A multilevel halftoning algorithm can be used to overcome some of the challenges of multi-channel printing. In this algorithm, each channel is processed so that it can be printed using multiple inks of approximately the same hue, achieving a single ink layer. The computation of the threshold values required for ink separation and dot gain compensation pose an interesting challenge. Since the dot gain depends on the specific combination of ink, paper and print resolution, compensating the original image for multilevel halftoning means expressing the dot gain of multiple inks of same hue in terms of the coverage of a single ink. The applicability of the proposed multilevel halftoning workflow is demonstrated using chromatic inks while avoiding dot overlap and accounting for dot gain. The results indicate that the multilevel halftoned image is visually improved in terms of graininess when compared to bi-level halftoned images.