✦ State Payroll Tax Registration

Register for payroll

taxes in
Illinois
— we handle it.

To set up payroll in Illinois requires two state agency registrations. We handle both so you can focus on running your business rather than navigating state portals.

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Businesses served
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States covered
98%
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Illinois
Registration Requirements

Register for payroll taxes today - here’s what’s required

Here are the state agencies you need to register with as an employe in your state. We handle all registrations on your behalf.

Withholding Tax

Illinois Department of Revenue

Handles state income tax withholding registration for all Illinois employers.

Unemployment Insurance

Illinois Department of Employment Security

Handles Unemployment Insurance (UI) registration for all Illinois employers.

✦ What Employers Need to Know

Key facts about your state payroll taxes.

A quick overview of what's involved before you run your first payroll.

Illinois has a flat income tax rate of 4.95% — unchanged in recent years and applied to all income brackets equally.
Illinois new employers pay a UI rate of 3.175% on the first $13,590 of each employee's wages — one of the higher wage bases in the Midwest.
Illinois has no state disability insurance (SDI) program. Chicago has no broad local payroll tax on wages.
Illinois employers must register with both the Illinois Department of Revenue (withholding) and the Illinois Department of Employment Security (UI) before running payroll.
✦ How It Works

We handle the whole process for you

You provide the business info — we do the rest.

1

Complete our intake form

Tell us about your business — name, EIN, entity type, and start date. Takes about 5 minutes.

2

We review & prepare

Tell us about your business — name, EIN, entity type, and start date. Takes about 5 minutes.

3

We submit to the state

We register your business with the appropriate state agencies through official portals.

4

You receive your credentials

We deliver your account numbers and filing details — ready to load into your payroll system.

Ready to get registered?

Flat fee, no surprises. We work inside your existing payroll system.

Launch
$0
to start
State payroll tax checkup
Verify if you're already registered
Free provider recommendation if needed
State Registration
$150
per agency registration
We register with all required state agencies
Credentials delivered to you
Works with your existing payroll system
Setup Plan
$599
one-time
Up to 3 state registrations included
Full payroll system configuration
First payroll run verification

State Payroll Tax FAQs

Common questions about registering for payroll taxes.

Do I need to register for payroll taxes in my state?

Yes- if you have employees working in your state, you are required to register with the appropriate state tax agencies before running your first payroll. Failing to register can result in penalties and back taxes.

Does Chicago have any payroll tax requirements?

Chicago does not impose a broad local payroll tax on wages, but certain business categories may be subject to city-specific taxes. Most employers operating in Chicago only need standard state and federal payroll registrations. We assess your specific situation and ensure complete compliance.

What information do you need to get started?

We'll need your business name, EIN, entity type, physical address, start date of payroll, and owner information. You provide it once through our intake form and we handle everything from there.

How long does the registration process take?

+Processing times vary by state. Most registrations are completed within 5–10 business days. We keep you updated throughout the process and notify you as soon as your credentials are ready.