Illinois Payroll Tax and Labor Laws

Get your Illinois State Tax ID Number

Click HERE to obtain State Tax and Unemployment ID  

Note: Illinois utilizes one application to receive an ID that used for both State Income Tax and State Unemployment Insurance filings.  

Illinois Wage and Hour Laws 

The Illinois state minimum wage is currently $14.00 per hour.   

Please note that cities and counties within Illinois may have their own separate minimum wage rates which are higher than the state mandated rate and that minimum wage rates for all jurisdictions are subject to change. Employers should verify they meet current state, county, and local requirements.  

For more information about Illinois’ overtime law, please click HERE. 

Overtime 

Illinois’ overtime law requires employers to pay employees time and one-half the regular rate of pay for hours worked over 40 hours in a workweek.  

For more information about Illinois’ overtime law, please click HERE.  

Pay Frequency 

Illinois law requires employers to pay employees all wages earned at least semi-monthly. Wages must be paid no later than 13 days after the end of the pay period.  

Wages of executive, administrative, and professional employees, as defined by the Federal Fair Labor Standards Act (FLSA), may be paid once per month.  

For more information on Illinois’ pay frequency laws, please click HERE.  

Illinois Unemployment

Taxable Wage Base ($000s):                        $13,590 

New Employer Rate (% Taxable Wages):     3.950 % (rate includes surcharges) 

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 State Resources 

Illinois Department of Revenue  

Illinois Department of Labor  

Illinois Department of Employment Security  

Illinois SUI Rate  

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.  

Revised 1/1/2024