On January 12, 2011, the Illinois legislature approved an increase in the state individual income tax rate from 3% to 5%, which Governor Quinn signed on January 13, 2011. As a result of this increase, the University must change the withholding rate on employee wages from 3% to 5%.
The new withholding rate will be implemented with payrolls paid on or after January 26, 2011. Since the rates are effective January 1, 2011 and due to the late passage of the increased rate, you may owe additional income tax next year when you file your 2011 Illinois individual income tax return.
To see how this change affects your state income tax withholding and your net pay, you can use the Payroll and Earnings net pay calculators located at:
Monthly Net Pay Calculator
Bi-Weekly Net Pay Calculator
Your campus UPB Payroll Service Center can answer questions about the Illinois income tax increase and withholding:
or via email firstname.lastname@example.org