Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart T - AMOUNT EXEMPT FROM WITHHOLDING › Section 100.7110 - Withholding Exemption Certificate (IITA Section 702)

Current through Register Vol. 48, No. 28, July 12, 2024
a) In general. On or before the date on which
				an individual commences employment with an employer, the individual shall
				furnish the employer with a signed Illinois withholding exemption certificate
				relating to the number of withholding exemptions he or she claims, which in no
				event shall exceed the number to which he or she is entitled. If an individual
				has claimed total exemption from federal income tax withholding for the current
				taxable year under 26 CFR 31.3402(n) -1, i.e., if the individual has furnished
				his or her employer with a federal exemption certificate stating that he or she
				incurred no federal income tax liability for the preceding taxable year, and
				the individual anticipates that he or she will not incur a federal income tax
				liability for the current taxable year, then the individual may, solely on that
				basis, claim total exemption from Illinois income tax withholding for the
				current taxable year on a signed Illinois withholding exemption certificate. If
				an employee attempts to claim total exemption from withholding on the Illinois
				certificate but does not simultaneously file or have on file with his or her
				employer a federal certificate claiming total exemption from federal
				withholding, or if the employee subsequently files a federal certificate that
				does not claim total exemption, then the employer shall disregard the Illinois
				certificate as invalid and shall withhold Illinois income tax at the full rate
				from the employee's total compensation until a valid certificate is furnished
				by the employee. The employer is required to request a withholding exemption
				certificate from each employee, but if the employee fails to furnish the
				certificate, the employee shall be considered as claiming no withholding
				exemptions. If the employee is a resident of a state with which Illinois has
				entered into a reciprocal agreement, he or she may file an IL-W-5, Employee's
				Statement of Non-Residence in Illinois, to claim an exemption from Illinois
				withholding. See 86 Ill. Adm. Code
				100.7120.
b) Form and content. Form IL-W-4, Employee's
				Illinois Withholding Exemption Certificate, is the form prescribed for the
				certificate required to be filed under this Section. A withholding exemption
				certificate on Form IL-W-4 shall be prepared in accordance with the
				instructions applicable to that form, and shall set forth fully and clearly the
				data required in the form. An alteration of or unauthorized addition to a
				withholding exemption certificate shall cause the certificate to be invalid. An
				alteration of a withholding exemption certificate is any deletion of the
				language by which the employee certifies or affirms the correctness of the
				completed certificate, or any material defacing the certificate. An
				unauthorized addition to a withholding exemption certificate is any writing on
				the certificate other than the entries requested (e.g., name, address, and
				number of exemptions claimed). Form IL-W-4 will be supplied to employers upon
				request to the Department. In lieu of the prescribed form of certificate,
				employers may prepare and use a written form the provisions of which are
				identical to those of the prescribed form. Alternatively, an employer may use
				any software application that will allow employees to prepare the IL-W-4
				electronically, provided that any such electronic system meets the requirements
				of 26 CFR 31.3402(f)(5) -1(c) and requires the production and retention of the
				same information required on the written Form IL-W-4.
c) Change in status that affects the current
				calendar year.
1) Decrease in the number of
				exemptions.
A) Employee notification. If, on
				any day during the calendar year, the number of withholding exemptions to which
				an employee is entitled is less than the number of withholding exemptions
				claimed on a withholding certificate then in effect, the employee must, within
				10 days after the change occurs, furnish the employer with a new Illinois
				withholding exemption certificate relating to the number of withholding
				exemptions the employee then claims, which must in no event exceed the number
				to which the employee is entitled on the day the form is submitted.
B) Internal Revenue Service notification. If
				an employer receives a notice from the Internal Revenue Service relative to a
				particular employee's withholding exemption certificate that necessitates the
				employer disregarding an employee's claim to total exemption or to the full
				amount of exemptions shown on the Form W-4 under 26 CFR 31.3402(f)(2) -1(g) or
				31.3402(f)(2) -1 T(g), then the employer shall withhold Illinois income tax
				from the employee as follows:
i) if the
				employee's Form IL-W-4 claims total exemption from Illinois withholding, on the
				basis of the maximum number of exemptions specified by the Internal Revenue
				Service in the notice; or
ii) if
				the employee's Form IL-W-4 claims a certain number of exemptions, on the basis
				of the number of exemptions claimed by the employee or on the basis of the
				maximum number of exemptions specified by the Internal Revenue Service in the
				notice, whichever is less.