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Depositing and Reporting Withheld Taxes: Illinois

Depositing and Reporting Withheld Taxes requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

  • Illinois employers are assigned either a semiweekly or monthly payment schedule based on their look-back period; this is the one-year period ending on June 30 of the immediately preceding calendar year. All employers must file quarterly withholding tax returns. Penalties are imposed for failure to file returns. See Deposit Thresholds and Schedules.
  • Certain employers must make payments of withheld taxes electronically using the semiweekly payment and quarterly return schedule in the following quarter, the remainder of the year and the subsequent year. Employers not required to file electronically are encouraged to do so. See Electronic Deposit Requirements.
  • Employers with 250 or more employees are required to register and electronically transmit Forms W-2, Wage and Tax Statement, and W-2c, Corrected Wage and Tax Statement. Electronic and Magnetic Media Form W-2 Reporting Requirements.