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How to Do Payroll in Illinois

August 19, 2021

Illinois has state income taxes, with reciprocity agreements with nearby states to let employees pay income taxes for the state they reside in. The wage and labor laws closely follow federal regulations. We’ll cover how to complete payroll in Illinois, with explanations of the most important taxes and labor laws that affect payroll.

If this is your first run with payroll or you’d just like to save yourself some time, we recommend using payroll software like Gusto. It pays employees by check or direct deposit and tracks payroll and tax laws for all 50 states. And if you ever incur any fines or penalties because of a mistake Gusto makes, it will cover the charge. Sign up for a free trial.

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