Your 2016 State Taxes for Illinois

Withholding Requirements

• Register new businesses by filing Form REG -1 (Business Registration Application).
• Employee's Illinois Withholding Allowance: IL-W-4.
• Withholding Method = 3.75%.
• Supplemental Rate = Withhold at 3.75%.

Local Taxes:

Chicago Employer Expense Tax - $2 per month per employee and commission merchant (in excess of 49). As of January 1, 2014 this has been phased out. 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 2016.
Rates range from 0.55% to 7.75% for 2016.
New employers use 0.55% for 2016.
New construction employer should use 4.15% for 2016.
Rates include the 0.550% fund-building factor.

State Disability Insurance:

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 19473Springfield, 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 paycheck calculations, visit the paycheck calculator of PaycheckCity.