Cost to hire an employee in Illinois
On top of a $50,000 salary, a Illinois employer pays roughly $5,014 in payroll taxes and insurance before benefits, about 10% of wages.
Last verified November 2, 2026. Sources: news.bloombergtax.com, oregon.gov.
What a Illinois employer pays
| Cost | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% net | First $7,000 |
| Illinois unemployment (SUTA) | 3.35% new employer 0.75%–7.05% experienced | First $14,250 |
| Workers' compensation | ~$1.34 per $100 | Varies by job class |
Fund-building surtax 0.55%, included in all rates
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $3,666 | 10.5% | $38,666 |
| $50,000 | $5,014 | 10% | $55,014 |
| $75,000 | $7,262 | 9.7% | $82,262 |
| $100,000 | $9,509 | 9.5% | $109,509 |
| $150,000 | $14,004 | 9.3% | $164,004 |
Benefits usually cost more than taxes. The BLS Employer Costs for Employee Compensation survey puts benefits at roughly 30% of total compensation in private industry. Add your health plan cost in the calculator to include it.
Illinois vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| Illinois | $14,250 | 3.35% | $5,014 |
| Indiana | $9,500 | 2.5% | $4,460 |
| Iowa | $20,400 | 1% | $4,676 |
| Kentucky | $12,000 | 2.7% | $4,571 |
| Missouri | $9,000 | 2.38% | $4,736 |
| Wisconsin | $14,000 | 3.05% | $5,004 |
Frequently asked questions
- How much does it cost to hire an employee in Illinois?
- On a $50,000 salary, employer payroll taxes and insurance add about $5,014 (10%), before benefits, for a total of $55,014.
- What is the Illinois SUTA rate for new employers?
- New employers generally pay 3.35% on the first $14,250 of each employee's wages. Experienced employers pay between 0.75% and 7.05%.
- Do Illinois employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.