What is the state minimum wage? 

  • $9.25/hour

What do I need to know about state withholding tax?

  • Illinois residents are subject to tax on all income no matter where it is earned. If you were taxed by another state on the income you received while you were an Illinois resident, you may be entitled to a credit for tax paid to other states
  • If you earned wages, salaries, tips, or other employee compensation from an employer in Iowa, Kentucky, Michigan, or Wisconsin while you were a resident of Illinois, you are covered by a reciprocal agreement between that state and Illinois and are not taxed by that state on your compensation. However, you are required to pay Illinois income tax.
  • New employers are required to register for a withholding account.  Click here to register.

What forms do employees need to set up state withholding?

  • IL W-4 – Employee’s Withholding Allowance Certificate

What do I need to know about unemployment tax?

  • 2020 Taxable Wage Base – $12,740
  • 2020 New Employer UI Rate – 3.125%
  • With few exceptions, new employers are required to register for an unemployment tax account. Click here to register.

How do I report new hires to the state?

  • Report New Hires online
  • Illinois New Hire Directory
    P.O. Box 19473
    Springfield, IL 62794-9473
  • Fax: (217) 557-1947
  • Phone: (888) 776-7708

How do I submit Child Support payments?

  • Illinois Department of Healthcare and Family Services
    Illinois State Disbursement Unit (SDU)
    P.O. Box 5400
    Carol Stream, IL 60197-5400
  • Phone: (800) 447-4278

Additional Resources:

Illinois Department of Revenue Iowa Division of Labor
Illinois Department of Employment Security Iowa State Laws
Illinois Unemployment Insurance Law Handbook Illinois Forms & Publications
Illinois Employer Handbook for Child Support

 

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