Illinois Paycheck Calculator

Use Illinois Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.

What Are Payroll Taxes?

Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.

The Social Security tax is paid by both the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.

Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.

Each state also has specific state payroll taxes that must be withheld and paid.

Illinois Payroll Taxes

There are two Illinois employer payroll taxes to keep track of in addition to Social Security and Medicare. 

Employers pay into a state unemployment tax account (SUTA) and employees pay state income tax. 

SUTA

Under SUTA, companies must contribute a portion of payroll taxes to the state’s unemployment program, which pays out benefits to the unemployed until they find a new job or the predetermined benefit runs out.

In Illinois, SUTA is paid on income of the first $12,960 of annual employee income, as of 2022. Rates are based on the difference between unemployment insurance paid from the employer’s account and SUTA taxes paid.

The rate for new employers is .525%. Find rate information on the state’s Department of Employment Security website. 

State Income Tax 

Generally, Illinois’ state income tax withholding rate is 4.95% after exemptions. Find more detail on the Department of Revenue website. 

Paying Payroll Taxes

Just as you need an EIN to pay federal payroll taxes, in Illinois, you’ll need to register for state withholdings and SUTA taxes at MyTaxIllinois. You’ll pay both by logging into your MyTaxIllinois account. 

State income tax withholding payments are due either semi-weekly or monthly, depending on your total withholding amount. SUTA taxes will be monthly or quarterly. 

Be sure to check with your local government to find out about any local payroll taxes. 

Using a Payroll Tax Service

In Illinois, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.  

You’ll just send over your digital timesheets and relevant information and the service provider will take care of the calculations, payments and taxes, freeing you up to focus on growing your business. 

We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!