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Public Holidays Calendar

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United States – Illinois 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Monday Jan-17 Martin Luther King Day
Friday Feb-11 Lincoln's Birthday Holiday
Saturday Feb-12 Lincoln's Birthday
Monday Feb-21 President's Day
Monday May-30 Memorial Day
Sunday Jun-19 Juneteenth
Monday Jun-20 Juneteenth Holiday
Monday Jul-4 Independence Day
Monday Sep-5 Labor Day
Monday Oct-10 Columbus Day
Tuesday Nov-8 General Election Day
Friday Nov-11 Veteran's Day
Thursday Nov-24 Thanksgiving
Sunday Dec-25 Christmas Day
Monday Dec-26 Christmas Holiday

United States – Illinois
Payroll and Benefits Guide

Last updated: Feb 08, 2022
United States Dollar (USD)
Payroll Frequency
Employer Taxes
12.575% - 24.175%

Papaya Offers Complete Payroll, PEO and Contractor Management Services For United States – Illinois

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United States Dollar (USD)
Date Format
Fiscal Year
1 January- 31 December
Public holidays calendar



Employer Payroll Contributions

0.675% – 6.875% (Maximum taxable wages is 12,960.00 USD)

Unemployment (State)


Unemployment (New Employer Tax)

6.20% (Maximum taxable wages is 147,000.00 USD)+ 0.90% additional tax on income over 200K USD

FICA Social Security (Federal)

1.45% (Maximum taxable wages is 142,800.00 USD) + 0.90% additional tax on income over 200K USD

FICA Medicare (Federal)  

0.60% - 6.00% (Maximum taxable wages is 7,000 USD)

FUTA (Federal Unemployment Tax Act)  The FUTA tax rate is 6.0% with a taxable wage base of 7,000 USD. However, if states operate their unemployment insurance programs in compliance with federal law then the FUTA tax is reduced (credit) by 5.4% to 0.6%.

12.575% - 24.175% Total Employment Cost


Employee Payroll Contributions

6.20% (Maximum taxable wages is 147,000.00 USD)

FICA Social Security (Federal)


FICA Medicare (Federal)  


Additional tax on earnings over 200,000 USD (High-income earners also pay an additional 0.9 percent in Medicare taxes)

7.65% - 8.55% Total Employee Cost

Employee Income Tax

State Income Tax rate

Flat Rate for singles and married couples filing jointly


Employee Income Tax

Standard Deduction and Personal Exemption
Filing Status

Deduction Amount



Couple/Married Filing Jointly


Personal Exemption

2,325.00 USD

Couple/Married Filing Jointly

4,650.00 USD


2,325.00 USD

Employee Income Tax

Federal Income Tax For Single Taxpayers (Single Filers)

Up to 10,275 USD


10,276 USD to 41,775 USD


41,776 USD to 89.075 USD


89,076 USD to 170,050 USD


170,051 USD to 215,950 USD


215,951 USD to 539,900 USD


539,901 USD or more


Employee Income Tax

Federal Income Tax For Married Taxpayers (Joint Filing)

Up to 20,550 USD


20,551 USD to 83,550 USD


83,551 USD to 178,150 USD


178,151 USD to 340,100 USD


340,101 USD to 431,900 USD


431,901 USD to 647,850 USD


647,851 USD or more


Employee Income Tax

Federal Income Tax For Heads of Households

Up to 14,650 USD


14,651 USD to 55,900 USD


55,901 USD to 89,050 USD


89,051 USD to 170,050 USD


170,051 USD to 215,950 USD


215,951 USD to 539,900 USD


539,901 USD or more

Employee Income Tax

Standard Deduction and Personal Exemption

12,950.00 USD

Married Filing Jointly

25,900.00 USD

Head of Household

19,400.00 USD


Payroll Cycle

In general, employees in Illinois are paid semi-monthly or monthly. When the pay cycle is semi-monthly, the employee must make the payment within 13 days before the end of the pay period.

13th Salary

There are no provisions in the law regarding 13th salaries.  

Working Hours


In Illinois, the workweek is a maximum of 40 hours per week or 8 hours per day.


Illinois adheres to the Fair Labor Standards Act (FLSA), and work in excess of 40 hours per week is considered overtime and paid at the rate of 150% of the regular pay. If employees are scheduled to work on weekends or rest days, no additional payment is required. However, should an employer request an employee to work in exceptional circumstances on these days, then overtime is paid at the rate of 150% of the regular pay.

Working Week



Paid Time Off

Illinois does not have any state laws that govern paid time off. However, it is common for employers to decide whether to offer paid or unpaid vacation leave.  This must comply with employment law and must be stipulated in the collective bargaining agreements.

Public Holidays

There are 16 public holidays. State law does not require private employers to grant employees time off or paid leave on public holidays. 

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

FMLA eligible employees are entitled to:

  • 12 working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.
  • The employee may be entitled to leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • To care for the employee’s spouse, child, or parent who has a severe health condition.
  • A serious health condition that makes the employee unable to perform the essential functions of their job.
  • Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”


  • 26 working weeks of leave during a single one-year period to care for a covered servicemember with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).

In addition to the FMLA, employers with more than 16 employees must provide one hour of paid sick leave for every 30 hours worked, up to a maximum of 48 hours of paid sick leave.

Illinois has an exception for Chicago and Cook County. Employees are entitled to 1 hour of paid sick leave for every 40 hours worked, with a maximum annual accrual of 40 hours. Employees can carry over 20 hours of paid sick leave however, the employee is FMLA eligible, employees may carry over an additional 40 to use for FMLA leave. To be eligible for paid sick leave, employees must work for their employer for six months, at least 2 hours within the city or the county in any two weeks, and at least 80 hours during any 120 days.

Maternity Leave

Maternity leave falls under the FMLA (see Sick Leave).

Paternity Leave

Paternity leave falls under the FMLA (see Sick Leave).

Parental Leave

Parental leave falls under the FMLA (see Sick Leave).

Other Leave

  • Jury Duty: Full-time employees are entitled to job-protected, unpaid leave for jury duty or as a witness in a case, responding to a subpoena, or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement, giving a minimum notice of 10 days.
  • Voting Leave: Employees who are registered to vote must be allowed up to two hours of paid leave to vote in a general or special election between the opening and the closing hours of polls. In Illinois, polls are open from 6:00 a.m. to 7:00 p.m. Employees must provide reasonable notice to their employers to take time off to vote.
  • In addition to the federal law USERRA, Illinois law provides protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the public health service, and any other category of persons designated by the president in a time of war or emergency.
  • The Illinois Service Member Employment and Reemployment Rights Act (ISERRA)applies to the Armed Forces of the United States or National Guard, but also anyone on state active duty or service for any federally recognized auxiliary of the United States Armed Forces when performing official duties in support of military or civilian authorities as a result of an emergency.
  • The Illinois Family Military Leave Act provides unpaid family military leave to an employee who is the spouse, parent, child, or grandparent of a person called to military service lasting longer than 30 days. The State of Illinois requires employers with 15-50 employees to have 15 days of leave and 30 days of leave for employers with more than 50 employees.In the case of a bereavement, an employee must provide notice at least two days before the leave is due and may be required to provide an employer with appropriate documentation, such as a death certificate or published obituary. This leave entitles the employee to attend the funeral or alternative to a funeral, plan necessitated by the death, or grieve the child’s death.The Child Bereavement Leave Act (under the Family and Medical Leave Act) requires employers with more than 50 employees to provide their employees who have suffered the loss of a child with up to two weeks (10 working days) of unpaid bereavement leave. The leave will increase to 6 weeks should the same employee lose more than one child during a 12-month period. Employees must use the leave within two months of the child’s death.  An Employee may not take child bereavement


Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal “notice period” to terminate an individual employment relationship, and employment is stipulated “at will.” This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, etc., and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).

The employment contracts of executives and other highly skilled individuals often incorporate a “just cause termination” clause which mandates that the employer may only terminate the employee for “cause” and lists the permissible grounds. In such cases, the parties negotiate the foundations for a “just cause” termination.

Notice Period

In Illinois, most employees are employed “at-will,” and either party can terminate the employment relationship without notice. In Illinois, payout of unused vacation time is not required by law. However, employers will generally pay an employee for unused vacation days, provided the employee gave some advanced notice of resignation. While there is no official notice period standard practice is 2 weeks.

In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed, and employers must give 60 days’ notice to impacted employees.

Severance Pay

Except as otherwise provided in an employment contract or collective bargaining agreement, severance pay is not required. Many employers choose to offer severance pay based on the employee’s length of employment.

Probation Period

There are no provisions in the law regarding probation or trial periods. However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.



Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security or the United States Citizenship and Immigration Services (USCIS) for an employment visa on behalf of the prospective employee. If the petition is approved, the prospective employee must obtain a visa stamp from a United States embassy or consulate (Canadian citizens are exempt from this requirement).  To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request.

The types of visas include:

  • H-1B: For applicants with a college degree hired to do specialized work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
  • H-1B1: For applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
  • H-2A:  For temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • H-2B: For temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • L: For intercompany transfers (people transferred from a foreign company to a US branch of the company). The applicant must have been employed at the company for a year before the transfer and work in a managerial level position or higher with specialized knowledge.
  • O: For people with extraordinary abilities in science, arts, education, business, or athletics.

The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.

For those seeking employment-based immigrant visas:

  • E-1: Highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics
  • E-2: For those with advanced degrees or exceptional ability
  • E-3: For skilled workers and professionals, as well as unskilled workers
  • E-4: Members of certain immigrant groups
  • E-5: Immigrant investors in US companies (substantial investment)

Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a “green card” if the employee can establish that the potential employee is a multinational executive or manager transferee, has unique skills, or has been offered a job in the United States. The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.

All employers are obligated to verify that all individuals they employ are authorized to work in the United States.



Illinois has a minimum combined sales tax rate of 7.821% (state tax at 6.25% and local tax is between 0% and 4.75% ). 

Version History

January 1, 2022
The minimum wage increased to 12.00 USD per hour.
Payroll contributions and personal income tax rates have been updated.
January 1, 2021
Minimum wage: goes up to $11.00 per hour.
VAT: Illinois minimum combined sales tax rate of 7.821% (state tax at 6.25% and local tax is between 0% and 4.75%).
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