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Intuit

How to enter your Illinois Withholding Credit for 2020

Learn to manually calculate and enter your wage credits for 2020.

On January 1st 2020, the Illinois Department of Revenue implemented a Minimum Wage Credit that may be used against Illinois withholding income tax payments for qualifying companies.

If your company qualifies for a Minimum Wage Credit, the Il Department of Revenue will send a check to your business address on file after processing the quarterly IL-941 tax return.

Follow the steps below for your version of payroll.

Note: Not sure which payroll service you have? Here's how to find which payroll service you have.

 

When you view the IL-941 form, the tax credit will automatically populate. Complete your filing as normal.

When Intuit files the IL-941 form on your behalf, the credit will be posted to the form.

With QuickBooks Desktop Payroll, you can ensure accurate withholding income tax payments by updating your withholding credits. You’ll need to figure out what your wage credits are, and then enter them into your QuickBooks.

Here’s how to calculate and enter your wage credit into QuickBooks:

Step 1: Calculate your wage credits

  1. Pull up the Illinois Wage Credit Instructions.
  2. Go to page 2 of the IL-941 form in payroll to see how to calculate your wage credits.

Step 2: Enter your wage credit into QuickBooks

  1. Go to Employees, then Payroll Center, and select File Forms.
  2. Highlight the Illinois 941 Quarterly Returns, and select Create Form.
  3. 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.
  4. Follow the instructions on the form to file with the state.

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