Learn more about keeping your business compliant with payroll tax requirements.
General Withholding Requirement: Illinois income tax must be withheld from all compensation paid in Illinois to resident and nonresident employees. Compensation is paid in Illinois if:
Employee Withholding Exemption Forms: Illinois Form IL-W4 must be completed by each employee, to determine the appropriate level of state income tax to withhold from earnings. Of course, Federal Form W-4 also must be completed by each employee, to determine the appropriate level of federal income tax to withhold from earnings.
Reciprocal Agreements: Illinois has reciprocal agreements in effect with Iowa, Kentucky, Michigan, and Wisconsin.
Illinois Department of Revenue
P.O. Box 19044
Springfield, Illinois 62794-9044