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;
- unemployment paid to an Illinois resident who has asked to have Illinois taxes withheld;
- purchases of rights to Illinois Lottery winnings; or
- other income such as interest, dividend, or retirement income.
register with us to withhold Illinois Income Tax.
As a withholding agent (person who withholds income tax), 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.
For the current income tax rate, see
Income Tax Rates. For more detailed information and the Illinois withholding tax amounts, see
2020 IL-700-T, Illinois Withholding Tax Tables Booklet (effective January 1, 2020 - December 31, 2020)
Important: Per PA 100-22, effective July 1, 2017, the Illinois income tax rate increased from 3.75% (.0375) to 4.95% (.0495).
All withholding income tax credits are now reported on the Schedule WC. The Schedule WC-I, Withholding Income Tax Credits Information and Worksheets, provides detailed information about the withholding income tax credits, how to calculate them and where to report them.
Filing and Payment Requirements
- 2020 Illinois Withholding Income Tax Payment and Return Due Dates
- Electronic mandate
The Department requires all employers and payers to file the following forms electronically:
- Starting with the 2017 tax year, federal Forms W-2, Wage and Tax Statement; W-2c, corrected Wage and Tax Statement; and W-2G, Certain Gambling Winnings, and
- Starting with the 2018 tax year, Form IL-941, Illinois Withholding Income Tax Return.
If you are unable to file electronically, you may request Form IL-900-EW, Waiver Request, through our Taxpayer Assistance Division at 1 800 732-8866 or 1 217 782-3336. The Waiver Request must be completed and submitted back to the Department. You will be notified if the Waiver Request is approved or denied.
Illinois withholding income tax payments are made on
Form IL-501, Withholding Payment Coupon, and Illinois withholding is reported on
Form IL-941, Illinois Withholding Income Tax Return.
IMPORTANT: Make sure to use the correct version of Form IL-941 for the liability period you are filing. This is a calendar year form and each year has its own form. For example, you must use a 2020 Form IL-941 for each quarter in 2020. Also, the Form IL-941 that is available on our website must have the correct federal employer identification number (FEIN) and reporting period so the scanline that is automatically produced will have the correct information. Form IL-941s are processed according to the tax year and the scanline on the form. The scanline is the numeric code number entered on the bottom of the form that includes pertinent information for the taxpayer and filing period. Common error: a Form IL-941 is printed from our website, photocopied, the original data is covered or whited out, and new information is entered. When we receive the Form, it is applied to the period and FEIN represented in the scanline on the bottom of the page. If the scanline is incorrect or cannot be read, then the Form will not be applied to the correct period or taxpayer.
All Form IL-941 returns are due quarterly. All taxpayers are assigned to one of two payment due date schedules: semi-weekly or monthly.
|Quarter||Months in Quarter||Quarter ends||IL-941 is due|
|1||January, February, March||March 31, 2020||April 30, 2020|
|2||April, May, June||June 30, 2020||July 31, 2020|
|3||July, August, September||September 30, 2020||November 2, 2020|
|4||October, November, December||December 31, 2020||February 1, 2021|
Note: When a due date falls on a weekend or holiday, the due date is adjusted to the next business day.
W-2s must be filed by January 31 of the following year.
|Must pay electronically|
Wednesday for amounts withheld on the preceding Wednesday, Thursday, or Friday, and
Friday for amounts withheld on the preceding Saturday, Sunday, Monday, or Tuesday.
electronically or use Form IL-501 by the|
15th of each month for amounts withheld in the preceding month.
New taxpayers: You are automatically assigned to the monthly payment schedule and quarterly filing schedule.
Publication 131, Withholding Income Tax Payment and Filing Requirement, for more information.
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 monthly due date schedule, and
- you reported more than $12,000 in withholding during the “look-back” period (the one-year period ending on June 30 of the immediately preceding calendar year), you are assigned to the semi-weekly payment schedule, or
- you exceed $12,000 in withholding during a quarter, it is your responsibility to begin to pay your Illinois withholding income tax semi-weekly in the following quarter, the remainder of the year, and the subsequent year.
For more information, see
Publication 131, Withholding Income Tax Filing and Payment Requirements.
ILLINOIS DEPARTMENT OF EMPLOYMENT SECURITY
33 SOUTH STATE STREET
CHICAGO ILLINOIS 60603
1 800 247-4984 or 1 312 793-4880