Brushing up or learning Illinois state taxes? Here is a one-stop source.
Withholding Requirements
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.
New withholding lock-in letters are expected to be approved in the near future. Once these letters are updated, the previous letters will be replaced. Employers and employees should know how to treat these lock-in letters.
Gross pay and net pay are two important terms to understand. Which pay is most important to me, and how do I calculate it? With the PaycheckCity net pay calculators, gross pay calculators, and other resources, calculating paychecks is simpler than ever.
The start of the new decade presented many significant changes that impact paychecks. Federal, state, and local tax rates across the country typically change with the coming of the new year. Wage bases also change at the Federal and state level.
PaycheckCity Payroll is an easy and affordable way to do your small business payroll. Sign up for a 7-day free trial today.
