On July 6, 2017, the Illinois House of Representatives passed an income tax increase, overriding Governor Rauner’s veto from earlier this month.
The personal income tax rate is increasing to 4.95 percent from 3.75 percent and the corporate income tax is increasing to 7 percent from 5.25 percent. It is important to note that both the personal and corporate tax rate increases are retroactive to July 1, 2017.
According to an Illinois Department of Revenue (IDOR) agent, updated tax tables are being prepared, though there is no date as to when these will be available. IDOR has updated the Form IL-W-4, however it is not yet been posted to the website.
Paylocity is working to ensure that our systems are updated with the new Illinois tax rates as soon as the Illinois DOR updates are made available.
Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.