An increase in Illinois’ individual state income tax rate from 3 percent to 5 percent was signed into law Jan. 13 and is effective as Jan. 1, 2011.
As a result of this increase, the university is required to update the state income tax withholding rate on employee wages from 3 percent to 5 percent.
The new withholding rates have been implemented and will appear on the salaried (Feb. 1 to 15) and hourly (Jan. 16 to 31) payrolls scheduled for distribution Tuesday, Feb. 15 and thereafter. Because the new tax rates were effective Jan. 1, it is possible that individual taxpayers might owe additional Illinois income tax when completing their 2011 tax returns.
To adjust individual future withholding rate, contact the Human Resource Service Center at (815) 753-6000.