Illinois Payroll Tax Registration

Aug 25, 2026

If you are an employer in Illinois who has recently hired a new employee, you will need to register for payroll taxes with the Illinois Department of Revenue. This registration process ensures that you are compliant with state tax laws and can properly withhold and remit taxes on behalf of your employees.

Zero payroll penalties, zero distractions.

Automatically register for payroll tax accounts. Mosey monitors your workforce in real-time and handles the process end-to-end.

How Illinois Payroll Registration Works

There are 3 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.

Illinois Unemployment Insurance Setup for PLLC, Professional Corporation, LLP, LLC, Corporation

Employers must file Form UI-1 to register for unemployment with the Department of Employment Security if they have paid $1,500 or more in wages in a single calendar quarter, or employed at least one person for 20 different weeks in a given calendar year. When registering a new business, they can also register for Income Tax Withholding at the same time.

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.
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.

Illinois Withholding Tax Setup for PLLC, Professional Corporation, LLP, LLC, Corporation

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.

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.
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 for Corporation, Professional Corporation

Employers must register for Unemployment Insurance tax with the Illinois Department of Employment Security.

Create a MyTax Illinois Account
Create a MyTax Illinois account to be able to register your business and remit taxes.
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.

Illinois's Payroll Registration Agencies

How to register your business in more states

See all

Agencies in Illinois

See all

More from the blog

Learn how to keep your business compliant in all 50 states across payroll, HR, Secretary of State, and tax.

California IWC Wage Orders: What Is My Wage Order and Requirements?

Every state has different compliance requirements for business owners. These requirements can impact wages, breaks, benefits, sick time, and workplace accommodations. Keeping track of them all can be highly involved, particularly for multi-state employers. The California Industrial Welfare Commission (IWC) Wage Orders are a set of rules that regulate wages, hours, and working conditions across various industries and occupations in the state of California.

Do I Need a Business License? Requirements Explained

There are many rules and regulations that dictate how, where, and when a business can legally operate. Business licenses can be a nuanced issue to navigate, specifically because requirements can vary significantly from region to region. If you are an entrepreneur and are doing business as a startup, or are a small business in your town, here’s what you need to know about business license requirements and the steps you must take to legitimately operate your business in compliance with local law.

California Workers' Compensation Guide for Employers

California’s workers’ compensation system isn’t just complex—it’s expensive. With some of the nation’s highest benefit rates and strictest compliance requirements, a single misstep can trigger investigations, penalties, and costly disputes. Recent 2025 updates raise the stakes even higher. Enhanced posting requirements, shortened reporting timelines, and increased weekly benefit rates mean employers need bulletproof compliance strategies rather than reactive approaches. So let’s jump right in. Key Takeaways All California employers must carry workers’ compensation insurance, even with just one employee, or face criminal penalties up to $100,000 2025 brought significant changes, including enhanced posting requirements, shortened injury reporting periods, and increased disability benefit rates Cost management requires proactive strategies beyond basic compliance—from return-to-work programs to medical provider network optimization CA Workers Comp: Overview & Legal Framework California operates one of the most comprehensive workers’ compensation systems in the United States, providing broader coverage and higher benefits than most states while imposing strict compliance obligations.

The Platform for State and Local Compliance