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Paying employees in Illinois
When hiring employees in new states, you need to register for relevant state tax accounts to facilitate their payment. In Illinois, you must be registered with the Illinois Department of Revenue and the Illinois Department of Employment Services (IDES) for withholding and unemployment tax accounts.
Justworks Payroll can also handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Your Illinois Accounts and Rate Info
Illinois requires you to register online with the Illinois Department of Revenue. Registering with the DOR will automatically register you for both the Withholding and Unemployment tax accounts. You’ll want to enter your Illinois Business Tax number, Illinois Unemployment Account Number, and Illinois Unemployment (experience) Rate into your Justworks Payroll account.
Find This Information
Locate your Illinois Business Tax number:
- Your company’s Business Tax number can be found on the Illinois Withholding Income Tax Return (IL-941) filed for previous quarters
- You may also contact the DOR at (800) 732-8866.
- Please note: Your Taxpayer ID will be a combination of your Federal Employer Identification Number and a Sequence Number (-xxx)
Locate your Illinois Unemployment Account Number and Illinois Unemployment (experience) Rate:
- Signing in to your MyTax Illinois account.
- Reviewing the "Notice of Contribution Rate" that you receive from the Illinois Department of Employment Security each year. This notice is typically sent in December.
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid IL address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- "Under 'Compliance' click into 'Company Taxes' and select the state you want to edit"
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your IL tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin (TPA) access to your IL state tax account. During onboarding, we will request that you sign state specific TPA forms, which authorizes us to handle and report your taxes to the state.
How to grant third-party admin access
To make sure Justworks Payroll can request TPA access to your company's IL account, you’ll need to log into MyTax Illinois and follow these steps:
- Click ‘Manage My Profile.’
- Select the ‘More’ tab.
- Under ‘Access Management,’ select ‘Manage Third Party Access.’
- Where it says ‘Allowed: No,’ you can click on ‘No,’ which will generate a pop-up allowing you to change the input to ‘Yes.’
- Click on ‘Default Account Access' and select 'Full Access.’
- Click ‘Save.’
In addition, please ensure the ZIP Code for your company’s primary business address is correct. You can review this information in the ‘Settings’ tab of your Justworks Payroll account.
Please reach out to us at support@payroll.justworks.com to confirm when these steps have been completed.
Why is this important?
Justworks Payroll calculates tax liabilities as part of payroll processing. If we cannot access your IL state tax accounts, we must return any unremitted tax liabilities to your company bank account, requiring you to remit and file your company’s state taxes manually.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.