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Illinois State Tax Routine (ILTX)

The Illinois State Tax Special Routine Processing utilizes the following steps:

Line 1	Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI).
Line 2	*Determine the Line 1(Personal) withholding allowance for the employee.
Line 3	*Determine the Line 2(Additional) withholding allowance for the employee.
Line 4	Arrive at the total allowance by adding Line 2 & Line 3.
Line 5	Determine the Taxable Amount by subtracting Line 1 from Line 4.
Line 6	Calculate Illinois tax by multiplying Line 5 amount with 4.95%(defined as part of DEDX page).
Line 7	Divide the amount on Line 6 by the number of payroll periods in a year to determine the employee’s Illinois Withholding Tax for the pay period.

* Determine the Line 1 (Personal) withholding amount (Line 2)

1. Multiply the value provided as part of the Annual exemption field with the count provided for the employee as part of the State tax allowance field in the TAX or TAXS page.

* Determine the Line 2 (Additional) withholding amount (Line 5)

1. Multiple the value provided as part of the Minimum standard deduction with the count provided as part of the Additional state tax allowance field in the TAX or TAXS page.

Note: The Illinois State Tax Routine is only available for sites that utilize the Next Generation Payroll service.

Data Setup Considerations

Sites will need to ensure they have implemented the following Business Process and Data Setup changes at their site prior to using the Illinois State Tax Routine.

1. Tax Parameters (TAXP) Setup for Illinois State Tax Deductions.  The Annual Exemption Amount field is mapped with the personal allowance value of $2,625.

1. The minimum standard deduction field of the TAXP page will be mapped with $1,000, indicating the additional allowance value.

2. Employee Tax Parameter (TAX) enrollment (Note: This only applies to employees enrolled in a Tax Class (TAXC) that includes an Illinois State Tax Deduction).

1. The State Tax Allowance field captures the employee's claim for the number of allowances for the personal allowance amount.

2. The additional state tax allowance field captures the employee's claim for the number of allowances for the additional allowance amount.

Note: Point 2 will function if the following parameter MULTI_STATE_TAX, is set to N as part of the APPCTRL page, if the parameter is set to Y, then the system will function as per the point 3.

3. An employee enrolled in the state tax enrollment (TAXS) (Note: this only applies to employees enrolled in a State Tax Class (TAXCS) that includes an Illinois State Tax Deduction).

1. The State Tax Allowance field captures the employee's claim for number of allowances for the withholding allowance amount.

2. The Additional State Tax Allowance field captures the employee's claim for the number of allowances for the additional allowance amount.