Illinois updates withholding publications

The Illinois Department of Revenue has updated two informational publications that provide guidance on personal income withholding tax payment and reporting requirements. Technical changes have been made to Publication 130 to clarify the withholding requirements for a seasonal employer and to provide instructions on how to complete Forms W-2 and 1099. The publication covers: (1) who is an employer; (2) employer registration requirements; (3) who is an employee; (4) when withholding must occur; (5) withholding thresholds and requirements for payments of lottery or gambling winnings; (6) withholding forms; and (7) the effect of a change to the business name or address, the sale or transfer of a business, or cessation of business operations.

Also, technical changes have been made to Publication 131 to clarify where a taxpayer must report the amount of Illinois income tax withheld employees’ or others’ pay. The publication covers: (1) when and how to make withholding tax payments and file returns; (2) who must file Illinois withholding returns, Form IL-941; (3) a schedule of due dates for withholding tax returns and payments; (4) examples of how to calculate withholding tax payments; and (5) electronic payment options. (Illinois Department of Revenue, Publication-130, Who is Required to Withhold Illinois Income Tax, December 19, 2016, Publication-131, Withholding Income Tax Payment and Filing Requirements, December 19, 2016.)

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