Illinois issues new withholding tables; implement immediately

Illinois has issued new withholding tables and a notice requiring employers and payroll service providers to implement the new 4.95% withholding rate immediately. The Illinois Income Tax rate for individuals has increased from 3.75% to 4.95%, effective July 1, 2017. All of the tables are reproduced in the Payroll Management Guide at ¶5908 and ¶5909. (Illinois Department of Revenue Informational Bulletin, FY 2018-03, July 2017; Illinois Department of Revenue Illinois Withholding Tax Tables, Effective July 1, 2017 (Booklet IL-700-T.(R-07/17).)

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