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State Payroll Information

Illinois Payroll

Did you know that the minimum wage in Illinois increases to $7.50 an hour, effective July 1, 2007; to $7.75 an hour, effective July 1, 2008; to $8.00 an hour, effective July 1, 2009; and to $8.25 an hour, effective July 1, 2010?

Illinois Income Tax Withholding

Illinois law requires employers to withhold state income tax from employee's wages and remit the amounts withheld to the Department of Revenue.

Under reciprocal agreements between Illinois and the states of Iowa, Kentucky, Michigan, and Wisconsin, wages earned in Illinois by residents of those states is exempt from Illinois state income tax withholding.

Illinois Benefits

Illinois Voting Rights:

Employer Right To
Schedule Voting Hours
Pay Deduction For
Voting Time Leave
Yes Time Off with Pay
Limited to 2 Hours

Illinois requires employers to allow employees sufficient leave time to vote or to serve as election judges.

All employers in Illinois must allow employees paid time off to vote. This summary is restricted to coverage of private employers.

Employers must allow employees two hours of voting time leave. Employers may specify the hours of leave; however, employers must permit a two-hour absence during working hours if employees' working hours begin less than two hours after the opening of the polls and end less than two hours before the closing of the polls.

Illinois Compensation

Employees covered by Illinois's minimum wage law must be paid $6.50 an hour.

All employees 18 years of age or older working for employers with at least four employees are covered except those specifically exempt by statute, including:

  • certain agricultural and aquacultural workers;
  • motor carriers;
  • outside salespersons;
  • members of religious corporations or organizations; and
  • students of accredited state colleges and universities employed under the Fair Labor Standards Act provisions

Illinois Payroll

Employers covered by Illinois's wage payment law must pay wages at least semimonthly and not more than 13 days following the close of a pay period. Monthly paydays are permitted for executive, administrative, and professional employees, as well as employees on commission, who are covered under the Fair Labor Standards Act.

Illinois Unemployment:

Taxable Wage Base
($000s)
New Employer Rate
(% Taxable Wages)
Employee Tax Rate
(% Taxable Wages)
Period Effective
11,500 3.9 None Calendar Year 2007

Helpful Links for Illinois Payroll

Illinois Department of Revenue
101 W. Jefferson Street
P.O. Box 19447
Springfield, Illinois 62702
(800) 732-8866 (within Illinois)

Illinois Department of Labor
Suite C-1300
160 N. LaSalle Street
Chicago, Illinois 60601
(312) 793-2800

Illinois Laws

Illinois Regulations

Tax Forms and Publications


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