Illinois eliminates annual withholding for most employers

The Illinois Department of Revenue has amended regulations to eliminate annual personal income tax withholding returns and payments for most employers. Taxpayers who employ domestic employees may continue to report and pay withholding tax on an annual basis. Effective before January 1, 2017, employers in good standing who reported $1,000 or less in withholding during the prior year look-back period were allowed to report and pay withholding tax on an annual basis. Employers in good standing who reported more than $1,000 but no more than $12,000 in withholding during the look-back period had the option to choose a monthly payment and annual return schedule. (Illinois Department of Revenue, 86 Ill. Adm. Code Sec. 100.7310, 100.7325, effective March 27, 2017.)

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