Colorado vs Illinois Payroll Comparison
Compare payroll compliance requirements between Colorado and Illinois. See key differences in wages, taxes, leave policies, and employer obligations.
Compare State Payroll Requirements
Select 2 states to compare their payroll compliance requirements side-by-side.
| Requirement | Colorado | Illinois |
|---|---|---|
| Minimum Wage | ⚠️$15.16/hour (2026); Denver $19.29 | ⚠️$15.00/hour (state); $16.60/hour (Chicago large employers) |
| Tipped Minimum | $12.14 + tips (2026) | 60% of minimum wage ($9.00 state) |
| Overtime Threshold | 40 hrs/week AND 12 hrs/day | 40 hours/week (1.5x regular rate) |
| Final Pay (Termination) | ⚠️Immediately | Next regular payday |
| Final Pay (Resignation) | Next regular payday | Next regular payday |
| PTO Payout Required? | ⚠️Yes (vacation is earned wages) | ⚠️Yes (accrued vacation must be paid) |
| Pay Frequency Mandate | Monthly, semi-monthly, or more frequent | Semi-monthly (most employees) |
| State Income Tax | ⚠️Yes (4.4% flat rate) | ⚠️Yes (4.95% flat rate) |
| Unemployment Insurance | Yes | Yes |
| State Disability Insurance | ✓No (FAMLI covers some) | ✓No |
| Paid Family Leave (FAMLI) | ⚠️Yes (starting 2024) | N/A |
| Paid Sick Leave | ⚠️Yes (48 hours/year) | ⚠️Yes (40 hours/year - Paid Leave for All Workers Act) |
| Workers' Comp Required | ⚠️Yes (all employers) | ⚠️Yes (all employers) |
| Paid Family Leave | N/A | ✓No (state program not yet enacted) |
Key Differences: Colorado vs Illinois
COColorado
- Minimum Wage:$15.16/hour (2026); Denver $19.29
- Tipped Minimum:$12.14 + tips (2026)
- Overtime Threshold:40 hrs/week AND 12 hrs/day
- Final Pay (Termination):Immediately
- Final Pay (Resignation):Next regular payday
- PTO Payout Required?:Yes (vacation is earned wages)
ILIllinois
- Minimum Wage:$15.00/hour (state); $16.60/hour (Chicago large employers)
- Tipped Minimum:60% of minimum wage ($9.00 state)
- Overtime Threshold:40 hours/week (1.5x regular rate)
- Final Pay (Termination):Next regular payday
- Final Pay (Resignation):Next regular payday
- PTO Payout Required?:Yes (accrued vacation must be paid)
Understanding Colorado and Illinois Payroll Differences
State Income Tax: Colorado has state income tax (Yes (4.4% flat rate)), while Illinois has state income tax (Yes (4.95% flat rate)). This significantly impacts both employer withholding responsibilities and employee take-home pay.
Minimum Wage: Colorado minimum wage is $15.16/hour (2026); Denver $19.29, compared to Illinois at $15.00/hour (state); $16.60/hour (Chicago large employers). Employers must pay at least the higher of federal, state, or local minimum wage requirements.
Paid Sick Leave: Colorado: Yes (48 hours/year). Illinois: Yes (40 hours/year - Paid Leave for All Workers Act). States with mandatory paid sick leave require employers to track accruals and provide specific leave entitlements.
For complete compliance requirements, review the full state guides for Colorado and Illinois.