Illinois · 2026 employer costs
How much does an employee cost in Illinois?
Illinois's mandatory employer payroll costs come from federal Social Security and Medicare, plus this state's own unemployment insurance rate and wage base. Below is a 2026 estimate for a $60,000 hire, and the full calculator to run your own numbers.
A $60,000 Illinois employee costs about
$65,109
in mandatory employer costs alone — before any optional benefits.
- New-employer SUI: 3.35% on the first $14,250 of wages.
- Standard FUTA rate applies: 0.6% — this state is not projected to face a federal credit reduction for 2026.
- State income tax is withheld from the employee's wages, not paid directly by the employer.
Standard entry rate (3.35%, including the 0.55% fund-building surcharge) for most employers who became liable on or after Jan. 1, 2024. Some secondary sources cite a lower 3.175% figure for a different new-employer subgroup — confirm your exact assigned rate on your IDES rate notice.
What you’d pay this person — before taxes or benefits.
Used only for employer-size rules. The estimate below is for one new hire.
Health insurance, 401(k) match, bonus, and more. Off by default.
2026 calculation assumptions▾
Source: SSA / IRS
Source: IRS
Source: IRS / U.S. Dept. of Labor
Standard entry rate (3.35%, including the 0.55% fund-building surcharge) for most employers who became liable on or after Jan. 1, 2024. Some secondary sources cite a lower 3.175% figure for a different new-employer subgroup — confirm your exact assigned rate on your IDES rate notice.
Source: IL Dept. of Employment Security (IDES)
This estimate assumes your business is a new employer (not yet experience-rated) for unemployment insurance purposes. An established business’s actual SUI rate may be higher or lower depending on its claims history. “Current employees” is used only to check headcount-based thresholds (paid sick leave tiers, the ACA’s 50-employee mark) — it doesn’t change the tax rates themselves.
Reverse the question
Not “what will it cost?” — what can I afford?
Enter what your business can put toward one new hire each month, all-in. We’ll work backward through IL payroll taxes to the highest salary it supports.
Estimated affordable salary
$77,548
per year