Illinois employer payroll tax calculator 2026
Hiring in Illinois? New Illinois employers pay 3.35% state unemployment tax on the first $14,250 of each employee's wages, on top of the federal 6.2% Social Security, 1.45% Medicare and FUTA. For a $60,000 employee that's about $5,109 a year in employer payroll taxes — $477.38 of it to Illinois.
| Wages | $60,000.00 |
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% on $7,000.00) | $42.00 |
| State unemployment insurance (SUI) (3.35% on $14,250.00) | $477.38 |
| Employer payroll taxes | $5,109.38 |
| Total cost before benefits | $65,109.38 |
Per two-week payroll: $2,504.21. Add health insurance, retirement and workers' compensation in the cost of an employee calculator.
Illinois unemployment tax (SUTA) for new employers
Most new employers pay the 3.35% entry rate; new employers in industries with a higher average rate pay that instead. The rate is entry rate including the 0.55% fund building rate.
After a few years the state assigns your own rate based on your layoff history; enter it in the calculator once you have it. Your rate also earns the usual federal FUTA credit: pay Illinois on time and FUTA is 0.6% on the first $7,000. If Illinois ends up a credit-reduction state for the year (the Department of Labor lists them each November), FUTA is higher.
Other Illinois payroll programs
Illinois has no state paid-leave or disability program with an employer share, and no other broad state payroll tax on employers.
What an employee costs in Illinois
| Salary | Federal employer taxes | Illinois employer taxes | Total cost | Taxes as % of pay |
|---|---|---|---|---|
| $40,000 | $3,102.00 | $477.38 | $43,579.38 | 8.9% |
| $60,000 | $4,632.00 | $477.38 | $65,109.38 | 8.5% |
| $100,000 | $7,692.00 | $477.38 | $108,169.38 | 8.2% |
A year, before benefits. New-employer rates, 5 employees, full FUTA credit.
How much does a $40,000 employee cost in Illinois?
About $43,579 a year: the $40,000 salary plus $3,102.00 of federal employer taxes and $477.38 of Illinois employer taxes, before benefits. That's $1,676.13 per two-week payroll.
How much does a $60,000 employee cost in Illinois?
About $65,109 a year: the $60,000 salary plus $4,632.00 of federal employer taxes and $477.38 of Illinois employer taxes, before benefits. That's $2,504.21 per two-week payroll.
How much does a $100,000 employee cost in Illinois?
About $108,169 a year: the $100,000 salary plus $7,692.00 of federal employer taxes and $477.38 of Illinois employer taxes, before benefits. That's $4,160.36 per two-week payroll.
Both halves of one paycheck
On a $60,000 salary paid every two weeks, the employee sees $12,435 a year taken out of pay — federal income tax, their own Social Security and Medicare and Illinois taxes — and takes home $47,565 (single filer, standard W-4). That money is withheld from their wages, not an extra cost to you. On top of the salary, you pay $5,109.38 of employer taxes. See the employee's side line by line in the Illinois paycheck calculator.
More employer tools
Cost of an employee (benefits and cost per hour) · Employer payroll tax calculator (all states) · Employer payroll taxes guide
Illinois figures checked 2026-09-28 against the state's own publications. Planning estimate, not a payroll return: your rate notice and the state's rules decide the final amount.
Sources
- Illinois IDES — 2026 state experience factor and contribution rates (EA-50) — entry rate 3.350% including the 0.550% fund building rate; first $14,250 of wages in 2026 (checked 2026-09-28)
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits; FUTA
- IRS — FUTA credit reduction — 6.0% FUTA on the first $7,000; usual 5.4% credit; credit-reduction states lose part of the credit
- U.S. Department of Labor — FUTA credit reductions — the list of credit-reduction states for each year (checked 2026-09-28)
Questions
What is the Illinois SUTA rate for new employers?
3.35% in 2026 (entry rate including the 0.55% fund building rate), on the first $14,250 of each employee's wages. Most new employers pay the 3.35% entry rate; new employers in industries with a higher average rate pay that instead.
What is the Illinois unemployment tax wage base for 2026?
$14,250 per employee per year.
How much does it cost to employ someone for $60,000 in Illinois?
About $65,109 a year before benefits: $4,632.00 of federal employer taxes and $477.38 for Illinois, at the new-employer rate with 5 employees.