Questions and Answers for Employers
What do I do if I already paid a January payroll and withheld at the 3 percent rate?
It is up to you and your employee.
- Your employee may request an additional amount withheld to catch up, and if you agree, you can withhold the additional amount from a future paycheck. However, you are not required to do this.
- As always, your employee may adjust his withholding amount by completing a new Form IL-W-4, Employee’s Illinois Withholding Allowance Certificate.
When the employee files his 2011 tax return next year, he may receive a smaller refund or owe a little more if the withholding is not caught up.
When must I begin withholding at the 5 percent rate?
You must immediately begin to withhold at the 5 percent rate.
For more information, you may refer to the Informational Bulletin FY 2011-08, Withholding Tax Rate Changes, and the revised IL-700-T, Illinois Withholding Tax Tables.