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Illinois New Employer Information

Congratulations on your decision to become an Illinois new employer! You will need a few things in place before you run your first payroll. For help registering your business in Illinois, check out our partner, CorpNet.

Federal and State Tax Accounts

Federal Tax Accounts:

Apply for an EIN View Details

Your business will need to have an Employer Identification Number (also known as an EIN or FEIN), if you do not already have one.
The simplest way is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
To read more about applying for EINs, read our help article, “Your Step-by-step Guide on How to Apply for EIN”.

Enroll in EFTPS View Details

Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can register online for the EFTPS.
To find out more about EFTPS, read our article, “What Is EFTPS?”

State of Illinois Tax Accounts:

Register on MyTaxIllinois for Employer Account Numbers View Details

Register for your state income tax (SIT) account and state unemployment account (SUTA). You can easily register online using MyTaxIllinois.
For more information, visit the Illinois Department of Revenue and the Illinois Department of Employment Security.

Get Your SUTA Rate View Details

Illinois new employer SUTA rate is 3.950% for 2024.
After three years of employer experience, the Illinois Department of Employment Security will assign a new SUTA (state unemployment tax assessment) rate for your small business.
To learn more about SUTA please read our article, “What Is SUTA Tax?”

State-mandated Requirements:

Sign up for Workers’ Comp Insurance View Details

You must have workers’ comp insurance if you have at least 1 employee in Illinois. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Illinois here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.

Offer a Qualifying Retirement Plan View Details

Illinois requires that employers with 5 or more employees who have been in business for at least 2 years enroll in Illinois Secure Choice , the state-mandated retirement program, or offer a qualifying retirement plan alternative.
Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.

Setting Up Your New Employee:

Fill Out Form I-9 View Details

Fill out Form I-9 for employee work verification in the USA. For more information, read,“Form I-9 In a Nutshell”
You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “What Should Be in an Employee File?”

Have Employee Fill Out Federal Form W-4 View Details

Have your new employee fill out Form W-4, Employee’s Withholding Certificate for federal income taxes (FIT).
For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?”

Have Employee Fill out State Form IL-4 View Details

Have your new employee fill out Form IL-W-4 Illinois Withholding Allowance Certificate for state income taxes (SIT).

Report New Hires View Details

Illinois employers are required by law to report all new hires within 20 days from the date of hire or rehire.
You can report your new employees online with the Illinois Department of Employment Security.
For more information, read, “What Is New Hire Reporting?”

Meet Minimum Wage Requirements View Details

Illinois employers must follow the minimum wage rate of $14.00 per hour in 2024.
You need to display the minimum wage poster where your employees can read it.

Obtain Labor Law Posters View Details

Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!

Once you have all the necessary information, you will be able to set up your payroll for your business. For more information, read, “What Information is Needed to Set Up Payroll?”

You will be required to keep employee payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records”

Let us know if you have any questions. We are here to help!

This is not an all-inclusive list for new employers. Please check with your state and federal government for full compliance.

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