TAXES 17-26, Illinois State Income Tax Withholding

Published: September 6, 2017
Effective: Pay Period 17, 2017

Summary

The annualized taxable wages for the State of Illinois will change as follows:

The flat tax rate on supplemental wages has increased from 3.75 percent to 4.95 percent.
The income tax rate has increased from 3.75 percent to 4.95 percent.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:	IL
State Tax Withholding State Code:	17
Acceptable Exemption Form:	IL-W-4
Basis for Withholding:	State Exemptions
Acceptable Exemption Data:	0/Number of Regular Allowances/Number of Additional Exemptions
TSP Deferred:	Yes
Special Coding:	Determine the Total Number of Allowances field as follows: First Position - Enter 0 (zero). Second or Third Positions - Enter the number of exemptions claimed. Determine the Additional Exemptions Claimed field as follows: First and Second Positions - Enter the number of additional allowances claimed on Line 2 of the IL-W-4. Valid values are 00 through 99. If no allowances are claimed, enter 00.

Withholding Formula (Effective Pay Period 17, 2017)

Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
Determine the exemption allowance by applying the following guideline, and subtract this amount from the annual wages:
Exemption Allowance = $2,175 x Number of Exemptions
Determine the additional allowance by applying the following guideline, and subtract this amount from step 5 to compute the taxable income:
Additional Allowance = $1,000 x Number of Additional Exemptions
Multiply annualized taxable wages by 4.95 percent to determine the annual tax.
Divide the annual Illinois tax withholding by 26 to obtain the biweekly Illinois tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

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