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IMA Tax Policy Blog

Illinois Withholding Income Tax changes for tax year 2017

For employers, payroll service providers, software developers and those that pay gambling and lottery winnings, several changes are being made to Illinois Withholding Income Tax for tax year 2017.

  • All withholding taxpayers will be required to file quarterly returns. The annual filing option will no longer be available.
  • All withholding taxpayers will be assigned to pay withholding income tax on a monthly or semi-weekly schedule. The annual payment option will no longer be available.
  • Form IL-941, Illinois Withholding Income Tax Return, has changed. The form requires additional information to implement new legislation and provide better guidance to the taxpayer in calculating and paying withholding income tax.

Note: These changes do not go into effect until January 1, 2017. For tax year 2016, continue to file and pay your Illinois Withholding Tax per your assigned 2016 filing and payment schedules.

Effective January 1, 2017, all Illinois Withholding Income Tax filers will be required to file their IL-941 returns quarterly. Your Form IL-941 is due by the last day of the month that follows the end of the quarter. For each quarter, you must include all Illinois Income Tax withheld during the corresponding three months. Note: If the due date falls on a holiday or weekend, the return is due on the next business day.

For the entire informational bulletin from IDOR, click here.

Source: IDOR Informational Bulletin