Payroll Cost per Employee in Illinois
2026 estimates — total employer cost including taxes and benefits
Min wage in Illinois: $15.00/hr | SUTA: 0.725–7.625% on first $13,590
Calculate Total Payroll Cost in Illinois
Payroll Tax Breakdown — Illinois 2026
| Tax / Cost | Rate / Rule | Annual Amount |
|---|---|---|
| Base salary | Per agreement | $63,250 |
| Social Security (employer) | 6.2% on first $168,600 | $3,922 |
| Medicare (employer) | 1.45% of all wages | $917 |
| FUTA (federal unemployment) | 0.6% on first $7,000 | $42 |
| Illinois SUTA | 0.725–7.625% on first $13,590 | $450 |
| Benefits (health, 401k, etc) | ~18% of salary (typical) | $11,385 |
| Total Employer Cost | $80,344 | |
Based on $63,250 median salary in Illinois. SUTA rate shown is approximate average — actual rate depends on claims history. Additional: Chicago $0.50/employee/month additional payroll expense tax for employers with 50+ employees.
Payroll Requirements in Illinois
1. Illinois Payroll Tax & Compliance Overview
Illinois payroll costs are above the national average. Key employer requirements: state income tax withholding (4.95% flat rate), state unemployment insurance (SUTA: 0.725–7.625% on first $13,590), plus the standard federal obligations (FICA 7.65%, FUTA up to $420/employee). Chicago $0.50/employee/month additional payroll expense tax for employers with 50+ employees.
2. Top Tips for Illinois Employers
Illinois employers: use payroll software like Gusto, QuickBooks Payroll, or Rippling to automate state-specific tax calculations. These typically cost $40–$150/month for small businesses — far less than the penalty risk of manual payroll errors. Set up pay-as-you-go workers' comp tied to each payroll run to eliminate audit surprises.
3. Key Illinois Payroll Facts
- Minimum wage: $15.00/hr
- State income tax: 4.95% flat rate
- State unemployment (SUTA): 0.725–7.625% on first $13,590
- Additional: Chicago $0.50/employee/month additional payroll expense tax for employers with 50+ employees
Run Illinois Payroll Automatically
Automated payroll software handles Illinois tax calculations, filings, and W-2s for $40–$150/month.
Illinois Payroll Summary
- →Avg salary: $63,250/yr
- →Total cost: $80,344/yr
- →Overhead rate: ~27% above salary
- →Min wage: $15.00/hr
- →State income tax: 4.95% flat rate