The Illinois Department of Revenue issued Publication IL-700-T, Illinois Withholding Tax Tables, to be used effective with wages paid on and after January 1, 2019.

The flat income tax rate continues at 4.95% for 2019.

Illinois Budget bill SB 9 (Public Act 100-0303) increased the personal income tax rate from 3.75% to 4.95% effective July 1, 2017. The tax increase was the result of the House of Representatives overriding Governor Rauner's veto of the budget bill, thus ending a two-year budget stalemate. (EY Payroll NewsFlash Vol. 18, #118, 7-10-2017.)

For the 2019 Withholding Income Tax Payment and Return Due Dates publication, go here.

Forms W-2 and IL-941 must be filed electronically by January 31

Legislation enacted in mid-2017 (HB 0821, Public Act 100-0022) allows the Department to require all withholding tax returns, including Form IL-941 (go here for more information), Form IL-941-X and Form W-2, be filed electronically. The law also allows the Department to change the filing due date for

Forms W-2. Accordingly, regulations require all employers and payroll providers to file calendar year 2018 Forms W-2 electronically by January 31, 2019. (EY Payroll NewsFlash Vol. 18, #195, 11-16-2017.)

More information on the filing of calendar year 2018 Forms W-2 is available on the Department's website. Go here for the 2018 electronic filing specifications.

Upon petition by an employer or payroll provider, the Department may waive the electronic filing requirement if the employer or payroll provider demonstrates that it does not have access to the Internet or it is a hardship to file electronically. To request a waiver form, contact Taxpayer Assistance at +1 800 732 8866 or +1 217 782 3336. The Department will notify the requester of whether the waiver is approved.

For more on Illinois withholding tax, see the Department's website.

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EY Payroll News Flash