Illinois New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Apply for an Employer Identification Number (also known as an EIN or FEIN) if you do not already have one. The most convenient way to get an EIN is to apply with the IRS online. There is no cost to apply for an EIN.
- To read more about applying for EINs, read our help article, “How to apply for an EIN.”
- Although it is not mandatory, we recommend creating an account with the EFTPS (Electronic Federal Tax Payment System). You will need to have this account to make tax payments online or view whatever tax filings have been made on your behalf by Patriot. You can easily register online, and there is no charge to create an account.
- To find out more about the EFTPS, read our article, “What Is EFTPS?”
State of Illinois Tax Accounts:
- Illinois new employer SUTA rate is 3.175% for 2021 for non-construction industries.
- After three years of employer experience, the Illinois Department of Employment Security will assign a new SUTA (state unemployment tax assessment) rate for your small business.
Setting Up Your New Employee:
- Have your new employee fill out Form W-4, Employee’s Withholding Certificate for federal income taxes (FIT).
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
- Have your new employee fill out Form IL-W-4 Illinois Withholding Allowance Certificate for state income taxes (SIT).
- Illinois employers must follow the minimum wage rate of $9.25 per hour. Starting January 1, 2021, the Illinois minimum wage rate will be $11.00 per hour.
- You need to display the minimum wage poster where your employees can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business. For more information, read, “What Information is Needed to Set Up Payroll?”
You will be required to keep employee payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!