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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, wage bases, and filing schedules explained.
Practical, accurate resources for Illinois small business owners — covering payroll taxes, labor laws, and compliance.
All IL employer taxes — flat 4.95% income tax, SUI via IDES, no SDI program. Rates, wage bases, and filing schedules explained.
When to register, how to do it online at ides.illinois.gov, employer account number, and quarterly UI-3/40 filing.
New employer rate 3.175%, experienced employer range 0.675%–6.875%, $13,271 wage base, and IDES trust fund status.
Flat 4.95% rate, IL-W-4 form, quarterly IL-941 filing via MyTax Illinois, and the Chicago head tax.
IL statewide $15/hr, Chicago $16.20/hr, youth and tipped worker rates, and annual indexed increases.
Semi-monthly pay required, final pay by next regular payday, Wage Payment and Collection Act, strict deduction rules, and pay stub requirements.
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown of what employers owe.
Get your EIN, register with the state, set up withholding, new hire reporting — the complete first-payroll checklist.
IRS common-law test, Illinois Employee Classification Act, misclassification penalties, and when each classification makes sense.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties for late deposits.
Federal and state new hire reporting requirements, what to report, how to file, and penalties for non-compliance.
FLSA, IRS, and Illinois recordkeeping requirements — what to keep, how long, and why it matters.
ALE threshold, penalties for non-compliance, 1094-C/1095-C filing, small business exemption, and SHOP marketplace.
Misclassifying workers, wrong withholding, missed deposits, ignoring state law — the mistakes that add up fast.
Detailed comparison of Gusto, Paychex, QuickBooks Payroll, and ADP for Illinois small businesses.
Federal OT after 40 hrs/week, Illinois follows federal FLSA rules — exemptions, salary thresholds, and compliance tips.