Illinois vs Massachusetts Payroll Comparison
Compare payroll compliance requirements between Illinois and Massachusetts. 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 | Illinois | Massachusetts |
|---|---|---|
| Minimum Wage | ⚠️$15.00/hour (state); $16.60/hour (Chicago large employers) | ⚠️$15.00/hour (2024) |
| Tipped Minimum | 60% of minimum wage ($9.00 state) | $6.75/hour + tips |
| Overtime Threshold | 40 hours/week (1.5x regular rate) | 40 hours/week (1.5x) |
| Final Pay (Termination) | Next regular payday | ⚠️SAME DAY as discharge |
| Final Pay (Resignation) | Next regular payday | Next regular payday |
| PTO Payout Required? | ⚠️Yes (accrued vacation must be paid) | ⚠️Yes (vacation must be paid out) |
| Pay Frequency Mandate | Semi-monthly (most employees) | Weekly or bi-weekly |
| State Income Tax | ⚠️Yes (4.95% flat rate) | 5% flat (+ 4% surtax over $1M) |
| Unemployment Insurance | Yes | Yes |
| State Disability Insurance | ✓No | ✓No (but PFML exists) |
| Paid Family Leave | ✓No (state program not yet enacted) | ⚠️Yes - PFML program |
| Paid Sick Leave | ⚠️Yes (40 hours/year - Paid Leave for All Workers Act) | ⚠️Yes - 40 hours/year |
| Workers' Comp Required | ⚠️Yes (all employers) | ⚠️Yes (all employers) |
Key Differences: Illinois vs Massachusetts
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)
MAMassachusetts
- Minimum Wage:$15.00/hour (2024)
- Tipped Minimum:$6.75/hour + tips
- Overtime Threshold:40 hours/week (1.5x)
- Final Pay (Termination):SAME DAY as discharge
- Final Pay (Resignation):Next regular payday
- PTO Payout Required?:Yes (vacation must be paid out)
Understanding Illinois and Massachusetts Payroll Differences
State Income Tax: Illinois has state income tax (Yes (4.95% flat rate)), while Massachusetts has state income tax (5% flat (+ 4% surtax over $1M)). This significantly impacts both employer withholding responsibilities and employee take-home pay.
Minimum Wage: Illinois minimum wage is $15.00/hour (state); $16.60/hour (Chicago large employers), compared to Massachusetts at $15.00/hour (2024). Employers must pay at least the higher of federal, state, or local minimum wage requirements.
Paid Sick Leave: Illinois: Yes (40 hours/year - Paid Leave for All Workers Act). Massachusetts: Yes - 40 hours/year. 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 Illinois and Massachusetts.