Beginning January 1, 2020, Illinois has a new Minimum Wage Credit. Below is key information on the credit and you can click here to read full details.
Who does it impact?
Employers with 50 or less full-time equivalent employees and that have employees that had been earning less than the required minimum wage but are now being paid the required minimum wage.
How do I claim the credit?
The Minimum Wage Credit will be allowed against the Illinois withholding tax liability of employers.
What is the maximum credit?
The maximum credit is 25% and will decrease each year in the future. As Cray Kaiser knows more about the credit in the future, we’ll keep you informed.
What do I need to do?
It’s important to make sure your HR is tracking employees’ pay to determine each person’s eligibility. Alternatively, if you are using an outside payroll provider, inquire as to whether they will track this for you.
Please note that this blog is based on tax laws effective in January 2020 and may not contain later amendments. Please contact Cray Kaiser for most recent information.