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 has above-average payroll complexity. State income tax is a flat 4.95%. Chicago employers with 50+ employees additionally face the Chicago Employer Expense Tax ($0.50/employee/month). Illinois SUTA has a higher-than-average wage base ($13,590). Illinois minimum wage is $15/hr with CPI-linked increases. Chicago has its own minimum wage ordinance (which can exceed the state minimum) and mandatory paid sick leave rules for Chicago employees.
2. Top Tips for Illinois Employers
Illinois employers with Chicago employees need to comply with both state and Chicago-specific requirements. Configure payroll for the Chicago Employer Expense Tax if you have 50+ employees in the city. Illinois SUTA: experience rating applies, so low turnover businesses benefit from substantially lower rates. Gusto, ADP, and Paychex all handle Illinois and Chicago-specific payroll requirements automatically.
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.
Payroll Software Cost Comparison — Illinois 2026
At $6,695/month total employer cost, automating payroll for $63,250 median salary employees costs 27% above base salary. Software adds just 0.1–0.3% but eliminates costly compliance errors.
| Software | Base Price | Per Employee |
|---|---|---|
| Gusto Top pick | $46/mo | +$6/emp/mo |
| QuickBooks Payroll Core | $45/mo | +$6/emp/mo |
| ADP Run Essentials | ~$65/mo | +$4/emp/mo |
| Rippling | $35/mo | +$8/emp/mo |
Prices as of 2026. All four platforms handle Illinois state tax filings automatically. 10-employee team example: Gusto = $106/mo, QuickBooks = $105/mo, ADP ≈ $105/mo, Rippling = $115/mo.
Frequently Asked Questions
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