Illinois Tax

For Illinois residents, you specify the employee's exemptions.

Deltek Modification Date - 1/22/16

Enter the following field information for residents of Illinois on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Illinois tax calculations do not use the Status field.
Exemptions	Enter the number of exemptions claimed by the employee on line 1 of the Employee’s Illinois Withholding Exemption Certificate, Form IL-W-4.
Other Exemptions	Enter the number of exemptions claimed by the employee on line 2 of the Employee’s Illinois Withholding Exemption Certificate, Form IL-W-4.

Automatically Calculated Variables

Deltek automatically computes the Allowance, which is used in determining the net income tax.

Allowance

The Allowance is based on the number of exemptions entered in the Exemptions fields. It is determined by multiplying the number of exemptions entered in the first Exemptions field by $2,175.00 and the number of exemptions entered in the second Exemptions field by $1,000.00.

How Deltek Calculates Tax

To calculate an employee's Illinois State tax, Deltek does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's Allowance and 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
3. Calculates the net income tax by applying Tax Calculation Method 1 to the taxable income, using a percentage of 3.75%.
4. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.