Register for
Illinois Payroll Taxes
CorpNet can help you register for Illinois payroll taxes. This saves you time and money, while also making it quick and easy to pay your employees.
Illinois Payroll Tax Registration Bundle
Starting at $199
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Illinois Payroll Tax FAQs
What State Payroll Taxes Apply for Illinois?
Illinois employers contribute a flat income tax rate of 4.95% per employee. There are no additional city or regional income taxes.
- New Employers: All employers must register with the Illinois Department of Employment Security within 30 days of start up.
- State Payroll Taxes: Employers must pay income taxes for Illinois employees to the Illinois Department of Revenue or through the MyTax Illinois
- Unemployment Insurance Tax: Employers are also responsible for withholding unemployment taxes in Illinois for employees earning over $12,960 in 2021.
What is Illinois’ Unemployment Insurance Tax?
Unemployment Insurance Tax (UI) is a federal program that provides temporary payments to unemployed workers whose employment status is not based on their own actions. Illinois’s Unemployment is run through the Illinois Department of Employment Security, and businesses can register through the MyTax Illinois website. Rates range from 0.525% to 6.925%. For new employers, the flat rate is 3.53%.
Do All Businesses Need to Register for Illinois Payroll Taxes?
Am I Required to Withhold Payroll Taxes for My Household Employees in Illinois?
Normally, you must withhold Illinois Income Tax for your Illinois employee if one the following applies:
- You withhold federal income tax
- You and your employee enter into a voluntary withholding agreement
Does Illinois Require a Specific Employer Account Number for Processing?
What Kind of Information Do I Need for Payroll Tax Registration?
- Name and Social Security number of all responsible parties
- Doing Business As (DBA), if applicable
- Physical business address and mailing address
- Business phone number
- Valid email address (contact person and business)
- Nine-digit federal Employer Identification Number (EIN)
- Industry description
What if I Don’t Have an EIN?
An EIN is a Federal Tax Identification Number provided by the IRS. If you do not have an EIN already, CorpNet can obtain one for you via their FTIN service.
What if I Don’t Have a Payroll Processor?
Learn More About Payroll Processing
- What is Payroll?
- What are Payroll Taxes?
- What is Payroll Processing?
- What is Reasonable Compensation for an S Corporation
- How Do You Set Up Payroll for an LLC or Corporation?
- How Do You Pay Yourself as a Sole Proprietor?
- How Do LLC Owners Get Paid?
- Hiring Family Members in a Small Business
- Independent Contractors vs. Employee
- What Every Small Business Should Know About 1099s
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