Illinois Payroll Tax Registration

If you have recently hired an employee in Illinois, it is essential to understand the process of payroll tax registration. This involves registering with the Illinois Department of Revenue (IDOR) to ensure compliance with state payroll tax regulations.

How Illinois Payroll Registration Works

There are 2 payroll tax setup tasks you may need to complete in Illinois to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Illinois agencies or use Mosey to do it.

Use Mosey to register for payroll tax in Illinois.

Illinois Withholding Tax Setup

If you have employees in Illinois, you are required to register for a withholding account with the Department of Revenue by filing the Illinois Business Registration Application (Form REG-1). Note: When registering a new business you can also register for Unemployment Insurance at the same time.

  1. Create a MyTax Illinois Account

    Create a MyTax Illinois account to be able to register your business and remit taxes if you haven't already done so.

  2. File the New Business Registration Application

    Register as a new employer using the New Business Registration application (Form REG-1) on MyTax Illinois. This will create a withholding account with the Department of Revenue. Alternatively you can file forms REG-1 and UI-1 together by mail.

Illinois Unemployment Insurance Setup

Within 30 days of your first employee's start date, you are required to register for an Unemployment Insurance tax account with the Department of Employment Security by filing Form UI-1. Note: When registering a new business you can also register for Income Tax Withholding at the same time.

  1. Create a MyTax Illinois Account

    Create a MyTax Illinois account to be able to register your business and remit taxes if you haven't already done so.

  2. File Form UI-1 Online

    Register for an unemployment insurance account with the Department of Employment Security using the UI-1 application on MyTax Illinois. Alternatively, you can file forms REG-1 and UI-1 together by mail.

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