Payroll Illinois, Unique Aspects of Illinois Payroll Law and Practice

The Illinois State Agency that oversees theNumber (EIN) This information must be reported
collection and reporting of State income taxeswithin 20 days of the hiring or rehiring.
deducted from payroll checks is:Department ofThe information can be sent as a W4 or
Revenueequivalent by mail, fax or electronically.
101 W. Jefferson St.There is a $15, $500 penalty for a late report in
P.O. Box 19022Illinois.The Illinois new hire-reporting agency can be
Springfield, IL 62794-9022reached at 800-327-4473 or on the web at does
(217) 785-0970not allow compulsory direct depositIllinois requires
(800) 732-8866 (in state)the following information on an employee's pay
requires that you use Illinois form "IL-W-4,stub:itemized deductionsIllinois requires that
Employee's Illinois Withholding Allowanceemployee be paid no less often than semimonthly;
Certificate" instead of a Federal W-4 Form formonthly for FLSA-exempt employees; union
Illinois State Income Tax Withholding.Not all statescontract can provide different intervals.Illinois
allow salary reductions made under Section 125requires that the lag time between the end of the
cafeteria plans or 401(k) to be treated in thepay period and the payment of wages to the
same manner as the IRS code allows. In Illinoisemployee not exceed semimonthly-13 days;
cafeteria plans are: not taxable for income taxweekly-7days; monthly-21 days; daily-1 day.Illinois
calculation; not taxable for unemploymentpayroll law requires that involuntarily terminated
insurance purposes if used to purchase medical lifeemployees must be paid their final pay
insurance. 401(k) plan deferrals are: not taxableimmediately if possible, if not, by next regular
for income taxes; taxable for unemploymentpayday; next regular payday if suspended due to
purposes.In Illinois supplemental wages are taxedlabor dispute or temporarily laid off and that
at a 3.0% flat rate.You must file your Illinois statevoluntarily terminated employees must be paid
W-2s by magnetic media if you are have at leastimmediately if possible; if not, by next regular
250 employees and are required to file yourpayday.Deceased employee's unpaid wages must
federal W-2s by magnetic media.The Illinois Statebe paid when normally due to the person owed
Unemployment Insurance Agency is:Departmentfor funeral expenses, spouse, or child after small
of Employment Securityestate affidavit; estate no over $15,000.Escheat
401 S. State St.laws in Illinois require that unclaimed wages be paid
Chicago, IL 60605-1289over to the state after five years.The employer
(312) 793-5700is further required in Illinois to keep a record of
State of Illinois taxable wage base forthe wages abandoned and turned over to the
unemployment purposes is wages up tostate for a period of 5 years.Illinois payroll law
$9,800.00.Illinois requires Magnetic media reportingmandates no more than 40% of minimum wage
of quarterly wage reporting if the employer hasmay be used as a tip credit.In Illinois the payroll
at least 250 employees that they are reportinglaws covering mandatory rest or meal breaks are
that quarter.Unemployment records must bethat employees must have 20 minutes during first
retained in Illinois for a minimum period of five5 hours of 7and a half-hour shift.Alabama statute
years. This information generally includes: name;requires that wage and hour records be kept for
social security number; dates of hire, rehire anda period of not less than five years. These
termination; wages by period; payroll pay periodsrecords will normally consist of at least the
and pay dates; date and circumstances ofinformation required under FLSA.The Illinois agency
termination.The Illinois State Agency charged withcharged with enforcing Child Support Orders and
enforcing the state wage and hour lawslaws is:Division of Child Support Enforcement
is:Department of LaborDepartment of Public Aid
Labor Law Enforcement509 S. 6th St.
160 North LaSalle, Ste. C1300Springfield, IL 62701
Chicago, IL 60601(800) 447-4278
(312) 793-2800has the following provisions for child support
minimum wage in Illinois is $6.50 per hour.Thedeductions:When to start Withholding? 14 working
general provision in Illinois concerning payingdays after the withholding order is mailed to the
overtime in a non-FLSA covered employer is oneemployer.
and one half times regular rate after 40-hourWhen to send Payment? Within 7 days of
week.Illinois State new hire reporting requirementsPayday.
are that every employer must report every newWhen to send Termination Notice? "Promptly."
hire and rehire. The employer must report theMaximum Administrative Fee? $5 per payment.
federally required elements of:Employee's nameWithholding Limits? Federal Rules under CCPA.
Employee's addressPlease note that this article is not updated for
Employee's social security numberchanges that can and will happen from time to
Employer's nametime.Charles J. Read, CPA has been in the payroll,
Employers addressaccounting and tax business for 30 years, the last
Employer's Federal Employer Identificationfifteen in private practice. Mr.