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Illinois Payroll Information

Enterprise payroll expertise, exclusively for small businesses.

Paying Employees in Illinois

Illinois 2024 Minimum Wage:

  • $14.00/hour
  • $8.40/hour for tipped employees
  • $13.50/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 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 Registration

 

Illinois Unemployment Tax Employer Liabilities

  • New employer rate: 3.95%
  • 2024 Wage Base: $13,590

 

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

 

Additional Illinois Business Resources

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