Illinois Payroll Tax Recordkeeping Requirements

In Illinois, every employer must keep a record of the wages and hours of each employee for three years.

The following basic information must be included in employer records: name of each employee; address of each employee; birthdate of each employee who is 18 years of age or under; Social Security number; sex and occupation; hours worked each day and hours worked each workweek; time of day and day of week when employee's workweek begins; basis on which wages are paid; additions and deductions from employee wages for each pay period and an explanation of the additions and deductions; type of payment (hourly rate, salary, commission, etc.), straight time and overtime pay and total wages paid each pay period; and dates of payment for each pay period.

In addition to the basic information in employee wage records, for tipped employees the following is required: an identifying symbol, letter or number on the payroll record indicating the employee is a person whose wage is determined in part by gratuities; the report received from the employee setting forth gratuities received during each workday (signed by the employee and including the employee's Social Security number); the amount by which the employee's wages has been deemed to be increased by gratuities; hours worked each workday in any occupation for which the employee does not receive gratuities and the total daily or weekly straight time pay for those hours; and hours worked each workday in an occupation for which the employee received tips or gratuities and the total daily or weekly straight time earnings for those hours.