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Taxes
Illinois Payroll Taxes 2026: Complete Overview for Employers
All IL employer taxes — flat 4.95% income tax, SUI via IDES, no SDI program. Rates, filing schedules, and MyTax Illinois explained.
Practical guides on IL payroll taxes, IDES registration, SUI, income tax withholding, and wage laws — written for small business owners, not accountants.
Illinois uses a flat 4.95% income tax rate — simpler than progressive states, but employers still must handle IL-W-4 forms, quarterly IL-941 filing, and MyTax Illinois payments.
Semi-monthly pay required, strict deduction rules, the Wage Payment and Collection Act, and final pay by the next regular payday. Illinois protects employee wages aggressively.
Register with IDES, file quarterly UI-3/40 reports, manage SUI experience ratings, and stay on top of Chicago's head tax. Multiple layers of employer obligations.
All IL employer taxes — flat 4.95% income tax, SUI via IDES, no SDI program. Rates, filing schedules, and MyTax Illinois explained.
Get your EIN, register with IDES, choose payroll frequency, and run your first payroll — the complete checklist.
Illinois follows federal FLSA overtime rules — 1.5x after 40 hrs/week. Here's everything employers need to know.
IL statewide $15/hr, Chicago $16.20/hr, youth and tipped worker rates, and annual indexed increases.
IRS common-law test, Illinois Employee Classification Act, misclassification penalties, and when each classification applies.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for Illinois small businesses.