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.