Illinois Payroll Services

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Illinois Payroll Tax and Labor Laws

Get your Illinois State Tax ID Number

Click Here to Obtain State Tax and State Unemployment Tax ID

Note: Illinois is a "Joint Application" State. One application for TWO ID numbers (one for SIT and one for SUI).

Did you know Illinois mandates overtime pay?

Illinois Wage and Hour Laws

Employees covered by Illinois' minimum wage law must be paid $10.00*** 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 for Employer

Employers covered by Illinois' 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):                        12,960

New Employer Rate (% Taxable Wages)    3.175**

Employee Tax Rate (% Taxable Wages)     None

Illinois Income Tax Withholding

Illinois law requires employers to withhold state income tax from employees' 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 are exempt from Illinois state income tax withholding.

Illinois Benefits

Illinois Voting Rights:

Employer Right to Schedule Voting Hours         Yes

Pay Deduction for Voting Time Leave                 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 State Tax Resources

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.
**Rates include surcharges.
***Special rules apply to minimum wage standards for this state. Please refer to state laws.
Information accurate as of December 2020