To: All Faculty & All Academic Professionals & All Civil Service Staff
           <everybody@illinois.edu> 
    From: "Office of Business and Financial Services" <obfs@uillinois.edu>

Reply-To: obfs@uillinois.edu
 Subject: MASSMAIL - Increase Income Tax Withholding for Emloyees


On January 12, 2011, the Illinois legislature approved an increase in the 
state individual income tax rate from 3% to 5%, which Governor Quinn 
signed on January 13, 2011.  As a result of this increase, the University 
must change the withholding rate on employee wages from 3% to 5%. 

The new withholding rate will be implemented with payrolls paid on or 
after January 26, 2011.  Since the rates are effective January 1, 2011 
and due to the late passage of the increased rate, you may owe additional 
income tax next year when you file your 2011 Illinois individual income 
tax return.  

To see how this change affects your state income tax withholding and your 
net pay, you can use the Payroll and Earnings net pay calculators located 
at: 

Monthly Net Pay calculator 
<http://www.obfs.uillinois.edu/common/pages/DisplayFile.aspx?
itemId=922950>

Bi-Weekly Net Pay calculator
<http://www.obfs.uillinois.edu/common/pages/DisplayFile.aspx?
itemId=982810>

You can also access this information through the Payroll and Earnings 
site at <http://www.obfs.uillinois.edu/payroll/>. Click the appropriate 
topic under Calculators on the right panel to open the Monthly or Bi-
weekly calculator.  Note:  That you will have an option to open or save 
the file. Please SAVE the file to your desktop.  

NOTE: Because some e-mail programs split long addresses (URLs), you may 
not be able to reach the desired pages by clicking on the links above.  
Try copying all the text between the angle brackets into your browser's 
address bar.  There should be no spaces in the URL.

Your campus UPB Payroll Service Center can answer questions about the 
Illinois income tax increase and withholding:

Chicago	       312-996-7200

Urbana	       217-265-6363

Springfield    217-206-7211

E-mail:        payinq@uillinois.edu 

Laurie Pitner
Executive Director, University Payroll


This mailing approved by:
The Office of the President

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