Is withholding required on sick pay?

If sick pay is paid by the employer or an agent of the employer, withholding Illinois income tax is mandatory. If the sick pay is paid by a third party who is not an agent of the employer, withholding Illinois income tax is voluntary. For more information, see IRS Publication 15-A, Employer’s Supplemental Tax Guide.

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