Notice to Employees Regarding the Increase in Illinois Income Tax Withholding
An increase in the state individual income tax rate from 3.75% to 4.95% was signed into law by Governor Rauner on July 1, 2017. This increase is effective July 1, 2017. As a result of this increase, the University is required to update the withholding rate on employee wages from 3.75% to 4.95%.
The new withholding rates have been implemented and will appear on the salaried (July 16 – 31, 2017) and hourly (July 1 – 15, 2017) payrolls scheduled for payment on July 31, 2017. Given the rates are effective July 1, 2017 and due to the late passage of the increased rate, it is possible additional Illinois income tax may be owed for the 2017 tax year.