department to change the filing due date for Forms W-2. Accordingly, the Department released proposed regulations that would change the Form W-2 deadline to January 31, effective with calendar year 2017, due in 2018.

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