Business · Illinois

Payroll Cost per Employee in Illinois

2026 estimates — total employer cost including taxes and benefits

$63,250
Avg salary (IL)
$80,344
Total employer cost/yr

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.