Changes to Illinois State Income Tax in the July 2023 tax update

ILSIT personal exemption amount has changed to $2,625.  This amount was lowered to $2,425 for the 2023 tax year.  How does Sage 50 handle this change?

 NOTE: It isn’t required to enter "1" in the Special 3 - Allowances box in the tax year 2024.  If you’ve implemented the solution below, we recommend removing the "1" in the Special 3 - Allowances box on the employee record on/after Jan. 1 2024 (leaving the "1" in the Special 3 - Allowances box won’t affect the 2024 tax calculations however). 

If you’re a new employee hired after July 19, 2023: Enter "1" in the Special 3 - Allowances box in the employees maintenance record (Maintain, Employees & Sales Reps) to use the catch-up withholding calculation.  See https://tax.illinois.gov/forms/withholding/currentyear.html for further information.