Capital City
Springfield
Timezone
CST
(
GMT-6
)
Paid Leave
None
Income Tax
4.95%
Employer Tax
13.45%
Capital City
Springfield
Timezone
CST
(
GMT-6
)
Paid Leave
None
Income Tax
4.95%
Employer Tax
13.45%
Access to a highly educated workforce, particularly in finance, healthcare, and technology.
Competitive labor costs compared to other major metropolitan areas.
Strong transportation infrastructure and central location for logistics and supply chains.
State-level incentives for job creation, training, and business investment.
Both a Federal Employer Identification Number (EIN) and an Illinois Payroll Tax Number are needed to employ in Illinois.
40 hours per week
In Illinois, full-time employment is typically considered working 30 to 40 hours per week, although the state does not have a legal definition distinguishing full-time from part-time employment.
There is no law specifically regulating probationary periods for employees. However, employers commonly use probationary periods as part of their onboarding process to evaluate a new hire's performance.
Illinois's minimum wage is $14.00 per hour.
Illinois enforces comprehensive anti-discrimination laws to protect individuals across various sectors, including employment, housing, public accommodations, and financial credit. The primary legislation governing these protections is the Illinois Human Rights Act (IHRA).
In Illinois, most employees are typically paid on a biweekly (every two weeks) or semi-monthly (twice per month) basis, as these are the most common payroll frequencies.
In Illinois, the deadline for filing individual state income tax returns aligns with the federal deadline, typically on April 15. If April 15 falls on a weekend or federal holiday, the deadline is extended to the next business day.
In Illinois, private-sector employers are not required to provide traditional pensions to employees, but certain regulations encourage retirement savings options:
Illinois does not require employers to provide paid vacation leave. Vacation leave policies are typically at the discretion of the employer.
Paid Leave for All Workers Act requires employers to provide employees with up to 40 hours of paid leave per year. Employees earn 1 hour of paid leave for every 40 hours worked. Leave can be used for any reason without requiring documentation.
In Illinois, maternity leave is governed by both federal and state laws that provide protections for new and expecting parents:
In Illinois, paternity leave is not mandated by state law, but employees may be eligible for leave under federal laws and certain state regulations that provide parental leave protections for new fathers.
Sick leave requirements vary depending on the location and employer policies.
Employees are entitled to military leave under both federal and state laws, which provide protections and benefits for employees who serve in the military. The Federal Law (USERRA) provides up to 5 years of unpaid, job-protected leave for military service. Illinois Service Member Employment and Reemployment Rights Act (ISERRA) covers all Illinois employers and provides additional protections similar to those under USERRA.
In Illinois, jury duty is a civic responsibility that ensures the right to a fair trial. Employers are required to provide employees with time off to serve on a jury, regardless of the shift they work.
Parental leave is governed by a combination of federal and state laws, providing various protections and benefits for new parents.
In Illinois, employers are mandated to provide certain benefits to employees, ensuring compliance with both state and federal regulations. Key requirements include:
In Illinois, employers are required to provide health insurance if they meet certain criteria under federal law, specifically the Affordable Care Act (ACA). Employers with 50 or more full-time or full-time-equivalent employees must provide health insurance that meets ACA standards or face potential penalties. Employers with fewer than 50 full-time employees are not required to provide health insurance under federal law.
In Illinois, benefits for part-time employees largely depend on the employer's policies and the specific benefit in question, as there is no state requirement for part-time employee benefits.
In Illinois, employers are not required to offer a 401(k) or private retirement plan, but there is a requirement for certain employers to provide a retirement savings option through the Illinois Secure Choice Retirement Program if they do not already offer a plan.
Illinois is an at-will employment state, meaning that employers or employees can end the employment relationship at any time, with or without notice, and for any reason (or no reason at all), as long as it is not illegal.
It is advisable for employers to document the reason for termination, especially if it is for cause (e.g., performance issues, misconduct), to protect against potential wrongful termination claims.
Employers are not legally required to give notice before terminating an employee unless stated in a contract or policy.
Illinois law does not require employers to offer severance pay upon termination. However, if an employer has a policy or contract promising severance, they are obligated to honor it.
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As of January 1, 2024, Illinois’ minimum wage rates are:
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