>>> IMPORTANT! – Illinois SMALL BUSINESSES
A Minimum Wage Tax Credit is now Available
Recover Up to 25 Percent of Wage Increases
The Illinois Department of Revenue (IDOR) is advising small businesses they can utilize the Minimum Wage Credit starting January 1, 2020. The new tax credit is designed to help small businesses offset the state’s minimum wage rate that will gradually increase to $15 an hour over the next six years.
Beginning this year, businesses and nonprofits with 50 full-time equivalent employees or less are eligible to offset a portion of the minimum wage increase cost from their withholding income taxes. The maximum credit amount allowed is 25 percent of the difference between the new minimum wage and what each employee was paid previously. Businesses can claim the credit on their quarterly Illinois Withholding Income Tax Returns. Visit tax.illinois.gov for information on how to calculate this credit.