Struggling to keep up with payroll and HR in Illinois? From local ordinances to statewide labor laws, we’ll help you save time and focus on growing your business.
Payroll Services in Illinois
How Paylocity Helps Illinois Employers
Payroll That Gets It Done
- Seamless Automation: Eliminate repetitive tasks with automated workflows that boost accuracy and save time.
- Smart Safeguards: Built-in audits and integrations flag issues before they become errors.
- Transparent Calculations: Easily manage overtime, bonuses, and local tax changes, even across overlapping jurisdictions.
Your Extra HR Team Member
- Automated Workflows: Use ready-made templates for common tasks or build custom processes that fit your business.
- One Employee Record: A single source of truth for employee data keeps everything organized and compliant.
- Time & Labor Made Simple: Schedule quickly, track clock-ins and meal breaks, and standardize time-off requests.
Compliance Made Simple
- Compliance Dashboard: Get a clear view of requirements with updated forms and expert HR support.
- Built-In Data Access: Quickly find work authorizations, EEO/FLSA data, pay records, certifications, and industry updates.
- Always Up-to-Date Forms: Access the latest state and federal forms right from the platform.
Challenges Facing Employers in Illinois
Illinois maintains a complex compliance landscape that requires a careful balance between federal standards and state mandates.
As an employer, you must grapple with:
- Stricter employment regulations ranging from pay transparency to paid voting leave.
- Higher state and local minimum wage requirements.
- Additional safety and health requirements under the Illinois State OSHA plan.
Illinois Payroll Fast Facts
Minimum Wage
$15.00
State Income Tax Rate
4.95%
Right to Work Laws
None
State Unemployment Tax Rate
- 3.65% (new employers)
- 0.75% - 7.85% (experienced employers)
Last Updated: December 2025
Illinois Tax and Compliance Resources
FAQs About Paying Employees in Illinois
Does Illinois have a state income tax?
Yes, Illinois state income tax uses a flat rate of 4.95%, meaning it applies to all taxpayers regardless of their income level.
Is Illinois a Right to Work State?
No, Illinois is not a right to work state, but it can pass right to work laws in the future if it wishes to do so.
What are the Illinois final pay laws?
In Illinois, employees who voluntarily resign or are involuntarily terminated must receive their final paycheck either at the time of separation or by the next regular payday if providing it immediately isn’t possible.
Are there Illinois work break laws?
Yes, under the state’s One Day Rest in Seven Act, employers must provide a 20-minute unpaid meal break for employees working seven and a half or more continuous hours, which employees must take no later than five hours after the start of the shift. An additional 20-minute meal break must be permitted if an employee works a 12-hour shift or longer.
More Than Just Payroll
Why Employers in Illinois Choose Paylocity
Lincoln Park Zoo Builds a Sustainable Future with Smarter HR
Lincoln Park Zoo brings its people-first mission to life by evolving its HR processes with Paylocity — creating a more modern, sustainable habitat for staff, volunteers, and future generations.
See How Modern HR & Payroll Works
Take a Self-Guided Tour
Experience the Paylocity difference in this interactive tour through some of our time-saving features and innovative employee tools.
State and Federal Compliance Alerts
Section 128 Trump Account Contribution Program Requirements
IRS and Treasury now allow employer contributions of up to $2,500 to employee Trump Accounts.
HCM Compliance Year-End Review
To help you stay ahead of new laws and requirements that will become effective in 2026, we’ve compiled a list with summaries of what to expect starting January 1, 2026, through June 30, 2026.