Payroll Reminders for the New Year

Before your business processes the first payroll of the year, take notes of these payroll reminders.

• Perform any necessary payroll tax updates before running any payrolls with a check date in 2023.
• Your EFTPS password expires every 13 months. If you process these payments through QuickBooks, watch for the accepted/rejected emails.
• Update your 2023 IL unemployment rate (and any other applicable states) within your software or submit to your payroll provider before processing the first payroll with a 2023 check date. The Rate Determinations from IDES will be posted to MyTax IL or mailed beginning January 5, 2023.
• The 2023 Social Security wage limit is $160,200 (up from $147,000 for 2022). This limit updates automatically with tax table updates.
• The 2023 Simple IRA limit is $15,500 with a catch-up contribution of $3,500 for participants aged 50 and up (up from $14,000 and $3,000 for 2022). You will need to manually update these limits in your software.
• The 2023 401k limit is $22,500 with a catch-up contribution of $7,500 for participants aged 50 and up (up from $20,500 and $6,500 for 2022). You will need to manually update these limits in your software.

Adjusting in QuickBooks Desktop & Online

If you use QuickBooks Desktop, you can follow the instructions below to update the IL unemployment rate:

1. Go to Lists
2. Then Payroll Item List
3. Scroll down till you find IL – Unemployment Company (usually near the bottom), double click
4. Click Next
5. Click Next
6. You’ll see the spot to put the rates for the four quarters of 2022, leave those as is, and enter the 2023 rate in the bottom box.

• Click Next
• Click Finish

If you use QuickBooks Online, you can follow the instructions below to update the IL unemployment rate:

1. Click on the Gear icon in the upper right
2. Click on Payroll settings on the left under Your Company
3. Under Illinois Tax click the pencil on the right to edit
4. Under IL State Unemployment Insurance (SUI) Setup click the blue hyperlink Change or add new rate

• Enter the new rate for 2023 and the effective date of 01/01/2023
• Click OK
• Click Done