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Who is Required to Withhold Illinois Income Tax
and received a total refund of the federal income tax that was • requires the employee, on a contemporaneous basis, to
withheld from his pay. Sam does not expect to owe any federal record the work location for every day worked outside of the
income tax this year. Therefore, he claims exemption from state where the employment duties are primarily performed;
withholding on his federal Form W-4 for this year. • and allows the employer to allocate the employee’s wages
Although Sam may not owe federal income tax, he will owe for income tax purposes among all states in which the
Illinois Income Tax because he is entitled to only one withholding employee performs services.
allowance. The exemption for this allowance is less than his total You are not required to submit this form to IDOR. You must,
pay. Therefore, you must withhold Illinois Income Tax from Sam’s however, keep this information in your records and provide it
pay. upon request.
Form IL-W-5
Form IL-W-5,Certificate of Residence in Illinois, is completed by
Do I owe other Illinois employment
an Illinois resident (not your employee) with whom you have a
written contract who taxes?
• is paid for performing personal services (e.g., artistic or Check with the Illinois Department of Employment Security
musical performances, or professional consulting services) (IDES) for more information about unemployment insurance
and the income earned is taxable under Section 1405.2 of contributions for employers. Visit ides.illinois.gov or call the IDES
the IITA, or Employer Hotline at 1 800 247-4984.
• receives payment for prizes and awards from a contest
conducted entirely in Illinois (e.g., game shows, amateur
talent contests, dog or horse shows) and the income earned What forms must I give my employee?
is taxable under Section 1405.3 of the IITA. Before January 31 of each year, you must give your employee
You are not required to provide annual information reports of three copies of federalForm W-2,Wage and Tax Statement, or,
the amounts you pay in either of these situations. You must, if applicable, any version of Form 1099 (e.g., Form 1099-MISC,
however, keep this information in your records and provide it to Form 1099-INT, Form 1099-R).
us if we request. If your employee permanently discontinues employment before
Instead of completing Form IL-W-5, the recipient the close of the calendar year or you terminate a federal
may file a certificate of in-state residence on any invoice, voluntary withholding agreement, you must give the employee
billing statement, or contest application submitted to the (or other person receiving payments subject to withholding) a
withholding agent. completed federal Form W-2 within 30 days of the last payment
Form IL-W-5-NR for which withholding was required. You must keep records
To be exempt from Illinois Income Tax withholding requirements of all employment records, including undeliverable Forms W-2
you must complete Form IL-W-5-NR, Employee’s Statement of and Forms 1099, for at least four years after the date you are
Nonresidence in Illinois, if required to give the form to the employee.
• you are a resident of a state (Iowa, Kentucky, Michigan, and
Wisconsin) with whom Illinois has a reciprocal agreement, or What forms must I submit to the Illinois
• your spouse is in the military, you and your spouse are Department of Revenue?
both residents of the same state (other than Illinois), and
you are in Illinois only because your spouse is stationed You are required to electronically file Form IL-941, Illinois
here by the military or you do not live in the same state as Withholding Income Tax Return, quarterly. See Publication 131,
your servicemember spouse, but you have elected to claim Withholding Income Tax Payment and Filing Requirements for
their state of residence for tax purposes as allowed by the more information.
Veterans Benefits and Transition Act of 2018. You are required to electronically submit Forms W-2, W-2c, and
If your employee does not complete this form, you must withhold W-2G to the Illinois Department of Revenue by January 31.
Illinois Income Tax. If your employee moves out of the state If you are unable to file these forms, or Form IL-941,
of residence designated on the original Form IL-W-5-NR, the electronically, you may request Form IL-900-EW, Waiver
employee must notify you of the change within 10 days and file a Request, through our Taxpayer Assistance Division at
new Form IL-W-5-NR, if applicable. 1 800 732-8866 or 217 782-3336. The Waiver Request must
Form IL-W-6 and Worksheet be completed and submitted back to the Department. You
Form IL-W-6, Certificate of Days Worked in Illinois for Non- will be notified if the Waiver Request is approved or denied.
Residents, is completed by a non-resident who is paid for See Publication 110, W-2, W-2c, W-2G, and 1099 Filing and
performing services within Illinois for more than 30 working days Storage Requirements for Employers and Payers, for additional
during the taxable year on your employer’s behalf. information.
Employers are required to have a copy of the certificate and
worksheet on file for each non-resident employee who is
expected to work more than 30 working days in Illinois and you
do not maintain a time and attendance system which
PUB-130 (R-08/22)PUB-130 (R-08/22) Page 7 of 12
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