Illinois vs Minnesota Payroll Comparison
Compare payroll compliance requirements between Illinois and Minnesota. 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 | Minnesota |
|---|---|---|
| Minimum Wage | ⚠️$15.00/hour (state); $16.60/hour (Chicago large employers) | N/A |
| Tipped Minimum | 60% of minimum wage ($9.00 state) | ✓Same as regular minimum wage (no tip credit) |
| Overtime Threshold | 40 hours/week (1.5x regular rate) | 40 hours/week (federal FLSA) |
| Final Pay (Termination) | Next regular payday | ⚠️Immediately on demand |
| Final Pay (Resignation) | Next regular payday | Next regular payday |
| PTO Payout Required? | ⚠️Yes (accrued vacation must be paid) | ⚠️Yes (if policy provides) |
| Pay Frequency Mandate | Semi-monthly (most employees) | At least monthly; within 15 days |
| State Income Tax | ⚠️Yes (4.95% flat rate) | ⚠️Yes (5.35% - 9.85%) |
| Unemployment Insurance | Yes | Yes |
| State Disability Insurance | ✓No | ✓No |
| Paid Family Leave | ✓No (state program not yet enacted) | Coming 2026 |
| Paid Sick Leave | ⚠️Yes (40 hours/year - Paid Leave for All Workers Act) | ⚠️Yes (Earned Sick & Safe Time - 48 hrs/yr) |
| Workers' Comp Required | ⚠️Yes (all employers) | ⚠️Yes (all employers) |
| Minimum Wage (Large Employer) | N/A | ⚠️$10.85/hour (2024) |
| Minimum Wage (Small Employer) | N/A | ⚠️$8.85/hour (2024) |
Key Differences: Illinois vs Minnesota
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)
MNMinnesota
- Minimum Wage (Large Employer):$10.85/hour (2024)
- Minimum Wage (Small Employer):$8.85/hour (2024)
- Tipped Minimum:Same as regular minimum wage (no tip credit)
- Overtime Threshold:40 hours/week (federal FLSA)
- Final Pay (Termination):Immediately on demand
- Final Pay (Resignation):Next regular payday
Understanding Illinois and Minnesota Payroll Differences
State Income Tax: Illinois has state income tax (Yes (4.95% flat rate)), while Minnesota has state income tax (Yes (5.35% - 9.85%)). 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 Minnesota at $10.85/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). Minnesota: Yes (Earned Sick & Safe Time - 48 hrs/yr). 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 Minnesota.