In the payroll setup, you will notice QBO asks some information before it can fully set you up for payroll taxes.

This is because before running payroll, you are required to register with the federal and state authorities. Each of these authorities give you a unique number to identify your business. This article focuses on state registration. I use IL as an example because it is my state of residence. But however, each state has a similar process. After the process discussed in this article and the next, you should be able to obtain your Illinois Withholding Number and Illinois Account Number.

According to the Department of Revenue:

To register with the state:

1) Go to MyTax Illinois

2) On the top menu, Click on the business tab

3) You will be brought to the screen below. Click on “Register my new business (Form REG-1)

4) Complete the information presented to you. Be sure to only check options that are applicable to you. If you are not sure what something means, ask your accountant or you could spend hours un-doing a wrongly completed form.

Once you are done with this process you will be able to create a MyTax Illinois account.

5) Go back to MyTax Illinois. On the bottom, where it says login to my account, click sign up:

6) Complete the information requested and click submit when done.

7) When you login to MyTax Illinois, you will have access to the Illinois Withholding Number required to finish your QuickBooks payroll setup. For more information contact us here QuickBooks Accounting Services in springfield.

Once you are done you will need to register with the unemployment department to get your Illinois Account Number.

Setting up Payroll – Registering your Business in IL – Part 2