University of Illinois System
Paying People

Employee's Withholding Certificate

University Payroll & Benefits (UPB) withholds federal and state income tax according to federal and state tax laws, and university policy. Your income tax calculations are based on any withholding certificates you have completed.

See the Policies and Procedures Manual, Section 18 Taxes for more information on policies specifically relating to nonresident aliens, taxability of tuition waivers, student employee Federal Insurance Contributions Act (FICA) exception, and fringe benefits.

Assistance

University offices cannot give you tax advice or recommendations for how to complete your withholding certificates. Contact the Internal Revenue Service, Illinois Department of Revenue, your state website, or a tax professional for advice.

Questions about how to submit federal and state withholding certificates may be directed to the University Payroll & Benefits Service Portal.

Update Your Withholding Certificate

To assure proper income tax withholding all employees are required to complete a Form W-4 Employee's Withholding Certificate for federal withholding, and Form IL-W-4 Employee's Illinois Withholding Allowance Certificate for Illinois state withholding. New employees complete their withholding certificate during the new hire process.

To update and submit your withholding certificate, use the appropriate method below. Most changes will be effective the next available pay if submitted by the Job Change System Cut-off date published in the University Payroll Schedules.

  1. Online in W-4 Withholding Allowance at My UI Info (federal and Illinois state).
  2. If you are unable to complete your withholding certificate online through My UI Info, you will be required to manually submit the form. Contact UPB Customer Service through the University Payroll & Benefits Service Portal for instructions.

Federal Form W-4 Employee's Withholding Certificate

Federal income tax is calculated according to an employee's Form W-4 Withholding Certificate. UPB withholds an amount of income tax based on the marital status, number of dependents, and additional withholdings indicated on your completed Form W-4. You may indicate a whole dollar amount to be withheld in addition to the required withholding.

If Form W-4 is not submitted, UPB withholds income tax at the rate for a single person with no dependents. If your tax status changes, you must submit a new Form W-4 that reflects those changes (see Update Your Withholding Certificate above). The most recent Form W-4 remains effective until updated.

You should either contact your tax advisor or use the IRS Tax Withholding Estimator to determine how to complete your Form W-4.

File Exempt

You may file exempt from federal income tax if you meet the following conditions:

  • Last year I had a right to a refund of all federal income tax withheld because I had no tax liability and
  • This year I expect a refund of all federal income tax withheld because I expect to have no tax liability

If you plan to file Exempt, you must submit a new Form W-4 that selects the exemption. This exemption must be renewed each year by submitting a new Form W-4 by February 15. If the Internal Revenue Service (IRS) requests a copy of an employee's Form W-4, the University of Illinois System is required to, and will, submit an employee's Form W-4 to the IRS.

State of Illinois Form IL-W-4 Employee's Withholding Certificate

To ensure proper Illinois state income tax withholding, all employees who are Illinois residents must complete or update their Form IL-W-4 Employee's Withholding Allowance Certificate (see directions above). The amount of state income tax withheld is based on the number of allowances indicated on the form. You may also indicate a whole dollar amount to be withheld in addition to the required withholding.

If Form IL-W-4 is not submitted, income tax will be withheld with no allowances. If your tax status changes, you must submit a new Form IL-W-4 that reflects the changes (see Update Your Withholding Certificate above). You can claim Exempt from state withholding only if you have also claimed Exempt from Federal withholding.

Additional information regarding form IL-W-4 may be found on the Illinois Department of Revenue site Illinois Revenue.

Out-of-State Salary/Wage Withholding

If you live outside Illinois, you will need to complete additional withholding forms depending on the following situations:

You live in a reciprocal state, and you travel to Illinois to perform your work a majority of the time.

If you are a resident of Iowa, Kentucky, Michigan, or Wisconsin you may claim exempt from Illinois state income tax withholding under the reciprocal withholding agreements between Illinois and the states indicated.

  1. Complete form IL-W-5-NR, Employee’s Statement of Nonresidence in Illinois to claim the exemption. Withholdings will be directed to the state indicated on the form.
  2. Complete a withholding form for your state, if applicable. This will ensure proper withholding for your state. See Withholding Certificates by State (below) for your state's withholding certificate.
  3. Submit both forms to UPB through the University Payroll & Benefits Service Portal.

To cancel the exemption a Form IL-W-4 must be completed and submitted to UPB.

Additional information regarding Form IL-W-4 and Form IL-W-5-NR may be found on the Illinois Department of Revenue site Illinois Revenue.

You live outside of Illinois and perform the majority of your work outside of Illinois.

If the university is registered as doing business in the state you live, the university is required to withhold according to that state's withholding regulations.

  1. Review the policy Working Outside of Illinois - System Human Resource Services to make sure you qualify and have been approved for this work.
  2. Complete the Certificate of Working Outside the State of Illinois form and submit it to UPB.
  3. Complete a withholding form for your state and submit to UPB, if applicable. This will ensure proper withholding for your state. See Withholding Certificates by State (below) for your state's withholding certificate.

Submit both forms to UPB through the University Payroll & Benefits Service Portal.

Withholding Certificates by State

The University is currently registered in the following states (click on link for fillable/printable withholding form):