Quick Facts
| Item | Value | Notes |
|---|---|---|
| Minimum Wage | $15.00/hr | $15/hr statewide; Chicago $15/hr (4-20 employees) |
| Pay Frequency | Twice monthly | |
| Overtime Rules | 1.5x after 40 hrs/week; live-in exempt | |
| Record Retention | 5 years |
State Income Tax
Withholding Form: IL-W-4
Unemployment Insurance
Registration: Register online
Workers' Compensation
Threshold: 40+ hrs/week for 13+ weeks/year
Paid Family & Medical Leave
40 hrs paid leave + 40 hrs paid sick leave (eff July 1, 2024); 40 hrs/year; accrues 1hr/40hrs worked (eff Jan 1, 2024)
| Item | Value |
|---|---|
| Employee Contribution | Yes |
Paid Sick Leave
Accrual Rate: 1hr/40hrs worked
Annual Cap: 40 hrs
40 hrs paid leave + 40 hrs paid sick leave (eff July 1, 2024); 40 hrs/year; accrues 1hr/40hrs worked (eff Jan 1, 2024)
New Hire Reporting
Deadline: Within 20 days of hire
Special Requirements
Meal breaks: 20 min per 7.5 consecutive hours; Chicago has enhanced paid leave beyond state; Cook County earned sick leave ordinance
Required Forms
Form IL-W-4
Illinois state income tax withholding form
Purpose: Employee completes for state tax withholding
Illinois state form
Purpose: State compliance
Key Deadlines
| Deadline | Date | Description | Frequency |
|---|---|---|---|
| New Hire Reporting | Within 20 days of hire | Report new employees within 20 days to the state | at-event |
State Agencies
Sources
Frequently asked
- Do I owe nanny tax in Illinois?
- If you pay a household employee $3,000 or more in 2026, you owe federal FICA (Social Security and Medicare). If you pay $1,000 or more in any calendar quarter, you owe FUTA. Illinois state unemployment kicks in once you exceed the state's wage threshold — typically the first $14,250 of wages.
- What is the Illinois SUI rate for a new household employer?
- New household employers in Illinois start at 3.35%, applied to the first $14,250 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.
- How much state income tax do I withhold for a Illinois nanny?
- Illinois applies a flat 4.95% state income tax. You withhold this from each paycheck after applying any state standard deduction or exemptions based on your employee's state withholding certificate.
- What forms do I need to file for a household employee in Illinois?
- Federally: Schedule H (filed with your personal Form 1040), W-2 and W-3 (given to your employee and filed with the SSA), and quarterly EFTPS deposits if your liability exceeds $1,000/year. In Illinois: new-hire reporting, quarterly SUI filings, and any required state income tax withholding returns. CareTax generates all federal reference documents and points you to the Illinois state portals.