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Illinois registration and tax info

Updated

 Illinois  registration and tax info

Prior to issuing payments to employees, ensure that you've completed the payroll registration process in the relevant state of their employment. This might take a few weeks, so beginning early is advisable to get the necessary tax account details for payment purposes.

Niural collaborates with Middesk to assist you in the state registration process. For additional information, please explore the details provided below.

Let Niural register for you

Niural partners with Middesk to help you register your business in new states. 

How it works

On adding a new work address in a different state or recruiting a new employee who has been allocated a work address in that state, you can access registration support within Niural.

The pricing is subject to change based on the state. 

Here's an overview of the procedure:

1. Provide essential business details.

2. Niural and Middesk will verify the accuracy of the information.

3. Registration applications are normally sent within 3-5 business days.

4. Look out for registration details from Middesk in the mail. 

5. Middesk can guide you through entering any data they don't handle on your behalf through Niural.

Initiate the state tax registration process

  • Sign in to Niural as an employer.
  • Navigate to the Company tab under Company.
  • Select Jobs and Pay.
  • Under Illinois Tax Setup, click Let Niural register for you.

Note: Niural can only register for you if you don't yet have a state account already.

  • Enter company information on Middesk. 
  • Once you submit your order, we will send you email updates regarding the status. The total cost of your order will be added to your upcoming monthly invoice.

Check the status of your order

Once your order is finalized, you will receive emails from both Niural and Middesk. These emails will outline the subsequent actions, including:

1. Reviewing registration information.

2. Any additional state-specific instructions.

Before your order is finalized, you can use the link provided in the state registration confirmation email from Niural to track the progress of your order.

Cancel your order

If an order is already completed, you'll need to contact Middesk to cancel.

If an order is in progress you can email us at support@niural.com.

You'll be refunded, but it can take a few business days to process. 

 

Register for IL income and unemployment tax on your own

To acquire guidance on registering with state agencies and granting Niural the necessary third-party authorization (TPA) for filing and remitting specific taxes on your behalf, simply select the dropdowns below.

Illinois tax agencies

  • Illinois Department of Revenue - income tax withholding
  • Illinois Department of Employment Security (IDES) - unemployment tax

Withholding (income tax) and unemployment account registration

Register for both income tax withholding and unemployment tax through the Illinois Department of Revenue website.

  1. Head to the Illinois Department of Revenue website.
  2. Scroll to the "Register" tile and click Register a New Business (Form REG-1).
  3. Click Next once you've added some basic business information, which includes:
    • Organization type
    • FEIN (Federal Employer Identification Number)
    • Legal name
    • DBA (doing business as) name if applicable

What to expect for income tax withholding

After your registration is complete, you will be issued a Taxpayer ID, which comprises your FEIN along with a Sequence Number. It's essential to input the accurate Sequence Number into Niural. For detailed instructions on where to input your tax information in Niural, please refer to the section below in this article.

  • Usually this is"-000", but can sometimes be "-001".
    • Most new employers in Illinois will have the "-000" Sequence Number.
  • If you're unsure about your Sequence Number, call the agency at (800) 732-8866.

What to expect for unemployment tax

Most companies become liable for state unemployment insurance tax once the company has:

  • Paid $1500 in wages during a calendar quarter or;
  • Had at least one Illinois-employee working for any part of the week, for 20 or more different weeks during a calendar year.

If considered liable, you'll instantly be issued an:

  • Unemployment Account Number in the format of XXXXXXX-X.
    • Heads up: the last digit of your Unemployment number is called the "check digit" and the department will often omit it from correspondence.
      • Niural only requires the first 7 digits of the Unemployment Account Number—do not include the eighth digit (if present) when entering the number in your account. Instructions for where to enter tax information in Niural can be found below in this article.
  • Unemployment "new employer" tax rate.
    • This varies by industry and includes an additional "Fund Builder Rate" which you'll need to include in Niural. Instructions for where to enter tax information in Niural can be found below in this article.

Monthly wage reporting requirement—Illinois Department of Employment Security

Illinois employers who have over 25 employees must submit monthly wage reports to the Illinois Department of Employment Security. Niural takes care of this monthly report filing on behalf of all our customers, regardless of the number of employees you employ.

Running payroll in Niural before you're liable for unemployment tax

If you need to run payroll and do not yet meet the requirements above, Niural allows it. We just suggest you add the “New employer SUI tax rate” specific to Illinois in the meantime.

Enter the tax account information in Niural

Once a valid Illinois work address has been added in Niural for one or more employee(s), you can add your tax account information:

1. Go to the Company details section in your Niural account.

2. Click on Jobs and Pay.

3. Select Edit on Illinois Tax Setup.

4. Enter your rate name here.

If you don’t have your agency-assigned rate, use the current year's "New employer rate" from here. 

Update your rate in Niural only if it differs from the current one.

 

Third party authorization (TPA) is required

Third-party authorization is required for the below agency:

  • Illinois Department of Revenue (DOR)

IL DOR TPA—payments and filings

You must grant Niural access to your MyTax Illinois account in order for us to file and pay your Illinois withholding taxes. 

  1. Log in to your MyTax Illinois account. 
  2. Select Manage my Profile.
  3. Click More....
  4. In the section titled "Access", select Manage Third Party Access.
    • From here, you can indicate that you'd like to allow third party access. You'll also see which third parties currently have access to your account.
  5. Under "Third Party Access" make sure the:
    • "Allow" setting is set to Yes. 
    • "Default access" is set to Third Party.
    • "Default account access" is set to Full Access. 

To change these settings, click the blue link to toggle to the designations above.

Discover your account numbers and rate information (if you've completed registration).

If you've previously registered with the state, you'll be required to input your tax account particulars into Niural to facilitate employee payments.

To enable Niural to handle tax filings and payments on your behalf, you must be registered with one or more of the agencies listed below:

  • Illinois Department of Revenue - income tax withholding
  • Illinois Department of Employment Security (IDES) - unemployment tax

If you still need to register, click the Register a company with state agencies dropdown above in this article.

Find your withholding tax account number

Withholding Taxpayer ID

If you've run payroll in Illinois previously, you can find your Taxpayer ID:

  • On your Illinois Withholding Income Tax Return (IL-941) or;
  • By calling the agency at (800) 732-8866.

Your Taxpayer ID will consist of your FEIN plus a Sequence Number—you'll need to enter the correct Sequence Number in Niural.

  • Usually the Sequence Number is"-000", but can sometimes be "-001".
    • Most new employers in Illinois will have the "-000" Sequence Number.

If you're not sure of your Taxpayer ID or Sequence Number, call the agency at (800) 732-8866.

Find your unemployment account number and rate

Unemployment Account Number and tax rate

You can locate your Illinois Unemployment Account number and unemployment tax rate on the annual "Notice of Contribution Rate" sent to you by the Illinois Department of Employment Security (IDES).You can also sign in to your online account to find the information.

Entering your Unemployment Account Number 

Niural only requires the first 7 digits of the number, do not include the 8th digit (if present). 

  • If the account number is less than 7 digits, add leading zeros to create a seven digit number.
    • New employers will always have 7-digit numbers, and they will typically start with a "5."

Entering your unemployment (experience) tax rate

Enter both your experience rate and the "Fund Builder Rate" as the total tax rate in Niural.

  • If you're not sure what your rate is, contact the agency at (800) 247-4984.
  • Don't have an agency-assigned UI rate yet? You can add the "New employer SUI tax rate" specific to Illinois in Niural for the meantime.

 

Third party authorization (TPA) is required

Third-party authorization is required for the below agency:

  • Illinois Department of Revenue (DOR)

IL DOR TPA—payments and filings

You must grant Niural access to your MyTax Illinois account in order for us to file and pay your Illinois withholding taxes. 

  1. Log in to your MyTax Illinois account. 
  2. Select Manage my Profile.
  3. Click More....
  4. In the section titled "Access", select Manage Third Party Access.
    • From here, you can indicate that you'd like to allow third party access. You'll also see which third parties currently have access to your account.
  5. Under "Third Party Access" make sure the:
    • "Allow" setting is set to Yes. 
    • "Default access" is set to Third Party.
    • "Default account access" is set to Full Access. 

To change these settings, click the blue link to toggle to the designations above.

Enter the tax account information in Niural

Once a valid Illinois work address has been added in Niural for one or more employee(s), you can add your tax account information:

1. Go to the Company details section in your Niural account.

2. Click on Jobs and Pay.

3. Select Edit on Illinois Tax Setup.

4. Enter your rate name here.

If you don’t have your agency-assigned rate, use the current year's "New employer rate" from here. 

Update your rate in Niural only if it differs from the current one.

 

Forms we file in Illinois

  • Illinois Withholding Income Tax Return (IL-941)
  • Illinois Withholding Schedule (Schedule P)
  • Illinois Withholding Tax Payment (IL-501)*
  • Wage and Tax Statement (State W2)
  • Illinois TaxNet Monthly Wage Report (IL UI MTHLY WG)
  • Illinois Annual W/H Reconciliation (IL W-3)
  • IL New Hire Report
  • Employer's Contribution and Wage Report (UI-3/40) 

Where to find the forms available in your account

Head to the Taxes & compliance section and select Tax documents.

Use the tabs on the page to toggle between federal, state, W-2, and 1099 forms.

Asterisk info—only if applicable

Filings marked with an asterisk (*) will not appear in your Tax documents tab—these are coupons, payment vouchers, or other forms that are filed electronically.

Agency websites and contact info

 

 

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