Who is an employer or payer?

You are an employer if you are any of the following:

  • a person or organization who has an office or transacts business in Illinois for whom a worker performs a service as an employee and you are the person who is liable to withhold and pay both federal income and FICA taxes to the Internal Revenue Service (IRS).
  • a person or organization who has an office or transacts business in Illinois and who has control of the payment of wages for employee services, if the employer does not have control of the payment of wages.
  • a payer who has an office or transacts business in Illinois and who makes payments from which federal income taxes are withheld (e.g., gambling or lottery winnings).

You are a payer if you are any of the following:

  • a person or organization who pays non-wage income such as pensions, annuities, employment income, and sick pay, that you have agreed to voluntarily withhold;
  • a person or organization that pays gambling or lottery winnings; or
  • a person or organization who purchases the rights to lottery winnings.

See IRS Publication 15 Circular E, Employer’s Tax Guideor Publication 130, Who is Required to Withhold Illinois Income Tax, for more information.

If you have additional inquiries, you may submit them to the Questions, Comments, or Request form.