By Geoff Harlow, KOS Partner gharlow@koscpa.com

Effective for tax year 2011, household employers must separately report Illinois Withholding Income Tax and Unemployment Insurance Contributions. Form UI-WIT, Combined Return for Household Employers, has been discontinued.

Illinois Withholding Income Tax: You may report the 2011 Illinois Income Tax withheld from household employees on your 2011 Form IL-1040, Individual Income Tax Return, line 22. This annual option is similar to the federal Schedule H (Form 1040), Household Employment Taxes. Pay your 2011 Illinois Income Taxes withheld by April 17, 2012, when you file your Form IL-1040 (or if you use the automatic 6-month filing extension, pay it with Form IL-505-1, Automatic Extension Payment for Individuals).

Unemployment Insurance Contributions: Household employers can continue to file their Unemployment Insurance Contributions annually with the Illinois Department of Employment Security. The new “2011 Return for Household Employers – Unemployment Contributions” (UI-HA) were mailed to current household annual filers on December 17, 2011. This form is not to be used for Illinois Department of Revenue payments. Additional information about how to report and pay Unemployment Insurance Contributions can be found at the Illinois Department of Employment Security website at www.ides.illinois.gov or by calling the IDES Employer Hotline at (800) 247-4984, Option 1.

If you have questions about these changes or any other tax or Unemployment Insurance Contribution issue, do not hesitate in contacting Geoff Harlow or any other KOS tax professional at 847.580.4100.