Illinois Minimum Wage Credit and Quickbooks Tax Withholding

Good day, @MRoth.

You’ve come to the right place and I can provide information about the state of Illinois tax tables. There was an update on January 28, 2020, for the tax tables. 

I suggest updating your tax table, every time you pay your employees. 

For more information about the Illinois State W-2 E-File check out this link.

Customers have found this link about the Latest Payroll News and Updates helpful.

I’m happy to help anytime you have questions, feel free to come back to the Community. Have a great evening.

I having using quickbooks online since 2019. In 2021 I started receiving refunds from the Illinois Department of Revenue which turned out to be illinois minimum wage credits. Since I am using quickbooks online, why did my tax tables not update to account for this and is there a way to insure this does not continue to happen?

Thanks,
LMP

Can this credit be eliminated for a Government entity that should not be claiming it?

Thanks for reaching out to us, crispy63.

I understand you wanted to eliminate the Illinois Minimum Wage Credit because it isn't necessary for a government entity like yours. QuickBooks maintains compliance with mandatory labor law posting regulations.

The option to remove the Illinois Minimum Wage Credit isn't possible. You may have had an employee who qualified for the minimum wage credit, which is why you received it. This credit is non-refundable and non-transferable. If you did not claim it, form 941-X must be filed.

If your company should not be eligible for this credit, I recommend contacting the Illinois Department of Revenue or your accountant for tax advice. Refer to this page for more information: Illinois Department of Revenue.

For future reference, I've included the following article to help you deal with overpaid taxes: Resolve a payroll tax overpayment.

We got your back if you need anything else. Have a great day.