Illinois adopts working day withholding rules
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Wednesday, September 4, 2019

Illinois adopts working day withholding rules

By Payroll and Entitlements Editorial Staff

Illinois adopted new rules for withholding personal income tax from employees. This includes a threshold based on the number of working days that employees spend in Illinois.

For tax years ending on or after December 31, 2020, employers must withhold income tax from compensation paid to employees if: (1) the employee performs some services for the employer in Illinois; (2) the services performed in Illinois are not incidental to services performed outside the state; and (3) the employee performs the services in Illinois for more than 30 working days during the tax year.

The amount of compensation paid in Illinois includes the part of the employee's total compensation for services performed for his or her employer which the number of working days spent in the state bears to the total number of working days spent both in and outside the state during the tax year.

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