TAXES 16-16, Illinois State Income Tax Withholding
Published: March 25, 2016
Effective: Pay Period 06, 2016
Summary
The income tax withholding formula for the State of Illinois will change. The annual exemption allowance, per exemption, will increase from $2,150 to $2,175. No action on the part of the employee or the personnel office is necessary.
Tax Formula
State Abbreviation: |
IL |
State Tax Withholding State Code: |
17 |
Acceptable Exemption Form: |
IL-W-4 |
Basis for Withholding: |
State Exemptions |
Acceptable Exemption Data: |
0/Number of Regular Allowances/Number of Additional Exemptions |
TSP Deferred: |
Yes |
Special Coding: |
Determine the Total Number of Allowances field as follows: First Position - Enter 0 (zero). Second or Third Positions - Enter the number of exemptions claimed. Determine the Additional Exemptions Claimed field as follows: First and Second Positions - Enter the number of additional allowances claimed on Line 2 of the IL-W-4. Valid values are 00 through 99. If no allowances are claimed, enter 00. |
Additional Information: |
None |
Withholding Formula (Effective Pay Period 06, 2016)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages times 26 to obtain the annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages:
Exemption Allowance = $2,175 x Number of Exemptions
- Determine the additional allowance by applying the following guideline and subtract this amount from step 5 to compute the taxable income:
Additional Allowance = $1,000 x Number of Additional Exemptions
- Multiply annualized taxable wages by 3.75 percent to determine the annual tax.
- Divide the annual Illinois tax withholding by 26 to obtain the biweekly Illinois tax withholding.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the NFC homepage. Click the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Click the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.