Illinois Department of Revenue
 
         2022 Schedule WC-I      
        
       Withholding Income Tax Credits Information and Worksheets

What’s New for 2022? 
Under P.A. 101-0001, the minimum wage is set to increase to $12 as of January 1, 2022, and by another $1 per hour, 
each calendar year after, until it reaches $15 on January 1, 2025. See Hourly Minimum Wage Rates by Year for a 
complete schedule.
For taxable years beginning on or after January 1, 2022, P.A. 102-0669 created the Reimagining Electric Vehicles 
(REV) Illinois Credit, a portion of which may be based on the incremental income tax withheld by an employer and 
attributable to new or retained employees at a REV Illinois Project. On or after January 1, 2025, a taxpayer awarded REV 
Illinois Credits by the Illinois Department of Commerce and Economic Opportunity may make an irrevocable election 
to claim the credit against its obligation to pay withholding. For more information on the REV Illinois Program, visit 
https://www2.illinois.gov/dceo/businesshelp/REV/Pages/default.aspx
General Information 
If you are entitled to any of the following withholding income tax credits, use the instructions and worksheets in this 
schedule to determine the amount of credit to list in Column E, Credit Earned, of Schedule WC, Withholding Income 
Tax Credits:
 •   Minimum Wage Credit (See Pages 1-7) 
 •   Economic Development for a Growing Economy Tax Credit Program (EDGE) (See Page 7) 
 •   Illinois Small Business Job Creation Tax Credit (ILSBJC) (See Page 7) 
Keep a copy of your worksheets or calculations and Schedule WC in your records. You may be required to submit 
further information to support your filing. 
Specific Instructions 
NOTE: This form is to be used to determine the amount of credit to list on your Schedule WC. Use Column E, 
ONLY for credits earned in the current quarter. 
Use these instructions and the worksheets in this schedule to determine the correct amount of credit to list in Column 
E of Schedule WC for credits earned in the current quarter.   
All figures should be rounded to whole dollars. To do this, drop any amount less than 50 cents and increase any 
amount of 50 cents or more to the next higher dollar.
Each credit has a four-digit code used to identify it on Schedule WC. 
          Credit Code     Income Tax Credit Name
              0900        Minimum Wage Credit 
              5900        Economic Development for a Growing Economy Tax Credit Program (EDGE)
              5910        Illinois Small Business Job Creation Tax Credit  (ILSBJC) 

Tax Credit that must be used in the current quarter
NOTE: This section is to be completed only for credits earned and used in the current quarter. Enter “0” on 
Schedule WC, Column A. This credit cannot be carried forward and cannot exceed the withholding reported for the 
quarter. 
  Minimum Wage Credit (Credit Code 0900)
35 ILCS 5/704A(i) For tax quarters beginning on or after January 1, 2020, and ending on or before 
December 31, 2027, each employer with 50 or fewer full-time equivalent employees during the reporting period 
may claim a credit against the payments due for each qualified employee in an amount equal to the maximum 
credit allowable. NOTE: If the Minimum Wage Credit exceeds the withholding amount, you may only claim the 
withholding amount as the credit. You will not be able to carry the remaining balance forward to future periods. 
Definitions used in the calculation include the following: 
“Applicable Percentage” means 17 percent for reporting periods beginning on or after January 1, 2022, and 
ending on or before December 31, 2022.
“Base Compensation” for a reporting period means the total compensation paid in Illinois, during the fourth 
quarter of 2021, to employees who earned less than the current minimum wage during that fourth quarter, including 
employees earning a subminimum wage authorized by the Minimum Wage Law [820 ILCS 105].

Schedule WC-I (R-12/21)            Printed by the authority of the state of Illinois - web only, 1 copy                               Page 1 of 7

“Current Compensation” for a reporting period means the sum of:
  •  the total compensation paid in Illinois to eligible employees who earned no more than the current minimum 
  wage during the reporting period, plus
  •  for eligible employees who earned more than the current minimum wage at any time during the reporting 
  period, the total hours worked in Illinois times the current minimum wage.
“Current Employee” means an employee who was employed by the taxpayer during the current reporting period.
“Current Minimum Wage” means the minimum or reduced wage applicable to an employee under the Minimum 
Wage Law [820 ILCS 105] for the current reporting period, including any applicable subminimum wages authorized 
by the Minimum Wage Law.
NOTE: Beginning on January 1, 2020, the Minimum Wage Law requires that every employer shall pay to each of 
his or her employees who is under 18 years of age that has worked more than 650 hours for the employer during 
any calendar year a wage not less than the wage required for employees who are 18 years of age or older.  For 
employees who are under the age of 18 and have not worked more than 650 hours for the employer during the 
calendar year, the employer shall pay the employee:
  •  $8.50 per hour from January 1, 2021, through December 31, 2021;
  •  $9.25 per hour from January 1, 2022, through December 31, 2022; and 
  •  $10.50 per hour from January 1, 2023, through December 31, 2023;
“Current Reporting Period” means the reporting period for which the taxpayer is calculating the minimum wage 
credit using this Schedule.
“Eligible Employee” is any employee who earned no more than the current minimum wage for hours worked in 
Illinois for the employer during the reporting period and any employee who earned more than the current minimum 
wage for hours worked in Illinois for the employer at any time during the reporting period, but who earned less than 
the current minimum wage for hours worked in Illinois for the employer during 2021. 
NOTE: A recently hired employee is not an eligible employee. The total number of eligible employees for a current 
reporting period may not exceed the total number of employees who earned less than the current minimum wage 
for hours worked in Illinois for the employer at any time during the fourth quarter of 2021.
“Full-time Equivalent Employees” means the ratio of the number of paid hours during the reporting period and 
the number of working hours in that period.
NOTE: A full-time equivalent employee shall be assumed to work 40 hours per week for 13 weeks for a total of 520 
hours during a reporting period. The number of full-time equivalent employees for a reporting period means the 
number of employees working 40 hours per week that would be required to work the number of paid hours actually 
worked by all employees of the employer for that reporting period. 
  For example, Employer A employs 56 employees who work 25,480 paid hours during a reporting period. 
  25,480 hours divided by 520 hours equals 49. Although employer employs 56 actual employees, only 49 
  full-time equivalent employees would be required to work the number of paid hours worked by all of the 
  taxpayer’s employees during the reporting period.  
“Hourly Employee” is an employee whose working hours are tracked and recorded by the employer during the 
reporting period, regardless of whether the employee is paid by the hour, salary, commission or any other measure.
“Maximum Credit” for a current reporting period means the excess, if any, of the current compensation for the 
reporting period over the base compensation, multiplied by the applicable percentage, plus the credit for new 
eligible employees.  
• 17 percent for reporting periods beginning on or after January 1, 2022, and ending on or before December 31, 2022.
• 13 percent for reporting periods beginning on or after January 1, 2023, and ending on or before December 31, 2023.
“New Eligible Employee” is an employee whose 90th consecutive day of employment for the employer occurred 
during the reporting period immediately preceding the current reporting period.
“Recently Hired Employee” is an employee who has been employed by the employer for less than 90 consecutive 
days as of the last day before the current reporting period.

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Page 2 of 7                                                                                 Schedule WC-I (R-12/21)

“Salaried Employee” is an employee whose hours are not tracked and recorded by the employer during the 
reporting period. NOTE: Salaried employees are deemed to have worked 40 hours per week for each week in which 
they were employed during a reporting period.
“Wages” are compensation, including bonus, overtime, and commission pay, of employees, but does not include 
fringe benefits.
“Week Worked in Illinois” is a week worked by an employee for which the majority of hours worked by the 
employee were worked in Illinois.

Step 1: Determine eligibility for the Minimum Wage Credit
To be eligible for the credit for this reporting period (A) an employer must have 50 or fewer full-time equivalent 
employees and (B) the average wage paid by the employer per employee for all employees making less than 
$55,000 must be greater than the average wage paid by the employer per employee for all employees making less 
than $55,000 during the same reporting period in 2021. 

A) Determine the number of full-time equivalent employees 
1. Total the number of weeks (rounded to the nearest whole week) worked during the reporting period by all 
salaried employees; 
2. Multiply the number of weeks computed above by 40 hours to determine the number of hours worked by 
salaried employees during the reporting period;
3. Total the number of hours worked by all hourly employees during the reporting period; 
4. Add the number of hours worked by salaried employees to the number of hours worked by hourly employees 
to determine the total hours worked by all employees;
5. Divide the total hours worked by all employees computed above by the 520 hours a full-time employee would 
work in a reporting period to determine the number of full-time equivalent employees. 
For example, during a reporting period, the Employer B employs 10 salaried employees who worked a combined 
total of 100 weeks during the reporting period and 30 hourly employees who worked a combined total of 15,000 
hours. The salaried employees are deemed to have worked 4,000 hours during the reporting period. All employees 
worked a combined total of 19,000 hours during the reporting period. Therefore, during the reporting period, 37 
full-time equivalent employees would have been required to work all of the paid hours worked by the Employer B’s 
employees. ((100 weeks x 40 hours) + 15,000 hours)/520 = 36.54, rounded up to 37 full-time equivalent employees.

FTE Formula: 
 
(# of weeks worked by “salaried employees” x 40 hours) + (# of hours worked by “hourly employees”)    # FTE 
                                                    520                                              =_________employees
                                                                                                      Result A
If the result is greater than 50, the employer does not qualify for the credit. 

B) Determine whether or not you meet the average wage requirements 
1. Total the actual amount of wages paid in Illinois to each employee earning less than $55,000 in the reporting 
period;
2. To determine the number of hours worked by all employees earning less than $55,000 during the reporting 
period, add the
•  combined total the number of weeks (rounded to the nearest whole week) worked during the reporting 
 period by all salaried employees and
•  combined total number of hours worked by all hourly employees earning less than $55,000 during the 
 reporting period. 
3. To determine the average wage paid in Illinois during the reporting period to employees earning less than 
$55,000, divide the total wages paid to all employees earning less than $55,000 during the reporting period by 
the total number of hours worked by all employees earning less than $55,000 during the reporting period.

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Schedule WC-I (R-12/21)                                                                                               Page 3 of 7

 For example, in the fourth reporting period of 2021, Employer C employed ten salaried employees who worked 
 a combined total of 100 weeks and 30 hourly employees who worked a combined total of 15,000 hours during 
 the reporting period. 
 All employees earned less than $55,000 during the reporting period. Employer C paid a total of $225,000 
 in wages to all 40 employees during the reporting period. The average wage paid in Illinois to all employees 
 during the reporting period was $11.84 per hour.  $225,000/((100 weeks x 40 hours) + 15,000 hours) = 
 $11.84 per hour. 
 During the fourth reporting period of 2022, Employer C employed eight salaried employees who worked a 
 combined total of 100 weeks and 32 hourly employees who worked a combined total of 16,000 hours during 
 the reporting period. All employees earned less than $55,000 during the reporting period. Employer C paid a 
 total of $250,000 in wages to all 40 employees during the reporting period. The average wage paid in Illinois 
 to all employees during the reporting period was $12.50 per hour. $250,000/((100 weeks x 40 hours) + 16,000 
 hours) = $12.50 per hour. $12.50 is greater than $11.84, therefore Employer C is eligible for the credit for the 
 fourth reporting period of 2022. 
If the average wage paid in Illinois to all employees earning less than $55,000 during the current reporting 
period is less than or equal to the amount computed for the same reporting period during the preceding 
calendar year, the employer does not qualify for the credit. 
 Average Wage Formula:
 B1) For the current reporting period:
         Total wages paid to all employees who earned less than $55,000 for the current reporting period        = ________
         (total # of weeks worked by “salaried employees” x 40) + (total actual hours worked by “hourly employees”)   Result B1

 B2) For the same reporting period in 2021:
         Total wages paid to all employees who earned less than $55,000 for the same reporting period in 2021  = ________
         (total # of weeks worked by “salaried employees” x 40) + (total actual hours worked by “hourly employees”)   Result B2

 Compare these results. 
 •          If the amount calculated for the current reporting period (Result B1) is less than or equal to the 
            amount calculated for the same quarter in 2021 (Result B2), the employer does not qualify for the 
            credit.
 •          If Result B1 is greater than the Result B2, the employer meets the average wage requirements for the 
            credit.

C) Determine whether or not you are eligible for the Minimum Wage Credit
Are both of the following statements true? 
 A)   The number of full-time equivalent employees is 50 or fewer (Result A). 
 B)   The amount calculated for the current reporting period (Result B1) is greater than the                           
            amount calculated for the same quarter in 2021 (Result B2).
If yes, you are eligible for the credit. Continue to Step 2 below. 

Step 2:Determine the amount of Minimum Wage Credit 
The maximum credit for a current reporting period is comprised of two components that include: 
1. a credit for wages paid in the current reporting period to eligible employees, based on the increase in their 
 wages attributable to an increase in the minimum wage, plus;
2. a credit for newly eligible employees equal to the credit that would have been earned for their increased wages 
 in earlier reporting periods if they had been eligible employees during those reporting periods.
NOTE: For each reporting period, the number of eligible employees may not exceed the number of employees who, 
during the last reporting period of the preceding calendar year, made less than the current minimum wage required 
by the Minimum Wage Law for the current reporting period. If the number of employees who would be eligible 
employees exceeds this limitation, the employer may choose which of the otherwise-eligible employees will be 
treated as eligible employees.

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Page 4 of 7                                                                                      Schedule WC-I (R-12/21)

A) Determine the credit amount accrued for recently hired employees during the reporting 
period
An employer may not claim a credit for recently hired employees; however, such credits may accrue during the 
current reporting period and be claimed against payments for future reporting periods after the employee has 
worked for the employer at least 90 consecutive days. NOTE: The wages paid to recently hired employees cannot 
be used to calculate the credit for the current reporting period.
 1. Determine if any of the current employees qualify as recently hired employees who began their employment 
 less than 90 consecutive days immediately preceding the start of the current reporting period.
 2. Record the wages paid to these employees for possible use in a future reporting period. 
 3. The wages paid during the employee’s first 90 consecutive days of employment may only be used to calculate 
 the minimum wage credit in the reporting period immediately following the reporting period in which the 
 employee reaches his or her 90th consecutive day of employment. NOTE:  If an employee does not reach the 
 91st day of employment, any wages earned by the employee are ineligible to be used to calculate the credit in 
 future reporting periods.
 For example, Employee A is hired by Employer D on January 6, 2022, and continues to be employed through 
 December 31, 2022.  During that time, Employee A earns the minimum wage required for each reporting period 
 in 2022. Employee A’s 90th consecutive day of employment is April 5, 2022, which occurs during the second 
 reporting period of 2022. Because Employee A’s 90th consecutive day of employment did not occur prior to the 
 start of the second reporting period of 2022, Employer D must use the wages earned during Employee A’s first 
 90 consecutive days of employment to calculate the credit for the third reporting period in 2022.

B) Determine the number of eligible employees
 1. Determine the number of employees who earned less than the current minimum or reduced wage at any time 
 during the last reporting period of 2021;
 2. Determine the number of current employees who were paid no more than the current minimum wage during the 
 current reporting period; 
 3. Determine the number of current employees who earned more than the current minimum wage at any time 
 during the reporting period but were employed by the employer and earned less than the current minimum wage 
 at any time during the fourth reporting period of 2021;
 4. Total the number of employees determined in (B)(2) and (B)(3) above.
The number of eligible employees for the reporting period is equal to the lesser of (B)(1) and (B)(4) above.

C) Calculate the credit for eligible employees
The credit amount for eligible employees is equal to the current compensation minus the base compensation, 
multiplied by the applicable percentage:
(current compensation - base compensation) X 17 percent = Credit for eligible employees
•  Current compensation is equal to:
 1. the total compensation paid in Illinois to eligible employees who earned no more than the current minimum 
 wage during the reporting period, plus; 
 2. for eligible employees who earned more than the current minimum wage at any time during the reporting 
 period, the total hours worked in Illinois times the current minimum wage.
•  Base compensation is the total compensation paid in Illinois to employees earning less than the current minimum  
  wage during the fourth quarter of 2021. 
 
 For example, in the fourth reporting period of 2021, Employer E employed 10 employees who earned the $11 
 minimum wage. All employees were hired more than 90 days prior to the beginning of the reporting period. The 
 employees worked a combined total of 5,200 hours during that reporting period. In the first reporting period of 
 2022, Employer E employed the same 10 employees who earned the applicable minimum wage of $12 and 
 worked 5,200 hours. Employer E is entitled to a credit of $884.  ((5,200 hours x $12) – (5,200 hours x $11)) x 
 0.17 = $884.
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Schedule WC-I (R-12/21)                                                                                                  Page 5 of 7

NOTE: The calculation of the Minimum Wage credit must account for any subminimum wage authorized by the 
Minimum Wage Law.  For example, if an employee under age 18 earned the subminimum wage of $8.50 per hour 
during the fourth reporting period of 2021, for reporting periods in 2022, the Minimum Wage Credit related to wages 
paid to that employee will be based on the difference between the 2021 subminimum wage and the wage paid to the 
employee in 2022.  If the employee still qualifies for the subminimum during a reporting period in 2022, for the first 
650 hours worked by the employee, the credit calculation should reflect the difference between $8.50, the applicable 
2021 subminimum wage, and $9.25, the applicable 2022 subminimum wage.  For any wages paid for hours 651 and 
beyond, or for wages paid after the employee reaches age 18, the credit calculation should reflect the difference 
between $8.50, the applicable 2021 subminimum wage, and $12, the applicable 2022 minimum wage required to be 
paid to the employee.    
D) Calculate the credit for new eligible employees
The credit for new eligible employees is equal to the excess, if any, of the credit for eligible employees for prior 
reporting periods, recomputed by determining the current compensation for each reporting period for which a new 
eligible employee was a recently hired employee as if that new eligible employee had been an eligible employee for 
that reporting period.  
NOTE: If treating all the new eligible employees as eligible employees for a prior reporting period would cause the 
number of eligible employees to exceed the maximum number determined for that reporting period, the employer 
shall determine the current compensation for that reporting period by including only the maximum number.  For this 
purpose, the employer may choose which employees will be treated as eligible employees without regard to which 
employees were treated as eligible employees in the original computation of the credit for the reporting period. 
NOTE: The recomputed credit for a prior reporting period may not exceed the employer’s liability for that reporting 
period.
NOTE: The base compensation is not recomputed for purposes of computing this component of the maximum credit.
For example, in the fourth reporting period of 2021, Employer F employed 10 employees who earned the 
minimum wage of $11. All employees were hired more than 90 days prior to the beginning of the reporting period. 
The employees worked a combined total of 5,200 hours during that reporting period. One of the 10 employees 
resigned effective December 31, 2021.  In the first reporting period of 2022, Employer F employed the remaining 
9 employees. Employer F hired Employee C on January 6, 2022, who continued to work for Employer F through 
December 31, 2022. For the first 3 reporting periods of 2022, all 10 employees earned the applicable minimum 
wage of $12.
During the first three reporting periods of 2022, the original nine employees worked a combined total of 5,000 
hours in each reporting period and Employee C worked 520 hours during each reporting period. Employee C 
reached the 90th day of employment on April 5, 2022, during the second reporting period of 2022. At the end of 
the first reporting period of 2022, Employee C had been employed by Employer F for 85 days.
•  For the first reporting period of 2022, the taxpayer is entitled to a credit of $476. ((5,000 hours x $12) – (5,200 
       hours x $11)) x .17 = $476.  The $6,240 in wages paid to Employee C during the first reporting period does not 
       count toward the 1st reporting period credit.  520 hours x $12 = $6,240.  
•  During the second reporting period of 2022, Employee C worked 30 hours between April 1, 2022, and April 5, 
2022. Between April 6, 2022, and June 30, 2022, Employee C worked 490 hours. April 6, 2022, was Employee 
C’s 91st day of employment by Employer F.
•  Because they were earned during Employee C’s first 90 days of employment, the $360 in wages paid to 
            Employee C between April 1, 2022, and April 5, 2022, does not count towards the second reporting period 
            credit.  30 hours x $12 = $360. The remaining $5,880 in wages paid to Employee C does count toward the 
            second reporting period credit. 490 hours x $12 = $5,880. Therefore, for the second reporting period of 
            2022, the taxpayer is entitled to a credit of $1,475.60. ((5,490 hours x $12) – (5,200 hours x $11)) x 0.17 = 
            $1,475.60. 
•  The $6,600 in wages paid to Employee C for the 550 hours worked during Employee C’s first 90 days 
            of employment may be applied to the third reporting period credit calculation. 550 hours x $12 = $6,600.  
            Therefore, for the third reporting period of 2022, Employer F is entitled to a credit maximum of $2,658.80.  
            (((5,520 hours x $12) + (550 hours x $12)) – (5,200 hours x $11)) x 0.17 = $2,658.80.

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Page 6 of 7                                                                                      Schedule WC-I (R-12/21)

How do I calculate the Minimum Wage Credit for tipped employees? 
“Tipped employee” means an employee     who receives gratuities/tips as part of the job; an employee cannot be 
deemed a tipped employee unless he or she received $20 or more per month in gratuities.
According to the Minimum Wage Law, tipped employees may be paid a subminimum wage equal to no less than 
60 percent of the regular minimum wage.
If an employee’s wages are recalculated to meet the regular State minimum wage, then the credit calculation is 
made using the difference between the current minimum wage and the minimum wage at the end of 2021. 
If an employee is considered a tipped employee and wages are not recalculated to meet the regular State minimum 
wage, then the credit calculation is made using the difference between the current tipped employee minimum wage 
paid by the employer and the tipped employee minimum wage paid by the employer at the end of 2021.
Note: In instances where a tipped employee performs non-tipped work and the employer is not allowed to utilize 
the applicable tip credit, the minimum wage tax credit calculation for the non-tipped work must be calculated using 
the regular minimum and not the reduced minimum wage for tipped workers. Tipped employees may be paid up to 
60 percent of the regular minimum wage. 
For more information on how to calculate the Minimum Wage Credit, you can find additional resources at 
tax.illinois.gov. 

Tax Credit that can be carried for five years

How do I use my Illinois Department of Commerce and Economic Opportunity (DCEO) 
credits?
We receive notification from DCEO and apply credits when they become available. Do not claim this credit on your 
Form IL-941 until they are available for use per your EDGE Tax Credit Certificate of Verification tax credit certificate 
or your certificate of verification that you received from DCEO. 
Account for these credits when you plan your payments so that your account remains in balance. Even if you 
use a DCEO credit, you still need to report the total amount you withheld from your employees or others on Step 
4, Line 2, of Form IL-941. Your DCEO credits are applied to your tax liability before your payments. If you made 
payments that, when added with your DCEO credit, resulted in overpayment of your withholding taxes, you must file 
a Form IL-941-X, Amended Illinois Withholding Income Tax Return, along with the Schedules P-X and WC, to verify 
the overpayment. For additional information about DCEO credits, contact Illinois DCEO.

 EDGE Tax Credit (Credit Code 5900)
You may take this credit if 
• you have entered into an agreement with DCEO, either under the Economic Development for a Growing
Economy Tax Credit Act or the Corporate Headquarters Relocation Act, and
• you meet the conditions stated in your agreement with DCEO.
DCEO is responsible for issuing this credit. No new certificates have been issued since 2018; therefore, any EDGE 
credit claimed must be listed in Column F, Credit Carried. Enter the amount of EDGE credit carried forward from a 
previous quarter in Column F of your Schedule WC and Credit Code 5900 in Column B. 

 ILSBJC (Credit Code 5910)
DCEO is responsible for issuing this credit. No new certificates have been issued since June 2018; therefore, any 
ILSBJ credit claimed must be listed in Column F, Credit Carried. Enter the amount of ILSBJC credit carried forward 
from a previous quarter in Column F of your Schedule WC and Credit Code 5910 in Column B. 

Schedule WC-I (R-12/21)                                                                              Page 7 of 7