Registration comes before the first payroll
An Illinois employer generally needs a federal employer identification number, Illinois withholding registration, and an unemployment-insurance account before the first payroll runs. Retroactive registration is possible but creates avoidable notices.
Two separate calendars
Federal and Illinois obligations run on their own schedules, and a business can be current on one while delinquent on the other.
- Federal employment-tax deposits on a monthly or semiweekly schedule
- Federal quarterly and annual employment-tax returns
- Illinois withholding payments and returns
- Illinois unemployment-insurance contribution reporting
- New-hire reporting requirements
Sales tax follows the sale, not the invoice
If the business makes taxable retail sales in Illinois, registration and periodic returns are required, and local rates vary by jurisdiction. Filing frequency is assigned based on liability and can change.
Put the calendar in writing on day one
The most common source of first-year notices is not a difficult technical question — it is a missed date. A documented filing calendar with owners assigned is the cheapest compliance control available.