Illinois Payroll & Paycheck Tax Calculator
Running payroll in the Land of Lincoln doesn't have to feel like navigating Chicago traffic during rush hour. Whether you're managing a small team in Springfield or a growing business in the Windy City, our Illinois Payroll Tax Calculator takes the complexity out of calculating employee taxes. Get accurate withholding amounts for state income tax, unemployment insurance, paid leave, and all federal requirements in seconds.
Illinois Payroll Tax Steps
Illinois might have a flat income tax rate, but don’t let that fool you into thinking payroll is simple. Between state unemployment insurance, potential local taxes, and strict compliance requirements, you need a reliable way to calculate accurate withholdings. Our calculator helps you skip the guesswork and ensures your payroll is fast, accurate, and compliant with Prairie State regulations.
Below are the essential steps for a proactive payroll system in Illinois:
Step #1: Register with the Illinois Department of Employment Security (IDES)
Before you can legally hire employees in Illinois, you'll need to register with IDES for your State Unemployment Insurance (SUI) account. This is where you'll pay mandatory unemployment insurance that funds benefits for workers who lose their jobs. Registration is straightforward through the MyTax Illinois portal. Most for-profit businesses employing workers in Illinois must register.
New employers pay 3.175% for construction businesses or 2.725% for all others on the first $13,590 of each employee's wages.
Step #2: Handle the Paperwork, Even with Illinois' Flat Tax
Step #3: Master Illinois Minimum Wage and Overtime Laws
Step #4: Follow Illinois' Pay Period Requirements
Step #5: Use our Simple Illinois Payroll Calculator
Step #6: Submit Payroll Taxes and File Reports on Time
Fingercheck and any related entities do not offer tax, accounting, or legal advice. This content is designed for informational purposes only and should not be considered a source of tax, legal, or accounting advice. It is recommended that you consult your tax, legal, and accounting advisors before undertaking any related activities or transactions.