BanditAI
File Illinois Payroll
Taxes
in Minutes
Easily file Illinois payroll tax forms including new hire reports, withholding tax returns, and unemployment insurance filings — all from one secure platform.
Form NHR
Deadline: Within 20 days of hire
Form IL-941
Deadline: Apr 30, Jul 31, Oct 31, Jan 31
Form UI-3/40
Deadline: Apr 30, Jul 31, Oct 31, Jan 31
Illinois Payroll Filing Requirements for New Hire, Withholding, and Unemployment Insurance
Stay compliant with Illinois payroll tax filing requirements for new hire reporting, withholding tax, and unemployment insurance.
| Forms | Filing Requirements | Filing Methods | Due Date |
|---|---|---|---|
New Hire Report |
All employers in Illinois must report newly hired and rehired employees to Illinois Department of Employment Security (IDES). This requirement applies to:
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Within 20 days of the employee's hire or rehire date. |
Quarterly Withholding Tax Return (IL-941) |
All employers who withhold Illinois Income Tax from employees, payees, or others are required to file Form IL-941, Illinois Withholding Income Tax Return. Payment voucher (Form IL-501) is used to remit Illinois withholding income tax payments. |
Electronic Filing (Mandate): All employers should file Form IL-941 electronically. You may use
If you are unable to file electronically, you may request Form IL-900-EW, Waiver Request, through the Taxpayer Assistance Division. Mail: Illinois Department of Revenue, PO BOX 19052, Springfield, IL 62794-9052 |
Form IL-941 is due by the last day of the month that follows the end of the quarter.
|
Unemployment Insurance |
All Illinois employers with one or more workers in covered employment are required to file Form UI-3/40 each quarter. This includes businesses of all sizes, nonprofits, government agencies, and any employer with an active Illinois UI account. Reports are required even when no wages are paid. |
Online: File electronically through MyTax Illinois, IDES’ online filing portal. If the employer has 25 or more employees, then Form UI-3/40 must be filed electronically. Mail: Illinois Department of Employment Security, PO Box 19300, Springfield, IL 62794-9300 |
Form UI-3/40 is filed by the last day of the month following the end of each quarter:
|
File Illinois Payroll Forms with Confidence
Simplify Illinois payroll tax filing with TaxBandits — securely file new hire reports, withholding tax forms, and unemployment insurance returns online.
Information Required to File
Know what information you need to file Illinois payroll forms accurately
What to Report in a New Hire?
- Employee full name
- Address
- Social Security Number (SSN)
- Hire date
- Employer FEIN
- Employer address and contact information
What to Report on Form IL-941?
- Illinois withholding account number
- FEIN
- Total wages paid
- Illinois income tax withheld
- Payment amounts
- Credits claimed (if applicable)
What to Report on Form UI-3/40?
- Employer account number
- Employee wage details
- Quarterly taxable wages
- Contribution amounts due
- Number of employees
- Employer tax rate
How to file Payroll Tax Forms with the State of Illinois?
Create a free TaxBandits account and follow these simple steps to e-file your Illinois forms efficiently.
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Step 1: Choose the Required Form
Select the type of form you want to file. This includes new hire reporting, quarterly withholding Form IL-941, and unemployment insurance Form UI-3/40.
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Step 2: Enter the Required Tax Details
Complete the chosen form with the required information that applies to your business, such as employee wages and contribution data.
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Step 3: Review and Transmit
Review your form and transmit it to the appropriate state agencies through TaxBandits for a secure and approved filing.
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Step 1: Choose the Required Form
Select the type of form you want to file. This includes new hire reporting, quarterly withholding Form IL-941, and unemployment insurance Form UI-3/40.
-
Step 2: Enter the Required Tax Details
Complete the chosen form with the required information that applies to your business, such as employee wages and contribution data.
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Step 3: Review and Transmit
Review your form and transmit it to the appropriate state agencies through TaxBandits for a secure and approved filing.
Start e-filing with Illinois today - TaxBandits makes it quick and easy!
Illinois Payroll Tax Filing — Simple, Transparent Pricing
Pay for more than filing—accuracy, right outcome, and peace of mind.
| No of Forms | First Form | Next 3 Forms | 5-25 Forms | 26-50 Forms | 51-100 Forms | 101-500 Forms | 501-1000 Forms |
|---|---|---|---|---|---|---|---|
| New Hire Reporting | $1 / Employee | ||||||
| Withholding Form (IL-941) |
$5.95 | $5.25 | $4.75 | $4.25 | $3.75 | $3.25 | $3.00 |
| Unemployment Wage Report (Form UI-3/40) |
$5.95 | $5.25 | $4.75 | $4.25 | $3.75 | $3.25 | $3.00 |
For high-volume filing, call us at (704) 684-4758 for customized pricing.
Penalties and Corrections for New Hire, Withholding, and Unemployment
Know the penalties and how to correct errors before they impact compliance.
| Form | Penalties | Corrections |
|---|---|---|
New Hire Report |
|
Use Illinois New Hire Directory Portal: If an employer reports incorrect information (such as a wrong name, SSN, hire date, or employer details), the state requires employers to:
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Form IL-941 |
Late-Filing (or Non-Filing) Penalty:
Late-Payment Penalty
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Use MyTax Illinois: If you filed an IL-941 with errors such as incorrect withholding amounts, payments, adjustments, or credits, you must file Form IL-941-X to amend the return. Use IL-941-X to correct:
File a separate IL-941-X for each quarter you are amending.
Submitting Payments with Corrections If your amended IL-941-X results in tax due:
IDOR does not provide a separate “correction voucher.” IL-501 is used for all mailed withholding payments, including those related to IL-941-X. |
Form UI-3/40 |
Late Filing Penalty If Form UI-3/40 is filed after the due date:
Late Payment Penalty: If payment is not made by the due date:
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Use MyTax Illinois: If you discover an error on a previously filed Form UI-3/40:
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Beyond State Payroll Filing: Simplifying All Your Tax Needs
At TaxBandits, we simplify more than just state payroll filings. From Form 941 to 1099, W-2, and beyond, we make tax filing easier for businesses of all sizes. Our platform streamlines federal and state compliance, saving you time and reducing errors, so you can focus on growing your business.
Frequently Asked Questions
Report every newly hired or rehired employee to the Illinois New Hire Directory within 20 calendar days of the employee’s first day on the payroll. You may report online via the Illinois New Hire Portal, by fax, by mail, or by approved bulk/magnetic transmissions.
Under the Illinois Unemployment Insurance Act, an employer who knowingly fails to report a newly hired employee or independent contractor can be fined $25 per individual. If the employer conspires with the employee to cause non-reporting, that can be a Class B misdemeanor with a fine of up to $500 per individual.
You must file Form IL-941 if you paid amounts subject to Illinois withholding income tax, including:
- Employee wages and compensation reported on Form W-2
- Bonuses, commissions, and overtime pay
- Pension and annuity payments where withholding was voluntarily agreed to
- Gambling and lottery winnings subject to withholding
- Certain payments reported on Form 1099
Illinois requires Form IL-941 to be filed even if no tax was withheld during the reporting period, including for seasonal employers.
Illinois does not require a separate annual reconciliation return because Form IL-941 already serves as the quarterly withholding reconciliation form.
Illinois withholding tax deposit due dates depend on your assigned payment schedule.
Monthly Deposit Schedule
Payments are due by the 15th day of the month following the month in which taxes were withheld.
Semi-Weekly Deposit Schedule
- Wednesday — for taxes withheld on Wednesday, Thursday, or Friday
- Friday — for taxes withheld on Saturday, Sunday, Monday, or Tuesday
Illinois does not generally offer quarterly withholding deposit schedules. All employers are assigned either monthly or semi-weekly deposit schedules, while still filing Form IL-941 quarterly.
Illinois assigns payment schedules based on the employer’s withholding liability during the “look-back” period.
Monthly Depositor
Employers withholding $12,000 or less during the look-back period are generally assigned monthly payments.
Semi-Weekly Depositor
Employers withholding more than $12,000 during the look-back period are assigned semi-weekly payments.
If you exceed $12,000 in withholding during a quarter, you must switch to the semi-weekly payment schedule beginning the following quarter.
Yes. Illinois requires employers to electronically file Forms IL-941 and related withholding documents unless a waiver is approved using Form IL-900-EW.
Additionally, employers assigned to the semi-weekly payment schedule must make withholding tax payments electronically.
Illinois employers must attach:
- Schedule P — Illinois Withholding Schedule
- Schedule WC — Withholding Income Tax Credits (if credits are claimed)
These schedules are used to report withholding detail and calculate eligible withholding credits.
Illinois withholding tax payments can be made:
- Electronically through MyTax Illinois
- Through approved tax preparation software
- Using ACH Credit payment methods
- With Form IL-501 payment voucher where applicable
Electronic payment is mandatory for semi-weekly depositors.
If the correction is identified within the same calendar year, employers may generally adjust withholding amounts in future payroll cycles.
However:
- Form IL-941 must always report the exact amount actually withheld
- Employers should not issue Form W-2c solely to change withholding amounts
- If withholding was incorrectly reported on Form IL-941, employers must file Form IL-941-X
Employees generally reconcile any over-withheld or under-withheld amounts when filing their Illinois individual income tax return.
No. Unlike federal withholding requirements, Illinois does not require a separate annual withholding reconciliation return.
Submitting an unnecessary annual reconciliation return may cause processing delays and withholding account errors.
For 2026, Illinois unemployment insurance taxes apply only to the first $14,250 of each employee’s wages during the calendar year. Wages paid above this taxable wage base are not subject to additional Illinois unemployment insurance tax.
The taxable wage base is determined annually by the Illinois Department of Employment Security (IDES).
Illinois unemployment insurance contribution rates are assigned annually by IDES based on the employer’s experience rating, taxable payroll, benefit charges, and state unemployment trust fund adjustments.
New Employer Rate (2026)
- Most new Illinois employers are assigned a standard contribution rate of 3.35%.
- Certain industries, including administrative support and waste management services, may receive different new employer rates based on NAICS classification.
Experienced Employer Rates (2026)
- For experienced employers, 2026 Illinois unemployment insurance contribution rates generally range from 0.75% to 7.05%.
No. Illinois unemployment insurance payments must be submitted separately and do not accompany the paper Form UI-3/40.
Employers may pay unemployment taxes using:
- Electronic Funds Transfer (EFT)
- MyTax Illinois online payments
- Check or money order (if mailing is permitted)
Payments must be submitted by the quarterly due date to avoid penalties and interest.
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