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?
2024 Taxable Wage Base – $13,271
2024 New Employer UI Rate – 3.950%
With few exceptions, new employers are required to register for an unemployment tax account. Click here to register.