Illinois Withholding Income Tax Guidance - Minimum Wage Credit

Glad to see you here, @paintohealth,

I want to make sure I give you the information you needed, but in order for me to do so, I need to gather more details about your concern.

What seems to be the problem and how can I help you with the Illinois Minimum Wage Credit? Any information will help us sort things out.

In the meantime, please see this publication to know more about this update: Illinois Withholding Income Tax Guidance - Minimum Wage Credit.

You may also refer to this article to know more about the forms and taxes supported by QuickBooks for the State of Illinois: Illinois Payroll Tax Compliance.

I look forward to hearing back from you. Please add a new comment below to notify me. I'll be right here to provide additional insight and help with this topic or anything QuickBooks related. Have a wonderful day!

How is quickbooks going to handle the Illinois Minimum Wage Credit?

Will quickbooks adjust the state tax deposit weekly?

Will quickbooks print the required Schedule WC or WC-I that needs to be attached to the IL-941?

Thanks for joining this conversation, @jsb2214.

At the moment, QuickBooks is still communicating with the Illinois State tax agency for the new Withholding Income Tax- Minimum Wage Credit information. We will let you know as soon as it's available in QuickBooks. 

In the meantime, you can see this article: Illinois Payroll Tax Compliance to help you learn about the State Payroll Tax regulations.

For future reference,  visit our QuickBooks Support site to find answers to your product-related concerns. 

Feel free to message again if you have additional questions. We're always delighted to address all your needs. 

My question is what type of account should I set up in quickbooks to reduce the tax liability balance that shows up under the "pay liabilities" section.   It shows I need to create a check for Illinois withholding but my credit wipes out that amount.  So how do I show that the amount was paid with the Minimum Wage Credit?

Thanks.

Hi there, @freyds.

I can see that your post was tagged under QuickBooks Online. However, the Pay Liabilities section can be accessed if you're using QuickBooks Desktop. 

If you're using the Desktop version, there's no need for you to set up another account to reduce the tax liability balance. You can enter the Illinois Withholding Credit for 2020 by following these steps:

1. Go to the Employees menu, then select Payroll Center.
2. Click File Forms.
3. Highlight the Illinois 941 Quarterly Returns, and select Create Form.
4. In Step 5: Tell us about your payments and credits, fill in the information that you calculate the wage credits:
   • Enter "0" in the Years Left to Carry column.
   • Enter 0900 for the IL Wage Credit Code in the Credit Code column.
   • Enter the year and month for the credit in the Qtr ending Credit Earned column, and use this format: (2020-01 for Q1 2020).
   • Enter the calculated credit amount in the Credit Earned field.
5. Follow the instructions on the form to file with the state.

If you're using the Online version, I recommend reaching out to our Payroll Support Team. This way, they can adjust your Illinois Withholding Credit for 2020. You can reach out to them by following these steps:

1. Select Help (?) at the top right.
2. Click the Contact Us button.
3. Enter "How to enter your Illinois Withholding Credit for 2020?" in the description.
4. Hit Let's talk.
5. Select Get a callback.

To ensure we address your concern on time, check out our support hours.

You can also run the Payroll Tax Liability report if you're using QBO to check your current liability balance. You can access this report by going to the Reports menu and search Payroll Tax Liability.

For the Desktop version, go to Reports and select Employees & Payroll. Then, click Payroll Liability Balances.

I'm always here to help if you have any other concerns or questions. Just tag my name in the comment section and I'll get back to you as soon as I can.

This is a typical CUT & PASTE answer from Quickbooks.   

You should address the requests of your customers.

Our firm spends a lot of money purchasing Quickbooks, Proseries and other Intuit products, we need the same service as you give your Online customers.  I believe that your talented programmers should be able to figure out how to add this feature (Illinois Minimum Wage Credit calculation) to the desktop version.

We need this Illinois Minimum Wage Credit calculation programmed into DESKTOP version as it is in the ONLINE version.

Thank you

Quick Books did do the work for us on the Tax Credit and we received a check from the state for the overpayment.  The new question is how do I journalize this money?

I'll help you track the overpayment in QuickBooks, info1567.

Let's make a bank deposit in QuickBooks Online. You can choose the Owner/Partner Equity Investment account if it's for business. Otherwise, enter it as a Personal Expense. Here's how: 

1. Go to + New and then select Bank Deposit.
2. In the Choose an Account field, select the account where the refund will be deposited.
3. Go to the Add Funds to this Deposit section.
4. Select the name of the tax agency in the Received From column.
5. Choose the specific account used in mapping your Payroll Tax Payments in the Account columns.
6. Add the amount of the tax refund.
7. Once done, click on Save and Close.

If you're using the desktop version, I'd recommend following the steps below. Make sure to select the correct account to keep your records accurate.

Here’s how to do it:

1. Go to the Banking menu.
2. Select Make Deposits.
3. Select the accounts suggested.
4. Enter the necessary information.
5. After that, click on Save & Close.

Additionally, I've added these resources that'll help you handle and resolve payroll tax overpayment in QuickBooks:

• QuickBooks Online - Resolve a Payroll tax Overpayment 
• QuickBooks Desktop - Handle a Payroll Tax Refund from an Agency

I'll keep an eye on the thread to check if you have additional questions about tracking the refund. This way, we'll be able to ensure this gets resolved.