The Illinois State Agency that oversees the collection and reporting of state income taxes deducted from payroll checks is:
revenue Department
101 W. Jefferson St.
post office box 19022
Springfield, IL 62794-9022
(217) 785-0970
(800) 732-8866 (in-state)
http://www.revenue.state.il.us
Illinois requires you to use the Illinois form “IL-W-4, Illinois Employee Withholding Allowance Certificate” instead of a federal Form W-4 for Illinois state income tax withholding.
Not all states allow salary reductions made under Section 125 or 401(k) cafeteria plans to be treated in the same manner as the IRS code allows. In Illinois, cafeteria plans: are not taxable for income tax purposes; not taxable for unemployment insurance purposes if used to purchase medical life insurance. 401(k) plan deferrals are: not subject to income taxes; taxable for unemployment purposes.
In Illinois, supplemental wages are taxed at a flat rate of 3.0%.
You must file your Illinois state W-2 forms magnetically if you have at least 250 employees and you must file your federal W-2 forms magnetically.
The Illinois State Unemployment Insurance Agency is:
Department of Occupational Safety
401 S. State St.
Chicago, IL 60605-1289
(312) 793-5700
http://www.ides.state.il.us/
The State of Illinois taxable wage base for unemployment purposes is wages up to $9,800.00.
Illinois requires quarterly wage reporting magnetic media to be reported if the employer has at least 250 employees who are reporting that quarter.
Unemployment records must be kept in Illinois for a minimum period of five years. This information generally includes: name; Social Security number; hire, retirement and termination dates; wages per period; payroll periods and payment dates; termination date and circumstances.
The Illinois State Agency charged with enforcing state wage and hour laws is:
work Department
Labor Law Compliance
160 North LaSalle, Ste. C1300
Chicago, IL 60601
(312) 793-2800
[http://www.state.il.us/agency/idol/]
The minimum wage in Illinois is $6.50 per hour.
The general provision in Illinois regarding overtime pay at a non-FLSA covered employer is one and one-half times the regular rate after a 40-hour week.
State of Illinois new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the elements required by the federal government of:
- Name of the employee
- employee address
- Employee Social Security Number
- Name of the employee
- Employee Address
- Employer Federal Employer Identification Number (EIN)
This information must be reported within 20 days of hire or rehire.
Information can be submitted as W4 or equivalent by mail, fax or electronically.
There is a $15, $500 fine for a late report in Illinois.
You can contact the Illinois New Hire Reporting Agency by calling 800-327-4473 or on the web at [http://www.ides.state.il.us/employer/newhire/general.htm]
Illinois does not allow mandatory direct deposit
Illinois requires the following information on an employee’s pay stub:
Illinois requires that the employee be paid no less frequently than twice a month; monthly for FLSA-exempt employees; binding contract can provide different intervals.
Illinois requires that the time lapse between the end of the pay period and the payment of wages to the employee must not exceed 13 biweekly days; weekly-7 days; monthly-21 days; daily-1 day.
Illinois payroll law requires that involuntarily terminated employees be paid their final pay immediately if possible, if not, by the next regular payday; next regular payday if suspended due to a labor dispute or temporarily laid off and voluntarily laid off employees should be paid immediately if possible; if not, by the next regular payday.
Unpaid wages of the deceased employee must be paid when normally owed to the person owed for funeral expenses, spouse, or child after a petty estate affidavit; inheritance not greater than $15,000.
Reversion laws in Illinois require that unclaimed wages be paid to the state after five years.
In addition, Illinois requires the employer to keep a record of wages abandoned and turned over to the state for a period of 5 years.
Illinois payroll law requires that no more than 40% of the minimum wage may be used as a tip credit.
In Illinois, payroll laws covering mandatory breaks or meal breaks state that employees must have 20 minutes during the first 5 hours of a 7 1/2-hour shift.
Alabama statute requires that wage and hour records be maintained for a period of not less than five years. These records will normally consist of at least the information required under the FLSA.
The Illinois agency responsible for enforcing child support laws and orders is:
Division of Child Support Enforcement
Department of Public Aid
509 S. 6th Street
Springfield, IL 62701
(800) 447-4278
[http://ilchildsupport-employer.com/Default.aspx]
Illinois has the following provisions for child support deductions:
- When to start withholding? 14 business days after the withholding order is sent to the employer.
- When to send the payment? Within 7 days of payment day.
- When to send a termination notice? “Promptly.”
- Maximum administrative fee? $5 per payment.
- Retention limits? Federal Rules under CCPA.
Please note that this article is not updated for changes that may and will occur from time to time.