All About Illinois Taxes

Looking for Illinois state tax information? PaycheckCity’s tax researchers provide the latest resources on state tax, unemployment, income tax and more in this helpful article.
Illinois Department of Revenue
Illinois Department of Employment Security

Withholding Requirements:

• Register new businesses by filing Form REG -1(Business Registration Application )
• Employee's Illinois Withholding Allowance: IL-W-4
• Withholding Method = 5%
• Supplemental Rate = Withhold at 5%

Local Taxes:

Chicago Employer Expense Tax - $2 per month per employee and commission merchant (in excess of 49)

State Unemployment Insurance (SUI):

Register as employer by filing Form UI-1 (Report to Determine Liability)Report quarterly wages and contributions by filing Form UI-3/40 Employer's Contribution and Wage Report) by last day of month following end of quarter. Wage base is $12,960 for 2014
Rates range from 0.55% to 8.55% for 2014 New employers use 3.95% for 2014
New construction employer should use 5.85% for 2014
Rates include the 0.550% fund-building factor

State Disability Insurance (SDI):

none

State labor laws:

Minimum Wage - $8.25
Termination Pay - Fired/Quit - next regular payday.

New Hire Reporting:

Employers must report hiring, rehiring, and return reporting to work within 20 days on New Hire Reporting Form to: Illinois New Hire Directory
P.O. Box 19473 Springfield, IL 62794-9473312-327-4473217-557-1947 (fax)

Remit Withholding for Child Support to>

Illinois State Disbursement Unit
P.O. Box 5400 Carol Stream, IL 60197-5400877-664-5738

Reciprocal States:

Iowa, Kentucky, Michigan, Wisconsin

For Illinois paycheck calculation visit the Illinois Paycheck Calculator of PaycheckCity.