New Rate Effective January 1, 2011
Because the increase is retroactive to January 1, 2011, the new rate applies immediately to the following types of income:
- Employee compensation (i.e., wages and salaries) paid in Illinois,
- Unemployment paid to an Illinois resident who has asked to have Illinois taxes withheld, and
- Gambling or lottery winnings in Illinois paid to an Illinois resident.
Automated Payroll Method Formula
For payers who use an automated payroll method to calculate their withholdings, an updated formula is provided to calculate the revised withholding amounts.
Vision Payroll Has Implemented New Withholding Tables
Vision Payroll has already updated its tax tables and will calculate the increased Illinois income tax withholding for all remaining 2011 paychecks.