Illinois Department of Revenue
 
 
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Withholding (Payroll)

 
 

Statutory Reference

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Definition

Generally, you must withhold Illinois Income Tax if you are required to withhold (or have a voluntary agreement to withhold) federal income tax from payments you make for
  • employee compensation (i.e., wages and salaries) paid in Illinois,
  • gambling or lottery winnings in Illinois paid to an Illinois resident, or
  • unemployment paid to an Illinois resident who has asked to have Illinois taxes withheld.

You must register with us to withhold Illinois Income Tax.

As a withholding agent, you are liable for the taxes that you are required to withhold. Because we are required to collect taxes (and issue assessments when these taxes are not paid), Illinois law states that the amounts required to be withheld and paid to us (and any penalties and interest) are considered to be a tax on you. As the withholding agent you must pay the tax even if you failed to withhold the tax from your employee.

For more detailed information, see Publication 130, Who is Required to Withhold Illinois Income Tax.

Amount withheld

Effective January 1, 2013, the rate for withholding Illinois Income Tax is 5 percent. For more detailed information, see Publication 130, Who is Required to Withhold Illinois Tax, and Booklet IL-700-T, Illinois Withholding Tax Tables.

Filing and Payment Requirements

All returns are due quarterly unless we notify you differently. All taxpayers are assigned to one of three payment due date schedules: semi-weekly, monthly, or annual.

Semi-weekly: You must pay by Wednesday for amounts withheld on the preceding Wednesday, Thursday, or Friday, and Friday for amounts withheld on the preceding Saturday, Sunday, Monday, or Tuesday. This is generally within 3 to 5 days after each payroll. You must make all payments electronically. You must file your return by the last day of April, July, October, and January. Do not file an annual return.

Monthly: You must pay by the 15th of each month for amounts withheld the preceding month. Be sure to use Form IL-501, Payment Coupon, to make your payments, not Form IL-941, Illinois Withholding Income Tax Return. You must file your return by the last day of April, July, October, and January. Do not file an annual return.

Annual: If you receive notification from us that you may file an annual return, you have three options. You can
  • Make a single payment and file Form IL-941 by January 31 of the following year; or
  • Make multiple payments throughout the year and file Form IL-941 by January 31 of the following year. If you select this option, we encourage you to electronically make you payments or use Form IL-501, Payment Coupon; or
  • Make monthly payments and file Form IL-941 each quarter. See Publication 131, Withholding Income Tax Payment and Filing Requirements, and refer to the monthly and quarterly return schedule.

New taxpayers: You are automatically assigned to the monthly due date schedule.

Can my due date schedule change during the year?

If you are assigned to the semi-weekly due date schedule, your schedule will not change.

If you are assigned to the annual or monthly due date schedule and you exceed $12,000 in withholding during any quarter, you must begin to use the semi-weekly due date schedule for the following quarter, the remainder of the year, and the subsequent year.

Note: It is the taxpayer’s responsibility to use an electronic method to file and pay, or call us so we can issue a new withholding coupon booklet.

For more information, see Publication 131, Withholding Income Tax Filing and Payment Requirements.

Note:
  The Illinois Department of Revenue is not responsible for collecting unemployment insurance payments. Contact the Illinois Department of Employment Security, for more information or to report a newly hired employee.

ILLINOIS DEPARTMENT OF EMPLOYMENT SECURITY
REVENUE DIVISION
33 SOUTH STATE STREET
CHICAGO ILLINOIS 60603
1 800 247-4984, option 1 or 312 793-4880, option 1

Questions?

  • Call us at: 1 800 732-8866 or 217 782-3336
  • Call TDD: 1 800 544-5304
  • Mail your IL-501 forms to:
    ILLINOIS DEPARTMENT OF REVENUE
    P.O. BOX 19447
    SPRINGFIELD, ILLINOIS 62794-9447
  • Mail your IL-941 forms to:
    ILLINOIS DEPARTMENT OF REVENUE
    P.O. BOX 19052
    SPRINGFIELD, ILLINOIS 62794-9052
 
 
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