Country Payroll Guide USA – Illinois

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Key Facts

Capital
Springfield
Date format
mm/dd/yyyy
Currency
United States Dollar (USD)
VAT
the standard rate is 6.25%

Contributions

Employers

Unemployment (State)
Unemployment (State) - 0.625% to 6.825%
Unemployment - New Employer (State)
Unemployment- New Employer (State) - 3.18%
FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
Total Employment Cost
Total Employment Cost - Up to 24.55%

Employees

FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% +0.9% tax on over $200k (Maximum taxable wages is 142,800 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
Total Employee Cost
Total Employee Cost - Up to 14.55%

Minimum Wage

Minimum Wage
The minimum wage in Illinois is 11 USD per hour.

Payroll

Payroll Cycle
Monthly, Bi-Monthly
13th Salary

There are no statutory laws on 13th salary.

Income Tax

Single Filers tax rate (Federal) (1)
0 - 9.875 USD - 10%
Single Filers tax rate (Federal) (2)
9,876 - 40,125 USD - 12%
Single Filers tax rate (Federal) (3)
40,126 - 85,525 USD - 22%
Single Filers tax rate (Federal) (4)
85,526 - 163,300 USD - 24%
Single Filers tax rate (Federal) (5)
163,301 - 207,350 USD - 32%
Single Filers tax rate (Federal) (6)
207,350 - 518,400 USD - 35%
Single Filers tax rate (Federal) (7)
Over 518,401 USD - 37%

State Tax

State Tax (1)
Flat rate - 4.95%

Working Hours

General Working Hours

40 hours per week, 8 hours per day.

Overtime

Overtime must be paid at a minimum of 150% of the employee’s regular wage.

 

Leave

Paid Time Off

There are no statutory laws regarding annual leave in Illinois.

Public Holidays

12 public holidays.

Sick Days

The FMLA provides certain employees with up to 12 weeks of unpaid, job-protected leave per year or certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child).

Employees are eligible for leave if they have worked for their employer at least 12 months, at least 1,250 hours over the past 12 months, and work at a location where the company employs 50 or more employees within 75 miles. Whether an employee has worked the minimum 1,250 hours of service is determined according to the Fair Labor Standards Act principles for determining compensable hours or work.

Maternity Leave

Maternity leave falls under the FMLA.

Paternity Leave

Paternity leave falls under the FMLA.

Parental Leave

Parental leave falls under FMLA, if the employee is eligible.

Other Leave

Not applicable.

Termination

Termination Process

In Illinois, both the employer and employee can terminate the employment contract at any time, once no discrimination has taken place in the process.

Notice Period

There are no provisions in the law outlining notice, however, dismissal in Illinois follows the federal Worker Adjustment and Retraining Notification Act (WARN) which outlines 60 days’ notice for mass layoffs.

Severance Pay

There is no requirement for severance pay, it is a matter of agreement between an employer and an employee.

Probation Period

Up to 12 months.

Visa

Employment Visa

In general, work visas are based on a specific offer of employment. In most cases, a petition must be filed and approved by the United States Citizenship and Immigration Services (USCIS) before applying for the visa at a U.S. Embassy.