Illinois New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Your business will need to have an Employer Identification Number (also known as an EIN or FEIN), if you do not already have one.
- The simplest way is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
- To read more about applying for EINs, read our help article, “Your Step-by-step Guide on How to Apply for EIN”.
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can register online for the EFTPS.
- To find out more about EFTPS, read our article, “What Is EFTPS?”
State of Illinois Tax Accounts:
- Register for your state income tax (SIT) account and state unemployment account (SUTA). You can easily register online using MyTaxIllinois.
- For more information, visit the Illinois Department of Revenue and the Illinois Department of Employment Security.
- Illinois new employer SUTA rate is 3.950% for 2023.
- 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.
- To learn more about SUTA please read our article, “What Is SUTA Tax?”
Setting Up Your New Employee:
- Fill out Form I-9 for employee work verification in the USA. For more information, read,“Form I-9 In a Nutshell”
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “What Should Be in an Employee File?”
- 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 are required by law to report all new hires within 20 days from the date of hire or rehire.
- You can report your new employees online with the Illinois Department of Employment Security.
- For more information, read, “What Is New Hire Reporting?”
- Illinois employers must follow the minimum wage rate of $13.00 per hour in 2023.
- 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!
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