Illinois withholding tax increases from 3.75 percent to 4.95 percent

Per Notice PR-2017-11 (issued July 11, 2017) and posted on the Illinois Dept. of Revenue website all employers must now withhold at 4.95%, effective July 1, 2017 for Illinois income tax withholding.
All payroll checks processed after July 11, 2017 will be taxed at the new rate. For weekly employees the new rate will start with paychecks paid on Friday July 21. For monthly employees the new rate will start with July paychecks paid on Monday July 31.