Valor Payroll Solutions

Illinois Payroll Information

Enterprise payroll expertise, exclusively for small businesses.

Paying Employees in Illinois

  • Illinois 2022 Minimum Wage:

    • $12.00/hour
    • $7.20/hour for tipped employees
    • $9.25/hour for youth

    Illinois Overtime Rules: 1.5 x’s the regular rate for all hours worked over 40 in a workweek

    Illinois Paystub Requirements: 

    • Employers shall keep records of names and addresses of all employees and of wages paid each payday, and shall furnish each employee with an itemized statement of deductions made from his wages for each pay period.

    How often do you have to pay employees in Illinois?

    • Employees must be paid at least semi-monthly no later than 13 days after the pay period end date

    When is an employee’s final check due in Illinois?

    • Voluntary resignation – next regular payday
    • Involuntary termination – next regular payday

    Illinois Withholding Tax 

    Illinois Withholding Tax Registration

    Wages subject to Illinois Withholding Tax

    • Wages earned within Illinois is subject to IL income tax (unless employee is a resident of Iowa, Kentucky, Michigan, or Wisconsin)
    • Wages earned by IL residents that is not taxes by another state is subject to IL income tax

    Illinois Employee’s Withholding Exemption Certificate

    Reciprocity

    • Iowa, Kentucky, Michigan, and Wisconsin

    Illinois Withholding Tax Due Dates

    • Due monthly on the 15th day of following month if you are first time taxpayer or have reported $12,000 or less during lookback period
    • Due semi-weekly on Wednesday for Wed-Fri pay dates or Friday for preceding Sat-Tues if you exceed $12,000 in withholding during a quarter

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    Illinois Unemployment Tax

    Illinois Unemployment Tax Registration

    Illinois Unemployment Tax Employer Liabilities

    • New employer rate: 3.525%
    • 2022 Wage Base: $12,960

    Illinois Unemployment Tax Due Dates

    • Return and payment are due quarterly on the last day of the month following the end of the reporting period

    Illinois New Hire Reporting

    • New hires must be reported within 20 days
    • Illinois New Hire Directory
      PO Box 19473
      Springfield, IL 62794-9473
    • Phone: 312-327-4473
    • Fax: 217-557-1947
    • Report online
    • Report using paper form

    Illinois Child Support

    • Illinois State Disbursement Unit
      PO Box 5400
      Carol Stream, IL 60197-5400
    • Phone: 877-664-5738
    • Pay online

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