Illinois Department of Revenue (IDOR) has recently issued a revised Booklet IL-700-T (Illinois Withholding Tables).
The wage bracket withholding tables and automated payroll method have been updated to reflect an increase in the personal exemption allowance from $2,000 to $2,225.
The IDOR says that this is a small change that may result in 2018 withholding to date being slightly more than what is required, and a small decrease in the amount of Illinois income tax required to be withheld for the rest of the year. Employers and payers should adjust their withholding amounts based on the new personal exemption amount.
The Illinois Income Tax rate for individuals remains at 4.95%.
The IRS and the IDOR recommend taxpayers review their current withholding to ensure you are not under-withheld for 2018. You should specifically review if you:
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.