Illinois · 2026 and 2027
Illinois employer payroll taxes and employee cost: 2.8% SUTA on $14,250
In Illinois, a $50,000 employee costs a new employer about $62,802 a year in 2026: 25.6% on top of pay for payroll taxes, unemployment insurance, workers' comp and health coverage. Change any input to see your own number.
Calculate the cost of an employee in Illinois
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
What an Illinois employer pays on top of pay
Every line of the calculator, explained, with the official source of each number.
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying Illinois unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- Illinois unemployment insurance (SUTA)
2.8% of $14,250
New employers pay 2.8% on the first $14,250 of each employee's pay in 2026. After two to three years the rate follows your own claims history.
per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026
- State paid leave and disability premiums
None
Illinois has no employer-paid family leave or disability insurance premium among the state programs we track.
- Paid sick leave
40 hours a year
One hour of paid leave per 40 hours worked, up to 40 hours a year, usable for any reason. The hours are paid but not worked, so they raise the cost per hour worked.
per Illinois Department of Labor, as of Jan 1, 2024
- Workers' compensation
$1.34 per $100 of payroll
Index rate for a standard mix of job classes: rank 13 of 51 (1 = highest) and 123% of the national median in the 2024 study. Your premium depends on your job classes and claims history.
per Oregon Department of Consumer and Business Services, as of Jan 1, 2024
- Health insurance (employer share)
$7,866 single / $20,410 family
Average employer contribution per enrolled employee a year at Illinois private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$15 in 2026, $15 in 2027
Illinois's rate since Jan 1, 2025. Employers with 4 or more employees. Chicago and Cook County set higher local rates. No change scheduled for 2027 as of Nov 3, 2026.
per Illinois Department of Labor, as of Jan 1, 2025; per Illinois Department of Labor, as of Jan 1, 2025
Checked against each source on Oct 23, 2026. Press image of these numbers, free to use with attribution: PNG · SVG.
Two worked examples in Illinois
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,040 hours | $49,038 |
|---|---|
| Paid sick leave required by law40 hours | $962 |
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)2.8% of $14,250 | $399 |
| Workers' compensation (state index rate)$1.34 per $100 of payroll | $670 |
| Health insurance (single coverage, state average)average employer contribution | $7,866 |
| Total cost a year | $62,802 |
25.6% on top of pay · $30.79 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,040 hours | $36,720 |
|---|---|
| Paid sick leave required by law40 hours | $720 |
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)2.8% of $14,250 | $399 |
| Workers' compensation (state index rate)$1.34 per $100 of payroll | $502 |
| Health insurance (single coverage, state average)average employer contribution | $7,866 |
| Total cost a year | $49,113 |
31.2% on top of pay · $24.07 per hour worked
What changes for Illinois employers in 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
Not announced yet
- 2027 unemployment insurance wage base: not announced yet; 2026: $14,250. per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026
- 2027 new-employer unemployment rate: not announced yet; 2026: 2.8%. per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
How much does it cost to hire an employee in Illinois?
About $62,802 a year in 2026 for a $50,000 employee of a new Illinois employer with 10 staff: $12,802 above pay, of which $7,866 is health coverage, $670 workers' comp and $399 Illinois unemployment tax. At $18 an hour full time: $49,113.
What payroll taxes do employers pay in Illinois?
Illinois new employers pay $4,266 yearly on a $50,000 salary, $399 of it state unemployment tax.
What is the Illinois SUTA rate for new employers in 2026?
2.8% on the first $14,250 of each employee's pay: up to $399 per employee a year.
Is paid sick leave required in Illinois?
Yes. One hour of paid leave per 40 hours worked, up to 40 hours a year, usable for any reason. That is 40 paid hours a year for a full-time Illinois employee at 100 employees.
How much does workers' comp cost in Illinois?
$1.34 per $100 of payroll at Illinois's index rate (rank 13 of 51, 123% of the median): about $670 on $50,000 of pay.
How much do Illinois employers pay for health insurance?
$7,866 a year per employee with single coverage and $20,410 with family coverage, the average Illinois private-employer share of $9,724 and $28,248 premiums in 2025.
More employer cost pages
Cities in Illinois with their own rules
States with a similar employer cost
Minimum wage in Illinois
Data and rules for every state
Terms on this page
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.