Illinois Labor Burden Calculator

Find the fully burdened labor rate in Illinois, pre-filled with local SUI and tax estimates.

Pre-filled with Illinois estimates: SUI 3.5% on a $13,900 wage base, state income tax ~5.0%. Edit any field below.

Social Security + Medicare (7.65%)

Federal unemployment (effective 0.6%)

Health, retirement, etc.

$37.58/hr

Fully burdened rate

25.3%

Burden added

$78,156

Annual cost

Burden breakdown

Employer FICA (Social Security + Medicare)7.7% · $2.30/hr
Federal Unemployment (FUTA)0.6% · $0.18/hr
State Unemployment (SUI)3.5% · $1.05/hr
Workers' Compensation1.5% · $0.45/hr
Benefits (health, retirement)8.0% · $2.40/hr
Overhead (PTO, equipment, admin)4.0% · $1.20/hr
Total burden25.3% · $7.58/hr

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Estimates only, using editable 2025 US defaults. Tax and insurance rates vary by employer, classification, and locality. Verify with a licensed accountant before relying on these figures.

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Calculating the fully burdened labor rate in Illinois starts with federal payroll taxes and adds the state-specific pieces. Flat 4.95% income tax with a mid-range SUI wage base. This calculator pre-fills Illinois's estimated new-employer SUI rate of 3.5% on a $13,900 wage base, then lets you layer in workers compensation, benefits, and overhead.

Illinois's estimated new-employer SUI rate of 3.5% on a $13,900 wage base caps state unemployment at $487 per employee per year, above the typical range of $219 to $434 and the 12th highest of the 51 jurisdictions on this site. At a $30 pay rate the wage base is met in week 12, and SUI stops accruing for the rest of the year. Illinois also taxes wages, at an estimated 5.0% effective rate, which the employee pays rather than the employer. For a staffing agency billing in Illinois, SUI is the largest state-driven line in the burden, so the markup on each placement has to recover $487 over the life of the assignment. The income tax shapes the pay rate a candidate will accept, which pushes the bill rate up a second time.

The result is the true hourly and annual cost of an employee in Illinois: the number you need before setting a bill rate or comparing a W2 hire against a 1099 contractor.

Labor burden in states bordering Illinois

Labor burden in the most populous states

All 50 states and DC

Illinois Labor Burden FAQ

What is the labor burden rate in Illinois?
In Illinois, the employer labor burden combines federal taxes (FICA 7.65%, FUTA 0.6%) with the state unemployment (SUI) rate, estimated around 3.5% for new employers on a $13,900 wage base, plus workers compensation, benefits, and overhead. Most Illinois employers land between 15% and 30% total burden. Every rate is editable in the calculator above.
How is the fully burdened rate calculated in Illinois?
Add all employer costs as a percentage of the base wage, then multiply the pay rate by (1 + total burden). The calculator pre-fills Illinois's SUI estimate and lets you adjust workers comp and benefits to match your business.
Does Illinois have a state income tax?
Yes. Illinois levies a state income tax (effective rate roughly 5.0% for a typical earner). Income tax is paid by the worker and does not change the employer's labor burden. It matters for the 1099 vs W2 take-home comparison instead.
Are these numbers tax advice?
No. These are editable 2025 estimates. Illinois SUI rates are experience-rated per employer and workers comp varies by class code. Confirm with a licensed accountant.