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Withholding Illinois Income Tax for Household Employees
Who is a household What form does my Caution: If you complete the line for
“Household employment tax” on your
employee? household employee need
Form IL-1040,
A household employee is someone you to complete for Illinois
• do not report household employee
pay to do domestic work in or around
withholding tax? Illinois withholding income tax on
your home. For example, a household
Your household employee must Form IL-941, Illinois Withholding
employee could be a babysitter,
complete Form IL-W-4, Employee’s Income Tax Return.
caretaker, cleaning person, driver,
health aide, housekeeper, nanny, Illinois Withholding Allowance • do not pay household employee
private nurse, or yard worker. This Certificate and Instructions. Your Illinois withholding income tax with
person can be a full-time or part-time employee will tell you the number of Form IL-501, Payment Coupon,
employee who you pay hourly, daily, allowances he or she is entitled to for Illinois Withholding Income Tax
weekly, or by the job. claim on this form. You should withhold Return.
Illinois Income Tax from his or her
We define a household employee wages based, in part, on the number of Forms W-2 reporting income
the same as the Internal Revenue allowances claimed. If your employee and withholding for household
Service (IRS). For more information, does not complete this form, you employees reported on Form IL-1040
visit www.irs.gov and refer to IRS should withhold income tax as if the are not subject to the electronic filing
Publication 926. employee is single with no allowances. mandate.
If you already file Form IL-941 only
Am I an employer of a How do I figure the amount to report household employee income
household employee? to withhold? tax withholding and you would like to
You are the employer of a household Go to Booklet IL-700-T, Illinois convert to the annual Form IL-1040
employee if you Withholding Tax Tables, to determine reporting option for the next calendar
how much tax to withhold. year, you must notify us that you will
• control what work is done, and
no longer be reporting withholding on
• control how the work is done (e.g., Form IL-941. If you do not, you may
provide the necessary equipment, Automated payroll method be subject to penalties and collection
supplies, or tools to do the job). allowance table action. You may use MyTax Illinois
The worker is not your employee if Payroll periods Number or call 217 785-3707 to update your
Weekly 52 Illinois Withholding Income Tax
• the worker controls how the work is
Bi-weekly 26 account.
done. This person usually provides
his or her own tools and offers Semi-monthly 24 If you do not report Illinois withholding
services to the general public in an Monthly 12 for household employees on Form
independent business. Bi-monthly 6 IL-1040, you must use Form IL-941
Quarterly 4 to file your withholding tax. For more
• an agency provides the worker and
Semi-annually 2 information, see Publication 130, Who
controls what work is done and how
Annually 1 is Required to Withhold Illinois Income
it is done.
Tax, and Publication 131, Withholding
Do I need to withhold Income Tax Payment and Filing
How do I report and pay Requirements.
Illinois Income Tax? the Illinois income tax I
Generally, you must withhold Illinois
withhold?
Income Tax for your Illinois employee if
If you withhold Illinois Income Taxes
• you withhold federal income tax from your household employee(s),
from your employee’s wages, or you may file and pay the Illinois
• you and your employee enter into withholding income tax annually on
a voluntary withholding agreement. Form IL-1040, Illinois Individual Income
Federal law excludes from Tax Return, by completing the line
withholding, wages paid to certain for “Household employment tax. ” No
types of household employees. We registration is required to use this
do not require a separate agreement option. We encourage you to file and
for payments covered by a federal pay electronically using MyTax Illinois
voluntary withholding agreement. at tax.illinois.gov.
Page 2 of 4 PUB-121 R-01/18 (Page 2 update only R-09/20)
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