Illinois Payroll Tax And Labor Laws

Get your Illinois State Tax ID Number

Click Here to Obtain State Tax and State Unemployment Tax ID

It’s worth noting that Illinois is a “Joint Application” state. ONLY ONE APPLICATION FOR TWO IDENTIFICATION NUMBERS (one for SIT and one for SUI).

Did you know that overtime compensation is required in Illinois?

Illinois Wage and Hour Laws

Employees in Illinois who are covered by the state’s minimum wage statute must be paid $10.00*** per hour.

Except for those explicitly exempted by legislation, all employees 18 years of age or older working for companies with at least four employees are covered.

• Employees in the agriculture and aquaculture industries;
• transporters;
• external salespeople;
• members of religious companies or organizations; and members of religious corporations or organizations
• Under the rules of the Fair Labor Standards Act, students from recognized state schools and universities are employed.

Illinois Payroll for Employer

Wage payment laws in Illinois require employers to pay wages at least semimonthly and no more than 13 days after the end of a pay period. Executive, administrative, and professional workers, as well as employees on commission who are covered by the Fair Labor Standards Act, are allowed to be paid on a monthly basis.

Illinois Unemployment:

Taxable Wage Base ($000s):                        12,960

New Employer Rate (% Taxable Wages)    3.175**

Employee Tax Rate (% Taxable Wages)     None

Illinois Income Tax Withholding

Employers must withhold state income tax from employees’ paychecks and return the amounts withheld to the Department of Revenue under Illinois law.

Wages earned in Illinois by citizens of Iowa, Kentucky, Michigan, and Wisconsin are free from Illinois state income tax withholding under reciprocal agreements between the states.

Illinois Benefits

Illinois Voting Rights:

Employer Right to Schedule Voting Hours         Yes

Pay Deduction for Voting Time Leave                 Time Off with Pay Limited to 2 Hours

Employers in Illinois are required to provide employees enough time off to vote or serve as election judges.

In Illinois, all businesses must provide their employees paid time off to vote. The scope of this overview is limited to private employers.

Employers are required to provide employees with two hours of voting time off. Employers may define the hours of leave; however, if workers’ working hours begin less than two hours after the polls open and finish less than two hours before the polls close, employers must allow a two-hour absence during working hours.

Illinois State Tax Resources