ILLINOIS UNEMPLOYMENT TAX FORM HOW TO
ILLINOIS UNEMPLOYMENT TAX FORM SOFTWARE

It is required by the law to retain payroll records – even if your employees quit, you need to retain their payroll records for at least five years for Illinois payroll taxes. Missing deadlines could accrue penalties. If you have monthly payments, the filings would be due on the 15th of the following month. This can be done online on the MyTax Illinois website. You would need to file two payroll taxes here: one towards Illinois payroll taxes and one towards federal income tax.

It is best to automate this process to save time and manpower. As such, it is important for you to work out the following accurately for each employee: Work Out PayrollĪs an employer, the duty of withholding the right amount of payroll taxes would fall upon you.

ILLINOIS UNEMPLOYMENT TAX FORM SOFTWARE

Some businesses use software to do it, while others have their own mechanism in place. You would be required to religiously work with timesheets to maintain their accuracy if you have employees who aren’t exempt from withholding by law, and if you have staff on an hourly wage. Direct Deposit Authorization (if you are planning to use electronic bank transfer as a method of payment).You will need these three forms from each of your salaried staff: The better method is to request payroll forms the moment you onboard each new hire. If you haven’t already requested these forms from your employees, it is high time you did. A standard operating procedure would also need to be put in place for Illinois payroll taxes at your organization. This step requires setting up the payment frequency, dates, and methods of payment to your employees. You will need to discuss this between the administration and tax departments of your business. Another way to register as an employer with the state is to go to one of the branch offices of the Illinois Department of Revenue (IDOR). The next step is to go to the website, MyTax Illinois, and fill up the Form REG-1 to mail it (it can take up to eight weeks to reach its destination). Register with Illinois State as an Employer You can do that by setting up an account on the Electronic Federal Tax Payment System (EFTPS). The first step to being officially recognized as a business that employs and pays other professionals is to get an Employee Identification Number (EIN) at the federal level. Set Your Business up and Register as an Employer

Below is a step-by-step guide to setting up payroll and running it successfully. If you are a new business in town, you will need to start from scratch to set up your system of recording and filing Illinois payroll taxes. A Step-by-Step Guide to Setting up Payroll in Illinois On your paystub, you would locate these taxes under the MedFICA and FICA labels.Īnother sum is withheld from an employee’s salary, and this sum goes towards the US Treasury into its general fund – this is known as Federal Income Tax. Payroll tax in Illinois can be utilized to fund the Medicare program and the Social Security program. You could call this an “ income tax” of sorts. What is Payroll Tax?įrom the salary that an employee of a company is entitled to, the employer deducts a certain specified sum and pays it to the state and federal governments on behalf of the employee – this is called a payroll tax. After setting up your new business here, you would need to look these up. While a lot of payroll tax guidelines in Illinois align with the federal rules and systems, there are certain unique regulations that only exist at the state level in Illinois.

Set Your Business up and Register as an Employer.

A Step-by-Step Guide to Setting up Payroll in Illinois.

ILLINOIS UNEMPLOYMENT TAX FORM HOW TO

Let’s learn a little bit more about how to tackle payroll compliances in the state of Illinois by covering these essential topics: If you are just starting out as a business and have employees on the roster that you pay salaries, you would need to follow the stipulated guideline and procedures as required by the government to stay compliant with Illinois payroll taxes. There are systems already in place for Illinois payroll taxes. While the employees aren’t required to file or report any income tax, the employer must maintain a payroll, recording every penny that goes to the government as tax. The state of Illinois has its own set of payroll taxes and arrangements that employers need to follow.

Illinois unemployment tax form