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Free Illinois payroll tax
calculator (and IL tax rates)

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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

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We do all the hard work to set you up, starting at just $40 + $6 per employee.

Updated: June 7, 2024

Our Illinois payroll calculator is designed to help any employer in the Land of Lincoln save time and get payroll done right. Just enter wage and W-4 information for each employee, and our calculator will process your gross pay, net pay, and deductions for federal taxes as well as Illinois state taxes.

Calculate federal payroll taxes for Illinois employees

First of all, let’s calculate federal payroll taxes for your employees. You can use our Illinois payroll calculator to calculate all your employees’ federal withholdings, plus any additional taxes your business is responsible for paying.

 

Here’s a summary of all you need to know when you’re calculating payroll taxes for your hardworking Illinoisans! For a more detailed explanation of all of the steps below, check out our step-by-step guide.

  • Gross wages, which is simply the amount of money an employee has earned during the last pay period.
    • For hourly employees, multiply the number of hours worked by their pay rate — and make sure you don’t forget to take overtime into consideration.
    • For salaried employees, divide each employee’s annual salary by the number of pay periods you have over the course of a year.
  • Calculate any pre-tax withholdings. If your employees have 401(k) accounts, flexible spending accounts (FSA) or any other pre-tax withholdings, subtract them from gross wages prior to applying payroll taxes.
  • Deduct federal income taxes, which can range from 0% to 37%. Further withholding information can be found through the IRS.
  • Deduct and match any FICA taxes to cover Medicare and Social Security taxes:
    • For Social Security tax, withhold 6.2% of each employee’s taxable wages until they have earned $168,600 in a given calendar year. Employers must match this tax.
    • For Medicare tax, withhold 1.45% of each employee’s taxable wages. Employers also must match this tax. For employees who more than $200,000 per year, withhold an Additional Medicare Tax of 0.9% on the amount over $200,000. Employers are not responsible for paying the Additional Medicare Tax.
  • Pay FUTA unemployment taxes, which is 6% of the first $7,000 of each employee’s taxable income. You can claim a tax credit of up to 5.4% for the state unemployment tax you pay. Only you as the employer are responsible for paying FUTA taxes.
  • Subtract any post-tax deductions. You might need to withhold court-ordered wage garnishments, child support, post-tax contributions to savings accounts, elective benefits, etc. Take these into consideration as well.
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Illinois payroll tax rates in 2024

Now that we’re done with federal taxes, let’s look at Illinois state income taxes. You’ll also need to withhold state taxes before you’ll be ready to send your employees home with their paychecks.

 

How are payroll taxes calculated in Illinois?

The first step to calculating payroll in Illinois is applying the state tax rate to each employee’s earnings. According to the Illinois Department of Revenue, all incomes are created equal: Employers are responsible for deducting a flat income tax rate of 4.95% for all employees. No cities within Illinois charge any additional municipal income taxes, so it’s pretty simple to calculate this part of your employees’ withholding.

 

You’ll also need to consider each employee’s exemptions, which is $2,425 for the 2024 tax year. Additional exemptions are allowed if the employee is over 65 years old and/or legally blind.

 

Taxes paid to the state of Illinois must be paid on an ongoing basis using these forms:

 

In addition, the state of Illinois provides Booklet IL-700-T which includes withholding tables and explains how to determine the amount of Illinois income tax employers should withhold.

 

If crunching all the numbers gets to be much too much, you have options. To automate most of the processes, including withholding taxes and deductions, try a payroll service provider. Most handle the heavy lifting, so you have more time to focus on other aspects of your business.

How does Illinois unemployment insurance work?

Unemployment Insurance (UI) supplies funding for the Illinois Department of Employment Security (IDES), which pays benefits to the unemployed. The wage base is $13,590 for 2024 and rates range from .850% to 8.650%. If you’re a new employer, your rate is 3.950%. Newly registered businesses must register with IDES within 30 days of starting up. You can register electronically through the MyTax Illinois website.

Did you know? 

Illinois has a state tax reciprocity agreement with the neighboring states of Wisconsin, Michigan, Iowa, and Kentucky. That means any non-residents who travel to Illinois to work from one of these states is exempt from Illinois withholding and will complete IL-W5-NR (Employee’s statement of nonresidence in Illinois).

New hire reporting in Illinois 

For employers in the Illinois, be sure to report your new hires to the state within their first 20 days on the job. In addition, employers must report employees returning to work (who have been off the payroll) for 60 consecutive days or at the same company due to a: layoff or furlough, medical leave or separation from work. The state offers five different methods for reporting. Here’s some frequently asked questions (with answers) the state provides too.

 

Staying compliant

Workers’ compensation is required in most states, including Illinois. Learn how policies work, how this type of coverage protects employees from workplace injuries and illnesses, and what employers should know in our guide to Illinois workers’ compensation insurance.

Now write those paychecks

You’re the boss of your business, and now you’re the boss of payroll. Once you’ve calculated each employee’s net pay by implementing deductions and withholdings, you’re good to cut those checks. In addition to making sure your employees don’t have to wait any longer for their paychecks, make sure you set aside the amount of money your company needs to pay. FICA and UI payments can add up quickly, but if you fulfill them on time, you’ll be golden. Federal tax filings are done through Forms 940 (annually) and 941 (quarterly), but taxes can be paid on an ongoing basis through the EFTPS payment system. Learn more about the IRS here.

More Illinois payroll tax resources

Here are some more helpful resources so you can become the payroll whiz your small business needs you to be!

 

If calculating payroll taxes ever starts to feel like a burden, you might want to review our list of signs it’s time to outsource your payroll. And keep in mind that we offer easy and affordable online payroll services if you ever want any outside help.

 

These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.

Other calculators Illinois employers find useful

Illinois employers are invited to use the calculator at the top of this page to quickly calculate their employees’ gross pay, net pay, and deductions in a few clicks. But every now and then, employers run into situations that are a bit trickier. For example, do you occasionally reward your top performers with bonuses? Don’t forget to keep Uncle Sam in mind since he considers this type of payment to be supplemental wages and requires taxes to be withheld. Also, if you have a fluid workforce where people come and go, there may be times when you need to figure out final paychecks. So, if you can use a little more help managing the math, check out some of the calculators listed below.

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