Illinois Payroll Instructions

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Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2017 Payroll Tax Table Updates

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Illinois has state income tax withholding-- it's calculated via a simple percentage of the net amount, after subtracting for each exemption. Tax withholding rates did not change in 2017. The formulas have changed in 7 of the last 27 years, (most recently, a 2015 reduction in the basic tax rate from 5% down to 3.75%).

HINT-- Turtle Creek Software provides free annual updates for US federal and Illinois tax withholding rates, to all users of our payroll software.

Illinois State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of Illinois dependents into the State Exemptions field.
  7. Enter the Illinois Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
  8. Click OK.

Illinois State Unemployment Tax Instructions

Illinois SUTA unemployment tax is calculated on the first $12,960 of wages for each employee (2017 rate). The tax rate starts at 3.9% for most new companies (4.8% for construction companies). After the first year, the rate varies between 1.0% and 8.2% depending on the company's payroll totals and UI claims.

To enter your company's Illinois state SUTA tax rate into the Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate the Illinois SUTA tax in the list, and double-click on it. HINT: If you don't see Illinois SUTA in the list, you'll need to import your state's payroll info first.
  3. Enter your business SUTA percentage rate into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Illinois Marital Status

Set the value for the Marital Status popup menu in each Employee account to the following:

  • Single- single employee with one personal exemption
  • Married- married employee with two personal exemptions
  • Dual Income- married employee with one personal exemption
  • Head of House- employee claims Head of Family status
  • Other- not used


Illinois Tax Contacts

Withholding taxes website

Payroll Tax Office-- 217 782-3336
Automated Form Request-- 800 356-6302
SUTA rate info-- 800 247-4984

Illinois Department of Revenue
Box 19044 Willard Ice Building
Springfield IL 62794-9044


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Cornfield.