Illinois Employee Cost Calculator
Illinois employee cost calculator with $15 minimum wage. Calculate employment costs including IL unemployment insurance (0.75%-9.25%) and federal taxes. Chicago has additional wage requirements.
$15.00/hr
3.35%
0.75% -9.25%
$14,250
Enter salary and state, then click Calculate
Ready to run payroll in Illinois?
Once you know the true employee cost, the next job is paying people correctly. Full-service payroll software can help with pay runs, tax filings, W-2s, new-hire reporting, and state unemployment details.
Disclosure: some payroll links may be affiliate links, at no extra cost to you.
Key Facts About Hiring in Illinois
Minimum wage: $15.00/hour
SUI rates: 0.75% to 9.25%
Higher employment costs
Cook County has additional requirements
2026 Illinois Employer Cost Snapshot
Illinois hiring costs vary sharply by industry and location. Employers should budget for Illinois UI, Chicago or Cook County wage rules where applicable, workers' compensation, and higher benefit expectations around the Chicago metro area.
Benefits are modeled at 18% for this example. Use the calculator above to replace this with your actual health insurance, retirement, and PTO assumptions.
Illinois uses a 2026 unemployment taxable wage base of $14,250.
The 2026 standard new employer rate is 3.350%, with some industry-specific rates.
Chicago and Cook County requirements can change hourly labor costs beyond the state baseline.
Logistics, warehousing, healthcare, and construction roles should model workers' compensation separately.
- Register with IDES and set up MyTax Illinois for wage reporting.
- Confirm whether Chicago or Cook County wage and leave rules apply.
- Use the 2026 UI rate notice when available instead of defaulting to the standard new employer rate.
- Add workers' compensation and local compliance costs outside the calculator's SUI estimate.
- Illinois is a good target page for warehouse, logistics, healthcare, and construction internal links.
- For employers outside Chicago, the state UI baseline may be manageable, but benefits and workers' comp still drive the total.
- For Chicago-area hourly employees, local wage floors and scheduling rules can matter as much as payroll tax.
Ready to run payroll in Illinois?
Once you know the true employee cost, the next job is paying people correctly. Full-service payroll software can help with pay runs, tax filings, W-2s, new-hire reporting, and state unemployment details.
Disclosure: some payroll links may be affiliate links, at no extra cost to you.
Official Illinois payroll sources
Frequently Asked Questions - Illinois
Calculate Illinois Costs by Industry
Workers' compensation rates, turnover, and compliance requirements vary significantly by industry. See industry-specific costs for Illinois.
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Automate payroll taxes, direct deposits, and compliance.
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