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Illinois Payroll Tax Guide 2022: Laws, Taxes and more

File your Illinois state taxes with confidence using our expertly curated resources. Learn the latest on Illinois payroll taxes, rates, policies, and more, below.

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Running Payroll in Illinois: A Step-By-Step Guide

In addition to federal guidelines, businesses in Illinois are required to manage their payrolls in accordance to local and state regulations. In this section, we will outline the payroll process for Illinois-based companies that have employees.

1. Setting Up Your Business

Before registering with the state of Illinois, businesses must have a federal Employment ID Number (EIN) and an account in the Electronic Federal Tax Payment System (EFTPS).

Setting Up Your Business@2x

How to Apply for an Employer Identification Number (EIN)

The application process for EINs is managed by the IRS, To apply digitally, follow the instructions below:

  1. Determine Your Eligibility
    Principal businesses located in the United States or U.S. Territories are eligible to file for an EIN online through the IRS. In order to apply, the person applying must have a valid Taxpayer Identification Number (SSN, ITIN, EIN). Applicants are limited to one EIN per responsible party per day. Per the IRS, “The ‘responsible party’ is the person who ultimately owns or controls the entity or who exercises ultimate effective control over the entity. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.”
  2. Complete Online Application
    To properly request an EIN, businesses must complete the IRS’s digital application. To view the application, click here. Applications must be completed in one session, as there is no option to save or return at a later time. Sessions that are inactive for more than 15 minutes will expire.
  3. Submit Online Application
    After the online application is completed and submitted, applicants will immediately receive their EIN. The IRS recommends businesses download, save, and print their EIN confirmation notice.

How to Enroll into the Electronic Federal Tax Payment System (EFTPS)

The application process for the EFTPS is managed by the IRS, To apply digitally, follow the instructions below:

  1. Begin Enrollment
    To start, visit http://eftps.gov and click “Enroll”
  2. Accept the Privacy Act and Paperwork Reduction Act
    From the enrollment tab, complete the first step (“Start”) by reviewing the Privacy Act and Paperwork Reduction Act. After reading, check the box next to “I accept the Privacy Act and Paperwork Reduction Act.” To continue, select “Business” under the “Enroll me as:” prompt.
  3. Complete Enrollment Form
    Note: If you used a coupon in the past two years or if your business is less than a year old, you are pre-enrolled in EFTPS (per EFTPS.gov)
    Complete the Enrollment form by filling in each section with the appropriate information – EIN, business name/location, contact information, and payment information.
    Click the “Review” button to continue.
  4. Review Enrollment Form
    Prior to submitting, review the EFTPS form to ensure all information is accurate.
    Click the “Complete” button to continue.
  5. Complete Enrollment Form
    On this screen you will receive confirmation for the submission of your EFTPS enrollment application. Within seven business days, you will receive your PIN in the mail.
    This PIN is used to log in to your business’s EFTPS account.

2. Register with the Illinois Department of Employment Security (IDES)

illinois-payroll-setting-up-business

After receiving your EIN and EFTPS account, your business can now register with the Illinois Department of Employment Security. To register a new business, complete the REG-1 form. Applications can be completed online, by mail, or in person.

  • Registering with the IDES Online
    1. To register online, first visit https://mytax.illinois.gov/
    2. On the homepage, select “Register a New Business (Form REG-1)” under the “Register” section.
    3. Following the instructions given, complete application.
    4. After review, submit the form.

  • Registering with the IDES by Mail
    1. To register by mail, first open the REG-1 form from the MyTax website.
    2. Complete the form. The IDES recommends filling out the form digitally, then printing off the completed application.
    3. After printing off the form, send the application to:
      CENTRAL REGISTRATION DIVISION ILLINOIS DEPARTMENT OF REVENUE PO BOX 19030
      SPRINGFIELD IL 62794-9030
    4. Allow for 6 to 8 weeks for processing of mailed applications.
  • Registering with the IDES at a Branch
    1. To register in-person, visit your local IDES Branch.
    2. After arriving, request a REG-1 form and fill out the appropriate sections.
    3. After completion, return to an IDES representative.

3. Set Up Payroll

How Illinois payroll is set up will differ by business and industry. The main decisions are:

  • Payment method (direct deposit or papercheck)
  • Pay periods (weekly, bi-weekly, semi-monthly, or monthly)

Learn more about managing your company’s payroll in-house or with a service.

4. Collect Employee Payroll Forms

Best completed during the onboarding of new employees, businesses must collect the following forms for all employees in order to be compliant with state and federal requirements:

  • W-4 – Employee’s Withholding Certificate
  • I-9 – Employment Eligibility Verification
  • Direct Deposit Authorization (if applicable)
  • IL-W-4 – Employee’s and Other Payee’s Illinois Withholding

Note: All employees must complete their I-9 verification no later than their first day of work. I-9 forms must be stored for 3 years after the date of hire, 1 year after employment ends, or whichever is later.

5. Collect, Review, Approve Timesheets

For hourly and salary non-exempt employees, businesses are required to collect, review, and approve all timesheets within the appropriate time frame. Timesheets can be paper or electronic forms.

To manage timesheets with ease, businesses can utilize time and attendance solutions such as CAVU HCM.

Combining software and concierge services, CAVU’s payroll solution eliminates errors and improves the employee experience without extra stress on your operation. Illinois payroll taxes can be difficult but led by experts on all local, state, and federal policies and regulations, CAVU helps manage every part of your payroll process, including time and attendance, yearly filings, tax credit applications, and more.

To review pay period guidelines for the state of Illinois, click here.

6. Calculate Payroll, Pay employees

In order to pay employees for their timesheets, businesses must first calculate their payrolls. To calculate your company’s Illinois payroll and pay your employees, follow the six steps below:

illinois-payroll-calculate

  1. Calculate Total Time Worked for Period for Each Employee
    In order to manage your Illinois payroll and taxes, you will need to determine how many hours your employees worked in a pay period. How you execute this step depends if an employee is salaried or hourly, and non-exempt or exempt. Follow the appropriate step below.

    Note: Employers must classify their employees correctly according to the Fair Labor Standards Act (“FLSA”) or risk costly compliance violations. Misclassification of employees as exempt from overtime (when they are actually non-exempt) is one of the most common Fair Labor Standards Act (FLSA) violations and a focal point for government enforcement.

    For Salaried Employees
    An employee is exempt from the FLSA typically must be paid a salary above a certain level and work in an administrative, professional, executive, computer or outside sales role. Generally, salaried employees are expected to work a minimum 40 hours per week, but are exempt from receiving overtime wages. As a result, employers rarely require employees (On Illinois payroll) to track their time. Due to this dynamic, payroll managers can generally assume that pay for each period will be the same. To decide the exemption status of an employee, use the U.S. Department of Labor’s online duties test.

    For Non-Exempt Salaried Employees
    If Illinois payroll employees are classified as non-exempt, then they are entitled to overtime pay when they work more than 40 hours in a work week (consecutive seven day period). Non-exempt employees can earn an hourly wage or a salary. To calculate Illinois payroll of non-exempt salaried employees, calculate the total hours of work for a single pay period, noting overtime hours. The total wages for each employee will be their salary for minimum hours worked plus any overtime wages. Overtime wages should be paid at the employee's salary, broken down into an hourly rate times 1.5.

    For Hourly Employees
    Calculating total time worked for a period for an hourly employee is a matter of simple math. Using a timesheet or clocked hours, add up total hours worked for a given work week. This should be done weekly for Illinois businesses, regardless of your payroll Illinois frequency.

    Calculating Gross Pay
    After calculating each employee’s total hours, calculate their gross pay for a given period. Gross pay is an employee’s total earnings before taxes and deductions. Calculating this is as simple as multiplying an employee’s hourly rate by their hours worked. For non-exempt employees, work beyond 40 hours in a work week should be paid at a rate of time and one-half.

    Gross Pay = (Hourly Rate)(Hours Work) + (Overtime Pay)

  2. Total Payroll Deductions
    In accordance with federal regulations, businesses are required to subtract Illinois payroll deductions from gross pay prior to determining an employee’s total pay. There are both pre-tax and post tax deductions, each with their own requirements.
    There are numerous pre-tax payroll deductions, including:
    • Retirement contributions - IRA accounts, 401(k), 403(b)
    • Insurance premiums - health, vision, dental, life
    • Wage garnishes - court-ordered deductions, for employees who fail to repay debt
    • Union dues
    • Child support payments
    Just the tip of the iceberg, there are nearly endless pre-tax deductions. Regardless of what you use, however, all deductions will reduce gross pay.

  3. Calculate Total Payroll Taxes
    Employee Taxes
    To calculate the total Illinois payroll taxes owed by each employee you will need to determine the percentage of income that should be withheld from local, state, and federal income. To do so, refer to the employee’s W-4 form.
    Below are the types of Illinois payroll taxes that will be withheld:
    Importantly, before calculating total Illinois payroll taxes, businesses must first account for all pre-tax deductions. Doing so is simple: subtract pre-tax deductions from total gross pay.

    Note: there is no local income tax in the state of Illinois.

    Employer Taxes
    Along with calculating the withheld Illinois payroll taxes for each employee, businesses are responsible for their own taxes.
    The following is a list of payroll-related taxes required for businesses in the state of Illinois:
    1. Social Security (6.2%)
    2. Medicare (1.45%)
    3. Federal Unemployment Insurance (FUTA + 0.6%)
    4. State Unemployment Insurance Taxes (IL Department of Unemployment Security)

  4. Subtract Deductions and Taxes from Gross Pay
    To determine each employee’s net pay, simply subtract total deductions and total taxes from gross pay.

    Net Pay = Gross Pay - (Post-Tax Deductions + Tax Deductions)

  5. Distribute Employee Paychecks
    In the state of Illinois, businesses have the opportunity to choose their pay schedules, such as daily, weekly, bi-weekly, semi-monthly, and monthly. Each period length has different guidelines, set by 820 ILCS 115/4:
    • Monthly Pay Periods: wages must be paid on or before 21 calendar days after the end of the period in which they were earned. As defined by the Fair Labor Standards Act of 1938, monthly pay periods are only allowed for executive, administrative, and professional employees.
    • Semi-monthly/bi-weekly: wages must be paid no later than 13 calendar days after the end of the period in which they were earned.
    • Weekly: wages must be paid no later than 7 calendar days after the end of the period in which they were earned.
    • Daily: wages must be paid no later than 24 hours after the end of the period in which they were earned.

    In addition to the above requirements, businesses should consider local policies when setting up their payroll.

7. Pay and File Payroll Taxes with Illinois and Federal Government

In order to stay compliant with state and federal regulations, all businesses must submit payment for Illinois payroll taxes on the appropriate schedules and file payroll tax documentation using the appropriate paper or electronic forms.

For more information on federal or Illinois payroll tax forms, click the appropriate link below:

For additional information, use the resources below.

For assistance on federal forms, employers can contact the IRS at 1-800-829-1040 or http://www.irs.gov.

For assistance on Illinois payroll tax forms, employers can use the following methods:

Illinois State Contact Information

Forms Hotline

1-800-356-6302

Taxpayer Assistance

1-217-782-3336

TDD Assistance

1-800-544-5304

Internet Address

http://tax.illinois.gov

8. Document and Store Payroll Records

Per the Fair Labor Standards Act (FLSA) and Illinois Minimum Wage Law (IMWL), employers in the state of Illinois are required to record, document, and store employee records. For each Illinois payroll employee, the following information is required to be recorded and stored:

  • Employee's full name and Social Security Number.
  • Address, including zip code.
  • Birth date
  • Sex and occupation.
  • Time and day of week when an employee's work week begins.
  • Hours worked each day.
  • Total hours worked each workweek.
  • Basis on which employee's wages are paid (e.g., "$9 per hour", "$440 a week", "piecework").
  • Regular hourly pay rate.
  • Total daily or weekly straight-time earnings.
  • Total overtime earnings for the workweek.
    All additions to or deductions from the employee's wages.
  • Total wages paid each pay period, date of payment and the pay period covered by the payment.

    (source)

Unlike federal regulations, the state of Illinois requires business owners to store both payroll records and payroll tax documentation for at least five years.

9. Complete Year End Payroll Illinois Tax Reports

By January 31st of each year, employers are required to issue to employees and file W-2s for the previous year. For employees, businesses should utilize W-2 forms. For contractors, 1099 forms.

W-2s for each employee are usually completed by the payroll software and show important information, including annual earnings, taxes withheld, and other information the employee needs to file their state and federal income tax returns.

Looking for a payroll solution built for your Illinois business?

Look no further. Led by experts on your local, state, and federal policies, CAVU HCM’s payroll solution is the perfect fit. Let manage your entire payroll process – including time and attendance, yearly filings, application of tax credits, and more.

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Illinois Payroll Laws, Taxes and Regulations

In the state of Illinois, employers required to withhold Federal Income Tax for employee compensation, wages, and salaries must also withhold State Income Tax as well.

Withholding agents are liable by law for the taxes they are required to withhold. Withholding agents are responsible for their appropriate taxes, even if they fail to withhold from their employees.

In this section we will overview the State of Illinois payroll and tax requirements, which all withholding agents must adhere to.

For more information, see Publication 130, “Who is Required to Withhold Illinois Income Tax.”

1. FICA and Employment Taxes

Established by the federal government under IRC section 3121(a), the Federal Insurance Contributions Act (FICA) requires all businesses to deduct federal taxes from each paycheck. Unlike individual taxes, FICA is paid by both the employer and employer, typically at a rate of 7.65% of taxable wages over to the IRS.

Unless specifically excluded by statute, all forms of payment (cash, check, deposit, etc) are considered taxable. The same rule applies for types of base pay, such as hourly, weekly, piecework, and more.

While nearly all forms of payment are included in FICA’s policies, the following types of compensation are exempt from Illinois payroll:

  • Wages paid after an employee’s death
  • Wages paid to disabled employees who collect Social Security disability insurance benefits
  • Expense reimbursements for driven mileage
  • Retirement contributions by employer
Each year, the Social Security Administration establishes the taxable maximum wage for FICA. For 2022, this amount is $147,000, a slight raise from $142,800 in 2021.

2. State Withholding

Typically, Illinois employers must withhold 4.95% of taxable wages from employee pay, which will be remitted to the state.

To correctly calculate the amount of state income tax withheld, employers must have Form IL-W-4 for each employee. Using Form IL-W-4 and Booklet IL-700-T (Illinois payroll Withholding Tax Tables), employers can find their estimated state withholding rate.

3. Unemployment Insurance Taxes

Unemployment Insurance is a form of financial aid that assists eligible workers while seeking employment. Typically ordered on the state level, the federal government can administer unemployment insurance during periods of crisis, such as the COVID-19 pandemic.

Similar to other Illinois payroll taxes, all businesses contribute to the funding of unemployment insurance through their tax contributions. For Illinois, the following rules apply to state Unemployment Tax: 

  • Every employer in the state of Illinois must register with the Illinois Department of Employment Security (“IDES”), as well as pay and file unemployment insurance.
  • For-profit employers are liable for Illinois Unemployment Taxes after paying $1,500 in wages in a single calendar quarter OR employing at least one person for more than 20 weeks in a calendar quarter.
  • Illinois Unemployment Tax rules align entirely with the Federal Unemployment Insurance Tax (FUTA). 
  • Different rules, not covered here, apply to agriculture and domestic workers, and employees of some non-profit organizations.

In 2022, the Illinois state unemployment insurance (SUI) tax rate will range from 0.725% to 7.1%, with a maximum taxable wage base of $12,960. This year’s guidelines saw a modest increase from 2021, which had a range of 0.675% to 6.4%; the taxable wage base did not change from 2021 to 2022.

Note: employers are required to post a notice regarding state unemployment claims in a common space for all employees to see. The poster provides basic information on how to file an unemployment claim and what kinds of benefits are available.

4. Employee Classifications

It is important for all employers in the state of Illinois to properly classify their employees.

How an Illinois payroll employee is classified can change the requirements for the employer. For example, independent contracts are not subject to withholding and unemployment taxes, as opposed to hired employees.

Incorrectly classifying an employee can result in penalties and/or fines on the local, state, and federal levels.

State Minimum Wage

The introductory overview addresses minimum wage laws for Illinois payroll

1. State Minimum Wage Law: 2022

Entering 2022, the state of Illinois’s minimum wage is set at $12 per hour, just in the middle of a progressive yearly increase to $15 per hour.

While the law sets a minimum compensation rate, there are a few exceptions:

  • New employees (under 90 days of employment) over the age of 18 can be paid up to 50 cents less per hour.
  • Minors (under 18) working under 650 hours per year can be paid ~75% of the current hourly minimum wage.
  • Employees in gratuity-based industries can be paid 60% of the current hourly minimum wage.
  • Full-time hourly employees that exceed 40 hours in a work week are due compensation at time and one-half the regular rate.

Illinois State Minimum Wage Chart

Year

Minimum Wage

Tipped

Minors (under age 18)

2022

$12

$7.20

$9.25

2023

$13

$7.80

$10.50

2024

$14

$8.40

$12

2025

$15

$9

$13

2. Local Minimum Wage Law: 2022

Although the state’s minimum wage is set at $12 per hour for 2022, some local municipalities chose to set their own higher standards. These policies apply solely to Illinois payroll employees within their own jurisdictions.

The following table highlights all localities in the state of Illinois with their own minimum wage laws:

Localities with Minimum Wage Laws

Locality

Applies to

Min. Wage

Chicago

21+ employees

$15.00/hour

 

4-20 employees

$14.00/hor

Cook County

All employees

$13.00/hour

Additional State Regulations

The introductory overview addresses the following topics

1. State Pay Stub Laws

Currently, there is no federal law that requires businesses to provide pay stubs. Most states, however, do have their own pay stub laws. As a result, Illinois-based companies should be aware of local and state requirements.

On the state level, Illinois requires employers to provide workers access to their pay information. These details do not have to be provided with a physical pay statement, however. Instead, companies can comply with these policies by providing digital pay stubs.

Eliminating any ambiguity, Illinois’ pay stub law is outlined in 820 ILCS 115/10, Section 300.600. This section states:

“Notwithstanding the method of payment, the employer must provide the employee with a written receipt that shows hours worked, rate of pay, overtime pay and overtime hours, gross wages, an itemization of all deductions, wages and deductions year to date. When an employer offers to any of its employees alternative options for receipt of payment of wages, all employees must be afforded the same options. When an employer elects to pay employees in cash, the employer must obtain signed receipts from the employee indicating the date of payment and amount received.”

2. Minimum Pay Frequency

While businesses do have the opportunity to choose their payment schedule, they still must follow state guidelines set by 820 ILCS 115/4:

  • Monthly Pay Periods: wages must be paid on or before 21 calendar days after the end of the period in which they were earned. As defined by the Fair Labor Standards Act of 1938, monthly pay periods are only allowed for executive, administrative, and professional employees.
  • Semi-monthly/biweekly: wages must be paid no later than 13 calendar days after the end of the period in which they were earned.
  • Weekly: wages must be paid no later than 7 calendar days after the end of the period in which they were earned.
  • Daily: wages must be paid no later than 24 hours after the end of the period in which they were earned.

3. Overtime Regulations

Complementing the federal government’s Fair Labor Standards Act, Illinois payroll outlines all requirements and regulations in regards to overtime work and pay. 

Like the FLSA, Illinois overtime law states that all non-exempt employees are entitled to time and one half pay for any work that occurs after exceeding 40 hours in a workweek. For example, an employee with a base pay of $15.00/hour would be paid an overtime rate of $22.50 per hour.

Along with standard Illinois payroll overtime regulations, the state does outline employees who are exempt from standard overtime pay policies:

  • Professional, administrative, or executive employees, defined by the Fair Labor Standards Act
  • Commissioned employees, defined by the FLSA, Section 7(i).
  • State employees for related agencies, municipalities and units of local government and school districts
  • Laborers who exchange hours in accordance to a workplace exchange agreement
  • Agricultural employees
  • Employees of certain educational or residential child care institutions
  • Dealership salesmen and mechanics that sell or service vehicles (cars, trucks or farm implements) 
  • Certain radio/television employees in a cities with populations under 100,000
  • Motor carrier employees, including truck drivers, loaders and others who have safety related duties (maximum hours of service set by U.S. Department of Transportation)
  • Computer employees (ie. programmers, engineers, systems analysts) with a minimum hourly rate of $27.63/hour or minimum salary of $684/week.

Unlike federal law, the Illinois state wage laws do not specify overtime exemptions for highly compensated employees ($100,000+/year).

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Learn about the process

1. Illinois New Hire Reporting

In 1998, state and federal laws began requiring all employers to report all new and rehired employees. For Illinois employers, these reports are sent to the state Directory of New Hires.

In the state of Illinois, employers are required to report all new hires within 20 calendar days of their individual start date. In general, any employee that fills a W-4 should be reported. To be specific, employers must report the following types of new hires:

  • Full-time employees
  • Part-time employees
  • Temporary (seasonal) employees
  • Any employee returning to work who has been off the payroll for 60 consecutive days or more within the same company due to:
    • Lay-off
    • Furlough
    • Medical leave
    • Leave of absence
    • Separation from work

How to Report New Hires

Per the state of Illinois, there are five methods for reporting new hires:

  1. Completing and submitting the New Hire Reporting form provided by the Illinois Department of Employment Security (via first-class mail or fax);
  2. Submitting copies of the employee's W-4 form, with all information completed legibly, including the employer information (via first-class mail or fax);
  3. Submitting a separate listing of new employees, with the required data (via first-class mail, fax, or e-mail);
  4. Registered employers can login to complete the online New Hire Reporting Web form or upload a file; or
  5. Choose to submit New Hires using a secure file transfer protocol (sFTP). To use this method, please call (888)-245-1938 to request login credentials and to receive the specified file layout for this method of submission.

After filling the appropriate New Hire forms, businesses can submit their reports in three ways:

Illinois Department of Employment Security
33 S State Street
10th Floor; Chicago, IL 60603

Required Information for New Hire Reports

Per the state of Illinois, the following information is required on New Hire Reports:

  • Employer's Federal Employer Identification number (FEIN)
  • Employer's company name - name associated with the FEIN
  • Employer's address - address associated with the FEIN
  • Employee's Social Security number
  • Employee's name (specify first, middle and last)
  • Employee's home address
  • Date of hire (the employee's first day of work for pay)

3. Leave Requirements

Like businesses in every state, employers in Illinois must comply with the federal Family and Medical Leave Act (FMLA). Unique to the state, however, are additional leave rights, which make more employees eligible for unpaid leave.

Employers must adhere to the FMLA if they have at least 50 employees for 20 or more weeks in the current calendar year.

Federal FMLA Rights

According to the Family and Medical Leave Act, all employees are eligible to receive 12 weeks of unpaid leave for serious injury or illness, to care for ailing family members, to prepare for a family member’s military service, or to care for newborns or newly adopted children.

Employees are eligible for FMLA-related leave if:

  • They have worked at least 1,250 hours during the previous work
  • They work at a location with at least 50 employees (within 75-mile radius)
  • They have worked at the company for at least one year

Illinois payroll employees who use FMLA leave are entitled to continue their health insurance while on leave, as well as are entitled for reinstatement upon return.

Illinois Family and Medical Leave Laws

In addition to the guidelines provided by the federal government, the state of Illinois provides additional rights to employees in regards to family and medical leave:

Domestic Violence Leave

Businesses with 50 or more employees must allow eligible employees to take upt to 12 weeks of leave if they, a family member, or a household member are victims of domestic or sexual violence. This 12 week period can be used for:

  • Seeking medical treatment
  • Receiving professional counseling
  • Obtaining services from victim support organizations
  • Seeking legal assistance
  • Planning to improve victim safety, including relocation

Military Family Leave

For businesses with at least 15 employees, laborers can receive unpaid leave in preparation for a spouse or child’s military deployment.

Companies with at least 50 employees must provide at least 30 days of leave, while smaller businesses must provide 15.

Small Necessities Law

Illinois businesses with more than 50 employees must provide parents and guardians of school-aged children up to eight hours of unpaid leave in a given school year. Eligible employees may use this leave for classroom activities and school conferences that cannot be rescheduled outside of work hours.

On a given day, Illinois payroll employees can use a maximum of four hours of unpaid leave for school-related circumstances.

5. Illinois Mandatory Sexual Harassment Prevention Training

Every Illinois employer is required to provide employees with sexual harassment prevention training, in compliance with Section 2-109 of the Illinois Human Rights Act (“IHRA”). Training must equal or exceed the minimum standards set forth in Section 2-109(B). Employers may also use the Illinois Department of Human Rights sexual harassment prevention training model.

These trainings must be complete by the end of each calendar year for every employee working in the state of Illinois. Restaurant and bar employees are required additional sexual harassment prevention training, outlined by Section 2-110 of the IHRA.

As part of our extensive payroll services, CAVU HCM offers this training course for all Illinois employees and employers.

Illinois Sexual Harassment Prevention and IHRA Compliance Guide | CAVU HCM

6. Child Labor Laws

Designed to prevent the exploitation of minors, child labor laws have been passed on the state and federal level.

For minors below the age of 16 in the state of Illinois, employers must have on file a Work Permit. Generally, minors can receive this documentation through their schools, typically a guidance counselor or school administrator. Age certification is not required in the state of Illinois for minors 16 to 20, but is required to be provided upon request.

The state of Illinois sets working hour restrictions to limit how much a minor can work per day and per week. The following guidelines are provided by the state of Illinois:

  • Minors under 16: 8 hours per day, 48 hours per week, 6 days per week are permitted when school is not in session.
  • Minors ages 16 and 17: No restrictions.

In addition to total hours, the state outlines night work restrictions for minors as well:

  • Minors under 16: Work is prohibited from 7pm to 7am (9pm June 1 to Labor Day), with additional exceptions.
  • Minors ages 16 and 17: No restrictions.

In line with work hour restrictions, the state prevents minors from working in hazardous roles such as in sawmills, construction sites, or where alcohol is served or sold (except as a busboy or at a park.)

Payroll Forms for Illinois

The introductory overview addresses the following topics

1. 2022 State Withholding (Payroll) Tax Forms

Below is a comprehensive list of relevant payroll tax forms for the state of Illinois. For information on filing W-2 and 1099 forms, click here.

2022 Withholding (Payroll) Tax Forms – Illinois

Form Name

Description

Additional Info

IL-501

Payment Coupon and Instructions

Due Dates

IL-941

Illinois Withholding Income Tax Return

Due Dates

Instructions

Schedule WC

​Withholding Income Tax Credits

Instructions

​Schedule WC-I

​Withholding Income Tax Credits Information and Worksheets 

 

​IL-941-X

Amended Illinois Withholding Income Tax Return

Instructions

IL-700-T

Illinois Withholding Tax Tables Booklet

Effective January 1, 2022 - December 31, 2022

IL-700-T

Illinois Withholding Tax Tables Booklet

Effective January 1, 2021 - December 31, 2021

IL-5754

Statement by Person Receiving Gambling Winnings

 

IL-W-4

Employee's Illinois Withholding Allowance Certificate

 

IL-W-5

Certificate of Residence in Illinois

 

IL-W-5-NR

Employee's Statement of Nonresidence in Illinois

 

IL-W-6

Certificate of Days Worked in Illinois for Non-Residents

 

IL-W-6-WS

Worksheet to Report Days Worked in Illinois for Non-Residents

 

Pub-131-D

Withholding Income Tax Payment and Return Due Dates

 

2. 2022 Federal Withholding (Payroll) Tax Forms

Below is a list of the most common requested federal payroll tax forms. For a comprehensive list, click here.

2022 Withholding (Payroll) Tax Forms – Federal

Form Name

Description

Additional Info

Form 1040 

US Individual Income Tax Return

Form W-4  

Employee's Withholding Certificate

 

Form 1040-ES 

Estimated Tax for Individuals

 

Form 941

Employer's Quarterly Federal Tax Return

Instructions

Form SS-4 

Application for Employer Identification Number (EIN)

Instructions

Form W-9

Request for Taxpayer Identification Number (TIN) and Certification

Instructions

Form W-2 

Wage and Tax Statement

Instructions

Form W-7

Application for IRS Individual Taxpayer Identification Number

Instructions

Form 4506-T

Request for Transcript of Tax Return

Form 9465

Installment Agreement Request

Instructions

Filing Due Dates in Illinois

For the state of Illinois, withholding tax returns are required to be filed on a quarterly basis – excluding exemptions by the IDOR.

For quarterly filings, Form IL-941 is due on the last day of the month that follows the end of the quarter. See the table below for exact dates:

FORM IL-941 Filing Dates

Quarter

Due Date

Q1 (January-March)

April 30

Q2 (April-June)

July 31

Q3 (July-September)

October 31

Q4 (October-December)

January 31

Filing Quarterly Illinois Unemployment Tax Reports and Payments

In Illinois, Unemployment Tax reports and payments are due a month after the close of each calendar quarter, reports and payments are due by the following dates for the preceding calendar quarter. 

IL UI Filing & Payment Due Dates

Quarter

Due Date

Q1 (January-March)

April 30

Q2 (April-June)

July 31

Q3 (July-September)

October 31

Q4 (October-December)

January 31

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