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Withholding Income Tax

Legal References

Electronic Services

Definition

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.

You must 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.

Amount withheld

For the current income tax rate, see Income Tax Rates. For more detailed information and the Illinois withholding tax amounts, see

  • 2023 IL-700-T, Illinois Withholding Tax Tables Booklet (effective January 1, 2023 - December 31, 2023)
  • 2024 IL-700-T, Illinois Withholding Tax Tables Booklet (effective January 1, 2024 - December 31, 2024)

Credits

All withholding income tax credits are reported on the Schedule WC. The Schedule WC-I, Withholding Income Tax Credits Information, provides detailed information about the withholding income tax credits, how to calculate them and where to report them. 

Filing and Payment Requirements

  • 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.

Payment Requirements

Semi-weekly Payment Schedule
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.

Monthly Payment Schedule
Pay 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.

See Publication 131, Withholding Income Tax Payment and Filing Requirement, and Publication 131-D, Withholding Income Tax Payment and Return Due Dates, 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.

Note: If you need information related to unemployment insurance or reporting new hires, refer to the Illinois Department of Employment Security.

REVENUE DIVISION
ILLINOIS DEPARTMENT OF EMPLOYMENT SECURITY
33 SOUTH STATE STREET
CHICAGO ILLINOIS 60603

1 800 247-4984 

Questions?

  • See related publications:
    • Publication 110, Forms W-2, W-2c, W-2G, and 1099 Filing and Storage Requirements for Employers and Payers, including 1099-K Electronic Filing Requirements
    • Publication 121, Illinois Income Tax Withholding for Household Employees
    • Publication 130, Who is Required to Withhold Illinois Income Tax
    • Publication 131, Withholding Income Tax Payment and Filing Requirements
  • Call us at: 1 800 732-8866 or 1 217 782-3336
  • Call TTY: 1 800 544-5304
  • Mail your IL-501 forms to:
    ILLINOIS DEPARTMENT OF REVENUE
    PO BOX 19447
    SPRINGFIELD ILLINOIS 62794-9447
  • Mail your IL-941 forms to:
    ILLINOIS DEPARTMENT OF REVENUE
    PO BOX 19052
    SPRINGFIELD ILLINOIS 62794-9052