Booklet Il-700-T - Illinois Withholding Tax Tables Page 4
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23What other method may I
If you prefer, you may use the automated payroll method to figure the amount of Illinois
use to figure the amount of
Income Tax you should withhold.
tax that I should withhold?
Tax withheld =
Automated payroll method
(
)
(
)
(Line 1 allowances x $2,100) + (Line 2 allowances x $1,000)
Wages —
.05
x
number of pay periods in a year
To determine how much to withhold using the automated payroll method formula, fol-
low these steps:
Step 1 Determine the wages paid.
Step 2 Figure your employee’s exemptions using the allowances claimed on Form IL-W-4.
Number of pay
a Multiply the number of allowances your employee claimed on Form IL-W-4,
periods in a year
Line 1, by $2,100.
b Multiply the number of allowances your employee claimed on Form IL-W-4,
Weekly payroll
52
Line 2, by $1,000.
Bi-weekly payroll
26
Semi-monthly payroll 24
c Add your answers from Step 2a and Step 2b.
Monthly payroll
12
d Divide the result of Step 2c by the number of pay periods from the table. The
Bi-monthly payroll
6
result is your employee’s exemptions.
Quarterly payroll
4
Step 3 Subtract the exemptions from the wages paid. The result is the taxable amount.
Semi-annual payroll
2
Annual payroll
1
Step 4 Multiply the taxable amount by 5 percent (.05). You must withhold this amount.
Step 5 Add any additional amount from Form IL-W-4, Line 3. This is the total amount you
withhold.
The example below illustrates how to figure the amount to withhold using the automated
payroll method.
Automated payroll
Example
method example
You pay Alice $800 every week. She claims four allowances on her Form IL-W-4. Two
allowances are claimed on Form IL-W-4, Line 1, and two allowances are claimed on
Form IL-W-4, Line 2. You withhold $34.13 from her pay.
Step 1 Determine the wages paid
$ 800.00
Step 2 Figure your employee’s exemptions
(based on Form IL-W-4).
a 2 x $2,100
= $4,200 (Line 1 x $2,100)
b 2 x $1,000
= $2,000 (Line 2 x $1,000)
c $4,200 + $2,000 = $6,200 (Step 2a + Step 2b)
d $6,200 ÷ 52 pay periods = $119.23
Step 3 Subtract the amount exempt from withholding.
— 119.23
Taxable amount
$ 680.77
Step 4 Multiply by the tax rate
x
.05
Tax withheld
$
34.04
(Effective 1/1/2013)
Page 4
Booklet IL-700-T (R-12/12)
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