Illinois Payroll, Unique Aspects of Illinois Payroll Law and Practice

The Illinois State Agency that oversees the collection and reporting of state income taxes deducted from payroll checks is:

revenue Department

101 W. Jefferson St.

P.O. Box 19022

Springfield, IL 62794-9022

(217) 785-0970

(800) 732-8866 (in the state)

http://www.revenue.state.il.us

Illinois requires that you use the Illinois form “IL-W-4, Employee’s Certificate of Illinois Withholding Allowance” instead of a federal form W-4 for Illinois state income tax withholding.

Not all states allow salary reductions made under Section 125 or 401 (k) cafeteria plans to be treated the same way the IRS code allows. In Illinois, cafeteria plans: are not taxable for income tax calculation; it is not taxable for unemployment insurance purposes if used to purchase life health insurance. The 401 (k) plan deferrals are: nontaxable for income taxes; taxable for unemployment purposes.

In Illinois, supplemental wages are taxed at a flat rate of 3.0%.

You must file your Illinois State W-2s by magnetic means if you have at least 250 employees and you must file your federal W-2s by magnetic means.

The Illinois State Unemployment Insurance Agency is:

Occupational Safety Department

401 S. State St.

Chicago, IL 60605-1289

(312) 793-5700

http://www.ides.state.il.us/

The state of Illinois taxable wage base for unemployment purposes is wages up to $ 9,800.00.

Illinois requires magnetic media to report quarterly wage reports if the employer has at least 250 employees who are reporting that quarter.

Unemployment records must be kept in Illinois for a minimum period of five years. This information generally includes: name; Social Security number; hiring, rehiring and termination dates; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The Illinois state agency charged with enforcing state wage and hour laws is:

work Department

Application of labor legislation

160 North LaSalle, Ste. C1300

Chicago, IL 60601

(312) 793-2800

[http://www.state.il.us/agency/idol/]

The minimum wage in Illinois is $ 6.50 per hour.

The general provision in Illinois for overtime pay at a non-FLSA-covered employer is one and a half times the regular rate after 40 hours per week.

The state of Illinois’ new hire reporting requirements are that each employer must report every new hire and rehire. The employer must report the elements required by the federal government of:

  • Name of the employee
  • Employee address
  • Employee’s Social Security Number
  • Name of the employee
  • Employee address
  • Employer’s Federal Employer Identification Number (EIN)

This information must be reported within 20 days after hiring or rehiring.

Information can be submitted as W4 or equivalent by mail, fax, or electronically.

There is a $ 15, $ 500 fine for a late report in Illinois.

You can contact the Illinois New Hire Reporting Agency at 800-327-4473 or on the web at [http://www.ides.state.il.us/employer/newhire/general.htm]

Illinois does not allow mandatory direct deposit

Illinois requires the following information on an employee’s pay stub:

  • deductions per item
  • Illinois requires that the employee be paid no less than biweekly; monthly for FLSA-exempt employees; The union contract can provide different intervals.

    Illinois requires that the time lag between the end of the pay period and the payment of wages to the employee not exceed 13 days biweekly; weekly-7 days; monthly-21 days; daily-1 day.

    Illinois payroll law requires that involuntarily laid off employees be paid their final pay immediately if possible, if not, before the next regular payday; the next regular payday if it is suspended due to a labor dispute or has been temporarily terminated and that voluntarily terminated employees should be paid immediately if possible; if not, the next regular payday.

    Unpaid wages of the deceased employee must be paid when normally owed to the person owed for funeral expenses, spouse or child after a small property affidavit; Farm no more than $ 15,000.

    Withholding laws in Illinois require that unclaimed wages be paid to the state after five years.

    In addition, the employer is required in Illinois to keep a record of wages abandoned and turned over to the state for a period of 5 years.

    Illinois payroll law requires that no more than 40% of the minimum wage may be used as a tip credit.

    In Illinois, payroll laws covering mandatory breaks or meal breaks state that employees must have 20 minutes during the first 5 hours of the 7 1/2 hour shift.

    Alabama statute requires wage and hour records to be maintained for a period of not less than five years. These records will normally consist of at least the information required by the FLSA.

    The Illinois agency charged with enforcing child support laws and orders is:

    Child Support Enforcement Division

    Department of Public Aid

    509 S. 6th St.

    Springfield, IL 62701

    (800) 447-4278

    [http://ilchildsupport-employer.com/Default.aspx]

    Illinois has the following provisions for child support deductions:

    • When to start withholding? 14 business days after the withholding order is sent to the employer.
    • When to send the payment? Within 7 days after the payday.
    • When to send the Notice of Termination? “Promptly.”
    • Maximum administrative fee? $ 5 per payment.
    • Retention limits? Federal rules under CCPA.

    Please note that this article is not updated for changes that can and will happen from time to time.

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